Eurasian Economic Review

, Volume 8, Issue 1, pp 37–50 | Cite as

Fertility and education investment incentive with a pay-as-you-go pension

  • Masaya YasuokaEmail author
Original Paper


Some reports of the related literature describe examinations of whether a child allowance and the subsidy for education investment can raise fertility and education investment, or not. This paper presents consideration of the pension incentive policy as substitutive policies of a child allowance and a subsidy for education investment in a model of quality and quantity of children. Results of the study reported herein demonstrate that pension incentive policy cannot always increase fertility and the education investment, i.e., the growth rate of the human capital stock. If the pension incentive policy can raise fertility and the growth rate of the human capital stock, then the pension incentive policy plays the roles of a child allowance and a subsidy for the education investment. Otherwise, the pension incentive policy should not be provided in place of the child allowance and the subsidy for education investment. Pension incentive policy effects on fertility and the growth rate of the human capital stock depend on the preference parameters of quality and the quality of children.


Fertility Education investment Pension Quality of children Quantity of children 

JEL Classification

H55 J13 J24 


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Copyright information

© Eurasia Business and Economics Society 2017

Authors and Affiliations

  1. 1.School of Economics, Kwansei Gakuin UniversityNishinomiyaJapan

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