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Child Allowances, Fertility, and Uncertain Lifetime

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  • Megumi Mochida

    ()
    (Graduate School of Economics, Osaka University)

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    Abstract

    We examine how child-allowance policies with pay-as-you-go systems affect fertility and growth rates. A current method to subsidize child-rearing households, which determines benefits according to familyfs number of children, increases the fertility rate but decreases the growth rate. This study also demonstrates that when a government initiates a child-allowance policy using some part of the pension budget, the fertility rate declines in aging economies.

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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0511.pdf
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    Bibliographic Info

    Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 05-11.

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    Length: 22 pages
    Date of creation: May 2005
    Date of revision:
    Handle: RePEc:osk:wpaper:0511

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    Web page: http://www.econ.osaka-u.ac.jp/
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    Keywords: Fertility; Social security; Uncertain lifetime.;

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    1. Zvi Eckstein & Itzhak Zilcha, 1991. "The Effects of Compulsory Schooling on Growth, Income Distribution and Welfare," Boston University - Institute for Economic Development 20, Boston University, Institute for Economic Development.
    2. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
    3. Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-43, November.
    4. Robert J. Barro & Gary S. Becker, . "Fertility Choice in a Model of Economic Growth," University of Chicago - Population Research Center 88-8, Chicago - Population Research Center.
    5. CREMER, Helmuth & LOZACHMEUR, Jean-Marie & PESTIEAU, Pierre, . "Social security, retirement age and optimal income taxation," CORE Discussion Papers RP -1722, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Becker, Gary S & Barro, Robert J, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 1-25, February.
    7. Momota, Akira, 2003. "A retirement decision in the presence of a social security system," Journal of Macroeconomics, Elsevier, vol. 25(1), pages 73-86, March.
    8. Pecchenino, R.A., 1994. "Social Security, Social Welfare and the Aging Population," Papers 9403, Michigan State - Econometrics and Economic Theory.
    9. 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.
    10. Akira Yakita, 2001. "Uncertain lifetime, fertility and social security," Journal of Population Economics, Springer, vol. 14(4), pages 635-640.
    11. Matthias Göcke, 2004. "Learning-by-doing versus Schooling in a Model of Endogenous Growth," Journal of Economics, Springer, vol. 83(1), pages 47-69, 09.
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    Cited by:
    1. Chen, Hung-Ju & Fang, I-Hsiang, 2011. "Migration, Social Security, and Economic Growth," MPRA Paper 30251, University Library of Munich, Germany.
    2. Michele Boldrin & Mariacristina De Nardi & Larry E. Jones, 2005. "Fertility and Social Security," NBER Working Papers 11146, National Bureau of Economic Research, Inc.

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