TY - JOUR
T1 - Childcare Allowances and Public Pensions
T2 - Welfare and Demographic Effects in an Aging Japan
AU - Okamoto, Akira
N1 - Funding Information:
I am grateful for the insightful comments and suggestions of Professors Alan J. Auerbach, Ronald D. Lee and Emmanuel Saez (The University of California, Berkeley). In addition, I want to thank Associate Professor Yoshinari Nomura (Okayama University), who helped me in writing the computer program used for the simulations. Professors Toshihiro Ihori (GRIPS), Yasushi Iwamoto (The University of Tokyo), Akira Yakita (Nagoya City University), Chuanchuan Zhang (The Central University of Finance and Economics), and Hyun-Hoon Lee (Kangwon National University) kindly offered many useful comments. I also wish to express my appreciation to the Editor of this journal, Professor Johann Brunner (Johannes Kepler University Linz), and to the two anonymous referees, for providing numerous insightful and thoughtful comments. Finally, I wish to acknowledge the financial support of the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 15K03514).
Publisher Copyright:
© 2020 Walter de Gruyter GmbH, Berlin/Boston 2020.
PY - 2020/4/1
Y1 - 2020/4/1
N2 - 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.
AB - 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.
KW - Pareto improvements
KW - childcare allowances
KW - depopulating and aging societies
KW - public pensions
KW - simulation analysis
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U2 - 10.1515/bejeap-2019-0067
DO - 10.1515/bejeap-2019-0067
M3 - Article
AN - SCOPUS:85078333261
SN - 1935-1682
VL - 20
JO - B.E. Journal of Economic Analysis and Policy
JF - B.E. Journal of Economic Analysis and Policy
IS - 2
M1 - 20190067
ER -