Social security incentives, human capital investment and mobility of labor
by Panu Poutvaara
"Migration between countries with earnings-related and flat-rate pay-as-you-go social security systems may change human capital investments in both countries. The possibility of emigration boosts investments in human capital in the country with flat-rate benefits. Correspondingly, those expecting to migrate from the country with earnings-related benefits to a country with flat-rate benefits may reduce their investment in education. With suitably planned transfers between the two countries, allowing for migration may generate a Pareto-improvement for all current and future generations. Without transfers, either country may be unable to pay for promised benefits when labor becomes mobile"--Forschungsinstitut zur Zukunft der Arbeit web site.
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Social security incentives, human capital investment and mobility of labor
2005, IZA
Electronic resource
in English
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Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/7/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.
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