Are Family Allowances and Fertility-related pensions Siamese Twins?
Abstract
This paper discusses alternative ways to deal with the positive externalities of having children in a pay-as-you-go pension system. Family allowances are compared to introducing a fertility-related component into the pension formula. In an endogenous labor supply setting, both instruments are shown to be equivalent if general pensions are of the Bismarckian contribution-related type. In contrast, if general pensions are of the Beveridgean flat-rate type, making pensions contingent on the number of children is generally preferable to family allowances because the latter creates a larger tax load on labor supply.Download Info
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1157.Length:
Date of creation: 2004
Date of revision:
Handle: RePEc:ces:ceswps:_1157
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Related research
Keywords: pay-as-you-go pension; child benefits; fertility; externalities;Other versions of this item:
- Volker Meier & Robert Fenge, 2004. "Are Family Allowances And Fertility-Related Pensions Siamese Twins?," Royal Economic Society Annual Conference 2004 125, Royal Economic Society.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-02 (All new papers)
- NEP-LAB-2004-08-02 (Labour Economics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Robert Fenge & Volker Meier, 2003.
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879, CESifo Group Munich.
- Robert Fenge & Volker Meier, 2005. "Pensions and fertility incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 28-48, February.
- Bernhard Felderer & Klaus Ritzberger, 1995. "Family allowances as welfare improvements," Journal of Economics, Springer, vol. 61(1), pages 11-33, February.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Jellal, Mohamed & Bouzahzah, Mohamed, 2012.
"Social security family finance and demography,"
MPRA Paper
38804, University Library of Munich, Germany.
- Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Social security family finance and demography," MPRA Paper 38793, University Library of Munich, Germany.
- Bas Groezen & Lex Meijdam, 2008.
"Growing old and staying young: population policy in an ageing closed economy,"
Journal of Population Economics,
Springer, vol. 21(3), pages 573-588, July.
- Bas van Groezen & Lex Meijdam, 2004. "Growing Old and Staying Young: Population Policy in an Ageing Closed Economy," Working Papers 04-28, Utrecht School of Economics.
- Francesco C. Billari, 2009.
"What explains fertility? Evidence from Italian pension reforms,"
2009 Meeting Papers
807, Society for Economic Dynamics.
- Francesco Billari & Vincenzo Galasso, 2010. "What explains fertilit? Evidence from Italian Pension reforms," Working Papers 369, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Billari, Francesco C. & Galasso, Vincenzo, 2008. "What Explains Fertility? Evidence from Italian Pension Reforms," CEPR Discussion Papers 7014, C.E.P.R. Discussion Papers.
- Francesco C. Billari & Vincenzo Galasso, 2008. "What Explains Fertility? Evidence from Italian Pension Reforms," CSEF Working Papers 209, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Francesco C. Billari & Vincenzo Galasso, 2009. "What Explains Fertility? Evidence from Italian Pension Reforms," CESifo Working Paper Series 2646, CESifo Group Munich.
- Francesco C.Billari & Vincenzo Galasso, 2008. "What Explains fertility? Evidence from Italian pension reforms," Working Papers 343, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Martin Werding, 2006. "Kinderrente und Vorsorgepflicht - der ifo-Vorschlag zur Lösung der demographischen Krise des Rentensystems," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 59(07), pages 44-53, 04.
- Volker Meier & Matthias Wrede, 2005.
"Pension, Fertility, and Education,"
CESifo Working Paper Series
1521, CESifo Group Munich.
- Meier, Volker & Wrede, Matthias, 2010. "Pensions, fertility, and education," Journal of Pension Economics and Finance, Cambridge University Press, vol. 9(01), pages 75-93, January.
- repec:ebl:ecbull:v:10:y:2008:i:8:p:1-7 is not listed on IDEAS
- Galasso, Vincenzo & Gatti, Roberta & Profeta, Paola, 2008.
"Investing for the Old Age: Pensions, Children and Savings,"
CEPR Discussion Papers
6825, C.E.P.R. Discussion Papers.
- Galasso, Vincenzo & Gatti, Roberta & Profeta, Paola, 2008. "Investing for the old age : pensions, children and savings," Social Protection Discussion Papers 47101, The World Bank.
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