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This paper proposes and analyzes a model of a European economy with three overlapping generations, redistributive social security, and public universities without tuition. Individuals differ ex ante. The effect of wage tax rate on occupational choice and the voting equilibrium of wage tax rate...
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We suggest a political economy explanation for the stylized fact that intragenerationally more redistributive social security systems are smaller. Our key insight is that linking benefits to past earnings (less redistributiveness) reduces the efficiency cost of social security (due to endogenous...
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security systems are smaller. We relate the stylized fact to an "efficiency-redistribution" trade-off to be resolved by …
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time-consistency problem in income redistribution. There may be political support for so generous subsidization that it … income redistribution. -- Education ; time-consistency problem ; voting ; subsidies to education …
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voters, earnings-related systems are more attractive both because of less intragenerational redistribution and lower …
Persistent link: https://www.econbiz.de/10012759164