Article (Scientific journals)
Social insurance competition between Bismarck and Beveridge
Cremer, Helmuth; Pestieau, Pierre
2003In Journal of Urban Economics, 54 (1), p. 181-196
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Keywords :
social insurance; tax competition; mobility; economic integration
Abstract :
[en] Social insurance schemes differ according to the relationship between contributions and benefits. Bismarckian systems provide earnings-related benefits, while Beveridgean systems offer flat payments. The conventional wisdom is that with factor mobility poor people have incentives to move towards Beveridgean countries. Consequently, Beveridgean regimes would not be sustainable under economic integration. This paper studies the validity of such a conjecture within a simple model. It is shown that mobility does have a significant impact on social protection. However, the equilibrium patterns that can emerge are more complex and diversified than the initial conjecture suggests. In some cases, the equilibrium may even imply that all the poor move to the Bismarckian country. (C) 2003 Elsevier Inc. All rights reserved.
Disciplines :
Regional & inter-regional studies
Author, co-author :
Cremer, Helmuth
Pestieau, Pierre  ;  Université de Liège - ULiège > HEC - École de gestion de l'ULiège > Economie publique
Language :
English
Title :
Social insurance competition between Bismarck and Beveridge
Publication date :
July 2003
Journal title :
Journal of Urban Economics
ISSN :
0094-1190
eISSN :
1095-9068
Publisher :
Academic Press Inc Elsevier Science, San Diego, United States - California
Volume :
54
Issue :
1
Pages :
181-196
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBi :
since 07 April 2013

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