Short-run fertility effects of parental leave benefits: Evidence from a structural model

Holger Stichnoth

No 14-069, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Based on a structural model of fertility and female labour force supply with unobserved heterogeneity and state dependence, we evaluate the 2007 reform of parental leave benefits in Germany, which replaced a flat, means-tested benefit by a generous earnings-related transfer. The model predicts a short-term fertility effect of about 4%, which is consistent with recent quasi-experimental evidence. The fertility effect is strongest for first births and increases with income. We use the model for a number of counterfactual policy experiments in which we vary the generosity of parental leave benefits.

Keywords: Fertility; female labour supply; family policy; parental leave; latent class models; state dependence (search for similar items in EconPapers)
JEL-codes: C25 C53 J13 J22 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-dcm, nep-dem and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Journal Article: Short-run fertility effects of parental leave benefits: evidence from a structural model (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:14069

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