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Estimating the Effects of Pronatal Policies on Residential Choice and Fertility

Ryo Nakajima and Ryuichi Tanaka

No 12-06, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: In this paper, we estimate the impacts of local-government-sponsored pronatal policies on fertility by exploiting information on the geographical variation in policies across municipalities in Japan. We develop an empirical model that accommodates both the location and fertility choices of households to take into account their self-selected migration across municipalities. We estimate the structural parameters using cross-sectional microdata on Japanese households in metropolitan areas. The results suggest that self-selection may generate substantial upward bias in the estimated impacts of pronatal policies on fertility. We also find that, after controlling for self-selection bias, some types of noncash benefit pronatal policies significantly increase the probability of births occurring in metropolitan households, although the magnitudes differ significantly by revenue and birth parity.

Pages: 31 pages
Date: 2012-07
New Economics Papers: this item is included in nep-dem and nep-ure
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Journal Article: Estimating the effects of pronatal policies on residential choice and fertility (2014) Downloads
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