Unemployment, Nonstandard Employment, and Fertility: Insights From Japan's "Lost 20 Years".

In this study, we examine relationships of unemployment and nonstandard employment with fertility. We focus on Japan, a country characterized by a prolonged economic downturn, significant increases in both unemployment and nonstandard employment, a strong link between marriage and childbearing, and pronounced gender differences in economic roles and opportunities. Analyses of retrospective employment, marriage, and fertility data for the period 1990-2006 indicate that changing employment circumstances for men are associated with lower levels of marriage, while changes in women's employment are associated with higher levels of marital fertility.

Risk and uncertainty in health investment.

Extending the Grossman (J Polit Econ 80:223-255, 1972) model of health capital into a stochastic one, we analyze how the presence of Knightian uncertainty about the efficacy of health care affects the optimal health investment behavior of individuals. Using Gilboa and Schmeidler's (J Math Econ 18:141-153, 1989) model of max/min expected utility (MMEU) with multiple priors, we show that an agent retains the initial level of health capital if the price of health care lies within a certain range. We also show that the no-investment range expands as the degree of Knightian uncertainty rises.