The Life Cycle Model of the Fertility Choice in Hungary

20 December 2017DOI: https://doi.org/10.25201/FER.16.4.535

Author information:

Petra Németh: Corvinus University of Budapest, Assistant Professor. E-mail: petra.nemeth@uni-corvinus.hu

Abstract:

In this paper, we model the Hungarian fertility choice at the micro level. We outline a life cycle model in which a representative family makes decisions on its number of children, the timing of having children and the mother’s return to work after having children over the course of its life cycle. In constructing the model, we incorporate the factors influencing the decision to have children (with a particular emphasis on the family benefits scheme between 2006–2014) and how the behaviours of various household types (in terms of qualifications) differ from each other. According to the simulation results, among the family support tools presented, the family tax allowance scheme introduced in 2011 has a significant impact on the final number of children, maternal age and the timing of childbearing among low and medium education families. The measures introduced in 2014 provide incentive to have three children in all educational groups and foster the early labour market return of mothers. To our knowledge, no similar modelling attempts have been made so far in the Hungarian literature.

Cite as (APA):

Németh, P. (2017). The Life Cycle Model of the Fertility Choice in Hungary. Financial and Economic Review, 16(4), 5–35. https://doi.org/10.25201/FER.16.4.535

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Column:

Study

Journal of Economic Literature (JEL) codes:

C61, D91, H31, J13, J18

Keywords:

childbearing, family support, life cycle model

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