Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz

26 Pages Posted: 7 Jan 2017

See all articles by Avraham Ebenstein

Avraham Ebenstein

Hebrew University of Jerusalem - Department of Economics

Moshe Hazan

Tel Aviv University - Eitan Berglas School of Economics; Centre for Economic Policy Research (CEPR)

Avi Simhon

Hebrew University of Jerusalem

Date Written: November 2016

Abstract

Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This article examines the impact of privatising costs of children on the fertility behaviour of young couples. Exploiting variation in parental cost‐sharing across kibbutzim, we estimate that lifetime fertility declined by 0.65 children. We also examine the exit decisions of members, and find that couples were most likely to leave the kibbutz if they were either higher income or lower fertility. This pattern is also observed among Israeli emigrants, in which higher educated and lower fertility couples are more likely to leave Israel.

Suggested Citation

Ebenstein, Avraham and Hazan, Moshe and Simhon, Avi, Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz (November 2016). The Economic Journal, Vol. 126, Issue 597, pp. 2038-2063, 2016. Available at SSRN: https://ssrn.com/abstract=2893964 or http://dx.doi.org/10.1111/ecoj.12240

Avraham Ebenstein (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Israel

Moshe Hazan

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel

HOME PAGE: http://moshehazan.weebly.com/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Avi Simhon

Hebrew University of Jerusalem ( email )

Mount Scopus
Jerusalem 91905, IL Jerusalem 91905
Israel
+972 2 588 3237 (Phone)
+972 2 581 6071 (Fax)

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