The effects of child-related benefits and pensions on fertility by birth order: A test on Hungarian data

Abstract

Using aggregate time-series data from post-war Hungary, we investigated the effect of child-related benefits and pensions on overall fertility and fertility by birth order. The results indicate moderate effects that are robust across a wide range of specifications. According to our estimates, a 1-per-cent increase in childrelated benefits would increase total fertility by 0.2 per cent, while the same increase in pensions would decrease fertility by 0.2 per cent. The magnitude of both effects increases by birth order; this is more robust for child-related benefits.

Family policies in developed countries: a ‘fertility-booster’ with side-effects

“…For example, Boccuzzo et al (2008) show that the changes in fertility behaviour after the introduction of a baby bonus in Friuli-Venezia Giulia were noteworthy among (less educated) women who already had one child, and even more so among women who already had two or three children, but imperceptible among women who did not yet have children. Similarly, using Hungarian data, Gabos et al (2009) determine that the impact of financial support increases with birth order. For France, Salanié (2005, 2008) also estimate a stronger response to financial incentives for subsequent children.…”

Family Size, Sibling Rivalry and Migration: Evidence from Mexico

“…Thus, in families with limited resources and more than one child to raise, greater sibship size may negatively affect child out-migration through a 'resource dilution effect' (i.e. a smaller share of resources per child) or because more family-work 10 Recent contributions on contemporary developed societies show that when pensions and income from retirement decrease, the old-age security motive matters for fertility decisions even in these settings (see Gábos andKézdi 2009, Billari andGalasso 2014).…”

The Quantity‐Quality Tradeoff: A Cross‐Country Comparison of Market and Nonmarket Investments per Child in Relation to Fertility

“…Prettner, Bloom, and Strulik (2013) find that the quantity-quality tradeoff operates via both education and health channels. Results of studies examining the relationship between governmental financial support as a proxy for public child investments and fertility also support the quantity-quality hypothesis (Gauthier and Hatzius 1997;Gábos, Gál, and Kézdi 2009;Gauthier 2015). There are more macro-level studies applying the NTA accounting framework, which provides comprehensive estimates of the market economic resources devoted to children.…”