Central Bureau of Statistics
66 Kanfei Nesharim,
Corner Bachi str.
Jerusalem 95464 Israel
Institutional Affiliation: Israel's Central Bureau of Statistics
Information about this author at RePEc
NBER Working Papers and Publications
|December 2007||Do Financial Incentives Affect Fertility?|
with Alma Cohen, Rajeev Dehejia: w13700
This paper investigates how fertility responds to changes in the price of a marginal child and in household income. We construct a large, individual-level panel data set of married Israeli women during the period 1999-2005 that contains fertility histories and detailed controls. We exploit variation in Israel's child subsidy program to identify changes in the price of a marginal child (using changes in the subsidy for a marginal child) and to instrument for household income (using changes in the subsidy for infra-marginal children). We find a significant and positive price effect on fertility: the mean level of marginal child subsidy produces a 7.8 percent increase in fertility. There is a positive effect within all religious and ethnic subgroups, including the ultra-Orthodox Jewish popula...
Published: Review of Economics and Statistics, Volume 95 (Number 1), March 2013, pp. 1-20.