Education, social security, and growth

Kaganovich, Michael; Zilcha, Itzhak

doi:10.1016/s0047-2727(98)00073-5

Cited by 131 publications

(105 citation statements)

References 21 publications

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“…The literature shows a variety of functions, typically including one or two of the following inputs: individual time allocated to education, private expenditures on education by individuals themselves or by their parents, and government expenditures on education (e.g. Lucas, 1988, Glomm andRavikumar, 1992;Michel, 1999, Kaganovich andZilcha, 1999;Bouzahzah et al, 2002;Ludwig et al, 2012). In case of two inputs, the adopted functional form is very often Cobb-Douglas (e.g.…”

Section: Inheritance and Production Of Effective Human Capitalmentioning

confidence: 99%

Pension reform in an OLG model with heterogeneous abilities

Buyse

Heylen

Kerckhove

2015

Journal of Pension Economics and Finance

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We study the effects of pension reform in a four-period OLG model for an open economy where hours worked by three active generations, education of the young, the retirement decision of older workers, and aggregate growth, are all endogenous. Within each generation we distinguish individuals with high, medium or low ability to build human capital. This extension allows to investigate also the effects of pension reform on the income and welfare levels of different ability groups. Particular attention goes to the income at old-age and the welfare level of low-ability individuals. Our simulation results prefer an intelligent pay-as-you-go pension system above a fully-funded private system. When it comes to promoting employment, human capital, growth, and aggregate welfare, positive effects in a pay-as-you-go system are the strongest when it includes a tight link between individual labor income (and contributions) and the pension, and when it attaches a high weight to labor income earned as an older worker to compute the pension assessment base. Such a regime does, however, imply welfare losses for the current low-ability generations, and rising inequality in welfare. Complementing or replacing this 'intelligent' pay-as-you-go system by basic and/or minimum pension components is negative for aggregate welfare, employment and growth. Better is to maintain the tight link between individual labor income and the pension also for low-ability individuals, but to strongly raise their replacement rate.

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Section: Inheritance and Production Of Effective Human Capitalmentioning

confidence: 99%

Pension reform in an OLG model with heterogeneous abilities

Buyse

Heylen

Kerckhove

2015

Journal of Pension Economics and Finance

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“…In Soares (2004), the existence of a social security system plays an important role in generating large welfare gains from a move from a community-wide funding of education system to a nation-wide one. In Kaganovich and Zilcha (1999) social security might increase welfare by increasing investment in human capital. Belletini and Ceroni (1999) find that a pay-as-you-go social security system can lead selfish agents to support public investment in infrastructures.…”

Section: Introductionmentioning

confidence: 99%

A dynamic general equilibrium analysis of the political economy of public education

Soares

2006

J Popul Econ

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The primary objective of this paper is to highlight the distinct roles of altruism and of self-interest in the political determination of a public education policy. I assess the relative importance of three factors in the determination of the equilibrium level of this policy: altruism, the impact of public funding of education on social security benefits and its impact on factor prices.I then focus on the impact of implementing a social security system on the equilibrium levels of education funding and on welfare. I find that although, in the benchmark economy, the presence of social security might generate support for public funding of education, its overall effect on the well-being of individuals is negative for any level of social security taxation.JEL Classification: D78, E62, I22.

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“…Among those papers are Glomm and Ravikumar (1992, 1998 , Eckstein and Zilcha (1994), Zhang (1996), Kaganovich and Zilcha (1999), Cassou and Lansing (2001), Benabou (2002), Blankeanu (2005), andWigger (2004). Glomm and Ravikumar (1992), for instance, examine the implication of schooling on growth and income inequality and find that public education can yield greater per capita income when the initial income inequality is sufficiently high in an overlapping-generations model.…”

Section: Brief Overview Of Existing Perspectivesmentioning

confidence: 99%

Government education expenditures and economic growth: a meta-analysis

Churchill

Uğur

Yew

2017

The B.E. Journal of Macroeconomics

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Abstract:Using a sample of 237 estimates drawn from 29 primary studies, we conduct a hierarchical meta-regression analysis that examines the association between economic growth and government expenditure on education. We find that the effect of government education expenditure on growth is positive for developed countries. However, when the evidence pertains to less developed countries (LDCs), we find a statistically insignificant association. We also examine the heterogeneity in empirical results and found that factors such as econometric specifications, publication characteristics as well as data characteristics explain the heterogeneity in the literature. We find no evidence of publication selectivity.

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Education, social security, and growth

Cited by 131 publications

References 21 publications

Pension reform in an OLG model with heterogeneous abilities

Pension reform in an OLG model with heterogeneous abilities

A dynamic general equilibrium analysis of the political economy of public education

Government education expenditures and economic growth: a meta-analysis

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