We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may actually reduce the long-run fertility rate.
Labour income taxation, child-rearing policies and fertility
Luciano Fanti;Luca Gori
2007-01-01
Abstract
We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may actually reduce the long-run fertility rate.File in questo prodotto:
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