IDEAS home Printed from https://ideas.repec.org/a/spr/eurase/v8y2018i1d10.1007_s40822-017-0078-9.html
   My bibliography  Save this article

Fertility and education investment incentive with a pay-as-you-go pension

Author

Listed:
  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

Some reports of the related literature describe examinations of whether a child allowance and the subsidy for education investment can raise fertility and education investment, or not. This paper presents consideration of the pension incentive policy as substitutive policies of a child allowance and a subsidy for education investment in a model of quality and quantity of children. Results of the study reported herein demonstrate that pension incentive policy cannot always increase fertility and the education investment, i.e., the growth rate of the human capital stock. If the pension incentive policy can raise fertility and the growth rate of the human capital stock, then the pension incentive policy plays the roles of a child allowance and a subsidy for the education investment. Otherwise, the pension incentive policy should not be provided in place of the child allowance and the subsidy for education investment. Pension incentive policy effects on fertility and the growth rate of the human capital stock depend on the preference parameters of quality and the quality of children.

Suggested Citation

  • Masaya Yasuoka, 2018. "Fertility and education investment incentive with a pay-as-you-go pension," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 37-50, April.
    • Handle: RePEc:spr:eurase:v:8:y:2018:i:1:d:10.1007_s40822-017-0078-9
    DOI: 10.1007/s40822-017-0078-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40822-017-0078-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40822-017-0078-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Junsen & Nishimura, Kazuo, 1993. "The old-age security hypothesis revisited," Journal of Development Economics, Elsevier, vol. 41(1), pages 191-202, June.
    2. Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(3), pages 335-356.
    3. Masaya Yasuoka & Naohisa Goto, 2015. "How is the child allowance to be financed? By income tax or consumption tax?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(3), pages 249-269, September.
    4. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
    5. Meier, Volker & Wrede, Matthias, 2010. "Pensions, fertility, and education," Journal of Pension Economics and Finance, Cambridge University Press, vol. 9(1), pages 75-93, January.
    6. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 323-350, National Bureau of Economic Research, Inc.
    7. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
    8. Dolores Ferrero Martínez & Amaia Iza, 2004. "Skill premium effects on fertility and female labor force supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 1-16, February.
    9. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    10. van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February.
    11. Zhang, Jie & Casagrande, Richard, 1998. "Fertility, growth, and flat-rate taxation for education subsidies," Economics Letters, Elsevier, vol. 60(2), pages 209-216, August.
    12. Robert Fenge & Volker Meier, 2005. "Pensions and fertility incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 28-48, February.
    13. Berthold U. Wigger, 1999. "Public Pensions and Growth," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(2), pages 241-241, June.
    14. Luciano Fanti & Luca Gori, 2013. "Fertility-related pensions and cyclical instability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1209-1232, July.
    15. Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-843, November.
    16. Robert Fenge & Volker Meier, 2009. "Are family allowances and fertility-related pensions perfect substitutes?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(2), pages 137-163, April.
    17. Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 625-640.
    18. Yasuoka, Masaya & Miyake, Atsushi, 2010. "Change in the transition of the fertility rate," Economics Letters, Elsevier, vol. 106(2), pages 78-80, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andy Prasetyo Wati & Sheerad Sahid, 2022. "Factors Influencing Parents’ Awareness of Children’ Education Investment: A Systematic Review," Sustainability, MDPI, vol. 14(14), pages 1-13, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masatoshi Jinno & Masaya Yasuoka, 2016. "Are the social security benefits of pensions or child-care policies best financed by a consumption tax?," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(3), pages 94-112, September.
    2. Luciano Fanti & Luca Gori, 2014. "Endogenous fertility, endogenous lifetime and economic growth: the role of child policies," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 529-564, April.
    3. Masaya Yasuoka, 2014. "Child-care Policies and Pension in an Endogenous Fertility Model," Discussion Paper Series 114, School of Economics, Kwansei Gakuin University, revised Jan 2014.
    4. Peter J. Stauvermann & Ronald R. Kumar, 2016. "Sustainability of A Pay-as-you-Go Pension System in A Small Open Economy with Ageing, Human Capital and Endogenous Fertility," Metroeconomica, Wiley Blackwell, vol. 67(1), pages 2-20, February.
    5. Masaya Yasuoka, 2013. "Can Child-Care Support Policies Halt Decreasing Fertility?," International Journal of Economics and Financial Issues, Econjournals, vol. 3(2), pages 409-419.
    6. Stauvermann, Peter Josef & Kumar, Ronald, 2013. "Financing human capital development via government debt: a small country case using overlapping generations framework," MPRA Paper 47453, University Library of Munich, Germany.
    7. Meier, Volker & Wrede, Matthias, 2010. "Pensions, fertility, and education," Journal of Pension Economics and Finance, Cambridge University Press, vol. 9(1), pages 75-93, January.
    8. Yasuoka, Masaya, 2018. "Endogenous Fertility and Pension System," MPRA Paper 86131, University Library of Munich, Germany.
    9. Vincenzo Galasso & Roberta Gatti & Paola Profeta, 2009. "Investing for the old age: pensions, children and savings," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 538-559, August.
    10. Fanti, Luciano & Gori, Luca, 2011. "Child policy ineffectiveness in an overlapping generations small open economy with human capital accumulation and public education," Economic Modelling, Elsevier, vol. 28(1-2), pages 404-409, January.
    11. Robert Fenge & Beatrice Scheubel, 2017. "Pensions and fertility: back to the roots," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 93-139, January.
    12. Luciano Fanti & Luca Gori, 2013. "Fertility-related pensions and cyclical instability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1209-1232, July.
    13. Ko Shakuno, 2014. "Public education, endogenous fertility and economic growth," TERG Discussion Papers 319, Graduate School of Economics and Management, Tohoku University.
    14. Stauvermann, Peter J. & Ky, Sereyvath & Nam, Gi-Yu, 2013. "The Costs of Increasing the Fertility Rate in an Endogenous Growth Model," MPRA Paper 46381, University Library of Munich, Germany.
    15. Masaya Yasuoka, 2018. "Fertility, Income Growth and Inflation," Discussion Paper Series 182, School of Economics, Kwansei Gakuin University, revised Jul 2018.
    16. Chen Hung-Ju & Miyazaki Koichi, 2022. "Pay-as-You-Go Social Security and Educational Subsidy in an Overlapping Generations Model with Endogenous Fertility and Endogenous Retirement," The B.E. Journal of Macroeconomics, De Gruyter, vol. 22(2), pages 787-820, June.
    17. Peter J. Stauvermann, 2013. "How a Pay-As-You-Go Pension System Can Lead To a Pareto Improvement in an OLG Model with Endogenous Fertility," Economic Research Guardian, Weissberg Publishing, vol. 3(1), pages 61-69, June.
    18. Luciano Fanti & Luca Gori, 2012. "Public Expenditure on Health and Private Old-Age Insurance in an OLG Growth Model with Endogenous Fertility: Chaotic Dynamics Under Perfect Foresight," Computational Economics, Springer;Society for Computational Economics, vol. 40(4), pages 333-353, December.
    19. Robert Fenge & Volker Meier, 2005. "Pensions and fertility incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 28-48, February.
    20. Cigno, A., 2016. "Conflict and Cooperation Within the Family, and Between the State and the Family, in the Provision of Old-Age Security," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 609-660, Elsevier.

    More about this item

    Keywords

    Fertility; Education investment; Pension; Quality of children; Quantity of children;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurase:v:8:y:2018:i:1:d:10.1007_s40822-017-0078-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.