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

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

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

  • Hazan, Moshe & Simhon, Avi & Ebenstein, Avraham, 2011. "Raising the Financial Costs of Children and Fertility Responses: Evidence from the Kibbutz," CEPR Discussion Papers 8634, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8634
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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. 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.
    3. 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.
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    More about this item

    Keywords

    Fertility; Privatization;

    JEL classification:

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

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