Discussion Papers

How the Child Allowance Affects Household Expenditure (English translation of article published in Kikan Shakai Hosho Kenkyu)

DP Number SDP2012-004
Language 日本語・英語
Date March, 2013
Author Yoshie Kobayashi
JEL Classification codes
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In this paper I have attempted to clarify the effects of “standard of living guarantee”
and “child welfare” on households by employing equivalence scales used for the
estimation of child cost. The estimation of child cost for each age group was described.
The results indicated that the child cost increased linearly, peaking in households with
high school children.
Then I tested the effect on household expenditure patterns by using actual measured
values and estimated values of the child allowance. I verified certain effects, based on
each model, on the standard of living, taking the Engel share as an index. On the other
hand, the effect of the child allowance on the educational expense share is negative,
suggesting that the cash provided is probably used for something other than
educational expenses. Therefore, the effect on child welfare improvement remains