Author： González Libertad
Publisher： American Economic Association
ISSN： 1945-7731
Source： American Economic Journal: Economic Policy, Vol.5, Iss.3, 2013-08, pp. : 160-188
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Abstract
I study the impact of a universal child benefit on fertility and maternal labor supply. I exploit the unanticipated introduction of a sizable child benefit in Spain in 2007. Following a regression discontinuity-type design, I find that the benefit significantly increased fertility, in part through a reduction in abortions. Families who received the benefit did not increase consumption. Instead, eligible mothers stayed out of the labor force longer after childbirth, which led to their children spending less time in formal child care.
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