Can child allowances improve fertility in a gender discrimination economy? |
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| Institution: | 1. School of Public Finance and Taxation, Southwestern University of Finance and Economics, Chengdu, China;2. Graduate School of Economics, Kyoto University, Yoshida-honmachi, Sakyo-ku, Kyoto, 606-8501, Japan;3. Research Center on Multinational Corporations & School of Economics, Nankai University, Tianjin, China;1. Aletheia University, Taiwan;2. National Taichung University of Science and Technology, Taiwan;1. Narodowy Bank Polski, Poland;2. University of Lodz, Poland;1. Faculty of Economics, Chuo University, Japan;2. Graduate School of Economics, Kyoto University, Japan;1. Musashi University, Japan;2. University of Tokyo, Japan;3. Kwansei Gakuin University, Japan |
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| Abstract: | While it is believed that child allowances can improve fertility in principle, this paper shows that the effects of child allowances with gender discrimination should be reconsidered. It points out that gender wage discrimination can inhibit the positive effects of child allowances on fertility. With high gender wage discrimination, assuming that both parental time and market childcare goods are indispensable for childrearing, child allowances significantly increase maternal childcare time. On the other hand, child allowances also reduce childcare expenditure due to the decline in female labor time and increase in the relative price of market childcare goods, which eventually decreases fertility. We show that when the gender discrimination factor is greater than a certain cutoff, the effects of child allowances on fertility become negative. Moreover, male childcare time also plays an essential role in increasing fertility rates. Therefore, gender equality is a prerequisite for increased child allowances to be effective. |
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| Keywords: | Child allowances Gender wage discrimination Female time allocation Fertility Economic growth E62 H31 |
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