 Fertility, Female Labor Supply, and Family PolicyHans Fehr () and Daniela Ujhelyiova No 3455, CESifo Working Paper Series from CESifo Abstract: The present paper develops a general equilibrium model with overlapping generations and endogenous fertility in order to analyze the interaction between public policy and household labor supply and fertility decisions. The model's benchmark equilibrium reflects the current family policy consisting of joint taxation of married couples, monetary transfers and in-kind benefits which reduce the time cost of children. Then we simulate alternative reforms of the tax and the child benefit system and analyze the long-run impact on fertility and female labor supply. Our simulations indicate three central results: First, policies which simply increase the family budget either via higher transfers (direct or in-kind) or via family splitting increase fertility but reduce female employment. Second, increasing tax revenues due to the introduction of individual taxation would increase female employment but reduce fertility. Third, revenue neutral policies such as a reform of the benefit structure or a move towards individual taxation combined with an increase in in-kind benefits may achieve both goals and therefore yield significant welfare gains. Keywords: stochastic fertility; general equilibrium life cycle model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3455 Access Statistics for this paper More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC. |
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