Arbeitspapier
Savings Accounts and the Life-Cycle Approach to Social Insurance
Using Danish data, we find that about three fourths of the taxes levied to finance public transfers actually finance benefits that do not redistribute between people but redistribute income over the life cycle of individual taxpayers. This provides a rationale for financing part of social insurance via mandatory individual savings accounts. An account system that offers liquidity insurance and a lifetime income guarantee helps to alleviate the dilemma between insurance and incentives. To illustrate this, we analyse a specific proposal for reform of the Danish system of social insurance, involving the use of individual accounts. We estimate how the reform would affect the distribution of lifetime incomes, the public budget, and economic efficiency. Our analysis suggests that, even with conservative assumptions regarding labor supply elasticities, the proposed reform would generate a Pareto improvement and would imply only a minor increase in the inequality of lifetime income distribution.
- Sprache
-
Englisch
- Erschienen in
-
Series: EPRU Working Paper Series ; No. 2006-03
- Klassifikation
-
Wirtschaft
National Government Expenditures and Welfare Programs
Social Security and Public Pensions
- Thema
-
social insurance
individual accounts
lifetime income distribution
Sozialversicherung
Öffentliche Sozialleistungen
Lebenseinkommen
Einkommensverteilung
Dänemark
Verteilungswirkung
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Birch Sørensen, Peter
Hansen, Martin Ino
Bovenberg, A. Lans
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Copenhagen, Economic Policy Research Unit (EPRU)
- (wo)
-
Copenhagen
- (wann)
-
2006
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Birch Sørensen, Peter
- Hansen, Martin Ino
- Bovenberg, A. Lans
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Entstanden
- 2006