Social Security, Unemployment, and Growth
نویسنده
چکیده
The paper develops an overlapping generations model that highlights interactions between social security, unemployment and growth.The social security system has two components: old age pensions and unemployment insurance. Pensions have a direct effect on economic growth. Both pensions and unemployment benefits influence equilibrium unemployment caused by wage bargaining. Since unemployment impairs growth, both types of social security have an indirect, negative effect on growth. JEL classification:. E24, H55, J51, J64, J65
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