in the usual way, and an unconventional one allowing them to qualify for a pension by having children, and investing time …

earners and low earners with the proportion of types being determined endogenously. The number of children is … deterministically chosen but the children’s future ability is in part stochastic, in part determined by the family background, and in … attainment of his children on the proportion of high-ability individuals in the steady state. Our results include: (i …

of the two: if and only if children are more complementary to leisure should the tax-benefit link be given a positive … may justify redistribution from families with children to those without implied by most pension systems. We find that the … opposite redistribution, from the childless to those with children, would be efficient if individuals have low risk aversion …