Child Allowances, Fertility, and Uncertain Lifetime
We examine how child-allowance policies with pay-as-you-go systems affect fertility and growth rates. A current method to subsidize child-rearing households, which determines benefits according to family fs number of children, increases the fertility rate but decreases the growth rate. This study also demonstrates that when a government initiates a child-allowance policy using some part of the pension budget, the fertility rate declines in aging economies.
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