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Luca Gori and Luciano Fanti |
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''Labour income taxation, child rearing policies and fertility'' |
( 2007, Vol. 10 No.20 ) |
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We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may actually reduce the long-run fertility rate. |
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Keywords: |
JEL: J1 - Demographic Economics: General H2 - Taxation, Subsidies, and Revenue: General |
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Manuscript Received : Dec 02 2007 | | Manuscript Accepted : Dec 20 2007 |
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