Did Australia’s Baby Bonus Increase Fertility Intentions and Births?
- Robert DragoAffiliated withInstitute for Women’s Policy Research Email author
- , Katina SawyerAffiliated withPennsylvania State University
- , Karina M. ShrefflerAffiliated withOklahoma State University
- , Diana WarrenAffiliated withMelbourne Institute of Applied Economic and Social Research, University of Melbourne
- , Mark WoodenAffiliated withMelbourne Institute of Applied Economic and Social Research, University of Melbourne
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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$126,000.
KeywordsBaby Bonus Births Fertility HILDA Survey
- Did Australia’s Baby Bonus Increase Fertility Intentions and Births?
Population Research and Policy Review
Volume 30, Issue 3 , pp 381-397
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- Springer Netherlands
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- Author Affiliations
- 1. Institute for Women’s Policy Research, 1200 18th St NW, Suite 301, Washington, DC, 20036, USA
- 2. Pennsylvania State University, University Park, PA, 16802, USA
- 3. Oklahoma State University, 1115 Main Hall, Tulsa, OK, 74106, USA
- 4. Melbourne Institute of Applied Economic and Social Research, University of Melbourne, L7 Alan Gilbert Building, Melbourne, VIC, 3010, Australia