Human Capital and Pensions with Endogenous Fertility and Retirement

Arbeitspapier

We study an OLG model with child policies and a PAYG pension with endogenous retirement and fertility. The result of the planned economy is compared to the decentralized competitive equilibrium deriving optimal policies. We show that in the presence of a PAYG pension system, the optimal policy mix includes an education subsidy and a subsidy for the supply of labor in old age. Fertility should be taxed or incentivized depending on whether there is full or partial retirement, and on the parameters. We focus on the parameter reflecting the deterioration of human capital and show that a child tax may be required.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16029

Classification and Topics

• Classification: Wirtschaft ; Fertility; Family Planning; Child Care; Children; Youth ; Social Security and Public Pensions
• Subject: PAYG pensions ; endogenous fertility ; endogenous retirement ; social security ; education subsidies ; human capital

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cipriani, Giam Pietro ; Fioroni, Tamara
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272656
• Last update: 10.03.2025, 11:43 AM CET