"This paper investigates empirically whether financial incentives, and in particular governmental child subsidies, affect fertility. We use a comprehensive, nonpublic, individual-level panel dataset that includes fertility histories and detailed individual controls for all married Israeli women...

At the end of 2002 more than 150,000 families in Israel were receiving income maintenance allowances, about ten percent of the number of families of working age; twenty years ago about one percent of families received such support. Annual income maintenance payments amount to about 0.7 percent of...