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Research ArticleArticles
Open Access

Cash Transfers and Fertility

How the Introduction and Cancellation of a Child Benefit Affected Births and Abortions

View ORCID ProfileLibertad González and View ORCID ProfileSofia Karina Trommlerová
Journal of Human Resources, May 2023, 58 (3) 783-818; DOI: https://doi.org/10.3368/jhr.59.1.0220-10725R2
Libertad González
Libertad González is at Universitat Pompeu Fabra and Barcelona School of Economics.
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Sofia Karina Trommlerová
Sofia Karina Trommlerová is at Comenius University and was previously at Universitat Pompeu Fabra ().
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  • ORCID record for Sofia Karina Trommlerová
  • For correspondence: sofia.trommlerova{at}graduateinstitute.ch
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Figures

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  • Figure 1
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    Figure 1

    Timeline of the Universal Child Benefit Policy and Its Expected Effects on Birth Rates

  • Figure 2
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    Figure 2

    Birth and Abortion Rates in Spain, 2000–2017

    Notes: Birth and abortion rate per day per 100,000 women aged 15–44. The rates are calculated as the number of births/abortions per day to women of reproductive age (15–44 years), divided by the number of women of reproductive age, in each calendar month between January 2000 and December 2017, and expressed per 100,000 women of reproductive age. January of each year is marked on the x-axis. The vertical lines in the left graph mark the start (July 2007) and end (December 2010) of the universal child benefit policy; the vertical lines in the right graph mark the announcement of its introduction (July 2007) and that of its cancellation (May 2010).

  • Figure 3
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    Figure 3

    Birth Rates in Spain 2000–2017, by Calendar Month

    Notes: Birth rate per day per 100,000 women aged 15–44, calculated as in Figure 2. The range of the y-axis is 11–15; all graphs are on the same scale. Year is shown on the x-axis; period covered is 2000–2017.

  • Figure 4
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    Figure 4

    Birth Rates in Spain during Universal Child Benefit Policy

    Notes: Birth rate per day per 100,000 women aged 15–44, calculated as in Figure 2. Period covered is January 2007–June 2011. The solid vertical lines mark the start, the announcement of the end, and the end of the universal child benefit policy. The dashed vertical lines mark months when fertility effects of the policy are expected.

  • Figure 5
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    Figure 5

    Regression Discontinuity Design Graphs of Abortion Rates in Spain around the Time of Child Benefit–Related Announcements and in Preceding Years

    Notes: Abortion rate per day per 100,000 women aged 15–44, calculated as in Table 2.

Tables

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    Table 1

    Estimated Effects of the Universal Child Benefit on Births

    Log(Births)
    (1)
    Log(Births)
    (2)
    Donut Log(Births)
    (3)
    Donut Log(Births)
    (4)
    Donut Birth Rate
    (5)
    Donut Births
    (6)
    Transition into child benefit (12/2007–03/2008)0.0356***
    (0.0078)
    0.0347***
    (0.0075)
    0.0351***
    (0.0075)
    0.0037
    (0.0071)
    0.1187*
    (0.0701)
    0.6744***
    (0.1834)
    Child benefit period (04/2008–09/2010)0.0189*
    (0.0101)
    0.0276***
    (0.0077)
    0.0277***
    (0.0077)
    0.0172**
    (0.0078)
    0.2154***
    (0.0759)
    0.5186***
    (0.1827)
    Transition out of child benefit (10/2010–12/2010)0.0538***
    (0.0094)
    0.0629***
    (0.0062)
    0.0471***
    (0.0075)
    0.0415***
    (0.0073)
    0.5273***
    (0.0912)
    1.1295***
    (0.2371)
    Post-child-benefit period (01/2011–12/2017)−0.0793***
    (0.0070)
    −0.0740***
    (0.0063)
    −0.0569***
    (0.0079)
    −0.0495***
    (0.0072)
    −0.7049***
    (0.0940)
    −1.5875***
    (0.3453)
    Employment rate, male0.5500*
    (0.3067)
    0.4191***
    (0.1009)
    0.4205***
    (0.1011)
    0.0654
    (0.0921)
    1.9841*
    (1.0959)
    13.5033***
    (4.7444)
    Unemployment rate, male0.0671
    (0.2143)
    −0.1628**
    (0.0679)
    −0.1675**
    (0.0677)
    −0.2875***
    (0.0630)
    −3.8812***
    (0.7645)
    −4.0412**
    (1.9271)
    Log(women aged 15–44)1.4848***
    (0.1310)
    Month0.0194***
    (0.0013)
    Month squared−0.0000***
    (0.0000)
    Province-specific monthYesYesYesYesYes
    Province-specific month2YesYesYesYesYes
    Province-specific month3YesYes
    Province FEYesYesYesYesYesYes
    Calendar month FEYesYesYesYesYesYes
    Observations10,80010,80010,70010,70010,70010,700
    R-squared0.99200.99450.99440.99470.80540.9964
    Average Y in 07/2006–06/200725.8712.5625.87
    Average Y in 05/2009–04/201026.0312.7326.03
    • Notes: OLS regressions. Monthly data on the 50 Spanish provinces between 01/2000 and 12/2017. Dependent variables are logarithm of number of births per day in each calendar month among women aged 15–44 years (Columns 1–4); the corresponding birth rate, expressed per 100,000 women aged 15–44 years (Column 5); and number of births per day in each calendar month among women aged 15–44 years (Column 6). In Columns 3–6, births in 12/2010 and 01/2011 are set to missing. Column 5 is our preferred specification. (Un)employment rates are included with a lag of three quarters. Standard errors are clustered at the province level.

