Social Security, Fertility And Labor Supply

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Source: Universidad de Chile

Date: January 2008

Type: White Paper

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Overview: This research paper addresses the causes and dynamics of pay-as-you-go social security financial crises and its impact on a countrys economic performance. Its main hypothesis is there exists a self-reinforcing vicious circle between the social security system, the fertility rate and labor supply. Rodrigo A. Cerda argues that changes in the pay-as-you-go social security tax rate may induce a subsequent demographic transition, a decline in supply of labor and a negative impact on a countrys economic growth.

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