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The impact of family policy packages on fertility trends in developed countries

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Author Info

  • Angela Luci

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Olivier Thevenon

    ()
    (INED - Institut National d'Etudes Démographiques - INED)

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    Abstract

    We examine how far fertility trends respond to family policies in OECD countries. In the light of the recent fertility rebound observed in several OECD countries, we empirically test the impact of different family policy settings on fertility, using data from 18 OECD countries that spans the years 1982 to 2007. Our results confirm that each instrument of the family policy package (paid leave, childcare services and financial transfers) has a positive influence, suggesting that the addition of these supports for working parents in a continuum during the early childhood is likely to facilitate parents' choice to have children. Policy levers do not have similar weight, however: in-cash benefits covering childhood after the year of childbirth and the coverage of childcare services for children under age three have a larger potential influence on fertility than leave entitlements and benefits granted around childbirth. Our findings are robust once controlling for birth postponement, endogeneity, time lagged fertility reactions and for different national contexts, such as economic development, female employment rates, labour market insecurity and childbearing norms.

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    Bibliographic Info

    Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00657603.

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    Date of creation: 2011
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    Handle: RePEc:hal:cesptp:hal-00657603

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    Related research

    Keywords: family policies; fertility; demographic economics; female employment; economics of gender;

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    1. Adriaan Kalwij, 2010. "The impact of family policy expenditure on fertility in western Europe," Demography, Springer, vol. 47(2), pages 503-519, May.
    2. Gary S. Becker & Kevin M. Murphy & Robert F. Tamura, 1990. "Human Capital, Fertility, and Economic Growth," NBER Working Papers 3414, National Bureau of Economic Research, Inc.
    3. Galor, Oded & Weil, David, 1995. "The Gender Gap, Fertility and Growth," CEPR Discussion Papers 1157, C.E.P.R. Discussion Papers.
    4. Mörk, Eva & Sjögren, Anna & Svalelryd, Helena, 2008. "Cheaper child care, more children," Working Paper Series 2008:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    Cited by:
    1. Mikko Myrskylä & Rachel Margolis, 2013. "Parental benefits improve parental well-being: evidence from a 2007 policy change in Germany," MPIDR Working Papers WP-2013-010, Max Planck Institute for Demographic Research, Rostock, Germany.
    2. Adema, Willem, 2012. "Setting the scene: The mix of family policy objectives and packages across the OECD," Children and Youth Services Review, Elsevier, vol. 34(3), pages 487-498.

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