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    Table 2

    Treatment Effects of the Universal Child Benefit on Abortions

    July 4, 2007
    (1)
    May 13, 2010
    (2)
    August 1, 2010
    (3)
    Panel A: Dependent Variable—Log(Abortions)
    Treatment−0.0495
    (0.0502)
    −0.2177***
    (0.0650)
    0.1854***
    (0.0573)
    Week FEYesYesYes
    Year FEYesYesYes
    Province FEYesYesYes
    Observations1,6001,6001,600
    R-squared0.85640.86700.8850
    Average Y in 07/2006–06/20075.54
    Average Y in 05/2009–04/20105.65
    Panel B: Dependent Variable—Abortion Rate
    Treatment−0.1538**
    (0.0621)
    −0.1495**
    (0.0656)
    0.3653***
    (0.0852)
    Week FEYesYesYes
    Year FEYesYesYes
    Province FEYesYesYes
    Observations1,6001,6001,600
    R-squared0.72010.71450.6325
    Average Y in 07/2006–06/20072.24
    Average Y in 05/2009–04/20102.29
    • Notes: Estimates of discontinuity at the cutoff in an RD–DiD framework. Weekly data on the 50 Spanish provinces in the year of announcement (treatment year) and in the preceding year (control year). Dependent variables are logarithm of number of abortions per day in each week among women aged 15–44 years (Panel A) and the corresponding abortion rate, expressed per 100,000 women aged 15–44 years (Panel B). Forcing variable is the week of abortion; weeks are created such that they start on July 4 (Column 1), May 13 (Column 2), and August 1 (Column 3). Data are restricted to eight weeks on each side of the cutoff. Data in Column 3 cover eight weeks prior to May 13 on the left side of the cutoff (that is, March 14–May 8) in order to exclude the problematic period of May 13–July 31. Abortions related to fetal deformations are excluded from the sample. Standard errors are clustered at the province level.

    • View popup
    Table 3

    Heterogeneity Analysis of Births by Parents’ Sociodemographic and Occupational Characteristics

