TY  - RPRT
        AU  - Koethenbuerger, Marko
AU  - Poutvaara, Panu
AU  - Profeta, Paola
        TI  - Why Are More Redistributive Social Security Systems Smaller? A Median Voter Approach
        PY  - 2005/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1831
        UR  - https://www.iza.org/index.php/publications/dp1831
        AB  - We suggest a political economy explanation for the stylized fact that intragenerationally more redistributive social security systems are smaller. We relate the stylized fact to an "efficiency-redistribution" trade-off to be resolved by political process. The inefficiency of social security financing is due to endogenous labor supply. Using data on eight European countries, we find that the stylized fact and a considerable degree of cross-country variation in contribution rates can be explained by the median voter model.
        KW  - public pensions
KW  - applied political economy
KW  - earnings-related and flat-rate benefits
KW  - labor supply
        ER  -