The Resource Fostering within-family human-capital investment: an intragenerational insurance perspective of social security

Fostering within-family human-capital investment: an intragenerational insurance perspective of social security

Label
Fostering within-family human-capital investment: an intragenerational insurance perspective of social security
Title
Fostering within-family human-capital investment: an intragenerational insurance perspective of social security
Creator
Subject
Language
eng
Summary
This paper proposes an extended pay-as-you-go social security system that conditions pension benefits on the aggregate wage sum and on the wage of one's children. The latter increases parents' incentives to provide their children with good within-family education. However, since wages depend stochastically on parents' unobservable investment in their children's human capital, some insurance against the productivity risk of one's children is provided, because retirement income still depends on aggregate wages. The paper analyses the effects of such a social security system on the endogenous distribution of human capital and compares it with real-world systems, which typically do not condition benefits on the wages of one's children. The approach suggests a novel role for a well-designed social security system: it can foster human-capital accumulation and act as an intragenerational insurance against productivity risk
Citation source
In: FinanzArchiv. - Tübingen. - Vol. 62 (2006),
http://library.link/vocab/creatorName
  • Barbie, M
  • Hagedorn, M
  • Kaul, A
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • social security
  • PAYG
  • pension
Label
Fostering within-family human-capital investment: an intragenerational insurance perspective of social security
Instantiates
Publication
Label
Fostering within-family human-capital investment: an intragenerational insurance perspective of social security
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.37366609999999 4.9336932
Processing Feedback ...