Does the welfare state destroy the family? Evidence from OECD member countries

Arbeitspapier

We study the effect of the size of the welfare state on family outcomes in OECD member countries. Exploiting exogenous variation in public social spending, due to varying degrees of political fractionalization (i.e. the number of relevant parties involved in the legislative process), we show that an expansion in the welfare state increases the fertility, marriage, and divorce rates with a quantitatively stronger effect on the marriage rate. We conclude that the welfare state supports family formation. Nevertheless, we also find that the welfare state decouples marriage and fertility, and therefore, alters the organization of the family.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7210

Classification and Topics

• Classification: Wirtschaft ; Marriage; Marital Dissolution; Family Structure; Domestic Abuse ; Fertility; Family Planning; Child Care; Children; Youth ; Demographic Economics: Public Policy ; Externalities ; Fiscal Policies and Behavior of Economic Agents: Household ; National Government Expenditures and Welfare Programs
• Subject: marriage ; divorce ; fertility ; welfare state ; risk sharing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Halla, Martin ; Lackner, Mario ; Scharler, Johann
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/71633
• Last update: 10.03.2025, 11:42 AM CET