Nishiyama, Shinichi; Smetters, Kent - In: The Quarterly Journal of Economics 122 (2007) 4, pp. 1677-1719
While privatizing social security can improve labor supply incentives, it can also reduce risk sharing. We analyze a 50% privatization using an overlapping-generations model where heterogeneous agents with elastic labor supply face idiosyncratic earnings shocks and longevity uncertainty. When...