Short-run fertility effects of parental leave benefits: Evidence from a structural model

Arbeitspapier

Based on a structural model of fertility and female labour force supply with unobserved heterogeneity and state dependence, 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 14-069

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Forecasting Models; Simulation Methods ; Fertility; Family Planning; Child Care; Children; Youth ; Time Allocation and Labor Supply
• Subject: Fertility ; female labour supply ; family policy ; parental leave ; latent class models ; state dependence

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stichnoth, Holger
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/102748
• URN: urn:nbn:de:bsz:180-madoc-371420
• Last update: 10.03.2025, 11:42 AM CET