Subsidizing the Stork: New Evidence on Tax Incentives and Fertility Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Subsidizing the Stork: New Evidence on Tax Incentives and Fertility

Review of Economics and Statistics, Vol. 87, No. 3 (August, 2005), pp. 539-555.
Google scholar entry.
Abstract:

This paper exploits the introduction of a pro-natalist transfer policy in the Canadian province of Quebec that paid up to C$8,000 to families having a child. I implement a quasi-experimental strategy by forming treatment and control groups defined by time, jurisdiction, and family type. The incentive was available broadly, rather than to a narrow population as studied in previous work, providing an exceptional opportunity to investigate heterogeneous responses. I find a strong effect of the policy on fertility, and some evidence of a heterogeneous response that may help reconcile these results with previous estimates.

Versions:

Published version, August, 2005: DOI.

Updated draft, July, 2004: PDF.

NBER Working Paper No. 8845, March, 2002: Abstract/Paper.


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