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Fertility, Intra-Generational Redistribution, and Social Security Sustainability

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  • Makoto Hirazawa
  • Koji Kitaura
  • Akira Yakita

Abstract

Incorporating heterogeneity in preference to having children into an overlapping generations model of a small open economy, we examine the effects of changes in the size of payasyougo (PAYG) social security on fertility choices of individuals and population growth of the economy. It is shown that PAYG social security will raise population growth by increasing the number of individuals who have children and the number of children parents have if the system involves redistribution between retirees with different contributions, whereas, if it has no redistribution, PAYG social security does not affect the fertility decisions of individuals.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 47 (2014)
Issue (Month): 1 (February)
Pages: 98-114

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Handle: RePEc:cje:issued:v:47:y:2014:i:1:p:98-114

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Cited by:
  1. Mizuno, Masakatsu & Yakita, Akira, 2013. "Elderly labor supply and fertility decisions in aging-population economies," Economics Letters, Elsevier, vol. 121(3), pages 395-399.

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