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$126,000.
| Original language | English |
|---|---|
| Pages (from-to) | 381-397 |
| Number of pages | 17 |
| Journal | Population Research and Policy Review |
| Volume | 30 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Jun 2011 |
| Externally published | Yes |
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Keywords
- Baby Bonus
- Births
- Fertility
- HILDA Survey
Cite this
Drago, R., Sawyer, K., Shreffler, K. M., Warren, D., & Wooden, M. (2011). Did Australia's Baby Bonus Increase Fertility Intentions and Births? Population Research and Policy Review, 30(3), 381-397. https://doi.org/10.1007/s11113-010-9193-y