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Public education, endogenous fertility and economic growth


  • Ko Shakuno


Using a closed-economy overlapping generations model with endogenous fertility, child quality choice and human capital accumulation, this paper examine the effects of public investment in education on fertility rate and per capita output growth rate under a pay-as-you-go (PAYG) social security system. Parents face a trade-off between the quantity and quality of children. Differently from previous studies, this paper shows that there is an inverted U-shaped relation between public investment in education and fertility. Small sized public education policy stimulates fertility and impedes growth.

Suggested Citation

  • Ko Shakuno, 2014. "Public education, endogenous fertility and economic growth," TERG Discussion Papers 319, Graduate School of Economics and Management, Tohoku University.
  • Handle: RePEc:toh:tergaa:319

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    References listed on IDEAS

    1. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 279-288, Part II, .
    2. Kaganovich, Michael & Zilcha, Itzhak, 1999. "Education, social security, and growth," Journal of Public Economics, Elsevier, vol. 71(2), pages 289-309, February.
    3. 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.
    4. de la Croix, David & Doepke, Matthias, 2004. "Public versus private education when differential fertility matters," Journal of Development Economics, Elsevier, vol. 73(2), pages 607-629, April.
    5. Luca Gori & Luciano Fanti, 2008. "Human capital, income, fertility and child policy," Economics Bulletin, AccessEcon, vol. 9(7), pages 1-7.
    6. repec:ebl:ecbull:v:10:y:2008:i:7:p:1-6 is not listed on IDEAS
    7. Luca Gori & Luciano Fanti, 2008. "Child quality choice and fertility disincentives," Economics Bulletin, AccessEcon, vol. 10(7), pages 1-6.
    8. repec:ebl:ecbull:v:9:y:2008:i:7:p:1-7 is not listed on IDEAS
    9. Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-843, November.
    10. Akira Yakita, 2010. "Human capital accumulation, fertility and economic development," Journal of Economics, Springer, vol. 99(2), pages 97-116, March.
    11. 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.
    12. repec:cor:louvrp:-1676 is not listed on IDEAS
    13. Akira Yakita, 2001. "Uncertain lifetime, fertility and social security," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(4), pages 635-640.
    14. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    15. Leonid Azarnert, 2010. "Free education, fertility and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 449-468, March.
    16. 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.
    17. 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.
    18. Luciano Fanti & Luca Gori, 2010. "Public Education, Fertility Incentives, Neoclassical Economic Growth And Welfare," Bulletin of Economic Research, Wiley Blackwell, vol. 62(1), pages 59-77, January.
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    Cited by:

    1. Krzysztof Makarski & Joanna Tyrowicz, 2015. "Political (In)Stability of Social Security Reform," Working Papers 2015-21, Faculty of Economic Sciences, University of Warsaw.

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