We examine how fertility reacts to the public provision of child allowances in a small open economy with overlapping generations. We find that when the labour market is competitive, a child allowance policy acts as a fertility-enhancing device. In contrast, when the labour market is unionised, the child policy may be ineffective.
A note on child policy and fertility in an overlapping generations small open economy: when the labour market institutions matter
GORI, LUCA
2012-01-01
Abstract
We examine how fertility reacts to the public provision of child allowances in a small open economy with overlapping generations. We find that when the labour market is competitive, a child allowance policy acts as a fertility-enhancing device. In contrast, when the labour market is unionised, the child policy may be ineffective.
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