Aging, Social Security Design, and Capital Accumulation

This paper analyzes the impact of aging on capital accumulation and welfare in a country with a sizable unfunded social security system. Using a two-period overlapping generation model with endogenous retirement decisions, the paper shows that the type of aging and the type of unfunded social security system are important in understanding this impact. The analysis compares two types of demographic changes, declining fertility and increasing longevity; three types of pensions, defined contributions, defined benefits, and defined annuities; as well as mandatory and optimal retirement systems to investigate the differences in implications of aging.

Bibliographic Details

Main Authors:	Dedry, Antoine, Onder, Harun, Pestieau, Pierre
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-09
Subjects:	DEFINED CONTRIBUTIONS, CAPITAL MARKETS, ECONOMIC GROWTH, PRODUCTION, CAPITAL ACCUMULATION, UNFUNDED PENSIONS, OLD AGE, RETIREMENT, MORTALITY DECLINE, INCOME, INTEREST, CAPITAL ACCUMULATIONS, MANDATORY RETIREMENT, PENSION SYSTEMS, EXCHANGE, EQUILIBRIUM VALUE, UTILITY MAXIMIZATION, INCOME GROUP, LABOR FORCE, PENSION CONTRIBUTION, DEVELOPING COUNTRIES, DEMOGRAPHIC FACTORS, WELFARE, ECONOMIC IMPLICATIONS, EFFECTS, INCENTIVES, EQUILIBRIUM, POLICY DISCUSSIONS, RETIREMENT SYSTEM, FACTORS OF PRODUCTION, MARGINAL PRODUCTIVITY, CAPITAL STOCK, TAX, LABOR FORCE PARTICIPATION, PENSION SYSTEM, REAL WAGES, WEALTH, SAVING, EARLY RETIREMENT, OLD-AGE, PENSION, RETIREMENT AGES, LIFE EXPECTANCY, LABOR MARKET, SAVINGS, RATE OF POPULATION GROWTH, DEVELOPMENT ECONOMICS, POPULATION GROWTH, FERTILITY RATES, INCOME INEQUALITY, BABY, RETIREMENT AGE, PRODUCTIVITY, MIGRATION, CRITERIA, MARKETS, OVERLAPPING GENERATIONS MODEL, ORGANIZATIONS, SOCIAL SECURITY, ECONOMICS LITERATURE, DEPENDENCY RATIO, LABOR, UTILITY, MORTALITY, STATIC EQUILIBRIUM, ELDERLY, TAXES, RESPECT, PROGRESS, DEFINED BENEFIT, DEMOGRAPHIC TRANSITION, CONSUMPTION, HUMAN CAPITAL, YOUNG AGE, SOCIAL SECURITY SYSTEMS, CAPITAL, WAGES, POLICIES, ANNUITIES, FUTURE, POLICY RESEARCH WORKING PAPER, VALUE, PENSIONS, CONTRIBUTION RATE, MACROECONOMICS, DEMOGRAPHIC CHANGE, ENVIRONMENTAL CONCERNS, UTILITY FUNCTION, SHARE OF CAPITAL, SHARES, EQUILIBRIUM VALUES, ELDERLY PEOPLE, ECONOMICS, POLICY, PRODUCTION FUNCTION, OUTPUT, MANAGEMENT, FUNCTIONAL FORMS, DEMOGRAPHIC CHANGES, THEORY, CONTRIBUTION SYSTEM, SECURITY, WARS, ANNUITY, INVESTMENT, WORLD POPULATION, SHARE, NUMBER OF CHILDREN, LOWER FERTILITY, FUNDED PENSIONS, POPULATION, SOCIAL SECURITY SYSTEM, RETIREMENT DECISIONS, PENSION COVERAGE, POLICY RESEARCH, FERTILITY, DEMOGRAPHIC, HEALTHY LIFE, CAPITAL INVESTMENT, RETIREMENT INCENTIVES, OUTCOMES, DECLINE IN FERTILITY, RETIREMENT SYSTEMS, DEFINED BENEFITS, LEVEL OF FERTILITY, DEVELOPMENT POLICY, BOOM GENERATIONS, FUTURE RESEARCH,
Online Access:	http://documents.worldbank.org/curated/en/2015/09/25076835/aging-social-security-design-capital-accumulation http://hdl.handle.net/10986/22840
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