Pension and Child Care Policies with Endogenous Fertility
This paper describes how a child allowance policy and income transfer to older people policy alter fertility and economic growth under a pay-as-you-go pension system. Moreover, this paper presents ways to finance such policies: one for income taxation and the other for consumption tax. The results presented in this paper are as follows. First, the relation between fertility and economic growth depends on fertility. This relation is positive if fertility is at a certain level. However, if fertility is low or high, this relation is negative. Second, a child allowance does not always raise the fertility rate. On the other hand, income transfer to older people raises the fertility rate. This result underscores that it is important to consider policies for older people when considering how to raise the fertility rate. Income transfer to older people financed by consumption taxation can achieve two goals: increasing fertility in a society with fewer children, and providing income security for older people.
|Date of creation:||Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186|
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shuanglin Lin & Xiaowen Tian, 2003. "Population growth and social security financing," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(1), pages 91-110, 02.
- 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.
- Joëlle Sleebos, 2003. "Low Fertility Rates in OECD Countries: Facts and Policy Responses," OECD Labour Market and Social Policy Occasional Papers 15, OECD Publishing.
- FranÚois Bourguignon, 1999.
"The cost of children: May the collective approach to household behavior help?,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 12(4), pages 503-521.
- Bourguignon, F., 1999. "The Cost of Children: May the Collective Approach to Household Behavior Help?," DELTA Working Papers 1999-01, DELTA (Ecole normale supérieure).
- Nishimura, Kazuo & Zhang, Junsen, 1992.
"Pay-as-you-go public pensions with endogenous fertility,"
Journal of Public Economics,
Elsevier, vol. 48(2), pages 239-258, July.
- Nishimura, K. & Zhang, J., 1990. "Pay-As-You-Go Public Pensions With Endogenous Fertility," Papers 202, Australian National University - Department of Economics.
- Fanti, Luciano & Gori, Luca, 2009. "Population and neoclassical economic growth: A new child policy perspective," Economics Letters, Elsevier, vol. 104(1), pages 27-30, July.
- Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June.
- Junsen Zhang & Junxi Zhang, 1998. "Social Security, Intergenerational Transfers, and Endogenous Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1225-1241, November.
- Bas Groezen & Lex Meijdam, 2008.
"Growing old and staying young: population policy in an ageing closed economy,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 21(3), pages 573-588, July.
- Bas van Groezen & L. Meijdam, 2004. "Growing Old and Staying Young: Population Policy in an Ageing Closed Economy," Working Papers 04-28, Utrecht School of Economics.
- Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 625-640.
- Oded Galor & David N. Weil, 1993.
"The Gender Gap, Fertility, and Growth,"
NBER Working Papers
4550, National Bureau of Economic Research, Inc.
- Ono, Tetsuo, 2002.
"Social Security Policy with Public Debt in an Aging Economy,"
107, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Tetsuo Ono, 2003. "Social security policy with public debt in an aging economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(2), pages 363-387, 05.
- Takashi Oshio & Masaya Yasuoka, 2009. "Maximum size of social security in a model of endogenous fertility," Economics Bulletin, AccessEcon, vol. 29(2), pages 644-654.
- Makoto Hirazawa & Akira Yakita, 2009. "Fertility, child care outside the home, and pay-as-you-go social security," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 565-583, July.
When requesting a correction, please mention this item's handle: RePEc:hst:ghsdps:gd09-054. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino)
If references are entirely missing, you can add them using this form.