Raising the Financial Costs of Children and Fertility Responses: Evidence from the Kibbutz
27 Pages Posted: 25 Oct 2011
Date Written: October 25, 2011
Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This paper examines the impact of the privatization of kibbutzim on fertility behavior among members. We find that fertility declined by 6-15 percent following the shift to privatization. In light of the massive change in financial costs associated with childbearing due to privatization, our results suggest that financial considerations may be a more modest factor in fertility decisions than generally regarded.
Keywords: Fertility, Privatization
JEL Classification: D1, J13
Suggested Citation: Suggested Citation