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Capital income taxation and trade unions in an endogenous fertility model

Author

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  • Minoru Watanabe

    (Hokusei Gakuen University)

Abstract

The current study aimed to develop a standard overlapping generations model incorporating involuntary unemployment caused by the union wage setting and fertility choice within an endogenous growth framework. Our study assumes that capital income tax finances in work benefits, which is the income transfer conditioned on work. The results indicate that increasing capital income tax promotes employment and hence promotes economic growth. Further, we demonstrate that a rise in capital income tax improves fertility.

Suggested Citation

  • Minoru Watanabe, 2023. "Capital income taxation and trade unions in an endogenous fertility model," Discussion Papers 2302, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2302
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2023/2302.pdf
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Capital income tax; Involuntary unemployment; Fertility;
    All these keywords.

    JEL classification:

    • 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
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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