Which Should the Government Subsidize: Child Care or Elderly Care?

Atsushi Miyake and Masaya Yasuoka

No 144, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper presents an examination of how a government should provide subsidies for households. An elderly care subsidy for services can increase the purchase of elderly care services. Therefore, it can reduce the need for elderly care provision by adult children. This decrease implies an increase in the labor supply. The consequent increase in the labor supply raises the household income, making increased fertility a ordable: this paper presents derivation that the child care subsidy service cannot increase the fertility and labor supply if the productivity of elderly care services is high. However, the subsidy for older people has the e ect of preventing a decrease in the number of children. Therefore, the elderly care subsidy can alleviate social problems caused by fewer children.

Keywords: Child care; Elderly care; Fertility (search for similar items in EconPapers)
JEL-codes: H21 H51 J14 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2016-06, Revised 2016-06
New Economics Papers: this item is included in nep-age and nep-dem
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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:144

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