Deals with the influence of the labour growth rate on the capital per head in an economy with a pay‐as‐you‐go social security. Carries out the analysis within an overlapping generations model of a closed economy. Analyses the consequences of a shock on the labour growth rate. A decline of the labour growth rate might reduce the maximum sustainable social security. Normally it will increase capital per head, but with a high social security there might be an inverse reaction. Concludes that this is due to an increased burden of social security on the active generation.
Bräuninger, M. (1996), "Capital accumulation under a pay‐as‐you‐go social security: The influence of labour growth", International Journal of Social Economics, Vol. 23 No. 10/11, pp. 226-235. https://doi.org/10.1108/EUM0000000004307Download as .RIS
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