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Fertility, Inequality and Income Growth

Author

Listed:
  • Masaya Shintani

    (Kobe University)

  • Masaya Yasuoka

    (Kwansei Gakuin University)

Abstract

This paper sets an endogenous fertility model with a two-sector model: one for the final goods sector and the other for child care service sector. Results of theoretical analysis indicate that the subsidy for children raises the labor share of the child care service sector and that it can increase fertility. An aging population reduces fertility and the labor share of the child care service sector. In addition to these results, we consider monetary policy effects on fertility. Results show that monetary policy can raise fertility and the labor share of the child care service sector by virtue of an increase in the pension benefit if a pay-as-you-go pension exists.

Suggested Citation

  • Masaya Shintani & Masaya Yasuoka, 2022. "Fertility, Inequality and Income Growth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 29-48, March.
    • Handle: RePEc:spr:italej:v:8:y:2022:i:1:d:10.1007_s40797-021-00143-6
    DOI: 10.1007/s40797-021-00143-6
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    Cited by:

    1. Masaya Shintani & Masaya Yasuoka, 2021. "Child Care Policy and Capital Mobility," Economics Bulletin, AccessEcon, vol. 41(2), pages 398-404.
    2. Makoto Hirono, 2021. "Demographic change, human capital accumulation, and sectoral employment," Journal of Economics, Springer, vol. 132(2), pages 165-185, March.

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    More about this item

    Keywords

    Aging population; Fertility; Income growth; Monetary policy; Subsidy;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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