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Journal Articles
June 2003
Article
Social Security Design in the UK: What is optimal?
Type: Journal Articles
Authors: James Sefton and David Miles
ISSN: Print: 0143-5671 Online: 1475-5890
Volume, issue, pages: Vol. 24, No. 2, pp. 121-151
JEL classification: H10, H20, H30

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This paper uses a simple model of how households at different points on the income distribution make decisions about saving and labour supply to illustrate some of the problems government faces in designing social security systems. We show simulation results, which highlight the costs and benefits of alternative pension and income support regimes, and analyse what is happening in the UK in the light of the results.

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