Alternative Mechanisms for Financing Social Security

摘要

This paper provides a review, clarification, and extension of the theoretical literature concerning the effect of social security on capital accumulation and labor supply. Within a framework of overlapping generations, the paper reviews the theoretical results regarding the impact of both pay-as-you-go financed and fully-funded schemes. Relevant empirical studies using U.S. data are also reviewed. The paper also analyzes the characteristics of optimal social security systems. (Copyright (c) 1983 The World Bank.)