Fertility Effects of Child Benefits

Regina Riphahn and Frederik Wiynck

No 164, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: We exploit the 1996 reform of the German child benefit program to identify the causal effect of heterogeneous child benefits on fertility. While generally the reform increased child benefits, the exact amount of the increase varied substantially by household income and sibship size. We use these heterogeneities to identify their causal effects on fertility in a difference-in-differences setting. We apply the large samples of the German Mikrozensus and the rich data of the German Socio-economic Panel (SOEP). The reform effects on low income couples are not robust or statistically significant. We find some support for positive fertility effects for higher as opposed to lower income couples deciding on a second birth.

Keywords: child benefits; fertility; tax allowance; causal effect; difference-in-differences; Mikrozensus; SOEP (search for similar items in EconPapers)
JEL-codes: C54 I38 J13 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2016-08
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://bgpe.cms.rrze.uni-erlangen.de/files/2023/0 ... -Child-Benefits-.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Fertility effects of child benefits (2017)
Working Paper: Fertility Effects of Child Benefits (2017)
Working Paper: Fertility Effects of Child Benefits (2017)
Working Paper: Fertility Effects of Child Benefits (2017)
Working Paper: Fertility effects of child benefits (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:164_riphahnwinyck

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