Intragenerational Redistribution in Unfunded Pension Systems

Abstract

This paper studies the intracohort redistributive aspects of the United States social security system in the context of a computable general equilibrium model. It determines how the well-being of individuals who differ by gender, race, and education is affected by government social security policy. Differences in life expectancy and labor productivity translate into differences in capital accumulation and labor supply distortions that are responsible for the observed welfare difference between individuals of the same age cohort.