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On the Persistence of Low Birthrate in Japan

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  • Aoki, Reiko
  • 青木, 玲子
  • アオキ, レイコ

Abstract

We first show that quality of consumption is an important determinant of fertility and labor supply. Taking this observation into account and using a general equilibrium model with vertical quality differentiation and heterogeneous labor, we show how low fertility may persist. This occurs because product quality and skilled labor supply adjust, never realizing the change in labor productivity necessary to reverse declining fertility.

Suggested Citation

  • Aoki, Reiko & 青木, 玲子 & アオキ, レイコ, 2008. "On the Persistence of Low Birthrate in Japan," PIE/CIS Discussion Paper 347, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:piecis:347
    Note: Fertility and Public Policy: How to Reverse the Trend of Declining Birth Rates CIS-CESifo, Munich, 1-2 February 2008, This version 31 January 2008
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/15153/pie_dp347.pdf
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    References listed on IDEAS

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    1. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
    2. Joëlle Sleebos, 2003. "Low Fertility Rates in OECD Countries: Facts and Policy Responses," OECD Labour Market and Social Policy Occasional Papers 15, OECD Publishing.
    3. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
    4. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
    5. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
    6. José María Da Rocha & Luisa Fuster, 2006. "Why Are Fertility Rates And Female Employment Ratios Positively Correlated Across O.E.C.D. Countries?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1187-1222, November.
    7. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-822, December.
    8. Diane J. Macunovich, 1998. "Fertility and the Easterlin hypothesis: An assessment of the literature," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(1), pages 53-111.
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    1. Aoki, Reiko & 青木, 玲子 & アオキ, レイコ & Konishi, Yoko & 小西, 葉子 & コニシ, ヨウコ, 2009. "The Relationship between Consumption, Labor Supply and Fertility: Theory and Evidence from Japan," PIE/CIS Discussion Paper 420, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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