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Fertility, Union Wage Setting and Social Security System

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  • Leran Wang

Abstract

This study analyzes how a social security system composed of a public pension, child allowances, and unemployment insurance affects endogenous fertility and unemployment when the wage level is endogenously set by monopolistic trade unions in an overlapping generations model. The analysis reveals, first, that increased pension tax rates lead to a higher fertility rate when wages are higher but a lower rate when wages are lower. Second, an increased child allowances tax rates lead to an increased fertility rate when wages are lower but a decreased rate when wages are higher. Therefore, both social security and wage setting should be considered in order to improve fertility and reduce unemployment.

Suggested Citation

  • Leran Wang, 2016. "Fertility, Union Wage Setting and Social Security System," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 1-10, September.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:9:p:1-10
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    References listed on IDEAS

    as
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    Cited by:

    1. Wang, Leran, 2021. "Fertility, Imperfect Labor Market, and Notional Defined Contribution Pension," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).

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    More about this item

    Keywords

    fertility; unemployment; trade unions; social security; overlapping generations model;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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