Fertility Decisions under Coexisting Pay-as-You-Go Pensions and Unemployment Insurance

Noguchi, Soma (2025): Fertility Decisions under Coexisting Pay-as-You-Go Pensions and Unemployment Insurance.

Abstract

This study investigates the effects of increased tax rates on fertility decisions, pension benefits, and unemployment benefits in an economy with both a pay-as-you-go (PAYG) pension system and unemployment insurance. By incorporating voluntary unemployment, the model highlights how higher tax rates reduce households’ willingness to work, thereby affecting the social security system through the production channel. The analysis also reveals differing impacts of the two types of labor income taxes.

• Item Type: MPRA Paper
• Language: English
• Keywords: OLG, fertility, PAYG, pension, unemployment.
• Subjects: D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J65 - Unemployment Insurance ; Severance Pay ; Plant Closings

References

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