Social security and endogenous demographic change: child support and retirement policies*
| Autor: | Tamara Fioroni, Giam Pietro Cipriani |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Labour economics J26 Strategy and Management media_common.quotation_subject Allowance (money) Fertility Industrial and Manufacturing Engineering Order (exchange) 0502 economics and business Economics 050207 economics H55 social security Endogenous fertility D10 050205 econometrics media_common Mechanical Engineering 05 social sciences Metals and Alloys J13 Subsidy J18 Social security PAYG pensions Child support endogenous retirement H2 Finance Externality Retirement age |
| Popis: | This paper studies retirement and child support policies in a small, open, overlapping-generations economy with PAYG social security and endogenous retirement and fertility decisions. It demonstrates that neither fertility nor retirement choices necessarily coincide with socially optimal allocation, because agents do not take into account the externalities of fertility and the elderly labor supply in the economy as a whole. It shows that governments can realize the first-best allocation by introducing a child allowance scheme and a subsidy to incentivize the labor supply of older workers. As an alternative to subsidizing the elderly labor supply, we show that the first-best allocation can also be achieved by controlling the retirement age. Finally, the model is simulated in order to study whether the policies devoted to realizing the social optimum in a market economy could be a Pareto improvement. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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