Did Australia's Baby Bonus Increase Fertility Intentions and Births?

Robert Drago; Katina Sawyer; Karina M. Shreffler; Diana Warren; Mark Wooden

doi:10.1007/s11113-010-9193-y

Did Australia's Baby Bonus Increase Fertility Intentions and Births?

Robert Drago, Katina Sawyer, Karina M. Shreffler, Diana Warren, Mark Wooden

Research output: Contribution to journal › Article › peer-review

44 Scopus citations

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	https://doi.org/10.1007/s11113-010-9193-y
State	Published - 1 Jun 2011
Externally published	Yes

Keywords

Baby Bonus
Births
Fertility
HILDA Survey

Access to Document

10.1007/s11113-010-9193-y

Cite this

@article{487b922db8134a488ffdb656ce407522,

title = "Did Australia's Baby Bonus Increase Fertility Intentions and Births?",

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.",

keywords = "Baby Bonus, Births, Fertility, HILDA Survey",

author = "Robert Drago and Katina Sawyer and Shreffler, {Karina M.} and Diana Warren and Mark Wooden",

note = "Funding Information: Acknowledgments This paper makes use of unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Survey project was initiated, and is funded, by the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs, and is managed by the Melbourne Institute of Applied Economic and Social Research. The findings and views reported in this paper, however, are those of the authors, and should not be attributed to either of these organisations.",

year = "2011",

month = jun,

day = "1",

doi = "10.1007/s11113-010-9193-y",

language = "English",

volume = "30",

pages = "381--397",

journal = "Population Research and Policy Review",

issn = "0167-5923",