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Social Security Reform and Childcare Support

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  • Oshio, Takashi
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    Abstract

    This paper examines how social security reform and childcare support affect fertility and social welfare, based on a simple overlapping generations model with endogenous fertility. In an open economy with no altruism, introducing a childcare subsidy is the second-best solution under an aging population. However, in a closed economy and/or assuming the household's altruistic bequests, childcare support is not necessarily desirable and the case that curtailing a pay-as-you-go social security system reduces social welfare cannot be ruled out. In addition, we show that social security reform and childcare have different effects on the transition process to a new steady state.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/14401/1/pie_dp119.pdf
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    Bibliographic Info

    Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series Discussion Paper with number 119.

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    Length: 28, [10] p.
    Date of creation: Sep 2002
    Date of revision:
    Handle: RePEc:hit:piedp1:119

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    Related research

    Keywords: Social security; childcare support; fertility; bequests;

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    1. Gary S. Becker & Kevin M. Murphy & Robert Tamura, . "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
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