The interplay between trade unions and the social security system in an aging economy

by Max Friese

The paper investigates the impacts of demographic change on the financial sustainability of a pay-as-you-go social security system in an economy with unemployment caused by trade unions. Using a simple two-period overlapping generations approach, it can be shown that the trade union behavior with respect to wage setting may have favorable effects on per capita contributions, if labor demand is sufficiently inelastic with respect to the wage rate. In contrast, if firm's labor demand reacts more sensitive to changes in the wage rate, the behavior of the trade union may amplify the imposed burden of demographic change on the social security system.

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Year of publication:	2017
Authors:	Friese, Max
Publisher:	Rostock : Universität Rostock, Wirtschafts- und Sozialwissenschaftliche Fakultät, Institut für Volkswirtschaftslehre
Subject:	demographic change \| PAYG public pensions \| trade unions \| unemployment \| tax burden \| output elasticity of capital \| wage elasticity of labor demand \| Gewerkschaft \| Trade union \| Gesetzliche Rentenversicherung \| Public pension system \| Alternde Bevölkerung \| Aging population \| Elastizität \| Elasticity \| Arbeitslosigkeit \| Unemployment \| Theorie \| Theory \| Overlapping Generations \| Overlapping generations \| Umlageverfahren \| Pay-as-you-go \| Arbeitsangebot \| Labour supply \| Soziale Sicherheit \| Social security \| Arbeitsnachfrage \| Labor demand \| Deutschland \| Germany \| Lohn \| Wages

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Extent:	1 Online-Ressource (circa 24 Seiten) Illustrationen
Series:	Thünen-series of applied economic theory : working paper. - Rostock : Univ.-Bibliothek, Schriftentausch, ISSN 2943-4424, ZDB-ID 2409853-X. - Vol. no. 148
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/149671 [Handle]
Classification:	E24 - Employment; Unemployment; Wages ; H55 - Social Security and Public Pensions ; J11 - Demographic Trends and Forecasts ; J51 - Trade Unions: Objectives Structure, and Effects
Source:	ECONIS - Online Catalogue of the ZBW

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