Public Education and Child-Care Policies with Pay-As-You-Go Pension

Miyake, Atsushi and Yasuoka, Masaya (2016): Public Education and Child-Care Policies with Pay-As-You-Go Pension.

Abstract

This paper presents consideration of the effects of child allowances and subsidies for private education investment on fertility and private education investment. The level of public education expenditure plays an important role in the effects of child care policies. To raise fertility, although child allowances are effective in an economy with low public education investment, subsidies for education investment are effective in an economy for which public education investment is high. The results presented in this paper are helpful for reconciling the conflicting results reported from previous studies. In addition, this paper presents an examination of the effects of those child care policies on pension benefits. A subsidy for private education can raise both fertility and pension benefits.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fertility, Child allowance, Subsidy for education investment
• Subjects: D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education; H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; I - Health, Education, and Welfare > I2 - Education and Research Institutions; J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth

References

[1] Apps Patricia, and Ray Rees (2004). “Fertility, Taxation and Family Policy,” Scandinavian Journal of Economics 106(4): 745-763.

[2] Becker, Gary (1960). “An Economic Analysis of Fertility,” NBER Chapters, in: Demographic and Economic Change in Developed Countries: 209-240.

[3] Becker, Gary, Kevin Murphy, and Robert Tamura (1990). “Human Capital, Fertility, and Economic Growth,” Journal of Political Economy 98(5)-2: S12-S37.

[4] Chen H.-J. (2014). “Child Allowances, Educational Subsidies and Occupational Choice,” Journal of Macroeconomics 44: 327-342

[5] Day, Creina(2012).“EconomicGrowth, GenderWageGapandFertilityRebound,”Economic Record 88(s1): 88-99.

[6] de la Croix, David and Matthias Doepke (2003). “Inequality and Growth: Why Differential Fertility Matters,” American Economic Review 93(4): 1091-1113.

[7] de la Croix, David and Matthias Doepke (2004). “Public versus Private Education when Differential Fertility Matters,” Journal of Development Economics 73(2): 607-629.

[8] Fanti Luciano and Luca Gori (2009). “Population and Neoclassical Economic Growth: a New Child Policy Perspective,” Economics Letters 104(1): 27-30.

[9] Fanti Luciano and Luca Gori (2011). “Child Policy Ineffectiveness in an Overlapping Generations Small Open Economy with Human Capital Accumulation and Public Education,” Economic Modelling 28(1): 404-409.

[10] Ferrero, Dolores and Amaia Iza (2004). “Skill Premium Effects on Fertility and Female Labor Force Supply,” Journal of Population Economics 17(1): 1-16.

[11] Glomm Gerhard and Michael Kaganovich (2003). “Distributional Effects of Public Education in an Economy with Public Pensions,” International Economic Review 44(3): 917-937.

[12] Glomm, Gerhard and B. Ravikumar (1992). “Public versus Private Investment in Human Capital: Endogenous Growth and Income Inequality,” Journal of Political Economy 100(4): 818-834.

[13] Omori, Tatsuya (2009). “Effects of Public Education and Social Security on Fertility,” Journal of Population Economics, 22(3): 585-601.

[14] Sleebos, Joelle.(2003).“LowFertilityRatesinOECDCountriesFactsandPolicyResponses,”OECD Social, Employment and Migration Working Papers No. 15.

[15] Tamura, Robert (1994). “Fertility, Human Capital and the Wealth of Families,” Economic Theory, 4(4): 593-603.

[16] van Groezen, Bas, Theo Leers, and Lex Meijdam (2003). “Social Security and Endogenous Fertility: Pensions and Child Allowances as Siamese Twins,” Journal of Public Economics, 87(2): 233-251.

[17] Yasuoka, Masaya and Naohisa Goto (2011). “Pension and Child Care Policies with Endogenous Fertility,” Economic Modelling, 28(5): 2478-2482.

[18] Yasuoka, Masaya and Atsushi Miyake (2010). “Change in the Transition of the Fertility Rate,” Economics Letters, 106(2): 78-80.

[19] Yasuoka, Masaya and Atsushi Miyake (2014). “Fertility Rate and Child Care Policies in a Pension System,” Economic Analysis and Policy, 44(1): 122-127.

[20] Zhang, Jie (1997). “Fertility, Growth and Public Investments in Children,” Canadian Journal of Economics, 30(4a): 835-843.

[21] Zhang, Jie, and Richard Casagrande (1998). “Fertility, Growth, and Flat-Rate Taxation for Education Subsidies,” Economics Letters, 60(2): 209-216.