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Social security and economic integration

Author

Listed:
  • ARTIGE, Lionel

    (HEC, Université de Liège, Belgium)

  • DEDRY, Antoine

    (HEC, Université de Liège, Belgium)

  • PESTIEAU, Pierre

    (CREPP, HEC, Université de Liège, Belgium; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium; Toulouse School of Economics, France)

Abstract

The purpose of this letter is to analyze the impact of economic integration on capital accumulation and capital flows when countries differ in their social security systems, especially as regards the degree of funding of pensions and the regulation of the retirement age. Funding and early retirement both foster capital accumulation relative to pay-as-you-go pensions with flexible retirement. In the case of economic integration, both imply capital outflow possibly resulting in utility losses.

Suggested Citation

  • ARTIGE, Lionel & DEDRY, Antoine & PESTIEAU, Pierre, 2014. "Social security and economic integration," LIDAM Discussion Papers CORE 2014009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2014009
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    References listed on IDEAS

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    1. Casarico Alessandra, 2001. "Pension systems in integrated capital markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 1(1), pages 1-19, November.
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    5. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151, January.
    6. Philippe Michel & Pierre Pestieau, 2002. "Optimal Taxation of Capital and Labor Income with Social Security and Variable Retirement Age," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(2), pages 163-176, May.
    7. Jonathan Gruber & Kevin Milligan & David A. Wise, 2010. "Introduction and Summary," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 1-45, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    economic union; pension; retirement age; social security;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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