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Fertility, Dependency and Social Security

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Author Info

  • Patricia Apps

    ()
    (University of Sydney)

  • Ray Rees

    (University of Munich)

Abstract

A subject of considerable policy concern is the problem presented by declining fertility rates for social security systems in general and Pay-As-You-Go pension schemes in particular. Solutions proposed range from complete privatisation of the pensions system, through supplementary private tax-advantaged savings schemes, to ‘parametric reform’ of the existing schemes, involving increases in contribution rates and retirement ages, and reductions in the real value of benefit levels. This paper argues that the sense of crisis generated by looking only at the Aged Dependency Ratio is exaggerated. Moreover, we should look at what appears to be the root cause of the problem, the apparently inverse relationship between female labour force participation and fertility. A solution to the problem can be found in policies that allow an increase in female labour supply and fertility simultaneously.

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Bibliographic Info

Article provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics.

Volume (Year): 5 (2002)
Issue (Month): 4 (December)
Pages: 569-585

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Handle: RePEc:ozl:journl:v:5:y:2002:i:4:p:569-585

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Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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Related research

Keywords: Government programs; provision and effects of welfare programs Marriage; marital dissolution; family structure Fertility; family planning; child care; children; youth;

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References

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  1. David Miles & Ales Cerny, 2001. "Risk, Return and Portfolio Allocation under Alternative Pension Arrangements with Imperfect Financial Markets," CESifo Working Paper Series 441, CESifo Group Munich.
  2. Apps, Patricia, 1991. "Tax Reform, Population Ageing and the Changing Labour Supply Behaviour of Married Women," Journal of Population Economics, Springer, vol. 4(3), pages 201-16, August.
  3. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
  4. Apps, P.F. & Rees, R., 1998. "On the Taxation of Trade Within and Between Households," Papers 337, Australian National University - Department of Economics.
  5. Disney, Richard, 2000. "Crises in Public Pension Programmes in OECD: What Are the Reform Options?," Economic Journal, Royal Economic Society, vol. 110(461), pages F1-23, February.
  6. Deborah Roseveare & Willi Leibfritz & Douglas Fore & Eckhard Wurzel, 1996. "Ageing Populations, Pension Systems and Government Budgets: Simulations for 20 OECD Countries," OECD Economics Department Working Papers 168, OECD Publishing.
  7. Miles, David K, 1997. "Modelling the Impact of Demographic Change Upon the Economy," CEPR Discussion Papers 1762, C.E.P.R. Discussion Papers.
  8. 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.
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Cited by:
  1. Patricia Apps & Ray Rees & Margi Wood, 2007. "Population Ageing, Taxation, Pensions and Health Costs," CEPR Discussion Papers 564, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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