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Childbearing Age, Family Allowances and Social Security

  • Pierre Pestieau

    (PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CREPP - Center of Research in Public Economics and Population Economics - Université de Liège, CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain, CEPR - Center for Economic Policy Research - CEPR)

  • Grégory Ponthière

    (PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, ENS Paris - École normale supérieure - Paris)

Although the optimal policy under endogenous fertility has been widely studied, the optimal public intervention under endogenous childbearing age has remained largely unexplored. This paper examines the optimal family policy in a context where the number and the timing of births are chosen by individuals who differ as to how early fertility can weaken future earnings growth. We analyze the design of a policy of family allowances and of public pensions in such a setting, under distinct informational environments. We show how endogenous childbearing ages affect the optimalpolicy, through the redistribution across the earnings dimension and the internalization of fertility externalities. It is also shown that, contrary to common practice, children benefits differentiated according to the age of parents can, under some conditions, be part of the optimal family policy.

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Paper provided by HAL in its series PSE Working Papers with number hal-00612613.

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Date of creation: Jul 2011
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Handle: RePEc:hal:psewpa:hal-00612613
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  1. John Ermisch & David Pevalin, 2005. "Early motherhood and later partnerships," Journal of Population Economics, Springer, vol. 18(3), pages 469-489, 09.
  2. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
  3. Alessandro Balestrino & Alessandro Cigno & Anna Pettini, 2002. "Endogenous Fertility and the Design of Family Taxation," International Tax and Public Finance, Springer, vol. 9(2), pages 175-193, March.
  4. Cremer, Helmuth & Gahvari, Firouz & Pestieau, Pierre, 2004. "Pensions with Heterogenous Individuals and Endogenous Fertility," IDEI Working Papers 313, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. Anne Gauthier, 2007. "The impact of family policies on fertility in industrialized countries: a review of the literature," Population Research and Policy Review, Springer, vol. 26(3), pages 323-346, June.
  6. Samuelson, Paul A, 1975. "The Optimum Growth Rate for Population," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 531-38, October.
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  8. Walker, James R, 1995. "The Effect of Public Policies on Recent Swedish Fertility Behavior," Journal of Population Economics, Springer, vol. 8(3), pages 223-51, August.
  9. Alessandro Cigno & Annalisa Luporini, 2011. "Optimal Family Policy in the Presence of Moral Hazard when the Quantity and Quality of Children are Stochastic," CESifo Economic Studies, CESifo, vol. 57(2), pages 349-364, June.
  10. CREMER, Helmuth & PESTIEAU, Pierre & GAHVARI, Firouz, 2004. "Pensions with endogenous and stochastic fertility," CORE Discussion Papers 2004067, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. d'Albis, Hippolyte & Augeraud-Véron, Emmanuelle & Schubert, Katheline, 2010. "Demographic-economic equilibria when the age at motherhood is endogenous," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1211-1221, November.
  12. Ermisch, John & Ogawa, Naohiro, 1994. "Age at Motherhood in Japan," Journal of Population Economics, Springer, vol. 7(4), pages 393-420, November.
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  14. Blackorby,Charles & Bossert,Walter & Donaldson,David J., 2005. "Population Issues in Social Choice Theory, Welfare Economics, and Ethics," Cambridge Books, Cambridge University Press, number 9780521532587.
  15. Laroque, Guy & Salanié, Bernard, 2003. "Fertility and Financial Incentives in France," CEPR Discussion Papers 4064, C.E.P.R. Discussion Papers.
  16. John Ermisch, 1988. "Econometric Analysis of Birth Rate Dynamics in Britain," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 563-576.
  17. Cigno, Alessandro, 1986. "Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation," Economic Journal, Royal Economic Society, vol. 96(384), pages 1035-51, December.
  18. Cigno, Alessandro & Ermisch, John, 1989. "A microeconomic analysis of the timing of births," European Economic Review, Elsevier, vol. 33(4), pages 737-760, April.
  19. Philip Merrigan & Yvan St-Pierre, 1995. "A Neoclassical and Econometric analysis of the Timing and Spacing of Births in Canada from 1950 to 1990," Cahiers de recherche du Département des sciences économiques, UQAM 9501, Université du Québec à Montréal, Département des sciences économiques.
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  21. Siv Gustafsson, 2001. "Optimal age at motherhood. Theoretical and empirical considerations on postponement of maternity in Europe," Journal of Population Economics, Springer, vol. 14(2), pages 225-247.
  22. Heather Joshi, 2002. "Production, Reproduction, and Education: Women, Children, and Work in a British Perspective," Population and Development Review, The Population Council, Inc., vol. 28(3), pages 445-474.
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