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Pensions, fertility, and education

Published online by Cambridge University Press:  02 September 2008

VOLKER MEIER  and
MATTHIAS WREDE
VOLKER MEIER
Affiliation:
Ifo Institute for Economic Research, University of Munich, and CESifo (e-mail: [email protected])
MATTHIAS WREDE
Affiliation:
University of Marburg and CESifo (e-mail: [email protected])
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Abstract

A pay-as-you-go pension scheme is associated with positive externalities of having children and providing them with human capital. In a framework with heterogeneity in productivity, and stochastic and endogenous investment in fertility and education, we discuss internalization policies associated with child benefits in the pension formula. The second-best scheme displays both a benefit contingent on the contributions of children and a purely fertility-related component.

Type
Articles
Information
Journal of Pension Economics & Finance , Volume 9 , Issue 1 , January 2010 , pp. 75 - 93
Copyright
Copyright © 2008 Cambridge University Press

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