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Income Risk, the Tax‐benefit System and the Demand for Children

Bibliographic Data

ID9727482
AuthorsClive D Fraser (0000-0001-5942-6493, University of Leicester, corresponding author)
Year2001
Volume68
Issue269
Pages105-126
Publication date2001-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1468-0335.00236
OpenAlexW2008777821
LanguageEN
Citations received5
References cited17

Because children represent an irreversible commitment, parents might hedge against higher income risk by having fewer children. We show that, under plausible assumptions, recent increases in income risk might have reduced prudent parents’ desired fertility. Responses to this via the tax‐benefit system are considered. Introducing an expected revenue‐neutral transfer‐cum‐child‐benefit system under proportional taxation, which lets the government share the household’s income risk, increases desired fertility for parents who would choose to have small families in this system’s absence. Pound for pound, the targeted child benefit enhances fertility more than the lump‐sum transfer

Demographic economics · Economics · Fertility · Hedge · Income tax · Labour economics · Pound (networking) · Public economics · Revenue · Tax revenue · Demography · Family Dynamics and Relationships · Finance · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics

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Unique citing works5
Citations per year0,24
Citation span2005 - 2021 (17)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 4
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