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Economic Determinants of Japan's Low Fertility Rate: Cointegration Analysis

Economic Determinants of Japan's Low Fertility Rate: Cointegration Analysis Abstract: This paper discusses the determinants of Japan's declining fertility rate from 1973 to 2008. We examine various economic factors: GDP per capita, infant mortality rates, female labour participation, cost of education, and urbanization and find that these variables are cointegrated. We discover that GDP per capita has a negative relationship with fertility rates and a 1% increase in GDP per capita leads to a decrease in fertility by 2.1%. In addition, we discover that female labour participation shows an unexpected positive relationship to fertility suggesting that their financial contribution to the family has lowered the cost of child rearing. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Population Review Sociological Demography Press

Economic Determinants of Japan's Low Fertility Rate: Cointegration Analysis

Population Review , Volume 50 (2) – Jul 7, 2011

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Publisher
Sociological Demography Press
Copyright
Copyright © 2008 Population Review Publications Limited.
ISSN
1549-0955
Publisher site
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Abstract

Abstract: This paper discusses the determinants of Japan's declining fertility rate from 1973 to 2008. We examine various economic factors: GDP per capita, infant mortality rates, female labour participation, cost of education, and urbanization and find that these variables are cointegrated. We discover that GDP per capita has a negative relationship with fertility rates and a 1% increase in GDP per capita leads to a decrease in fertility by 2.1%. In addition, we discover that female labour participation shows an unexpected positive relationship to fertility suggesting that their financial contribution to the family has lowered the cost of child rearing.

Journal

Population ReviewSociological Demography Press

Published: Jul 7, 2011

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