HOW EFFECTIVE ARE PRONATALIST BENEFITS? A LITERATURE SURVEY AND A STUDY ON SINGAPORE'S QUALIFIED CHILD RELIEF

Cheolsung Park

The Singapore Economic Review (SER), 2005, vol. 50, issue 01, 9-23

Abstract: This paper reviews the existing literature on impacts of pronatalist benefits on fertility in various countries, and estimates the impact of the Qualified Child Relief (QCR) on the total fertility rate (TFR) of Singapore. The studies surveyed in this paper generally find that pronatalist incentives contribute to raising the fertility rate, but only to a limited extent. In Singapore, a 1% increase in the QCR is estimated to increase the TFR by 0.1–0.2%. Singapore's fertility rate is also found to be positively correlated with men's earnings and the infant mortality rate, while negatively correlated with women's earnings and the unemployment rate. Evidence that the New Population Policy of 1987 has been effective in raising the fertility rate is also found.

Keywords: Fertility; tax exemption; pronatalist benefits; Singapore; Qualified Child Relief (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1142/S0217590805001810

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