Fertility Effects of Family Policy Measures: Evidence from GermanyISER Internal Seminars

Based on a structural model of fertility and female labour force supply, we evaluate the 2007 reform of parental leave benefits in Germany, which replaced a flat, means-tested benefit by a generous earnings-related transfer. The model predicts a short-term fertility effect of about 4%, which is consistent with recent quasi-experimental evidence. The fertility effect is strongest for first births and increases with income. We use the model for a number of counterfactual policy experiments in which we vary the generosity of parental leave benefits. We also show first results for effects on completed fertility, based on a structural life-cycle model.

Presented by:

Holger Stichnoth (ZEW)

Date & time:

7 May 2014 11:00 am - 7 May 2014 12:00 pm

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