Social Security Privatization with Elastic Labor Supply and Second-Best Taxes.
dc.contributor.author | Smetters, Kent | |
dc.date.accessioned | 2007-04-24T20:33:30Z | |
dc.date.available | 2007-04-24T20:33:30Z | |
dc.date.issued | 2005-01 | |
dc.identifier.uri | https://hdl.handle.net/2027.42/50527 | |
dc.description.abstract | This paper shows that many common methods of privatizing social security fail to reduce labor market distortions when taxes are second best, challenging a key reason to privatize. Ironically, providing "transition relief" to workers alive at the time of the reform, in an effort to protect their previous contributions, undercuts potential efficiency gains. Chile’s reform -- the first major privatization that also served as a model for subsequent countries -- actually increased distortions. It is then shown that privatization with limited transition relief can reduce labor market distortions and produce gains to current and future generations without hurting initial retirees, i.e., a Pareto gain even with second-best taxes. | en |
dc.description.sponsorship | Social Security Administration | en |
dc.format.extent | 685513 bytes | |
dc.format.mimetype | application/pdf | |
dc.language.iso | en_US | en |
dc.publisher | Michigan Retirement Research Center, University of Michigan, P.O. Box 1248, Ann Arbor, MI 48104 | en |
dc.relation.ispartofseries | WP 2005-092 | en |
dc.title | Social Security Privatization with Elastic Labor Supply and Second-Best Taxes. | en |
dc.type | Working Paper | en |
dc.subject.hlbsecondlevel | Population and Demography | |
dc.subject.hlbtoplevel | Social Sciences | |
dc.contributor.affiliationother | The Wharton School, University of Pennsylvania | en |
dc.contributor.affiliationumcampus | Ann Arbor | en |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/50527/1/wp092.pdf | en_US |
dc.owningcollname | Retirement and Disability Research Center, Michigan (MRDRC) |
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