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Raising the Financial Costs of Children and Fertility Responses: Evidence from the Kibbutz

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Listed:
  • Ebenstein, Avraham
  • Hazan, Moshe
  • Simhon, Avi

Abstract

Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This paper examines the impact of the privatization of kibbutzim on fertility behavior among members. We find that fertility declined by 6-15 percent following the shift to privatization. In light of the massive change in financial costs associated with childbearing due to privatization, our results suggest that financial considerations may be a more modest factor in fertility decisions than generally regarded.

Suggested Citation

  • Ebenstein, Avraham & Hazan, Moshe & Simhon, Avi, 2011. "Raising the Financial Costs of Children and Fertility Responses: Evidence from the Kibbutz," Discussion Papers 122844, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:122844
    DOI: 10.22004/ag.econ.122844
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    References listed on IDEAS

    as
    1. Laroque, Guy & Salanié, Bernard, 2005. "Does Fertility Respond to Financial Incentives?," CEPR Discussion Papers 5007, C.E.P.R. Discussion Papers.
    2. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2013. "Financial Incentives and Fertility," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 1-20, March.
    3. Charles F. Manski & Joram Mayshar, 2003. "Private Incentives and Social Interactions: Fertility Puzzles in Israel," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 181-211, March.
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    More about this item

    Keywords

    Financial Economics; Institutional and Behavioral Economics;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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