Does Fertility Respond to Financial Incentives?

44 Pages Posted: 24 Aug 2005

See all articles by Guy Laroque

Guy Laroque

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Bernard Salanie

Columbia University - Graduate School of Arts and Sciences - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

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Date Written: April 2005

Abstract

We attempt here to evaluate the sensitivity of fertility to financial incentives in France. We discuss and implement several estimation strategies; our main focus is on a structural model of female participation and fertility based on a microsimulation model of the tax-benefit system. We estimate this model on individual data from the Labor Force Survey. Our results suggest that financial incentives play a sizable role in determining fertility decisions in France.

Keywords: Population, fertility, incentives, benefits

JEL Classification: H53, J13, J22

Suggested Citation

Laroque, Guy and Salanie, Bernard, Does Fertility Respond to Financial Incentives? (April 2005). CEPR Discussion Paper No. 5007. Available at SSRN: https://ssrn.com/abstract=772706

Guy Laroque (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
92245 Malakoff Cedex
France
+33 1 4117 7718 (Phone)
+33 1 4117 7666 (Fax)

Bernard Salanie

Columbia University - Graduate School of Arts and Sciences - Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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