Fertility and unemployment in a social security system

•A two-period OLG model with endogenous fertility and unemployment are considered.•A social security system is consisted of a PAYG pension and child allowances.•Minimum wage is set constant by law in this model.•High-level pensions increase fertility and decrease unemployment.•Low-level pensions worsen fertility and unemployment even with child allowances.

This study analyzes how endogenous fertility and unemployment are affected by a social security system in an overlapping generations model. The analysis reveals that for any given minimum wage, the pension may improve fertility and decrease unemployment.