Author-Name: Social Security and Integration

The purpose of this letter is to analyze the impact of economic integration when countries differ in their social security systems, more specifically in the degree of funding of their pensions, and in the regulation of the retirement age. Funding and mandatory early retirement are two features which foster capital accumulation relative to pay-as-you-go pensions with exible retirement. In case of economic integration they both imply some capital outow and may lead to some utility losses.