Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/92798 
Year of Publication: 
2007
Series/Report no.: 
ISER Discussion Paper No. 697
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We theoretically analyze the effects of a child allowance, an improvement in the efficiency of child rearing and a labor income tax on the fertility rate and per capita consumption. The effects on per capita consumption are opposite in the absence, and the presence, of unemployment. For example, a child allowance urges people to have more children and allocate more labor to child rearing, decreasing labor supply for the purpose of commodity production. Therefore, under full employment, it decreases per capita consumption. In the presence of unemployment, however, it reduces the deflationary gap and hence stimulates per capita consumption.
Subjects: 
child allowance
child rearing
endogenous fertility
wage income tax
unemployment
JEL: 
E24
J13
Document Type: 
Working Paper

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