Status Externalities in Education and Low Birth Rates in Korea
研究韩国教育中的地位外部性如何导致低生育率，通过量化模型发现消除外部性可使生育率提高28%，并探讨了教育税和生育补贴的政策效果。
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.