ESRI Discussion Paper Series No.279
The expenditure on children in Japan

Masahiro Hori
Hitotsubashi University, and Economic and Social Research Institute, Cabinet Office

Abstract

This study estimates average expenditures on children by families in Japan on the basis of the rich information about household expenditures and demographics obtained from the Family Income and Expenditure Survey. We show that the total expenditure on the first child accumulated from birth through age 18 is approximately 16.5 million yen based on 2004-2008 data. Average per child expenditure (accumulated over the same age period) in a household with two children is reduced to about 11 million yen, suggesting partly that there are economies of scale in child rearing activities and that families with two children have less money to spend on each child. The share of child rearing expenditure in total consumption appears to have been steadily increasing since mid-1980s.


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  2. Abstract
  3. page2
    1. Introduction
  4. page4
    2. Data and Methodology
    1. page4
      2.1 Data Source
    2. page5
      2.2 Methodology
  5. page8
    3. Tentative Application to Total Consumption Expenditure
    1. page8
      3.1 Preliminary Findings
    2. page9
      3.2 Problems Found in the Estimates on Subcategories
    3. page9
      3.3 Remedies
  6. page11
    4. Estimates by Consumption Category
    1. page11
      4.1 Food (Figure 4.1 and Table 3)
    2. page12
      4.2 Fuel, Light, and Water Charges (Figure 4.2 and Table 3)
    3. page12
      4.3 Furniture and Household Utensils (Figure 4.3 and Table 3)
    4. page12
      4.4 Clothes and Footwear (Figure 4.4 and Table 3)
    5. page12
      4.5 Medical Care (Figure 4.5 and Table 3)
    6. page13
      4.6 Transportation and Communication (Figure 4.6 and Table 3)
    7. page13
      4.7 Education (Figure 4.7 and Table 3)
    8. page13
      4.8 Culture and Recreation (Figure 4.8 and Table 3)
    9. page14
      4.9 Other Consumption (Figure 4.9 and Table 3)
    10. page14
      4.10 Total Consumption Expenditures (Figure 5 and Table 3)
  7. page14
    5. Estimates for the Past Quarter of a Century
  8. page16
    6. Conclusion
  9. page18
    References
  10. page19
    Table 1: Sample Statistics by Type of Household and Period
  11. page20
    Table 2: Cumulated Consumption Expenditure (Based on 2004-2008 FIES Observations)
  12. page22
    Table 3: Cumulated Consumption Expenditure by Category (Based on 2004-2008 FIES Data)
  13. page23
    Table 4: Families' Consumption Expenditure per Child (From Age 0 to 18): 2004-2008, 1994-1998, and 1984-1988
  14. page24
    Figure 1: Number of Individual Observations in the FIES by Sex and Age
  15. page25
    Figure 2: Annual Consumption by Sex, Age, Etc., Calculated from the Estimates
    1. page25
      2.1 Consumption Expenditure (Total), 2004-2008
    2. page25
      2.2 Consumption Exp. (excl. Remittances), 2004-2008
  16. page26
    Figure 3: A Few Examples of Problematic Estimates
    1. page26
      3.1 Housing Expenditure, 2004-2008
    2. page26
      3.2 Education, 2004-2008
    3. page26
      3.3 Other Consumption Expenditures, 2004-2008
    4. page26
      3.4 Remittances, 2004-2008
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    Figure 4: Annual Consumption by Category (2004-2008) Calculated from the OLS Estimates
    1. page27
      4.1 Food
    2. page27
      4.2 Fuel, Light, and Water
    3. page27
      4.3 Furniture and Household Utensils
    4. page27
      4.4 Clothing and Footwear
    5. page27
      4.5 Medical Care
    6. page27
      4.6 Transportation and Communication
    7. page27
      4.7 Education
    8. page27
      4.8 Culture and Recreation
    9. page27
      4.9 Other Consumption Expenditures (excl. Remittances)
  18. page28
    Figure 5: Annual Consumption Calculated as the Sum of Individual Categories
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