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What entices the Stork? Fertility, Education and Family Payments

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  • Creina Day

    ()

  • Steve Dowrick

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Abstract

Developed economies, experiencing concomitant declining fertility and rising educational attainment, have introduced policies to boost fertility. We model substitution of bought in services for parental time in the rearing and education of children in an economy where technological progress leads households to choose fewer, but better educated, children. We analyse the effects on fertility and education of a baby bonus, paid maternity leave and child care subsidies. We establish conditions under which either maternity or child care benefits are more efficacious in raising fertility, and we establish that a lump sum baby bonus will increase fertility only if the bonus increases faster than income per capita. Policies that stimulate fertility also raise parental investment in education.

Suggested Citation

  • Creina Day & Steve Dowrick, 2010. "What entices the Stork? Fertility, Education and Family Payments," ANU Working Papers in Economics and Econometrics 2010-516, Australian National University, College of Business and Economics, School of Economics.
  • Handle: RePEc:acb:cbeeco:2010-516
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp516.pdf
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    Cited by:

    1. 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, July.

    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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