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ECON 426 (30)

Milligan (2005) - Subsidizing the Stork: New Evidence on Tax Incentives and Fertility

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Economics (Arts)
ECON 426
Sonya Laszlo

Daniel Goh (McGill ID: 260305028) ECON 426, Article Summary 28 September 2011 SUMMARY Title: Subsidizing the Stork: New Evidence on Tax Incentives and Fertility Authors: Kevin Milligan Source: The Review of Economics and Statistics Date: August 2005 Keywords: Fertility incentives, fiscal policy Main hypotheses/questions: • Do fiscal policies affect fertility rate? • Does the magnitude of incentives affect fertility rate? Main results: • The fertility rate in Quebec increased significantly, to levels comparable to the rest of Canada, after implementation of the Allowance for Newborn Children (ANC) policy, but decreased once the policy was cancelled. • The increases in birth of third or higher parity increased during the ANC policy, most likely due to higher incentives. Literature review: • Many cited articles examine the view of fiscal incentives on fertility (for example, Duclos, Lefebvre, and Merrigan (2001). • Also cited articles that presented different results in order to explain differences in
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