Hostname: page-component-78c5997874-mlc7c Total loading time: 0 Render date: 2024-11-08T16:28:25.514Z Has data issue: false hasContentIssue false
  • English
  • Français

Pension policies in a model with endogenous fertility

Published online by Cambridge University Press:  31 May 2018

GIAM PIETRO CIPRIANI Open the ORCID record for GIAM PIETRO CIPRIANI [Opens in a new window]  and
FRANCESCO PASCUCCI
GIAM PIETRO CIPRIANI
Affiliation:
Department of Economics, University of Verona and IZA, Verona, Italy (e-mail: [email protected])
FRANCESCO PASCUCCI
Affiliation:
Department of Economics, University of Verona, Verona, Italy
Get access Rights & Permissions [Opens in a new window]

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.

Keywords

D15H55J18J26Overlapping generationspension policiesendogenous fertilityageing
Type
Article
Information
Journal of Pension Economics & Finance , Volume 19 , Issue 1 , January 2020 , pp. 109 - 125
Copyright
Copyright © Cambridge University Press 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aísa, R., Pueyo, F., and Sanso, M. (2012) Life expectancy and labor supply of the elderly. Journal of Population Economics, 25: 545–568.Google Scholar
Alders, P., and Broer, D. P. (2005) Ageing, fertility and growth. Journal of Public Economics, 89: 1075–1095.Google Scholar
Cabo, F., and García-González, A. (2014) The endogenous determination of retirement age and social security benefits. Macroeconomic Dynamics, 18: 93–113.Google Scholar
Chen, Y., and Lau, S.-H. P. (2014) Mortality decline, retirement age, and aggregate savings. Macroeconomic Dynamics, 31: 1–22.Google Scholar
Cigno, A. (1993) Intergenerational transfers without altruism: family, market and the state. European Journal of Political Economics, 9: 505–518.Google Scholar
Cipriani, G. P. (2014) Population aging and PAYG pensions in the OLG model. Journal of Population Economics, 27: 251–256.Google Scholar
Cipriani, G. P. (2018) Aging, retirement and pay-as-you-go pensions. Macroeconomic Dynamics, 22, 1173–1183.Google Scholar
Cremer, H., Gahvri, F., and Pestieau, P. (2011) Fertility, human capital and the pension system. Journal of Public Economics, 95: 1272–1279.Google Scholar
Eurostat (2014) Taxation Trends in the European Union: Data for the EU Member States, Iceland and Norway. Luxemburg: Publications Office of the European Union.Google Scholar
Fanti, L. (2014) Raising the mandatory retirement age and its effect on long-run income and pay-as-you-go (PAYG) pensions. Metroeconomica, 65: 619–645.Google Scholar
Fanti, L. (2015) Growth, PAYG pension systems crisis and mandatory age of retirement. Economics Bulletin, 35: 1160–1167.Google Scholar
Fanti, L., and Gori, L. (2012) Fertility and PAYG pensions in the overlapping generations model. Journal of Population Economics, 25: 955–961.Google Scholar
Gahvari, F. (2009) Pensions and fertility: in search of a link. International Tax and Public Finance, 16: 418–442.Google Scholar
Istituto Nazionale di Statistica (Istat). Tavole di mortalità. Available online at http://demo.istat.it/unitav2012/index.html?lingua=ita.Google Scholar
Lachance, M.-E. (2008) Pension reductions: can welfare be preserved by delaying retirement? Journal of Pension Economics and Finance, 7: 157–177.Google Scholar
Meier, V., and Wrede, M. (2010) Pensions, fertility, and education. Journal of Pension Economics and Finance, 9: 75–93.Google Scholar
Menon, M., Pendakur, K., and Perali, F. (2012) On the expenditure-dependence of children's resource shares. Economics Letters, 117: 739–742.Google Scholar
Michel, P., and Pestieau, P. (1993) Population growth and optimality. Journal of Public Economics, 6: 353–362.Google Scholar
Miyazaki, K. (2014). The effects of the raising-the-official-pension-age policy in an overlapping generations economy. Economics Letters, 123: 329–332.Google Scholar
Mizuno, M., and Yakita, A. (2013) Elderly labor supply and fertility decisions in aging-population economies. Economics Letters, 121: 395–399.Google Scholar
Organisation for Economic Co-operation and Development (2015) Pensions at a Glance: OECD and G20 indicators. doi: 10.1787/pension_glance-2015-en.Google Scholar
Wigger, B. U. (1999) Pay-as-you-go financed public pensions in a model of endogenous growth and fertility. Journal of Population Economics, 12: 625–640.Google Scholar
Yakita, A. (2001) Uncertain lifetime, fertility and social security. Journal of Population Economics, 14: 635–640.Google Scholar
Yasuoka, M., and Goto, N. (2011) Pension and child care policies with endogenous fertility. Economic Modelling, 28: 2478–2482.Google Scholar