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Education Choice and Human Capital Accumulation with Endogenous Fertility Model

Author

Listed:
  • Hiroki Tanaka

    (Doshisha University)

  • Masaya Yasuoka

    (Kwansei Gakuin University)

Abstract

This paper sets an endogenous fertility model with endogenous education investment and examines determination of the share of households which select public education, income growth, income inequality, and fertility. Our paper presents consideration of policies of several types such as child allowances and education subsidies for private education and then examines how these policies affect education choice and other outcomes. Results show that a child allowance raises the share of households which select public education. Because of the tax burden, the subsidy for private education can not always raise the share of households which select private education. Furthermore, an increase in the subsidy for private education investment can not always raise the aggregate human capital accumulation even if the share of households selecting private education. The latter half of this paper presents derivation of policy allocations as a result of voting system and describes checking of the robustness of the obtained results.

Suggested Citation

  • Hiroki Tanaka & Masaya Yasuoka, 2020. "Education Choice and Human Capital Accumulation with Endogenous Fertility Model," Discussion Paper Series 222, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:222
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    More about this item

    Keywords

    ; Education choice; Endogenous fertility; Income growth; Income inequality; Subsidy;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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