Commentators have often linked the increase in births in France since 1995 to more generous family benefits. We study here empirically the link between fertility and financial incentives by estimating and simulating a joint structural model of participation and fertility on a sample of French women. Our results suggest that fertility responds to incentives in a non-negligible way. The results, however, also have some puzzling features: financial incentives appear to have much stronger effects on low-parity births.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
4064.
Find related papers by JEL classification: H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General J10 - Labor and Demographic Economics - - Demographic Economics - - - General
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