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The Effect of a Universal Child Benefit on Conceptions, Abortions, and Early Maternal Labor Supply

Author

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  • Libertad Gonz?lez

Abstract

I study the impact of a universal child benefit on fertility and maternal labor supply. I exploit the unanticipated introduction of a sizable child benefit in Spain in 2007. Following a regression discontinuity-type design, I find that the benefit significantly increased fertility, in part through a reduction in abortions. Families who received the benefit did not increase consumption. Instead, eligible mothers stayed out of the labor force longer after childbirth, which led to their children spending less time in formal child care.

Suggested Citation

  • Libertad Gonz?lez, 2013. "The Effect of a Universal Child Benefit on Conceptions, Abortions, and Early Maternal Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 160-188, August.
    • Handle: RePEc:aea:aejpol:v:5:y:2013:i:3:p:160-88
    Note: DOI: 10.1257/pol.5.3.160
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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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