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Family Policies in the Context of Low Fertility and Social Structure

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  • Thomas Fent
  • Belinda Aparicio Diaz
  • Alexia Prskawetz

Abstract

The aim of this paper is to analyse the effectivity of family policies in the context of different assumptions regarding the social structure of a society. We use an agent based simulation model to analyse the impact of family policies on individual fertility decisions and on cohort fertility, intended fertility, and the fertility gap on the aggregate level. The crucial features of our simulation model are the agents' heterogeneity with respect to age, income, parity, and intended fertility, the social network and social influence. Our results indicate that both fixed and income dependent child supports have a positive and significant impact on fertility. However, several network and social influence parameters have the ability not only to influence fertility itself but also the effectivity of family policies. Therefore, policymakers aiming to transfer a certain policy mix that has proved successful from one country to another one ignoring differences in the social structure may fail. Family policies can only be successful if they explicitly take into account the characteristics of the society they are assigned for.

Suggested Citation

  • Thomas Fent & Belinda Aparicio Diaz & Alexia Prskawetz, 2010. "Family Policies in the Context of Low Fertility and Social Structure," VID Working Papers 1102, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  • Handle: RePEc:vid:wpaper:1102
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    References listed on IDEAS

    as
    1. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
    2. Klaus Prettner & Alexia Prskawetz, 2010. "Decreasing fertility, economic growth and the intergenerational wage gap," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 197-214, May.
    3. Grafeneder-Weissteiner, Theresa & Prettner, Klaus, 2010. "Agglomeration processes in aging societies," Department of Economics Working Paper Series 131, WU Vienna University of Economics and Business.
    4. Klaus Prettner & Alexia Prskawetz, 2010. "Demographic change in models of endogenous economic growth. A survey," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 593-608, December.
    5. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2010. "R&D-Based Growth in the Post-Modern Era," VID Working Papers 1009, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    6. Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2011. "Externalities in a life cycle model with endogenous survival," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 627-641.
    7. Bilal Barakat & Johannes Holler & Klaus Prettner & Julia Schuster, 2010. "The Impact of the Economic Crisis on Labour and Education in Europe," VID Working Papers 1006, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    8. Belinda Diaz & Thomas Fent & Alexia Prskawetz & Laura Bernardi, 2011. "Transition to Parenthood: The Role of Social Interaction and Endogenous Networks," Demography, Springer;Population Association of America (PAA), vol. 48(2), pages 559-579, May.
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    Cited by:

    1. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2014. "Economic Insecurity and Fertility Intentions: The Case of Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 233-255, May.
    2. Theresa Grafeneder-Weissteiner & Ingrid Kubin & Klaus Prettner & Alexia Prskawetz & Stefan Wrzaczek, 2012. "Coping with Inefficiencies in a New Economic Geography Model," VID Working Papers 1204, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.

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    More about this item

    Keywords

    Family policies; low fertility; social influence; social networks; social structure.;
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