Europe’s Demographic Deficit. A Plea for a Child Pension System

Hans-Werner Sinn

De Economist 153, 2005, S. 1-45, Authorised Abstract; Preliminary Version.

Summary

This paper considers the economic implications of the stalling birth rates and demographic development in Europe. To remedy for this it proposes a child pension system. This system allowsadditional pension facilities depending on the number of children raised. It should be a PAYGpension financed with an income tax. The main motivation for this is that parents have invested resources which also benefit society.

Keywords

pension system, birth rate, human capital, demography