Pension and children: Pareto improvement with heterogeneous preferences

Christian Gaggermeier

No 200603, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "In an overlapping-generations model with endogenous birth rates, I design a reform of the pay-as-you-go pension system, which internalises positive externalities of children - their pension contributions. Individuals may differ in their preferences for children and their ability to have children at all. They can choose between the status-quo flat-rate benefits and a new system, in which they get just the benefits that are (on average) financed by their own children, reduced by an amount which is used to subsidise the flat-rate system. Whereas people with low child preferences keep the status quo, people with high child preferences choose the individualised system, having the optimal incentives to raise children and a higher utility." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; demografische Faktoren; Eltern; Familienpolitik; Finanzierung; Generationenvertrag; Kinderlosigkeit; Kinderzahl; Lebensstandard; Modell; Rente; Rentenanpassung; Rentenhöhe; Rentenpolitik; Rentenreform; Rentenunterschied; Rentenversicherung; Rentner; Versorgungsausgleich (search for similar items in EconPapers)
JEL-codes: H55 J11 J13 J26 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2006
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200603

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