Abstract

The Incentive to Suspend Professional Activity: Effects on Employment and the Birth Rate by Elisabeth Rignols This paper analyses the effects on employment and the birth rate of a spouse's total or partial suspension of professional due to receiving the parental child rearing benefit (PCB) as well as the effects of the development of different types of child The first approach is microeconomic and looks at the classic case of a household with two children, one of which is under years old. The findings show that the payment of the PCB offsets the loss of income resulting from the total suspension of solely in the case of the low initial wage of the spouse and the payment of child care fees. The second approach is and shows, on first approximation, that the second-level PCB population could concern some 200,000 people with one-quarter these coming under the "windfall effect". Its impact on the birth rate is more difficult to evaluate as the birth of a child does necessarily correspond to financial criteria. The development of different types of child care, currently insufficient in number, lead directly to job creations. On the other hand, it could put a brake on the "freeing up of jobs" and bring the activity effect" into play. Lastly, it could encourage births by enabling parents to find a better balance between family life and life.

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