Fertility, human capital accumulation, and the pension system

• 成果类型: Article
• 署名作者: Cremer, Helmuth; Gahvari, Firouz; Pestieau, Pierre
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; Institut Universitaire de France; University of Liege
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2010.09.014
• 发表日期: 2011
• 页码: 1272-1279
• 关键词: Pay-as-you-go social security; endogenous fertility; education; Endogenous ratio of high to low-ability types; Three externality sources; education subsidies; Child subsidies

摘要

This paper provides a unified treatment of externalities associated with fertility and human capital accumulation within pay-as-you-go pension systems. It considers an overlapping generations model in which every generation consists of high earners and low earners with the proportion of types being determined endogenously. The number of children is deterministically chosen but the children's future ability is in part stochastic, in part determined by the family background, and in part through education. In addition to the customary externality source associated with a change in average fertility rate, this setup highlights another externality source. This is due to the effect of a parent's choice of number and educational attainment of his children on the proportion of high-ability individuals in the steady state. Our other results include: (i) Investments in education of high- and low-ability parents must be subsidized; (ii) direct child subsidies to one or both parent types can be negative; i.e., they can be taxes; (iii) net subsidies to children (direct child subsidies plus education subsidies) to at least one type of parents must be positive; (iv) parents who have a higher number of children should invest less in their education. (C) 2010 Elsevier B.V. All rights reserved.