Why are More Redistributive Social Security Systems Smaller? A Median Voter Approach *

摘要: One of the stylized facts unfunded social security programs is that are larger in size, measured relative to GDP, tighter link between pension claims and past earnings. We provide a political economy explanation this fact median voter model, where people vote on tax rate. compare systems with flat-rate earnings-related benefit formulas. Only benefits redistribute within generation from high low income groups. If labor supply endogenous, they also imply efficiency costs than schemes. Using data eight European countries, we find typically middle-aged income. For these voters, more attractive both because less intragenerational redistribution lower distortions supply. The model able account for considerable degree cross-country variation contribution rates.