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Fertility Effects of Child Benefits

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  • Regina T. Riphahn
  • Frederik Wiynck

Abstract

We exploit the 1996 reform of the German child benefit program to identify the causal effect of heterogeneous child benefits on fertility. While generally the reform increased child benefits, the exact amount of the increase varied substantially by household income and sibship size. We use these heterogeneities to identify their causal effects on fertility in a difference-in-differences setting. We apply the large samples of the German Mikrozensus and the rich data of the German Socio-economic Panel (SOEP). The reform effects on low income couples are not robust or statistically significant. We find some support for positive fertility effects for higher as opposed to lower income couples deciding on a second birth.

Suggested Citation

  • Regina T. Riphahn & Frederik Wiynck, 2016. "Fertility Effects of Child Benefits," Working Papers 164, Bavarian Graduate Program in Economics (BGPE).
  • Handle: RePEc:bav:wpaper:164_riphahnwinyck
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    References listed on IDEAS

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    Cited by:

    1. Daniel Kamhöfer & Matthias Westphal, "undated". "We estimate the effects of college education on female fertility – a so far understudied margin of education, which we instrument by arguably exogenous variation induced through college expansions. Wh," CINCH Working Paper Series 1705, Universitaet Duisburg-Essen, Competent in Competition and Health.
    2. Kamhöfer, Daniel & Westphal, Matthias, 2018. "Fertility Effects of College Education: Evidence from the German Educational Expansion," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181624, Verein für Socialpolitik / German Economic Association.
    3. repec:eee:pubeco:v:169:y:2019:i:c:p:203-222 is not listed on IDEAS

    More about this item

    Keywords

    child benefits; fertility; tax allowance; causal effect; difference-in-differences; Mikrozensus; SOEP;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling

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