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We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having a child only if the husband also leaves the labor market for a while. The daddy months...
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This paper examines the effects of a major change in German parental transfer system on fertility. I use the largely …-order fertility. Given the recent introduction, this paper evaluates short-run responses by using data from the German Microcensus …-run fertility responses are less pronounced and vary with potential earnings. The heterogeneity is in line with the structure of …
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