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Which Should the Government Subsidize: Child Care or Elderly Care?

Author

Listed:
  • Atsushi Miyake

    (Faculty of Economics, Kobe Gakuin University)

  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper presents an examination of how a government should provide subsidies for households. An elderly care subsidy for services can increase the purchase of elderly care services. Therefore, it can reduce the need for elderly care provision by adult children. This decrease implies an increase in the labor supply. The consequent increase in the labor supply raises the household income, making increased fertility a ordable: this paper presents derivation that the child care subsidy service cannot increase the fertility and labor supply if the productivity of elderly care services is high. However, the subsidy for older people has the e ect of preventing a decrease in the number of children. Therefore, the elderly care subsidy can alleviate social problems caused by fewer children.

Suggested Citation

  • Atsushi Miyake & Masaya Yasuoka, 2016. "Which Should the Government Subsidize: Child Care or Elderly Care?," Discussion Paper Series 144, School of Economics, Kwansei Gakuin University, revised Jun 2016.
    • Handle: RePEc:kgu:wpaper:144
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Child care; Elderly care; Fertility;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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