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Child quality choice and fertility disincentives

Author

Listed:
  • Luca Gori

    (University of Pisa)

  • Luciano Fanti

    (University of Pisa)

Abstract

This paper analyses the effects of the introduction of child-subsidy support policies extending recent overlapping generations (OLG) models to account for endogenous fertility decisions of individuals and publicly provided pensions in a small open economy with preferences for both child quantity and child quality. It is shown that if the preference for the quality of children is higher than the preference for the quantity of children, as casual observations seem to reveal in developed countries, then child subsidies always reduce the fertility rate. This way, the article provides an explanation for possible failures of pro-natalist policies based on child subsidisation implemented in many western countries, which may therefore result as fertility disincentives instead of fertility incentives.

Suggested Citation

  • Luca Gori & Luciano Fanti, 2008. "Child quality choice and fertility disincentives," Economics Bulletin, AccessEcon, vol. 10(7), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-08j10002
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume10/EB-08J10002A.pdf
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    Cited by:

    1. Peter J. Stauvermann & Frank Wernitz, 2019. "Why Child Allowances Fail to Solve the Pension Problem of Aging Societies," Economies, MDPI, vol. 7(4), pages 1-16, December.
    2. Ko Shakuno, 2014. "Public education, endogenous fertility and economic growth," TERG Discussion Papers 319, Graduate School of Economics and Management, Tohoku University.
    3. Stauvermann, Peter Josef & Kumar, Ronald, 2013. "Financing human capital development via government debt: a small country case using overlapping generations framework," MPRA Paper 47453, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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