The Effect of a Universal Child Benefit on Conceptions, Abortions, and Early Maternal Labor Supply

Libertad González

160 citations0/0 files storedAmerican Economic Journal Economic Policy

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Gender, Labor, and Family Dynamics Family Dynamics and Relationships Social Policies and Family

Abstract

I study the impact of a universal child benefit on fertility and maternal labor supply. I exploit the unanticipated introduction of a sizable child benefit in Spain in 2007. Following a regression discontinuity-type design, I find that the benefit significantly increased fertility, in part through a reduction in abortions. Families who received the benefit did not increase consumption. Instead, eligible mothers stayed out of the labor force longer after childbirth, which led to their children spending less time in formal child care. (JEL I38, J13, J16, J22)

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1997Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit 2012The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit 2001Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players 2017The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit: Reply 2000Parental Employment and Child Cognitive Development 2011Do Child Tax Benefits Affect the Well-being of Children? Evidence from Canadian Child Benefit Expansions 2005Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income 2005Subsidizing the Stork: New Evidence on Tax Incentives and Fertility

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