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Fertility-related pensions and fertility disincentives

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Author Info
Luciano Fanti () (University of Pisa)
Luca Gori () (University of Pisa)

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Abstract

Since recent studies have argued that a pro-natalist effect could be obtained by introducing fertility-related pension systems for contrasting, especially in European countries, the plague of below-replacement fertility and the resulting problem of financing the widespread pay-as-you-go (PAYG) pension benefits, we built up an overlapping generations (OLG) general equilibrium model with endogenous fertility, to investigate whether and how a fertility-related pension reform increases population growth. We show that if the capital’s share in production is high enough, such a reform, in contrast with the suggestions of the preceding literature, always reduces the long-run fertility rate.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume10/EB-08J10001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 10 (2008)
Issue (Month): 8 ()
Pages: 1-7
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:10:y:2008:i:8:p:1-7

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Related research
Keywords: Fertility; Child subsidy; Pensions; OLG model;

Find related papers by JEL classification:
J1 - Labor and Demographic Economics - - Demographic Economics
H5 - Public Economics - - National Government Expenditures and Related Policies

References listed on IDEAS
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  1. Holger Strulik, 2004. "Economic growth and stagnation with endogenous health and fertility," Journal of Population Economics, Springer, vol. 17(3), pages 433-453, 08. [Downloadable!] (restricted)
    Other versions:
  2. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July. [Downloadable!] (restricted)
  3. Robert Fenge & Volker Meier, 2005. "Pensions and fertility incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 28-48, February. [Downloadable!] (restricted)
    Other versions:
  4. Charles I. Jones, 2003. "Growth, capital shares, and a new perspective on production functions," Proceedings, Federal Reserve Bank of San Francisco, issue Nov. [Downloadable!]
  5. Bental, Benjamin, 1989. "The Old Age Security Hypothesis and Optimal Population Growth," Journal of Population Economics, Springer, vol. 1(4), pages 285-301.
  6. Holger Strulik, 2004. "Child mortality, child labour and economic development," Economic Journal, Royal Economic Society, vol. 114(497), pages 547-568, 07. [Downloadable!] (restricted)
    Other versions:
  7. Robert Fenge & Volker Meier, 2004. "Are Family Allowances and Fertility-related pensions Siamese Twins?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  8. Nishimura, Kazuo & Zhang, Junsen, 1995. "Sustainable Plans of Social Security with Endogenous Fertility," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 182-94, January. [Downloadable!] (restricted)
  9. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Discussion Papers in Economics 938, University of Munich, Department of Economics. [Downloadable!]
  10. van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February. [Downloadable!] (restricted)
  11. Nishimura, Kazuo & Zhang, Junsen, 1992. "Pay-as-you-go public pensions with endogenous fertility," Journal of Public Economics, Elsevier, vol. 48(2), pages 239-258, July. [Downloadable!] (restricted)
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  12. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-87, June. [Downloadable!] (restricted)
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  13. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November. [Downloadable!] (restricted)
  14. Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer, vol. 10(3), pages 335-356. [Downloadable!] (restricted)
  15. Ab O, G. & Mahieu, G. & Patxot, C., 2004. "On the optimality of PAYG pension systems in an endogenous fertility setting," Journal of Pension Economics and Finance, Cambridge University Press, vol. 3(01), pages 35-62, March. [Downloadable!]
    Other versions:
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