Tax Incentives and Fertility in Canada: Quantum vs Tempo Effects

30 Pages Posted: 19 May 2007

See all articles by Daniel Parent

Daniel Parent

McGill University - Department of Economics

Ling Wang

Government of Canada - Department of Finance Canada

Abstract

Using inter-jurisdictional differences in the implementation of the Family Allowance Program in Canada in the mid-1970s, this paper first shows that Quebec families with two or more children prior to being exposed to the program responded quite strongly to the added incentives in the short run relative to women in other Canadian provinces. Tracking down the cohorts across Censuses, we find that the same group of Quebec families subsequently showed a decrease in fertility relative to the rest of Canada, leaving ultimate family size unaffected. These results are consistent with the program having generated only a timing effect.

Suggested Citation

Parent, Daniel and Wang, Ling, Tax Incentives and Fertility in Canada: Quantum vs Tempo Effects. Canadian Journal of Economics, Vol. 40, No. 2, pp. 371-400, May 2007, Available at SSRN: https://ssrn.com/abstract=986753 or http://dx.doi.org/10.1111/j.1365-2966.2007.00413.x

Daniel Parent (Contact Author)

McGill University - Department of Economics ( email )

855 Sherbrooke Street West
Montreal, QC H3A 2T7
Canada
514-398-4846 (Phone)
514-398-4938 (Fax)

Ling Wang

Government of Canada - Department of Finance Canada

Esplanade Laurier, 18th floor, East Tower
Ottawa, Ontario K1A 0G5
Canada

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