Discussion Papers no. 800

Can a cash transfer to families change fertility behaviour?

This paper assesses the relationship between cash transfers to families and subsequent childbearing.

This paper assesses the relationship between cash transfers to families and subsequent childbearing. We take advantage of a cash-for-care (CFC) policy introduced in Norway in 1998, and compare the fertility behaviour of eligible and ineligible mothers over a four year period. Contrary to theoretical expectations, the results show that CFC eligible mothers had a slower progression to both second and third births, and short term fertility is hence lower in this group. The patterns differ somewhat between different groups of mothers, and there seems to be a polarisation between non-employed mothers and mothers without upper secondary education, on one hand, and employed mothers and mothers with upper secondary and higher education, on the other. We suggest that this pattern may be driven by an interaction between the CFC benefit and the Norwegian parental leave scheme.

About the publication

Title

Can a cash transfer to families change fertility behaviour?

Authors

Synøve N. Andersen, Nina Drange, Trude Lappegård

Series and number

Discussion Papers no. 800

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

33

Language

English

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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