Fenge, Robert; Meier, Volker (2004): Are Family Allowances and Fertility-related pensions Siamese Twins? CESifo Working Paper, 1157 |
Abstract
This paper discusses alternative ways to deal with the positive externalities of having children in a pay-as-you-go pension system. Family allowances are compared to introducing a fertility-related component into the pension formula. In an endogenous labor supply setting, both instruments are shown to be equivalent if general pensions are of the Bismarckian contribution-related type. In contrast, if general pensions are of the Beveridgean flat-rate type, making pensions contingent on the number of children is generally preferable to family allowances because the latter creates a larger tax load on labor supply.
Item Type: | Paper (Discussion Paper) |
---|---|
Faculties: | Economics Economics > Chairs > Chair for Public Economics |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
ID Code: | 20344 |
Deposited On: | 15. Apr 2014 08:58 |
Last Modified: | 29. Apr 2016 09:17 |