DP4064 Fertility and Financial Incentives in France

Author(s): Guy Laroque, Bernard SalaniƩ
Publication Date: September 2003
Keyword(s): fertility, incentives
JEL(s): H30, J10
Programme Areas: Labour Economics, Public Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4064

Commentators have often linked the increase in births in France since 1995 to more generous family benefits. We study here empirically the link between fertility and financial incentives by estimating and simulating a joint structural model of participation and fertility on a sample of French women. Our results suggest that fertility responds to incentives in a non-negligible way. The results, however, also have some puzzling features: financial incentives appear to have much stronger effects on low-parity births.