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Fertility, child care policy, urbanization, and economic growth

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  • Sayaka Yakita

    (Nagoya University of Economics)

Abstract

This study analyzes how the expansion of formal child care services affects the fertility rate and economic growth through the regional migration of the households, using a two-region overlapping generations model. We consider formal child care services that cover some of the childrearing time of parents. The results show that an expansion of child care services increases the fertility rate of households. Moreover, such an expansion influences the regional migration choice of households and decreases the population ratio of the urban area through a change in the labor supply of each household as well as in the wage rate. Further, the savings of each household decrease because of the increase in the tax burden engendered by the expansion of child care. Therefore, savings in the economy decrease. As a result, capital accumulation decreases through the expansion of child care services.

Suggested Citation

  • Sayaka Yakita, 2019. "Fertility, child care policy, urbanization, and economic growth," Letters in Spatial and Resource Sciences, Springer, vol. 12(1), pages 51-62, April.
    • Handle: RePEc:spr:lsprsc:v:12:y:2019:i:1:d:10.1007_s12076-019-00226-0
    DOI: 10.1007/s12076-019-00226-0
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    References listed on IDEAS

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    1. Creina Day, 2015. "Skill Composition, Fertility, and Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 164-178, March.
    2. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
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    4. 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.
    5. Tohru Naito & Tatsuya Omori, 2017. "Aging And Urban Agglomeration Under A Multi-Regional Overlapping Generations Model," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(2), pages 135-150, July.
    6. Tohru Naito & Daisuke Ikazaki & Tatsuya Omori, 2017. "Precautionary public health, ageing and urban agglomeration," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 655-669, October.
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    Cited by:

    1. Hiroyuki Hashimoto & Tohru Naito, 2021. "Urbanization, waitlisted children, and childcare support in a two‐region overlapping generations model," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1068-1089, June.

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    More about this item

    Keywords

    Urbanization; Fertility; Child care services; Regional migration;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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