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Can a cash transfer to families change fertility behaviour?

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Abstract

This paper assesses the relationship between cash transfers to families and subsequent childbearing. We take advantage of a cash-for-care (CFC) policy introduced in Norway in 1998, and compare the fertility behaviour of eligible and ineligible mothers over a four year period. Contrary to theoretical expectations, the results show that CFC eligible mothers had a slower progression to both second and third births, and short term fertility is hence lower in this group. The patterns differ somewhat between different groups of mothers, and there seems to be a polarisation between nonemployed mothers and mothers without upper secondary education, on one hand, and employed mothers and mothers with upper secondary and higher education, on the other. We suggest that this pattern may be driven by an interaction between the CFC benefit and the Norwegian parental leave scheme.

Suggested Citation

  • Synøve N. Andersen & Nina Drange & Trude Lappegård, 2015. "Can a cash transfer to families change fertility behaviour?," Discussion Papers 800, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:800
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    File URL: https://www.ssb.no/en/forskning/discussion-papers/_attachment/219838
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    1. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, September.
    2. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2010. "Measuring heterogeneity in the returns to education using an education reform," European Economic Review, Elsevier, vol. 54(4), pages 483-500, May.
    3. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    4. Drange, Nina, 2012. "Crowding out Dad? The Effect of a Cash-for-Care Subsidy on Family time Allocation," UiS Working Papers in Economics and Finance 2012/3, University of Stavanger.
    5. Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
    6. Hardoy, Inés & Schøne, Pål, 2010. "Incentives to work? The impact of a 'Cash-for-Care' benefit for immigrant and native mothers labour market participation," Labour Economics, Elsevier, vol. 17(6), pages 963-974, December.
    7. Drange, Nina & Rege, Mari, 2013. "Trapped at home: The effect of mothers' temporary labor market exits on their subsequent work career," Labour Economics, Elsevier, vol. 24(C), pages 125-136.
    8. Siv Gustafsson, 2001. "Optimal age at motherhood. Theoretical and empirical considerations on postponement of maternity in Europe," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 225-247.
    9. Ottar Hellevik, 2009. "Linear versus logistic regression when the dependent variable is a dichotomy," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(1), pages 59-74, January.
    10. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters,in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
    11. Walter Korpi, 2000. "Faces of Inequality: Gender, Class and Patterns of Inequalities in Different Types of Welfare States," LIS Working papers 224, LIS Cross-National Data Center in Luxembourg.
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    More about this item

    Keywords

    Fertility; Family policy; Cash for care;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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