    Dependent Variable: Log(Births)AgeMarital StatusSkills
    Mother Older vs. Younger
    (1)
    Mother Married vs. Not Married
    (2)
    At Least One Parent High-Skilled vs. None High-Skilled
    (3)
    Main effects:
        Transition into child benefit (12/2007–03/2008)0.0125
    (0.0080)
    0.0090
    (0.0094)
    0.1303***
    (0.0192)
        Child benefit period (04/2008–09/2010)0.0461***
    (0.0091)
    0.0229**
    (0.0096)
    0.0542***
    (0.0132)
        Transition out of child benefit (10/2010–12/2010)0.0653***
    (0.0110)
    0.0432***
    (0.0086)
    0.0145
    (0.0106)
        Post-child-benefit period (01/2011–12/2017)−0.0296***
    (0.0102)
    −0.0508***
    (0.0099)
    0.0198*
    (0.0105)
    Interacted terms:
        Transition into child benefit (12/2007–03/2008)0.0412***
    (0.0100)
    0.0717***
    (0.0153)
    −0.2178***
    (0.0337)
        Child benefit period (04/2008–09/2010)−0.0310***
    (0.0077)
    0.0049
    (0.0128)
    −0.0730***
    (0.0168)
        Transition out of child benefit (10/2010–12/2010)−0.0313**
    (0.0122)
    0.0016
    (0.0166)
    0.0306
    (0.0229)
        Post-child-benefit period (01/2011–12/2017)−0.0552***
    (0.0108)
    −0.0162
    (0.0152)
    −0.1675***
    (0.0205)
    Male (un)employment ratesYesYesYes
    Province-specific monthYesYesYes
    Province-specific month2YesYesYes
    Province-specific month3Yes
    Province FEYesYesYes
    Calendar month FEYesYesYes
    Observations21,40021,40021,400
    R-squared0.99090.98980.9859
    Average Y in 07/2006–06/2007 reference10.2618.2211.12
    Average Y in 07/2006–06/2007 interacted15.617.6514.75
    Average Y in 05/2009–04/2010 reference11.4316.9313.54
    Average Y in 05/2009–04/2010 interacted14.609.1012.49
    • Notes: OLS regressions. Monthly data on the 50 Spanish provinces between 01/2000 and 12/2017. Dependent variable is logarithm of number of births per day in each calendar month among women aged 15–44 years in the specific subgroup. Fully interacted model: all variables are interacted with dummy variable “younger,” “not married,” and “no parent is high-skilled” in Columns 1–3, respectively, and the dummy variable itself is also included. Division into younger (15–32 years) and older (33–44 years) age groups in Column 1 is based on median maternal age in 2000–2017. Category “not-high-skilled” includes low-skilled individuals and those out of the labor force. Births in 12/2010 and 01/2011 are set to missing. (Un)employment rates are included with a lag of three quarters. Standard errors are clustered at the province level.

    • View popup
    Table 4

    Heterogeneity Analysis of Abortions by Woman‘s Sociodemographic and Educational Characteristics

    Dependent Variable: Log(Abortions)Mother Older vs. Younger
    (1)
    Mother Married vs. Not Married
    (2)
    Mother at Least High School vs. Less than High School
    (3)
    Richer Province vs. Poorer Province
    (4)
    Lighter Crisis vs. Stronger Crisis
    (5)
    Panel A
    Post-July 4, 2007−0.0885
    (0.1114)
    −0.1298
    (0.1146)
    −0.1350
    (0.0835)
    −0.0121
    (0.0290)
    0.0098
    (0.0385)
    Interaction0.0056
    (0.1443)
    0.0999
    (0.1480)
    0.0342
    (0.1135)
    −0.0253
    (0.0506)
    −0.0691
    (0.0497)
    Panel B
    Post-May 13, 2010−0.2416**
    (0.1014)
    −0.1821
    (0.1182)
    −0.1000
    (0.0916)
    −0.0754
    (0.0489)
    −0.1341**
    (0.0626)
    Interaction0.0256
    (0.1275)
    −0.0456
    (0.1339)
    −0.1236
    (0.0993)
    −0.0669
    (0.0717)
    0.0505
    (0.0720)
    Panel C
    Post-August 1, 20100.1705
    (0.1170)
    0.3717***
    (0.1145)
    0.1422**
    (0.0636)
    0.1272***
    (0.0401)
    0.1093**
    (0.0496)
    Interaction0.0371
    (0.1459)
    −0.2371*
    (0.1261)
    0.1197
    (0.1043)
    −0.0690
    (0.0626)
    −0.0332
    (0.0632)
    Week FEYesYesYesYesYes
    Year FEYesYesYesYesYes
    Province FEYesYesYesYesYes
    Average Y in 07/2006–06/2007 reference1.281.262.333.602.82
    Average Y in 07/2006–06/2007 interaction4.264.243.171.952.72
    Average Y in 05/2009–04/2010 reference1.451.222.293.512.88
    Average Y in 05/2009–04/2010 interaction4.204.403.322.142.77
    • Notes: Estimates of discontinuity at the cutoff in an RD-DiD framework. Estimations equivalent to those in Table 2 but on data from different subsamples. Fully interacted model: all variables are interacted with dummy variable “younger,” “not married,” “less than high school,” “poor province,” and “stronger crisis” in Columns 1–5, respectively, and the dummy variable itself is also included. Division into younger (15–32 years) and older (33–44 years) age groups in Column 1 is based on median maternal age in birth data in 2000–2017. Data are restricted to eight weeks on each side of the cutoff. Abortions related to fetal deformations are excluded. Sample size is 3,200. Standard errors are clustered at the province level.

