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Subsidizing the Stork: New Evidence on Tax Incentives and Fertility

Kevin Milligan

University of British Columbia

The Review of Economics and Statistics 2005

This paper exploits the introduction of a pronatalist transfer policy in the Canadian province of Quebec that paid up to C$8,000 to families having a child. I implement a quasi-experimental strategy by forming treatment and control groups defined by time, jurisdiction, and family type. The incentive was available broadly, rather than to a narrow population as studied in previous work, providing an exceptional opportunity to investigate heterogeneous responses. I find a strong effect of the policy on fertility, and some evidence of a heterogeneous response that may help reconcile these results with previous estimates.

DOI
10.1162/0034653054638382
Volume
87 (3)
Pages
539-555
Language
en
Export
BibTeX
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