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Social Security and Family Support
Author(s) -
Leroux M.L.,
Pestieau P.
Publication year - 2014
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12068
Subject(s) - generosity , social security , pension , productivity , inequality , reliability (semiconductor) , business , economics , actuarial science , labour economics , economic growth , finance , political science , power (physics) , market economy , mathematical analysis , mathematics , law , physics , quantum mechanics
This paper shows how the role of the market, the state and the family in providing old‐age support has evolved over time with changes in factors such as the reliability and the effectiveness of family support, the interest rate, the cost of public funds, and earning inequality. Agents with different productivity vote over the size of a Beveridgian pension system. When children assistance is certain, agents may rely exclusively on family and prefer no pension. However, when the size and the probability of family generosity decrease, social security is more likely to emerge.