Pay-As-You-Go Pension, Fertility, and Educational Investment

Masaya Yasuoka

Chapter Chapter 3 in Fertility, Education and Macroeconomics: The Case of Japan, 2025, pp 47-68 from Springer

Abstract: Abstract The endogenous fertility model is often considered in conjunction with the pay-as-you-go (PAYG) pension system. This is because, in a PAYG pension system, the birth rate affects the rate of return on pensions. In addition to the birth rate, the income level of the working generation is also an important factor to consider in the operation of a PAYG pension system. With this in mind, this chapter examines human capital as a consideration of income levels. Human capital is generated through educational investment, and in this chapter, it is assumed to be created through educational investments in children. The objective is to examine how parents decide the number of children and the quality of children (where quality refers to the level of human capital) within the framework of the endogenous fertility model. Pension benefits can be provided through either a defined benefit or a defined contribution method. This chapter aims to clarify how the differences between these two methods of providing benefits affect the birth rate.

Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-1024-5_3

Ordering information: This item can be ordered from
http://www.springer.com/9789819510245

DOI: 10.1007/978-981-95-1024-5_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().