Childbearing Age, Family Allowances and Social Security

Abstract

Although the optimal policy under endogenous fertility has been widely studied, the optimal public intervention under endogenous childbearing age has remained largely unexplored. This paper examines the optimal family policy in a context where the number and the timing of births are chosen by individuals who di¤er as to how early fertility can weaken future earnings growth. We analyze the design of a policy of family allowances and of public pensions in such a setting, under distinct informational environments. We show how endogenous childbearing ages a¤ect the optimal policy, through the redistribution across the earnings dimension and the internalization of fertility externalities. It is also shown that, contrary to common practice, children bene…ts di¤erentiated according to the age of parents can, under some conditions, be part of the optimal family policy. Keywords: endogenous fertility, childbearing age, pensions, family bene…ts. JEL classi…cation codes: J13, D10, H21, H55. University of Liege, CORE, Paris School of Economics and CEPR. yEcole Normale Superieure, Paris, and Paris School of Economics. [corresponding author] Address: Ecole Normale Superieure, 48 bd Jourdan, 75014 Paris, France. Telephone: 0033143136204. E-mail: gregory.ponthiere@ens.fr

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Cite this paper

@inproceedings{Pestieau2011ChildbearingAF, title={Childbearing Age, Family Allowances and Social Security}, author={Pierre Pestieau and Gregory Ponthiere and Gregory Ponthierey}, year={2011} }