Life Cycle, Employment and Retirement Course 2 Social security issues

1. Life Cycle, Employment and Retirement Course 2 Social security issues Jean-Olivier HAIRAULT, Professeur à Paris I Panthéon-Sorbonne et à l’Ecole d’Economie de Paris (EEP)

3. Different issues

4. Capital accumulation vs. insurance But

5. Defined benefit vs. Defined contribution

6. PAYG vs. funded

7. Impact on capital accumulation

8. Saving motives

9. The role of altruism

10. The role of altruism

11. The role of altruism: references • De Nardi, M., “Wealth Inequality and Intergenerational Links,” Review of Economic Studies 71 (July 2004), 743—768. • “A Welfare Analysis of Social Security in a Dynastic Framework”, (Luisa Fuster, Ayse İmrohoroğlu and Selahattin İmrohoroğlu), International Economic Review, Vol. 44, No. 4, November 2003. • “Elimination of Social Security in a Dynastic Framework’’, (Luisa Fuster, Ayse İmrohoroğlu and Selahattin İmrohoroğlu), Review of Economic Studies. forthcoming

12. Life uncerta inty and annuity provisions

13. Income uncertainty and SS progressivity

14. Income uncertainty: References • “The Risk-Sharing Implications of Alternative Social Security Arrangements,” Storesletten, K., C. I. Telmer and A. Yaron, Carnegie-Rochester Conference Series on Public Policy 50 (June 1999), 213—259. • A Welfare Analysis of Social Security in a Dynastic Framework”, (Luisa Fuster, Ayse İmrohoroğlu and Selahattin İmrohoroğlu), International Economic Review, Vol. 44, No. 4, November 2003.

15. Capital rate of return uncertainty

16. Capital Rate of return uncertainty: References • “Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund,” Gollier, C., Journal of Public Economics (December, 2007) • Krueger, D. and F. Kubler, “Pareto-Improving Social Security Reform When Financial Markets are Incomplete!?” American Economic Review, June, 2006. • Dirk Krueger & Felix Kubler, 2002. "Intergenerational Risk-Sharing via Social Security when Financial Markets Are Incomplete," American Economic Review, American Economic Association, vol. 92(2), pages 407-410, May.

17. Redistribution

18. Inequality and Social Security: References “On the Distributional Effects of Social Security Reform,” Huggett, M. and G. Ventura, Review of Economic Dynamics (July 1999), 498—531. • Inequality and Social Security Reforms, Journal of Economic Dynamics and Control, (J.O Hairault and F. Langot), 2008. • Le caractère plus égalitaire de la retraite par répartition: une cause entendue?  (joint with F. Langot), in  Revue d'Economie Politique, 2002, vol. 112, p.563-572.

19. Impact on labor supply decisions

20. Intensive margin • Individual hours • “Elimination of Social Security in a Dynastic Framework’’, (Luisa Fuster, Ayse İmrohoroğlu and Selahattin İmrohoroğlu), Review of Economic Studies. forthcoming

21. Extensive margin

22. Retirement Age and Social Security Provisions : References • Economics of retirement, Alan L. Gustman and Thomas L. Steinmeier • Ageing and retirement age. What can we learn from the Overlapping Generations Model ? Antoine d'Autume • Blanchet D. and L. Caussat (2000), Le libre choix de l’âge de la retraite, approche économique, in Retraites choisies et progressives, D. Taddeied., Rapport du Conseil d’Analyse Economique, La Documentation française • Gruber, J. and D.Wise, “Social Security and Retirement: An International Comparison,” American Economic Review 88 (May 1998), 158—163. • Inciter à différer le départ en retraite: une analyse en termes de courbe de Laffer (joint with F. Langot and T. Sopraseuth), in  Revue d'Economie Politique, 2005, 115, p.241-263. • Quantifying the Laffer Curve on the Continued Activity Tax in a Dynastic Framework. International Economic Review,  (J.O. Hairault, F. Langot and T. Sopraseuth), Forthcoming.