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Pension Policies in a Model with Endogenous Fertility

Author

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  • Cipriani, Giam Pietro

    () (University of Verona)

  • Pascucci, Francesco

    () (University of Verona)

Abstract

We set up an overlapping generations model with endogenous fertility to study pensions policies in an ageing economy. We show that an increasing life expectancy may not be detrimental for the economy or the pension system itself. On the other hand, conventional policy measures, such as increasing the retirement age or changing the social security contribution rate could have undesired general equilibrium effects. In particular, both policies decrease capital per worker and might have negative effects on the fertility rate, thus exacerbating population ageing.

Suggested Citation

  • Cipriani, Giam Pietro & Pascucci, Francesco, 2018. "Pension Policies in a Model with Endogenous Fertility," IZA Discussion Papers 11511, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11511
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Pension Policies in a Model with Endogenous Fertility
      by Christian Zimmermann in NEP-DGE blog on 2018-06-19 21:01:30

    More about this item

    Keywords

    overlapping generations; pension policies; endogenous fertility; ageing;

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • 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
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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