Is there a social security tax wedge?

A Beveridgean pension scheme invariably reduces the marginal return to labour, and will thus discourage labour. A Bismarckian scheme can do so only if it is not actuarially fair, or in the presence of credit rationing. In any case, the same pension contribution will discourage labour less if the scheme is Bismarckian than if it is Beveridgean. A Bismarckian scheme may even encourage labour.

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Year of publication:	2006
Authors:	Cigno, Alessandro
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)

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Series:	CESifo Working Paper ; 1772
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	517028581 [GVK] hdl:10419/25817 [Handle]
Classification:	H31 - Household ; H55 - Social Security and Public Pensions ; J38 - Public Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10010263955