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Human capital, income, fertility and child policy

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Author Info
Luciano Fanti () (University of Pisa)
Luca Gori () (University of Pisa)

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Abstract

This paper analyses the effectiveness of child-subsidy support policies in a general equilibrium overlapping generations model with endogenous fertility, child quality choices and human capital formation. It is shown, somewhat paradoxically, that only if the preference for the quality of children is higher than the preference for the quantity of children, then a child subsidy policy gives raise to an increase in both income per-capita and fertility rates, while, on the contrary, in the case in which parents are relatively more interested to the number rather than to the quality of children, a child-subsidy support policy may just reduce fertility behaviour, and, in any case, it always depresses the level of income per-capita.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume9/EB-08I20001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 9 (2008)
Issue (Month): 7 ()
Pages: 1-7
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:ebl:ecbull:v:9:y:2008:i:7:p:1-7

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Related research
Keywords: Fertility Child subsidy Human capital OLG model

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J1 - Labor and Demographic Economics - - Demographic Economics

References listed on IDEAS
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  1. Holger Strulik, 2004. "Economic growth and stagnation with endogenous health and fertility," Journal of Population Economics, Springer, vol. 17(3), pages 433-453, 08. [Downloadable!] (restricted)
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  2. Robert Fenge & Volker Meier, 2005. "Pensions and fertility incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 28-48, February. [Downloadable!] (restricted)
    Other versions:
  3. Charles I. Jones, 2003. "Growth, capital shares, and a new perspective on production functions," Proceedings, Federal Reserve Bank of San Francisco, issue Nov. [Downloadable!]
  4. Luciano Fanti & Luca Gori, 2007. "Labour income taxation, child rearing policies and fertility," Economics Bulletin, Economics Bulletin, vol. 10(20), pages 1-10. [Downloadable!]
  5. Holger Strulik, 2004. "Child mortality, child labour and economic development," Economic Journal, Royal Economic Society, vol. 114(497), pages 547-568, 07. [Downloadable!] (restricted)
    Other versions:
  6. van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February. [Downloadable!] (restricted)
  7. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-87, June. [Downloadable!] (restricted)
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  8. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June. [Downloadable!] (restricted)
  9. Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer, vol. 10(3), pages 335-356. [Downloadable!] (restricted)
  10. Ab O, G. & Mahieu, G. & Patxot, C., 2004. "On the optimality of PAYG pension systems in an endogenous fertility setting," Journal of Pension Economics and Finance, Cambridge University Press, vol. 3(01), pages 35-62, May. [Downloadable!]
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