• Medientyp: E-Artikel
  • Titel: Why Child Allowances Fail to Solve the Pension Problem of Aging Societies
  • Beteiligte: Stauvermann, Peter J.; Wernitz, Frank
  • Erschienen: MDPI AG, 2019
  • Erschienen in: Economies, 7 (2019) 4, Seite 117
  • Sprache: Englisch
  • DOI: 10.3390/economies7040117
  • ISSN: 2227-7099
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  • Beschreibung: The aim of the paper is to investigate how child allowances affect population growth and pension benefits of pay-as-you-go (PAYG) pension systems in small open and closed economies. We apply an overlapping-generations (OLG) model in its canonical form, where we consider endogenous fertility and growth generated by human capital accumulation. From the analysis, we conclude that in a small open economy, child allowances increase the number of children, yet decrease pension benefits over the long run. If we consider a closed economy, the effect of child allowances on fertility is ambiguous and remains negative on pension benefits over the long run.
  • Zugangsstatus: Freier Zugang