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combination of purchased and own care, the effect of income on fertility is ambiguous, even if quantity of children is a normal … income effect on fertility is positive when quantity is a normal good. (iii) If, on the other hand, there only is own care …, there is a different kind of quantity quality trade off. The income effect on fertility is positive if quantity is a closer …
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Economic theory suggests that incentives matter for people's decisions. This paper investigates whether this also holds for less self-evident areas of life such as the timing of births. We make use of a natural experiment when the German government changed its parental benefit system January 1,...
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