    • View popup
    Table 5

    Estimated Effects of the Universal Child Benefit on Births by Economic Conditions in the Province

    Economic Conditions Indicator:Income LevelEconomic Crisis Intensity
    Dependent Variable:Log(Births)
    (1)
    Birth Rate
    (2)
    Log(Births)
    (3)
    Birth Rate
    (4)
    Main effects:
        Transition into child benefit (12/2007–03/2008)0.0387***
    (0.0066)
    0.1579**
    (0.0709)
    0.0380***
    (0.0075)
    0.1523*
    (0.0763)
        Child benefit period (04/2008–09/2010)0.0247***
    (0.0062)
    0.2615***
    (0.0791)
    0.0325***
    (0.0057)
    0.2900***
    (0.0625)
        Transition out of child benefit (10/2010–12/2010)0.0279***
    (0.0102)
    0.3430***
    (0.1241)
    0.0231**
    (0.0104)
    0.2201*
    (0.1236)
        Post-child-benefit period (01/2011–12/2017)−0.0419***
    (0.0128)
    −0.4972***
    (0.1508)
    −0.0265**
    (0.0115)
    −0.3024**
    (0.1342)
    Interaction with economic indicators:
        Transition into child benefit (12/2007–03/2008)−0.0073
    (0.0143)
    −0.0795
    (0.1271)
    −0.0055
    (0.0143)
    −0.0625
    (0.1271)
        Child benefit period (04/2008–09/2010)0.0067
    (0.0168)
    −0.0916
    (0.1645)
    −0.0125
    (0.0167)
    −0.1522
    (0.1614)
        Transition out of child benefit (10/2010–12/2010)0.0389**
    (0.0155)
    0.3688*
    (0.2077)
    0.0449***
    (0.0147)
    0.6107***
    (0.1934)
        Post-child-benefit period (01/2011–12/2017)−0.0298
    (0.0190)
    −0.4155*
    (0.2229)
    −0.0627***
    (0.0174)
    −0.8061***
    (0.2007)
    Employment rate, male0.4104***
    (0.1043)
    1.9352*
    (1.1083)
    0.4256***
    (0.1006)
    2.0316*
    (1.0885)
    Unemployment rate, male−0.1791**
    (0.0722)
    −3.9284***
    (0.7754)
    −0.1416**
    (0.0665)
    −3.7983***
    (0.7496)
    Province-specific monthYesYesYesYes
    Province-specific month2YesYesYesYes
    Province-specific month3YesYes
    Province FEYesYesYesYes
    Calendar month FEYesYesYesYes
    Observations10,70010,70010,70010,700
    R-squared0.99450.80560.99450.8059
    Average Y in 07/2006–06/2007 better off25.2411.8830.8112.68
    Average Y in 07/2006–06/2007 worse off26.5013.2520.9312.45
    Average Y in 05/2009–04/2010 better off25.9212.4131.3413.01
    Average Y in 05/2009–04/2010 worse off26.1313.0520.7112.46
    • Notes: OLS regressions. Monthly data on the 50 Spanish provinces between 01/2000 and 12/2017. Dependent variables are logarithm of number of births per day in each calendar month among women aged 15–44 years (Columns 1 and 3) and the corresponding birth rate, expressed per 100,000 women aged 15–44 years (Columns 2 and 4). Columns 1–2 show interaction terms with a dummy variable that takes a value of one for the 25 provinces with lower GDP per capita in 2007 and 2010, and zero otherwise. The dummy variable is also included in the model but not shown. Columns 3–4 show interaction terms with a dummy variable that takes a value of one for the 25 provinces more affected by the economic crisis, and zero otherwise. Births in 12/2010 and 01/2011 are set to missing. (Un)employment rates are included with a lag of three quarters. Standard errors are clustered at the province level.

