DP8634 Raising the Financial Costs of Children and Fertility Responses: Evidence from the Kibbutz

Author(s): Avraham Ebenstein, Moshe Hazan, Avi Simhon
Publication Date: November 2011
Keyword(s): fertility, privatization
JEL(s): D1, J13
Programme Areas: Public Economics, Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=8634

Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This paper examines the impact of the privatization of kibbutzim on fertility behavior among members. We find that fertility declined by 6-15 percent following the shift to privatization. In light of the massive change in financial costs associated with childbearing due to privatization, our results suggest that financial considerations may be a more modest factor in fertility decisions than generally regarded.