Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272656 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16029
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
PAYG pensions
endogenous fertility
endogenous retirement
social security
education subsidies
human capital
JEL: 
J13
H2
H8
H55
Document Type: 
Working Paper

Files in This Item:
File
Size
458.7 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.