Abstract

This paper presents an analysis of the effects of Canadian child benefit policies on fertility and female labor supply. Canada has adopted a variety of child benefit policies since 1918 that are incorporated into an economic model of fertility. This model is estimated and tested with time series data on fertility, female labor force participation, female wages, male incomes, female education, and child benefits. Cointegration methods are employed to accommodate problems of nonstationarity and endogeneity that characterize time series models of fertility and female labor supply. Two cointegrating relations are found, and these are identified as a fertility relation and a female labor supply function. All economic variables, including child benefits, have statistically significant and appropriately signed coefficients. The estimates are used to evaluate the effects of policy and other economic changes on fertility.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.