Economic incentives and the timing of births: evidence from the German parental benefit reform of 2007
Michael Neugart () and
Henry Ohlsson ()
Journal of Population Economics, 2013, vol. 26, issue 1, 87-108
Economic theory suggests that incentives matter for people’s decisions. This paper investigates whether this also holds for less self-evident areas of life such as the timing of births. We use a natural experiment when the German government changed its parental benefit system on January 1, 2007. The policy change strongly increased economic incentives for women to postpone delivery provided that they were employed. Applying a difference-in-difference-in-difference approach, we find very strong evidence that women with an employment history near to the end of their term indeed succeeded to shift births to the New Year and, therefore, could benefit from the new and more generous parental benefit system. Suggesting a model of chain reactions, we also report evidence that some women with due dates earlier in December tried but did not succeed to shift births to the New Year. Copyright Springer-Verlag 2013
Keywords: Timing of births; Economic incentives; Parental benefits; Policy reform; J130; J180; H530; D190 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Economic Incentives and the Timing of Births: Evidence from the German Parental Benefit Reform of 2007 (2012)
Working Paper: Economic incentives and the timing of births: Evidence from the German parental benefit reform 2007 (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jopoec:v:26:y:2013:i:1:p:87-108
Ordering information: This journal article can be ordered from
http://www.springer. ... tion/journal/148/PS2
Access Statistics for this article
Journal of Population Economics is currently edited by K.F. Zimmermann
More articles in Journal of Population Economics from Springer, European Society for Population Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().