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Labour income taxation, child rearing policies and fertility

Author

Listed:
  • Luca Gori

    () (University of Pisa)

  • Luciano Fanti

    () (University of Pisa)

Abstract

We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may actually reduce the long-run fertility rate.

Suggested Citation

  • Luca Gori & Luciano Fanti, 2007. "Labour income taxation, child rearing policies and fertility," Economics Bulletin, AccessEcon, vol. 10(20), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-07j10006
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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume10/EB-07J10006A.pdf
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    Citations

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    Cited by:

    1. Fanti, Luciano & Gori, Luca, 2011. "Child policy ineffectiveness in an overlapping generations small open economy with human capital accumulation and public education," Economic Modelling, Elsevier, vol. 28(1), pages 404-409.
    2. Luciano Fanti, 2012. "Child rearing subsidies and fertility in small open economies with life uncertainty," Discussion Papers 2012/148, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Tim Krieger & Jens Ruhose, 2013. "Honey, I shrunk the kids’ benefits—revisiting intergenerational conflict in OECD countries," Public Choice, Springer, vol. 157(1), pages 115-143, October.
    4. Luciano Fanti, 2012. "Fertility and money in an OLG model," Discussion Papers 2012/145, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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