Role Of Social Security Research Articles

The role of social security in an economy with asymmetric information and financial intermediaries

We study an overlapping generations model with production, asymmetric information and competitive financial intermediaries. Social security may be beneficial even when it should not be used under full information, unless credit rationing emerges with pooling contracts. In this case social security could be welfare reducing even when the safe rate of return falls short of population growth. We provide a full characterization of ‘constrained Pareto efficient’ allocations and prove that, when the expected marginal product exceeds population growth and high-risk firms have a low probability of default, no tax-transfer policy can support these allocations as competitive equilibria. When equilibria are constrained inefficient, optimal contracts are pooling and the optimal stock market value is zero.

International comparison of social security and retirement funds from the national savings perspective

The aim of this paper is to shed some light on the complex issue of the relationships between social security, national saving and economic development. A description of the wide range of differing practices in the field of social protection constitutes the introductory part of the analysis. This is followed by a discussion of financing techniques and investment possibilities open to social security schemes. The debate on the relationships between social security and saving is illustrated by a survey of various empirical investigations reported in the relevant literature. The discussion ends with some reflections on the role of social security in the development process.

The Role of Social Security in the Fight Against Unemployment

The Role of Social Security in the Fight Against Unemployment

Lone Mothers, Family Credit and Paid Work

Social security payments are typically thought of as being aimed at those who are not in paid work, whether because of age, ill health, caring responsibilities or involuntary unemployment. The great bulk of social security expenditure does go to such groups, and most social security recipients fall outside the paid labour market. But there is a potential role for social security in encouraging paid work, by giving benefits to those in work on low incomes which shift the balance between in-work and out-of-work income. The principal such benefit in the UK is family credit (FC), which replaced family income supplement in 1998. FC entitlement exists for low-paid families with children, provided they work 24 hours per week or more. Receipt of FC should guarantee a substantially higher net income than is available while out of work. In 1990 there were 313,000 families receiving FC, of whom 40 per cent were lone-parent families.

The Debate over Stabilization Policy

Foreword 1. First lecture: Keynesianism, Monetarism, and the case for and against active stabilization policies 2. Second lecture: aggregate demand and the control of the inflationary process 3. Third lecture: the monetary mechanism revisited and its relations with the financial structure 4. Fourth lecture: the accumulation of individual and national wealth and the role of social security 5. Discussion 6. Comments 7. Biography of Franco Modigliani References Index.

Expanding Social Benefits: The Role of Social Security

On 14 August 1935, President Franklin Roosevelt signed the Social Security Act, the charter law for the closest approximation the United States would achieve to a modern welfare state, or system of public protections for citizens against the hazards of old-age, unemployment, ill health, disability, and poverty. The programs included in the big bang of reforms signed into law on this one watershed day had some very distinctive patterns that have largely survived and shaped the provision of public benefits in the United States to the 1980s.1 Health insurance was omitted altogether from the Social Security Act, but there were three other major parts to the legislation as proposed and passed: unemployment insurance; public assistance; and old-age insurance. Despite proposals for a more nationally uniform approach, unemployment insurance was instituted as a federal-state system, with authority left to the states to collect contributions from employers and employed workers and to provide benefits to eligible workers who later became unemployed. Over subsequent decades, taxation and benefits would become quite uneven across the states. It would also prove impossible to reform this system to pool risks of economic downturns

The Role of Social Security in Retirement Income

Using a probability sample of 1030 adult Alabamans, this study attempted to identify factors related to willingness to have social security play a dominant role in the pension mix of future retirees. Together the factors examined accounted for 32.8% of the variability in willingness to rely on social security. The best predictors of high willingness were welfare orientation and an evaluation of social security as superior to private pensions.

Saving, Social Security, and Uncertainty

Since alteration of the saving behavior of the present working generation may have such a significant impact on capital stock growth, some concern has arisen about the effect of the Social Security system on saving behavior. In response to this concern numerous empirical and theoretical analyses have been forthcoming. Most of the theoretical analyses, either in the form of overlapping generations models [9; 11] or simpler life cycle models [6; 15] have indicated that unless specific parameter values, utility functions, and, in some cases, production functions are chosen the effect of a social security system on saving is indeterminate. For example, Kurz [11] has shown that the introduction of a simple pay-as-you-go social security system in an overlapping generations model in which individuals do not have a leisure choice will not have a predictable effect on the steady state level of the capital stock unless parameter values and the form of the production function are known. Similarly, in life cycle models that include a leisure choice the effect of social security is difficult to determine, although Feldstein [6] shows that when the leisure choice is suppressed in such a model a social security system will have a negative impact on saving. This indeterminacy has not been completely resolved by empirical work, although the bulk of evidence [7; 8; 10; 12] tends to support the view that Social Security has depressed saving in the past.' Unfortunately, with the exception of the work of Sheshinski and Weiss [16], little of the theoretical analysis deals with the effect on saving behavior of participants who are faced with uncertainty about future prices, wages, and social security benefits. Sheshinski and Weiss have shown that in an overlapping generations model with uncertain lifetimes the effect of increasing the role of social security (through balanced increases in benefits and contributions) will actually lead to an increase in saving. Their analysis, however, does not include a leisure choice nor does it deal with other forms of uncertainty facing participants. Consequently, we still lack more complete answers to the following basic questions: Will the introduction of a social security program in the presence of uncertainty

Round Table Meeting on “The role of social security in development”

International Social Security ReviewVolume 34, Issue 1 p. 113-121 Round Table Meeting on “The role of social security in development” First published: January 1981 https://doi.org/10.1111/j.1468-246X.1981.tb00689.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume34, Issue1January 1981Pages 113-121 RelatedInformation

The Role of Social Security in the Development of the Caribbean Territories

The Role of Social Security in the Development of the Caribbean Territories

Book Review: International and Comparative Labor Relations: The Role of Social Security in Economic Development

Book Review: International and Comparative Labor Relations: The Role of Social Security in Economic Development

The Role of Social Security in Economic Development.

The Role of Social Security in Economic Development.