DP4064 Fertility and Financial Incentives in France
|Author(s):||Guy Laroque, Bernard Salanié|
|Publication Date:||September 2003|
|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.