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The effects of family benefits on childbearing decisions: a household optimising approach applied to Australia

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  • Ross Guest
  • Nick Parr

Abstract

This article analyses the effect of family benefits on childbearing decisions using an intertemporal utility maximising framework. The childbirth decisions of households are planned jointly with decisions about lifecycle consumption. The model is calibrated using data for Australia drawn, where possible, from the Household, Income and Labour Dynamics in Australia Wave 7 survey. The simulations show that changes in family benefits are likely to have both timing and quantum effects on childbirth but of a small magnitude, which tends to support findings using alternative empirical approaches. The simulations also indicate the effects of indirect family benefits, such as paid maternity leave and policies to reduce the time that mothers spend out of the labour force following child birth.
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Suggested Citation

  • Ross Guest & Nick Parr, 2009. "The effects of family benefits on childbearing decisions: a household optimising approach applied to Australia," Discussion Papers in Economics economics:200907, Griffith University, Department of Accounting, Finance and Economics.
  • Handle: RePEc:gri:epaper:economics:200907
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    File URL: https://www120.secure.griffith.edu.au/research/items/b4f4da47-a4b2-6d48-cc8f-453c0d28fc87/1/2009-07-the-effects-of-family-benefits-on-childbearing-decisions-a-household-optimising-approach-applied-to-australia.pdf
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    Cited by:

    1. Daniele Vignoli & Letizia Mencarini & Giammarco Alderotti, 2018. "Is the Impact of Employment Uncertainty on Fertility Intentions Channeled by Subjective Well-Being?," Econometrics Working Papers Archive 2018_04, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    2. 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.
    3. Creina Day, 2012. "Will Fertility Rebound In Japan," Asia Pacific Economic Papers 395, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    4. O'Connor, Peter & Stephenson, John & Yeabsley, John, 2012. "Grow for it - How population policies can can promote economic growth," NZIER Working Paper 2012/1, New Zealand Institute of Economic Research.
    5. Creina Day, 2012. "Economic Growth, Gender Wage Gap and Fertility Rebound," The Economic Record, The Economic Society of Australia, vol. 88(s1), pages 88-99, June.

    More about this item

    Keywords

    Fertility; Family benefits; Intertemporal utility;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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