Is there a social security tax wedge?

A Beveridgean pension scheme discourages labour, and is bad for effciency. A Bismarckian one may encourage labour, and be good for effciency. In any case, the same contribution level will discourage labour and reduce effciency less if the scheme is Bismarckian, than if it is Beveridgean.

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Bibliographic Details
Published inLabour economics Vol. 15; no. 1; pp. 68 - 77
Main Author Cigno, Alessandro
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.02.2008
Elsevier
SeriesLabour Economics
Subjects
Beveridge
Bismarck
Credit rationing
Implicit pension taxes
Labour
Public pensions
Subsidies
Tax wedge
Credit rationing
Public pensions
Beveridge
Tax wedge
Implicit pension taxes
H31
H55
Subsidies
Labour
Bismarck
J38
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Summary:A Beveridgean pension scheme discourages labour, and is bad for effciency. A Bismarckian one may encourage labour, and be good for effciency. In any case, the same contribution level will discourage labour and reduce effciency less if the scheme is Bismarckian, than if it is Beveridgean.
ISSN:0927-5371
1879-1034
DOI:10.1016/j.labeco.2006.11.003