We examine the effects of changes of government provided old age pensions on fertility choices in the context of two models of fertility, the one by Barro and Becker (1989), and the one inpired by Caldwell and developed by Boldrin and Jones (2002). In the Barro and Becker model parents have...

The present paper constructs possible baseline economies with an aging population to analyze Social Security reform plans, using an overlapping generations (OLG) model with heterogeneous households. In this model, households receive idiosyncratic working ability shocks and mortality shocks....

We examine the possibility of a Pareto-improving pay-as-you-go social security system, using an ex-ante welfare criterion. Our objective is to identify the conditions under which a suitably designed pay-as-you-go social security system is welfare improving, when markets are complete and...

The goal of this paper is to determine the effects of different social security regimes on job search. A less generous pension system induces higher savings across the life cycle and makes agents wealthier and thus more reluctant to accept low wage offers. On the other hand, as the social...

This paper estimates a life cycle model of labor supply, retirement and savings behavior in which future health status and wages are uncertain. Individuals face a fixed cost of work and cannot borrow against future labor, pension, or Social Security income. The method of simulated moments is...