 Physical and human capital, fertility, and childcare servicesKazunobu Muro Research in Economics, 2022, vol. 76, issue 4, 422-436 Abstract: We shed light on a nexus between fertility transitions and economic growth patterns. We construct a two-sector overlapping generations (OLG) model with endogenous fertility, physical capital, and human capital, where one sector produces goods, and another produces childcare services. If the elasticity of fertility for expenditure on childcare services is zero, the economy experiences endogenous growth, and fertility does not depend on physical and human capital, but it increases with parental child-rearing time. On the other hand, if elasticity is positive, the economy converges to a steady state, and the number of children becomes the homogenous function of degree of elasticity (less than one). In other words, fertility is the decreasing-return-to-scale function of physical and human capital. We show that a subsidy policy for education is more desirable than a subsidy for childcare services. Keywords: Costs of child-rearing; Endogenous fertility; Subsidy for education; Subsidy for childcare services; Fertility transition (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:reecon:v:76:y:2022:i:4:p:422-436 DOI: 10.1016/j.rie.2022.09.004 Access Statistics for this article Research in Economics is currently edited by Federico Etro More articles in Research in Economics from Elsevier |
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