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The Effects of Family Benefits on Childbearing Decisions: A Household Optimising Approach Applied to Australia

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  • ROSS GUEST
  • NICK PARR

Abstract

This 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.

Suggested Citation

  • Ross Guest & Nick Parr, 2010. "The Effects of Family Benefits on Childbearing Decisions: A Household Optimising Approach Applied to Australia," The Economic Record, The Economic Society of Australia, vol. 86(275), pages 609-619, December.
    • Handle: RePEc:bla:ecorec:v:86:y:2010:i:275:p:609-619
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    File URL: http://hdl.handle.net/10.1111/j.1475-4932.2010.00663.x
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    Cited by:

    1. Daniele Vignli & Letizia Mencarini & Giammarco Alderotti, 2018. "Is the Impact of Employment Uncertainty on Fertility Intentions Channeled by Subjective Well-Being?," Working Papers 114, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    2. Creina Day & Steve Dowrick, 2010. "What Entices the Stork? Fertility, Education and Family Payments," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 69-79, September.
    3. Ross Guest, 2013. "Population Ageing and Productivity: Implications and Policy Options for New Zealand," Treasury Working Paper Series 13/21, New Zealand Treasury.
    4. Nick Parr & Ross Guest, 2014. "A method for socially evaluating the effects of long-run demographic paths on living standards," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(11), pages 275-318.
    5. Mengni Chen & Chris J Lloyd & Paul S F Yip, 2018. "A new method of identifying target groups for pronatalist policy applied to Australia," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-13, February.
    6. Nick Parr, 2011. "The contribution of increases in family benefits to Australia’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.
    7. 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.
    8. Peter O'Connor & John Stephenson & John Yeabsley, 2012. "Grow for it - How population policies can can promote economic growth," NZIER Working Paper 2012/1, New Zealand Institute of Economic Research.
    9. Creina Day, 2012. "Economic Growth, Gender Wage Gap and Fertility Rebound," The Economic Record, The Economic Society of Australia, vol. 88(s1), pages 88-99, June.

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    Keywords

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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