Resource title

Early retirement and social security : a long term perspective

Resource image

image for OpenScout resource :: Early retirement and social security : a long term perspective

Resource description

We provide a long-term perspective on the individual retirement behaviour and on the future of retirement. In a Markovian political economic theoretical framework, in which incentives to retire early are embedded, we derive a political equilibrium with positive social security contribution rates and early retirement. Aging has two opposite effects: it leads to lower taxes and fewer (early) retirees, while a poorer median voter will push for higher contributions. The model highlights the existence of crucial income effects: a decrease of the income of young people will induce them to postpone retirement and to vote for less social security.

Resource author

Jose Ignacio Conde-Ruiz, Vincenzo Galasso, Paola Profeta

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19035

Resource license

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