What entices the Stork? Fertility, Education and Family Payments

Creina Day and Steve Dowrick

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: Developed economies, experiencing concomitant declining fertility and rising educational attainment, have introduced policies to boost fertility. We model substitution of bought in services for parental time in the rearing and education of children in an economy where technological progress leads households to choose fewer, but better educated, children. We analyse the effects on fertility and education of a baby bonus, paid maternity leave and child care subsidies. We establish conditions under which either maternity or child care benefits are more efficacious in raising fertility, and we establish that a lump sum baby bonus will increase fertility only if the bonus increases faster than income per capita. Policies that stimulate fertility also raise parental investment in education.

JEL-codes: H31 J13 O40 (search for similar items in EconPapers)
Pages: 21 Pages
Date: 2010-03
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (3)

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Journal Article: What Entices the Stork? Fertility, Education and Family Payments (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:acb:cbeeco:2010-516

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