Skip Navigation


Oxford Economic Papers Advance Access originally published online on April 3, 2006
Oxford Economic Papers 2006 58(3):379-406; doi:10.1093/oep/gpl003
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
58/3/379    most recent
gpl003v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Sommacal, A.
Right arrow Search for Related Content
Related Collections
Right arrow H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Right arrow H55 - Social Security and Public Pensions
Right arrow J22 - Time Allocation and Labor Supply
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© Oxford University Press 2006

Pension systems and intragenenerational redistribution when labor supply is endogenous

Alessandro Sommacal

Department of Economics, Université Catholique de Louvain, Place Montesquieu 3, B-1348 Louvain-La-Neuve, Belgium

Correspondence: e-mail: sommacal{at}ires.ucl.ac.be

In models with exogenous labor supply, a reallocation of funds from a wage-related pension to a basic pension affects inequality through changes in the pension paid, redistributing resources from the rich to the poor. We show that in a model with endogenous labor supply, another effect is present: indeed changes of the benefit formula have an impact on the labor/leisure choice. This effect goes in the opposite direction of the standard effect that is also present in models with exogenous labor supply and it could be quite relevant, also depending on the different assumptions on the working of the labor market. In particular, under specific assumptions on the utility and the production functions, inequality is unaffected by a reallocation of funds towards the basic pension. However this result changes if a minimum wage is introduced, since in this case inequality turns out to be reduced.

Key Words: JEL Classification: H55


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 OXF ECON PAPHome page
M. Koethenbuerger, P. Poutvaara, and P. Profeta
Why are more redistributive social security systems smaller? A median voter approach
Oxf. Econ. Pap., April 1, 2008; 60(2): 275 - 292.
[Abstract] [Full Text] [PDF]


Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.