Social Security Incentives and Human Capital Investment

Lau, M.I.; Poutvaara, P.

Social Security Incentives and Human Capital Investment

Lau, M.I.; Poutvaara, P.

Authors

Professor Morten Lau m.i.lau@durham.ac.uk
Professor

P. Poutvaara

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
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