Status Externalities in Education and Low Birth Rates in Korea

• 成果类型: Article
• 署名作者: Kim, Seongeun; Tertilt, Michele; Yum, Minchul
• 署名单位: Sejong University; University of Mannheim; University of Southampton
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220583
• 发表日期: 2024
• 页码: 1576-1611
• 关键词: conspicuous consumption; fertility choice; MODEL; EFFICIENCY; GROWTH; INEQUALITY; demand; POLICY; income

摘要

South Koreans appear to be preoccupied with their offspring's education and also have the lowest total fertility rate in the world. We propose a novel theory with status externalities and endogenous fertility connecting these facts, motivated by novel empirical evidence on private education spillovers. Using a quantitative model calibrated to Korea, we find that fertility would be 28 percent higher without the externality. We explore the effects of government policy: a pro-natal transfer or an education tax can increase fertility and reduce education spending. An education tax of 22 percent together with moderate pro-natal transfers maximizes the current generation's welfare.