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Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz

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  • Ebenstein, Avraham
  • Hazan, Moshe
  • Simhon, Avi

Abstract

Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This paper examines the impact of privatizing costs of children on the behavior of young couples using universal microdata on kibbutz members. Exploiting variation in the increase in cost sharing across kibbutzim, we estimate that lifetime fertility declined by 0.59 children in the cohorts of affected parents. We also examine the exit decisions of members, and find that couples were most likely to leave the kibbutz if they were either higher income or lower fertility. This pattern is also observed among Israeli emigrants, in which higher educated and lower fertility couples are more likely to leave Israel.

Suggested Citation

  • Ebenstein, Avraham & Hazan, Moshe & Simhon, Avi, 2014. "Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz," Discussion Papers 164526, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:164526
    DOI: 10.22004/ag.econ.164526
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    References listed on IDEAS

    as
    1. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2013. "Financial Incentives and Fertility," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 1-20, March.
    2. Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," Discussion Papers 07-048, Stanford Institute for Economic Policy Research.
    3. Ran Abramitzky, 2011. "Lessons from the Kibbutz on the Equality-Incentives Trade-Off," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 185-208, Winter.
    4. Avraham Ebenstein, 2010. "The "Missing Girls" of China and the Unintended Consequences of the One Child Policy," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    5. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2007. "Do Financial Incentives Affect Fertility?," NBER Working Papers 13700, National Bureau of Economic Research, Inc.
    6. Abramitzky, Ran, 2009. "The effect of redistribution on migration: Evidence from the Israeli kibbutz," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 498-511, April.
    7. Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1111-1159.
    8. Ben-Porath, Yoram, 1973. "Economic Analysis of Fertility in Israel: Point and Counterpoint," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 202-233, Part II, .
    9. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    10. Charles F. Manski & Joram Mayshar, 2003. "Private Incentives and Social Interactions: Fertility Puzzles in Israel," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 181-211, March.
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    Keywords

    Farm Management; Food Security and Poverty; Institutional and Behavioral Economics;
    All these keywords.

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