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Analysis of Child Care Policies with an Uncertainty Model

Author

Listed:
  • Takehiro Ito

    (Tohoku Gakuin University)

  • Kazumitsu Sako

    (Hiroshima Shudo University)

  • Yurika Shiozu

    (Kyoto Sangyo University)

  • Masatoshi Jinno

    (Nanzan University)

  • Masaya Yasuoka

    (Kwansei Gakuin University)

Abstract

The purpose of this paper is examination of how fertility is determined using a model with income uncertainty. Income uncertainty here is related to unemployment. The analysis is based on a model that differs from perfect foresight, with a situation in which income cannot be earned because of unemployment, but where future unemployment is not known in advance. In a small open economy, both a child allowance and unemployment benefits have the effect of raising fertility rates. Further analysis conducted with a closed economy has yielded interesting results. The presence of unemployment benefits ultimately leads to a lower fertility rate through lower accumulation of capital stock. However, it was demonstrated that a higher level of unemployment benefits engenders a higher fertility rate than in the absence of benefits.

Suggested Citation

  • Takehiro Ito & Kazumitsu Sako & Yurika Shiozu & Masatoshi Jinno & Masaya Yasuoka, 2024. "Analysis of Child Care Policies with an Uncertainty Model," Discussion Paper Series 269, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:269
    as

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    References listed on IDEAS

    as
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    3. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
    4. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
    5. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    6. Bas Groezen & Lex Meijdam, 2008. "Growing old and staying young: population policy in an ageing closed economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 573-588, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Child allowance; Fertility; Uncertainty; Unemployment;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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