Arbeitspapier

Is there a social security tax wedge?

A Beveridgean pension scheme invariably introduces a wedge between the wage rate and the marginal take-home pay. A Bismarckian one can do so only if it is not actuarially fair, or in the presence of credit rationing. Interestingly, if the two possible sources of distortion are present at the same time, they will tend to offset each other. The distortion may even change sign (the wedge may become a premium). In any case, the same pension contribution will discourage labour less if the scheme is Bismarckian, than if it is Beveridgean.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 1967

Klassifikation
Wirtschaft
Fiscal Policies and Behavior of Economic Agents: Household
Social Security and Public Pensions
Wages, Compensation, and Labor Costs: Public Policy
Thema
tax wedge
Bismarck
Beveridge
public pensions
implicit pension tax
labour

Ereignis
Geistige Schöpfung
(wer)
Cigno, Alessandro
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2006

Handle
Letzte Aktualisierung
20.09.2024, 08:25 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Cigno, Alessandro
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2006

Ähnliche Objekte (12)