Social security, public education, and growth in a representative democracy

This paper studies the relationship between public education and pay-as-you -go social security in a representative democracy, where the government rea cts both to voting and lobbying activities of workers and pensioners. While an intergenerational conflict prevails concerning actual social security c ontributions, workers may prefer public education for its positive effect o n later pension benefits. Population aging diminishes the relative lobbying power of pensioners, leading to a higher contribution rate, educational ex pansion, and higher per capita income growth. JEL classifications: D72, I28 , J18.