A 2023 study (The Fertility Response to Cutting Child-Related Welfare Benefits by Malte Sandner and Frederik Wiynck) investigates the effect of a 2011 reform in Germany that made parental leave benefits (PLB) deductible from welfare payments for low-income families. The reform effectively reduced the household income of welfare recipients with a newborn child by 18% on average during the first year after birth. Using detailed administrative data on over 460,000 welfare-receiving women, the authors find this substantial benefit cut led to a significant 6.8% reduction in fertility.
Germany: Cutting Child-Related Benefits Cuts Birth Rates
Germany: Cutting Child-Related Benefits Cuts…
Germany: Cutting Child-Related Benefits Cuts Birth Rates
A 2023 study (The Fertility Response to Cutting Child-Related Welfare Benefits by Malte Sandner and Frederik Wiynck) investigates the effect of a 2011 reform in Germany that made parental leave benefits (PLB) deductible from welfare payments for low-income families. The reform effectively reduced the household income of welfare recipients with a newborn child by 18% on average during the first year after birth. Using detailed administrative data on over 460,000 welfare-receiving women, the authors find this substantial benefit cut led to a significant 6.8% reduction in fertility.