Quebec's Baby Bonus: Can Public Policy Raise Fertility? Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Quebec's Baby Bonus: Can Public Policy Raise Fertility?

Backgrounder, C.D. Howe Institute, January, 2002.
Google Scholar entry.

Abstract:

In 1988, Quebec introduced the Allowance for Newborn Children, a pro-natalist child benefit that paid up to $8,000 to a family after the birth of a child. Was the program successful? It achieved its goal of increasing family size, but only at a high cost per additional birth. Each child who would not have been born in the absence of the incentive cost the public purse more than $15,000. The main policy lesson from this episode is that, even if the response to an incentive policy is strong, the effective cost per desired result may be very high.

Versions:

Final version, January 2002: PDF.

version francaise, January 2002: PDF.

Background calculations, January 2002: Excel.


Return to Research Page.
kevin.milligan@ubc.ca ~ Home Page ~ Vancouver School of Economics ~ UBC