Using a simple overlapping generations model with endogenous fertility, minimum wages and involuntary unemployment, it is shown that the child tax can be used as an instrument to promote population growth and restore full employment.

This study analyses how capital accumulation and fertility react to a child allowance policy in an overlapping generations model of growth with endogenous fertility. Multiple equilibria are shown to exist depending on the size of the child allowance.

We analyse how a reduced contribution rate affects the balanced pay-as-you-go pension budget in the basic overlapping generations model of neoclassical growth (Diamond, P., 1965. National debt in a neoclassical growth model. American Economic Review 55 (5), 1126-1150). It is shown that PAYG...

Using the basic OLG model of neoclassical growth with endogenous fertility, we show that a child tax can be used as a single instrument to actually raise population growth in the long run, while also raising per capita income.