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Could the Child Benefit Save the Low Fertility Country?: Evidence from the Expansion of Child Benefit Policy in Japan

Author

Listed:
  • Shinsuke Asakawa

    (Graduate School of Economics, Osaka University)

Abstract

This paper verified whether the expansion of Child Benefit Policy (CB) in Japan affected parental demand for their child fs quantity or quality. We regarded the number of newborns as the demand for child fs quantity and priorities for each child-rearing environment as the demand for child fs quality. Compared with the control group (parents with only high school students aged between 16-18), we found that the CB expansion increase newborns as the government expected. Regarding the child fs quality, the treated parents with the only pre-school student (Aged 0-6) increased the demand for the childcare environment. On the other hand, the parents with only primary school students (Aged 7-12) raised the demand for the educational environment. After all, these results suggest that receiving the unpredicted gain in CB leads parents to take different reactions to the demands for the child fs quantity and quality according to their child fs age. Therefore, this study has an important implication such that the government should carefully choose target households when they attempt to introduce some new official financial supports without any conditions for the reception, e.g., the threshold based on household income or child fs age.

Suggested Citation

  • Shinsuke Asakawa, 2019. "Could the Child Benefit Save the Low Fertility Country?: Evidence from the Expansion of Child Benefit Policy in Japan," Discussion Papers in Economics and Business 19-04, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1904
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    More about this item

    Keywords

    Declining BirthrateCountry; Child BenefitExpansion; Program Evaluation; Fixed Effect Model; Impact Heterogeneity;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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