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Family policy and the number of children: Evidence from a natural experiment

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  • Egger, Peter H.
  • Radulescu, Doina M.

Abstract

This paper analyzes the effects of family policy on the number of children. A natural experiment which changed regional family policy dramatically was Saarland's reaccession to Germany in 1957. Prior to this date, Saarland was part of France. After 1957, families in Saarland were subject to spouse income splitting instead of the previous family income splitting and other aspects of family policy also changed fundamentally with Saarland's reaccession to Germany. We identify the causal impact of this change by using panel data on newborn children in 45 municipalities in Saarland, and 350 municipalities in surrounding regions in Germany and France. The results suggest that the change in family policy associated with Saarland's reaccession to Germany led to a reduction of births by about one-fifth.

Suggested Citation

  • Egger, Peter H. & Radulescu, Doina M., 2012. "Family policy and the number of children: Evidence from a natural experiment," European Journal of Political Economy, Elsevier, vol. 28(4), pages 524-539.
    • Handle: RePEc:eee:poleco:v:28:y:2012:i:4:p:524-539
    DOI: 10.1016/j.ejpoleco.2012.05.006
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    Cited by:

    1. Grechyna, Daryna, 2023. "Parenthood and political engagement," European Journal of Political Economy, Elsevier, vol. 76(C).
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    3. Thomas Fent & Belinda Aparicio Diaz & Alexia Prskawetz, 2013. "Family policies in the context of low fertility and social structure," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(37), pages 963-998.
    4. Sebastian Garmann, 2017. "The effect of a reduction in the opening hours of polling stations on turnout," Public Choice, Springer, vol. 171(1), pages 99-117, April.
    5. Hans-Werner Sinn, 2013. "The Demographic Deficit – the Facts, the Consequences, the Causes and Policy Implications," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(21), pages 03-23, November.

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    More about this item

    Keywords

    Family policy; Income splitting; Natural experiment; Fertility;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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