SUMMARY While using financial incentives to increase fertility has become relatively common, the effects of such policies are difficult to assess. We propose an identification strategy that relies on the fact that the variation in wages induces variation in benefits and tax credits among...

There has been little empirical work evaluating the sensitivity of fertility tonancial incentives at the household level. We put forward an identicationstrategy that relies on the fact that variation of wages induces variation inbenets and tax credits among \comparable" households. We implement...