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Social Surrogacy: Market Design and Implications for Fertility

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  • Federico Innocenti
  • Lucia Schiavon

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

  • Federico Innocenti & Lucia Schiavon, 2025. "Social Surrogacy: Market Design and Implications for Fertility," CHILD Working Papers Series 126 JEL Classification: D, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    • Handle: RePEc:cca:wchild:126
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    2. Claudia Goldin, 2025. "Babies and the macroeconomy," Economica, London School of Economics and Political Science, vol. 92(367), pages 675-700, July.
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