Analysis of Child Care Support Policies in a Model of Endogenous Fertility

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 270, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: Using a Constant Elasticity of Substitution (CES)-type fertility function, we examine how child allowances, subsidized policies for child care services, and child care time affect fertility rates, working hours, and demand for child care services, and assess the tax burden necessary to achieve the target fertility rate. The following results were obtained. Child allowances can achieve the target fertility rate with the lowest tax burden for policies of three types. The target fertility rate might not be achieved if only subsidies for child care services or child care time are used. Even if the target fertility rate cannot be achieved with a single policy, the target fertility rate can be achieved with a policy mix of subsidized child care services and child care time.

Keywords: Child allowance; Constant Elasticity of Substitution (CES); Fertility; Subsidy for child care services and time (search for similar items in EconPapers)
JEL-codes: H51 H55 J14 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2024-04
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