Resource title

Social security incentives, human capital investment and mobility of labor

Resource image

image for OpenScout resource :: Social security incentives, human capital investment and mobility of labor

Resource description

Migration between countries with earnings-related and flat-rate pay-as-you-go social security systems may change human capital investments in both countries. The possibility of emigration boosts investments in human capital in the country with flat-rate benefits. Correspondingly, those expecting to migrate from the country with earnings-related benefits to a country with flat-rate benefits may reduce their investment in education. With suitably planned transfers between the two countries, allowing for migration may generate a Paretoimprovement for all current and future generations. Without transfers, either country may be unable to pay for promised benefits when labor becomes mobile.

Resource author

Panu Poutvaara

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19008

Resource license

Adapt according to the presented license agreement and reference the original author.