Analysis of Child Care Policies with an Uncertainty Model

Takehiro Ito, Kazumitsu Sako, Yurika Shiozu, Masatoshi Jinno and Masaya Yasuoka
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Takehiro Ito: Tohoku Gakuin University
Kazumitsu Sako: Hiroshima Shudo University
Yurika Shiozu: Kyoto Sangyo University
Masatoshi Jinno: Nanzan University

No 269, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: The purpose of this paper is examination of how fertility is determined using a model with income uncertainty. Income uncertainty here is related to unemployment. The analysis is based on a model that differs from perfect foresight, with a situation in which income cannot be earned because of unemployment, but where future unemployment is not known in advance. In a small open economy, both a child allowance and unemployment benefits have the effect of raising fertility rates. Further analysis conducted with a closed economy has yielded interesting results. The presence of unemployment benefits ultimately leads to a lower fertility rate through lower accumulation of capital stock. However, it was demonstrated that a higher level of unemployment benefits engenders a higher fertility rate than in the absence of benefits.

Keywords: Child allowance; Fertility; Uncertainty; Unemployment (search for similar items in EconPapers)
JEL-codes: H51 H55 J14 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2024-04
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