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Fertility, Education, Inequality, and Economic Growth

Author

Listed:
  • Mingyan CHEN
  • Shinichi NISHIYAMA

Abstract

This study extends the Barro–Becker–Bewley model of endogenous fertility and intergen-erational transfers by incorporating human capital investment in children and life-cycle savings. Calibrating the model to the U.S. economy, this study quantitatively analyzes the potential effects of child-related policies such as child allowances and education subsidies. Child allowances raise fertility in the short run but reduce investment in human and phys-ical capital, thereby suppressing economic growth. Education subsidies reduce fertility in the short run but enhance welfare across all generations. The effects of child-related poli-cies on income and wealth inequality and intergenerational income mobility are generally limited.

Suggested Citation

  • Mingyan CHEN & Shinichi NISHIYAMA, 2026. "Fertility, Education, Inequality, and Economic Growth," Discussion papers e-25-014, Graduate School of Economics , Kyoto University.
    • Handle: RePEc:kue:epaper:e-25-014
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    References listed on IDEAS

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    1. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    2. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
    3. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
    4. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
    5. Córdoba, Juan Carlos & Liu, Xiying & Ripoll, Marla, 2016. "Fertility, social mobility and long run inequality," Journal of Monetary Economics, Elsevier, vol. 77(C), pages 103-124.
    6. Córdoba, Juan Carlos & Liu, Xiying & Ripoll, Marla, 2016. "Fertility, social mobility and long run inequality," Journal of Monetary Economics, Elsevier, vol. 77(C), pages 103-124.
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    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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