Please use this identifier to cite or link to this item: https://hdl.handle.net/10620/18354
Longitudinal Study: HILDA
Title: Did Australia’s Baby Bonus Increase Fertility Intentions and Births?
Authors: Drago, R 
Warren, D 
Sheffler, K 
Wooden, M 
Sawyer, K 
Issue Date: 2011
Pages: 387-397
Keywords: Births
Baby Bonus
Fertility
HILDA Survey
Abstract: In May 2004, the Australian government announced a “Baby Bonus” policy, paying women an initial A$3,000 per new child. We use household panel data from the Household, Income and Labour Dynamics in Australia Survey (N = 14,932) and a simultaneous equations approach to analyze the effects of this bonus on fertility intentions and ultimately births. The results indicate that opportunity costs influence intentions and births in predictable ways. Fertility intentions rose after the announcement of the Baby Bonus, and the birth rate is estimated to have risen modestly as a result. The marginal cost to the government for an additional birth is estimated to be at least A$3,000 per new child. We use household panel data from the Household, Income and Labour Dynamics in Australia Survey (N = 14,932) and a simultaneous equations approach to analyze the effects of this bonus on fertility intentions and ultimately births. The results indicate that opportunity costs influence intentions and births in predictable ways. Fertility intentions rose after the announcement of the Baby Bonus, and the birth rate is estimated to have risen modestly as a result. The marginal cost to the government for an additional birth is estimated to be at least A126,000.
URL: http://www.springerlink.com/content/kp363074h4461772/
Keywords: Benefits and Payments -- Family payments; Families -- Fertility
Research collection: Journal Articles
Appears in Collections:Journal Articles

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