Using aggregate time-series data, found that an increase in the tax value of the personal exemption leads to an increase in the demand for children, although the elasticity of the birth rate with respect to the exemption is small. The United States has not implemented such explicit policies as family allowances. Microeconomic Theory Of Fertility Series Data GenerallyĪlthough microeconomic theory predicts that cash benefits will increase fertility, empirical studies that use aggregate time-series data generally find a weak, although positive, relationship between cash benefits and fertility (e.g., Ekert 1986 Gauthier and Hatzius 1997 McNown and Ridao-Cano 2004 Zhang, Quan, and van Meersbergen 1994). Recent attempts date from September 2005, when the French government pledged more money for families with three children and from March 2006, when the Russian President ordered parliament to more than double monthly child support payments ( Population and Development Review 2006 Wyatt 2005). With fertility levels lower than ever in the developed world, some governments are looking for ways to raise fertility.
Using female education as an indicator of socioeconomic status, I find that socioeconomic status is a significant modifier of the effect of family allowances.įamily allowances seem to have a relatively large impact on more-educated women. The results indicate that family allowances have a significant effect at every parity. I reconstructed the birth histories of women in the past two Israeli censuses of 19 to study socioeconomic differences in the effect of family allowances up to the seventh parity. PMID: 19771939 This article has been cited by other articles in PMC.Īlthough several studies have examined the relationship between cash benefits and fertility, few studies have addressed the possible differential effects of cash benefits on families of different income or education levels.
It is used the traditional neoclassical theory of household and consumer behavior for their basic analytical model and have used the principles of economics and optimization to explain family size decisions. Microeconomic Theory Of Fertility Series Data Generally.
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