There has been little empirical work evaluating the sensitivity of fertility to financial incentives at the household level. We put forward an identification strategy that relies on the fact that variation of wages induces variation in benefits and tax credits among "comparable households...

We argue that one major cause of the U.S. postwar baby boom was the increased demandfor female labor during World War II. We develop a quantitative dynamic general equilibriummodel with endogenous fertility and female labor-force participation decisions...