The Effects of Family Benefits on Childbearing Decisions: A Household Optimising Approach Applied to Australia
AbstractThis article analyses the effect of family benefits on childbearing decisions using an intertemporal utility maximising framework. The childbirth decisions of households are planned jointly with decisions about lifecycle consumption. The model is calibrated using data for Australia drawn, where possible, from the Household, Income and Labour Dynamics in Australia Wave 7 survey. The simulations show that changes in family benefits are likely to have both timing and quantum effects on childbirth but of a small magnitude, which tends to support findings using alternative empirical approaches. The simulations also indicate the effects of indirect family benefits, such as paid maternity leave and policies to reduce the time that mothers spend out of the labour force following child birth.
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Bibliographic InfoArticle provided by The Economic Society of Australia in its journal Economic Record.
Volume (Year): 86 (2010)
Issue (Month): 275 (December)
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Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- D10 - Microeconomics - - Household Behavior - - - General
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
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- Nick Parr & Ross Guest, 2011. "The contribution of increases in family benefits to Australiaâ€™s early 21st-century fertility increase: An empirical analysis," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(6), pages 215-244, July.
- Creina Day, 2012. "Will Fertility Rebound In Japan," Asia Pacific Economic Papers 395, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
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