Economic incentives and the timing of births: Evidence from the German parental benefit reform 2007
Economic theory suggests that incentives matter for people's decisions. This paper investigates whether this also holds for less self-evident areas of life such as the timing of births. We make use of a nautral experiment when the German government changed its parental benefit system January 1, 2007. The policy changes strongly increased economic incentives for women to postpone delivery to the new year provided that they were employed. The incentives for women not employed were not the same, they could gain slightly from giving birth before the policy change. Applying a difference-in-difference-in-difference approach, we find very strong evidence that women with an employment history near to the end of their term indeed succeeded to shift births and became subject to the new and more generous parental benefit system. We estimate the quantitative impact to correspond to a 5-6 percentage points increased probability to give birth the first seven days of 2007 rather than the last seven days of 2006 for employed women.
|Date of creation:||12 Oct 2009|
|Date of revision:|
|Publication status:||Published as Henry Ohlsson, Michael Neugart and, 'Economic incentives and the timing of births: Evidence from the German parental benefit reform 2007' in Journal of Population Economics, 2013, pages 87-108.|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eliason, M. & Ohlsson, H., 2013.
"Timing of death and the repeal of the Swedish inheritance tax,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
Elsevier, vol. 45(C), pages 113-123.
- Eliason, Marcus & Ohlsson, Henry, 2010. "Timing of death and the repeal of the Swedish inheritance tax," Working Paper Series, Center for Fiscal Studies 2010:2, Uppsala University, Department of Economics.
- Eliason, Marcus & Ohlsson, Henry, 2010. "Timing of death and the repeal of the Swedish inheritance tax," Working Paper Series 2010:5, Uppsala University, Department of Economics.
- Gans Joshua S & Leigh Andrew, 2006.
"Did the Death of Australian Inheritance Taxes Affect Deaths?,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 6(1), pages 1-9, November.
- Joshua S. Gans & Andrew Leigh, 2006. "Did the Death of Australian Inheritance Taxes Affect Deaths?," CEPR Discussion Papers 530, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Wojciech Kopczuk & Joel Slemrod, 2001.
"Dying to Save Taxes: Evidence from Estate Tax Returns on the Death Elasticity,"
NBER Working Papers
8158, National Bureau of Economic Research, Inc.
- Wojciech Kopczuk & Joel Slemrod, 2003. "Dying to Save Taxes: Evidence from Estate-Tax Returns on the Death Elasticity," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 256-265, May.
- Joshua S. Gans & Andrew Leigh, 2006.
"Born on the First of July: An (Un)natural Experiment in Birth Timing,"
CEPR Discussion Papers
529, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Gans, Joshua S. & Leigh, Andrew, 2009. "Born on the first of July: An (un)natural experiment in birth timing," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 246-263, February.
- Jochen Kluve & Marcus Tamm, 2013. "Parental leave regulations, mothers’ labor force attachment and fathers’ childcare involvement: evidence from a natural experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 983-1005, July.
- Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
- Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
- Eliason, Marcus & Ohlsson, Henry, 2008.
"Living to save taxes,"
Elsevier, vol. 100(3), pages 340-343, September.
- Maria Gutiérrez-Domènech, 2008. "The impact of the labour market on the timing of marriage and births in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(1), pages 83-110, January.
When requesting a correction, please mention this item's handle: RePEc:hhs:uufswp:2009_010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.