Social Security Incentives and Human Capital Investment

Lau, M.I.; Poutvaara, P.

Abstract

While the effect of social security systems on retirement decisions has received much attention, there are no analytical results on the impact of these systems on individual incentives to invest in human capital. We integrate human capital investment and retirement decisions in an analytical life-cycle model with full certainty and investigate how different social security schemes may affect human capital investment and labor supply. We analyze and compare three different social security systems, differing on whether benefits are conditional on withdrawal from the labor market and on previous income.

Citation

Lau, M., & Poutvaara, P. (2006). Social Security Incentives and Human Capital Investment. Finnish economic papers, 19(1), 16-24

• Journal Article Type: Article
• Publication Date: Jan 1, 2006
• Deposit Date: Nov 1, 2010
• Publicly Available Date: Nov 4, 2010
• Journal: Finnish Economic Papers
• Electronic ISSN: 1798-7423
• Peer Reviewed: Peer Reviewed
• Volume: 19
• Issue: 1
• Pages: 16-24
• Public URL: https://durham-repository.worktribe.com/output/1546886
• Publisher URL: http://www.taloustieteellinenyhdistys.fi/2000s/2006v/no1.html