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The Narrow Path of Policies

Massimo Livi Bacci

No 239, Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: Low fertility in Italy has diseconomies that are widely recognized, but public transfers to families and children are way below the EU average. A proposal that could have pro-natalist effects envisages the creation of a fund for each newborn that would be accrued by yearly public transfers (and, within limits, by donations of relatives). Up to fifty percent of the yearly transfer can be used by the family in order to support the child. The fund comes to maturity when the child comes of age: at this point the young may use it in order to improve his education, as a startup for an economic activity or for any other productive use. Repayment is spread over the working life.

Date: 2004-12
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