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Families and social security

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  • Hans Fehr
  • Manuel Kallweit
  • Fabian Kindermann

Abstract

The present paper quantifies the importance of family structures for the analysis of social security. For this reason we introduce home production as well as stable and unstable families into the standard stochastic overlapping generation model and simulate with each model version a move from a unfunded towards a funded pension system in Germany. The simulation exercise computes intergenerational welfare changes and isolates aggregate efficiency effects by means of compensating transfers. Comparing the macroe-conomic and welfare consequences resulting from the elimination of social security in the standard and in two-earner family models indicates two major conclusions. First, the consideration of home production has significant effects on labor supply and eco-nomic efficiency. Second, the impact of family insurance is fairly weak and can hardly substitute for social security. See above See above

Suggested Citation

  • Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2013. "Families and social security," EcoMod2013 5280, EcoMod.
  • Handle: RePEc:ekd:004912:5280
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    Cited by:

    1. Alessandro Bucciol & Laura Cavalli & Igor Fedotenkov & Paolo Pertile & Veronica Polin & Nicola Sartor & Alessandro Sommacal, 2015. "Public policies over the life cycle: a large scale OLG model for France, Italy and Sweden," Working Papers 29/2015, University of Verona, Department of Economics.
    2. Joanna Tyrowicz & Magdalena Smyk & Lucas van der Velde, 2018. "A cautionary note on the reliability of the online survey data - the case of Wage Indicator," GRAPE Working Papers 26, GRAPE Group for Research in Applied Economics.
    3. Georges, Patrick & Seçkin, Aylin, 2016. "From pro-natalist rhetoric to population policies in Turkey? An OLG general equilibrium analysis," Economic Modelling, Elsevier, vol. 56(C), pages 79-93.
    4. repec:sgh:gosnar:y:2017:i:4:p:63-81 is not listed on IDEAS
    5. repec:eee:poleco:v:48:y:2017:i:c:p:104-127 is not listed on IDEAS
    6. Alessandro Bucciol & Laura Cavalli & Igor Fedotenkov & Paolo Pertile & Veronica Polin & Nicola Sartor & Alessandro Sommacal, 2014. "A large scale OLG model for France, Italy and Sweden: assessing the interpersonal and intrapersonal redistributive effects of public policies," Working Papers 07/2014, University of Verona, Department of Economics.
    7. Krzysztof Makarski & Joanna Tyrowicz & Magda Malec, 2018. "Evaluating welfare and economic effects of raised fertility," GRAPE Working Papers 25, GRAPE Group for Research in Applied Economics.

    More about this item

    Keywords

    Germany; General equilibrium modeling; Public finance;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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