Financial incentives and fertility

Alma Cohen, Rajeev Dehejia, Dmitri Romanov

Research output: Contribution to journalReview article

Abstract

Using panel data on over 300,000 Israeli women from 1999 to 2005, we exploit variation in Israel's child subsidy to identify the impact of changes in the price of a marginal child on fertility. We find a positive, statistically significant, and economically meaningful price effect on overall fertility and, consistent with Becker (1960) and Becker and Tomes (1976), a small effect of income on fertility, which is negative at low and positive at high income levels. We also find a price effect on fertility among older women, suggesting that part of the overall effect is due to a reduction in total fertility.

Original languageEnglish (US)
Pages (from-to)1-20
Number of pages20
JournalReview of Economics and Statistics
Volume95
Issue number1
DOIs
StatePublished - 2013

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fertility
incentive
income
subsidy
Israeli
Israel
Financial incentives
Fertility
Price effects

ASJC Scopus subject areas

  • Economics and Econometrics
  • Social Sciences (miscellaneous)

Cite this

Financial incentives and fertility. / Cohen, Alma; Dehejia, Rajeev; Romanov, Dmitri.

In: Review of Economics and Statistics, Vol. 95, No. 1, 2013, p. 1-20.

Research output: Contribution to journalReview article

Cohen, Alma ; Dehejia, Rajeev ; Romanov, Dmitri. / Financial incentives and fertility. In: Review of Economics and Statistics. 2013 ; Vol. 95, No. 1. pp. 1-20.
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