This paper develops a static general equilibrium model which endogenizes education transitivity to study the impact of time cost, wages, and cost of a child on CFR (completed fertility rate) in Taiwan. I calibrate the model to data for the females born from 1958 to 1962 in Taiwan. The result suggests that an increase in the females’ lifetime wages have the most significant positive impact on CFR in the model. The impact of child care subsidy depends on the substitution between more and less educated workers in this model. When these two types of workers are relatively more substitute, the impact of child care subsidy on fertility is minor in this model. When these two types of workers are relatively more complement, the impact of child care subsidy has positive effect on CFR in this model. Besides, I estimate the annual growth rate of females’ lifetime wages and the cost of a child in the model with annual Manpower Utilization Survey and the Survey of Family Income and Expenditure between 1958-1962 birth cohort of women and 1968-1972 birth cohort of women. The annual growth rate of females’ lifetime wage and cost of a child are 2% and 4%, respectively. The rapid growth rate of cost of a child relative to the females’ lifetime wage is the main reason for the decline in complete fertility rate between these two cohorts.