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Elderly empowerment, fertility, and public pensions

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  • Kazutoshi Miyazawa

    (Doshisha University)

Abstract

The economic role of elderly people is underestimated in the context of the debate on pension reforms. This is because, as healthy life expectancy increases, the elderly become more active not only in the labor market but also in household production. Using a three-period overlapping-generations model in which grandparents allocate time between labor and informal childcare (“grandparenting”), we analyze the interaction among grandparenting, fertility, elderly labor, and public pensions. We obtain two analytical results. First, increasing the pension contribution rate increases grandparenting. Second, elderly labor force participation rates are negatively (positively) related to the fertility rates among countries with small (large) public pensions. The nonlinear relationship between elderly labor and fertility is empirically supported.

Suggested Citation

  • Kazutoshi Miyazawa, 2021. "Elderly empowerment, fertility, and public pensions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 941-964, August.
    • Handle: RePEc:kap:itaxpf:v:28:y:2021:i:4:d:10.1007_s10797-020-09644-z
    DOI: 10.1007/s10797-020-09644-z
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    Cited by:

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    4. Giam Pietro Cipriani & Tamara Fioroni, 2024. "Grandparental childcare, family allowances and retirement policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1669-1692, December.

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    More about this item

    Keywords

    Elderly empowerment; Public pensions; Fertility; Growth;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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