 Policy combinations, high-quality population development, and China's economic growth: An endogenous fertility modelHeng Xu and Shiyuan Pan Economic Modelling, 2025, vol. 151, issue C Abstract: This study introduces public childcare policies in an overlapping generations model with endogenous fertility for the first time, combining child-rearing and education subsidy policies to examine how these policies impact fertility rates and human capital and influence long-term economic growth rate. Findings reveal that public childcare and child-rearing subsidy policies increase the fertility rate but reduce human capital, whereas education subsidies enhance human capital without increasing the fertility rate. Furthermore, a selective combination of these three types of policies can achieve the highest economic growth. Calibration using Chinese data demonstrates that strengthening these three policies can all increase economic growth rate. The policy combination that achieves the highest economic growth requires increasing public childcare time by 5.11 times and education subsidies by 38.47 times the current levels, while not implementing child-rearing subsidy policies. Keywords: Endogenous fertility rate; Human capital; Public childcare policy; Child-rearing subsidy policy; Education subsidy policy; Economic growth (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:151:y:2025:i:c:s0264999325002019 DOI: 10.1016/j.econmod.2025.107206 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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