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Social surrogacy: Market design and implications for fertility

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  • Innocenti, Federico
  • Schiavon, Lucia

Abstract

We investigate theoretically the introduction of a market for commercial surrogacy for social motives. Agents have heterogeneous incomes and preferences for parenthood, and face pregnancy-related income reductions. In equilibrium, low-income agents provide surrogacy for high-income agents who seek “insurance” against income loss and would not become parents without surrogacy. Surrogacy has an ambiguous effect on fertility: it increases fertility only if the latter is low without surrogacy. Otherwise, its impact on fertility is negative.

Suggested Citation

  • Innocenti, Federico & Schiavon, Lucia, 2025. "Social surrogacy: Market design and implications for fertility," Economics Letters, Elsevier, vol. 257(C).
    • Handle: RePEc:eee:ecolet:v:257:y:2025:i:c:s0165176525005531
    DOI: 10.1016/j.econlet.2025.112716
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    References listed on IDEAS

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    1. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
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    3. Claudia Goldin, 2025. "Babies and the macroeconomy," Economica, London School of Economics and Political Science, vol. 92(367), pages 675-700, July.
    4. Henrik Kleven & Camille Landais & Gabriel Leite-Mariante, 2023. "The Child Penalty Atlas," NBER Working Papers 31649, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D6 - Microeconomics - - Welfare Economics
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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