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Three Family Policies to Reconcile Fertility and Labor Supply

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  • Robert Fenge
  • Lisa Stadler

Abstract

In a model with endogenous fertility and labor supply three instruments of family policies are analyzed: child benefits, subsidies for external child care, and parental leave payments. We compare the impact on the quantity and quality of children, the secondary earner’s labor supply and welfare. Child benefits and subsidies for external child care are more effective in balancing family and work than parental leave payments. The welfare analysis shows that the introduction of subsidies for external child care into a welfare program with child benefits makes families better off.

Suggested Citation

  • Robert Fenge & Lisa Stadler, 2014. "Three Family Policies to Reconcile Fertility and Labor Supply," CESifo Working Paper Series 4922, CESifo.
    • Handle: RePEc:ces:ceswps:_4922
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    Cited by:

    1. Gerhard Glomm & Volker Meier, 2016. "Modes of Child Care," CESifo Working Paper Series 6287, CESifo.
    2. Gerhard Glomm & Volker Meier, 2020. "Efficient child care subsidies: any need for cash for care?," Review of Economics of the Household, Springer, vol. 18(3), pages 773-793, September.

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    More about this item

    Keywords

    fertility; quality of children; child care; secondary earner's labor supply; time allocation; parental leave payments;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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