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Analysis of Child Care Support Policies in a Model of Endogenous Fertility

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

Using a Constant Elasticity of Substitution (CES)-type fertility function, we examine how child allowances, subsidized policies for child care services, and child care time affect fertility rates, working hours, and demand for child care services, and assess the tax burden necessary to achieve the target fertility rate. The following results were obtained. Child allowances can achieve the target fertility rate with the lowest tax burden for policies of three types. The target fertility rate might not be achieved if only subsidies for child care services or child care time are used. Even if the target fertility rate cannot be achieved with a single policy, the target fertility rate can be achieved with a policy mix of subsidized child care services and child care time.

Suggested Citation

  • Takehiro Ito & Kazumitsu Sako & Yurika Shiozu & Masatoshi Jinno & Masaya Yasuoka, 2024. "Analysis of Child Care Support Policies in a Model of Endogenous Fertility," Discussion Paper Series 270, School of Economics, Kwansei Gakuin University.
  • Handle: RePEc:kgu:wpaper:270
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp270.pdf
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    References listed on IDEAS

    as
    1. Akira Yakita, 2017. "Fertility, Child Care Outside the Home and Pay-as-You-Go Social Security," Population Economics, in: Population Aging, Fertility and Social Security, chapter 0, pages 45-63, Springer.
    2. Masaya Yasuoka & Atsushi Miyake, 2014. "Fertility rate and child care policies in a pension system æ," Economic Analysis and Policy, Elsevier, vol. 44(1), pages 122-127.
    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. 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.
    5. 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.
    6. Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-843, November.
    7. Yasuoka, Masaya & Miyake, Atsushi, 2010. "Change in the transition of the fertility rate," Economics Letters, Elsevier, vol. 106(2), pages 78-80, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Child allowance; Constant Elasticity of Substitution (CES); Fertility; Subsidy for child care services and time;
    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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