NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An Evaluation of the Role of Factor Markets and Intensities in the Social Security Crisis: A Progress Report

John B. Shoven

NBER Working Paper No. 216
Issued in November 1977
NBER Program(s):   LS   PR

This paper begins to evaluate some of the complicated set of economic adjustments which are going to occur as the uneven population age structure of the U.S. matures. It argues that in the 2012-2035 "crunch" years for the social security system not only will workers be scarce relative to retirees, but they will also be scarce relative to capital. This fact will tend to raise the wage-rentals ratio and partially alleviate the problems of a retirement plan supported by taxes on labor income. On the other hand, during this period the large number of elderly persons will be attempting to dis-save by selling their assets to the relatively few younger, accumulating families. Such an imbalance will be equilibrated only by depressed asset prices. The conclusion, thus, is that the problems of the social security system may be partially alleviated by factor price adjustments, while private funded pension plans will have a problem of their own, namely lower than anticipated liquidation values.

download in pdf format
   (1225 K)

download in djvu format
   (363 K)

email paper

This paper is available as PDF (1225 K) or DjVu (363 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0216

Users who downloaded this paper also downloaded these:
Baldwin w2656 Factor Market Barriers are Trade Barriers: Gains From Trade in 1992
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us