On the Persistence of Low Birthrate in Japan

Reiko Aoki, 玲子 青木 and レイコ アオキ

No 347, PIE/CIS Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: We first show that quality of consumption is an important determinant of fertility and labor supply. Taking this observation into account and using a general equilibrium model with vertical quality differentiation and heterogeneous labor, we show how low fertility may persist. This occurs because product quality and skilled labor supply adjust, never realizing the change in labor productivity necessary to reverse declining fertility.

Pages: 17 pages
Date: 2008-02
Note: Fertility and Public Policy: How to Reverse the Trend of Declining Birth Rates CIS-CESifo, Munich, 1-2 February 2008, This version 31 January 2008
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Citations: View citations in EconPapers (1)

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