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Childcare Allowances and Public Pensions: Welfare and Demographic Effects in an Aging Japan

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  • Okamoto Akira

    (Faculty of Economics, Okayama University, 3-1-1, Tsushima-naka, Kita-ku, Okayama-shi,Okayama 700-8530, Japan)

Abstract

In this study, reforms on childcare allowances and public pensions are examined in an extended lifecycle simulation model with endogenous fertility. A slight increase in family policies such as childcare allowances leads to increases in the total population but the magnitude of change is not large. As childcare allowances increase, however, the total population is cumulatively and progressively augmented, resulting in substantial growth in the total population and national income in the long run. Furthermore, from a long-term perspective, increases in childcare subsidies or decreases in public pension benefits are potentially Pareto-improving.

Suggested Citation

  • Okamoto Akira, 2020. "Childcare Allowances and Public Pensions: Welfare and Demographic Effects in an Aging Japan," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-25, April.
    • Handle: RePEc:bpj:bejeap:v:20:y:2020:i:2:p:25:n:4
    DOI: 10.1515/bejeap-2019-0067
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    References listed on IDEAS

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    More about this item

    Keywords

    depopulating and aging societies; childcare allowances; public pensions; Pareto improvements; simulation analysis;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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