Fertility, Education, Inequality, and Economic Growth

Mingyan Chen and Shinichi Nishiyama

Discussion papers from Graduate School of Economics , Kyoto University

Abstract: This study extends the Barro–Becker–Bewley model of endogenous fertility and intergen-erational transfers by incorporating human capital investment in children and life-cycle savings. Calibrating the model to the U.S. economy, this study quantitatively analyzes the potential effects of child-related policies such as child allowances and education subsidies. Child allowances raise fertility in the short run but reduce investment in human and phys-ical capital, thereby suppressing economic growth. Education subsidies reduce fertility in the short run but enhance welfare across all generations. The effects of child-related poli-cies on income and wealth inequality and intergenerational income mobility are generally limited.

Keywords: dynamic general equilibrium; heterogeneous agents; overlapping generations. (search for similar items in EconPapers)
JEL-codes: C61 D15 H31 I24 J13 (search for similar items in EconPapers)
Pages: 39
Date: 2026-02
New Economics Papers: this item is included in nep-dge
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Persistent link: https://EconPapers.repec.org/RePEc:kue:epaper:e-25-014

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