    • View popup
    Table 6

    Heterogeneity Analysis of Births by Parity

    Dependent Variable: Log(Births)Firstborn
    (1)
    Higher Parity
    (2)
    Second Born
    (3)
    Third Born
    (4)
    Parity 4+
    (5)
    Transition into child benefit (12/2007–03/2008)0.0044
    (0.0107)
    0.0834***
    (0.0180)
    0.0840***
    (0.0194)
    0.0919***
    (0.0251)
    0.1048**
    (0.0410)
    Child benefit period (04/2008–09/2010)0.0266**
    (0.0100)
    0.0292***
    (0.0088)
    0.0244***
    (0.0089)
    0.0190
    (0.0244)
    0.0860**
    (0.0373)
    Transition out of child benefit (10/2010–12/2010)0.0216**
    (0.0093)
    0.0767***
    (0.0102)
    0.0811***
    (0.0105)
    0.0533
    (0.0327)
    0.0592
    (0.0568)
    Post-child-benefit period (01/2011–12/2017)−0.0352***
    (0.0102)
    −0.0821***
    (0.0094)
    −0.0748***
    (0.0103)
    −0.0916***
    (0.0285)
    −0.1609***
    (0.0440)
    Male (un)employment ratesYesYesYesYesYes
    Province-specific monthYesYesYesYesYes
    Province-specific month2YesYesYesYesYes
    Province-specific month3
    Province FEYesYesYesYesYes
    Calendar month FEYesYesYesYesYes
    Observations10,70010,70010,70010,70010,700
    R-squared0.99070.98690.98420.93830.8503
    Average Y in 07/2006–06/200714.6111.268.871.810.58
    Average Y in 05/2009–04/201014.2411.789.231.900.66
    • Notes: OLS regressions. Monthly data on the 50 Spanish provinces between 01/2000 and 12/2017. Dependent variable is the logarithm of number of births per day in each calendar month among women aged 15–44 years. Births in 12/2010 and 01/2011 are set to missing. (Un)employment rates are included with a lag of three quarters. Standard errors are clustered at the province level.

    • View popup
    Table 7

    Estimated Effects of the Universal Child Benefit on Age-Specific Birth Rates

    Dependent Variable: Birth Rate15–19
    (1)
    20–24
    (2)
    25–29
    (3)
    30–34
    (4)
    35–39
    (5)
    40–44
    (6)
    Transition into child benefit (12/2007–03/2008)0.0923
    (0.0752)
    0.5844***
    (0.1172)
    0.3777**
    (0.1691)
    −0.2674
    (0.2174)
    0.0484
    (0.1429)
    0.0340
    (0.0607)
    Child benefit period (04/2008–09/2010)−0.1093
    (0.0728)
    0.2444*
    (0.1302)
    0.0772
    (0.1463)
    0.3136
    (0.1960)
    0.5600***
    (0.1540)
    0.0089
    (0.0589)
    Transition out of child benefit (10/2010–12/2010)−0.1048
    (0.1287)
    0.2011
    (0.1330)
    0.4346*
    (0.2381)
    1.0995***
    (0.2462)
    1.0096***
    (0.2324)
    0.1481*
    (0.0863)
    Post-child-benefit period (01/2011–12/2017)−0.3128***
    (0.1165)
    −1.1820***
    (0.1657)
    −1.1468***
    (0.2465)
    −0.8440***
    (0.2473)
    −0.6173***
    (0.1991)
    −0.0525
    (0.0842)
    Male (un)employment ratesYesYesYesYesYesYes
    Province-specific monthYesYesYesYesYesYes
    Province-specific month2YesYesYesYesYesYes
    Province-specific month3YesYesYesYesYes
    Province FEYesYesYesYesYesYes
    Calendar month FEYesYesYesYesYesYes
    Observations10,70010,70010,70010,70010,70010,700
    R-squared0.55830.74940.74720.62500.68500.5575
    Average Y in 07/2006–06/20073.048.4716.8225.6414.232.49
    Average Y in 05/2009–04/20102.938.8016.4724.7915.512.93
    • Notes: OLS regressions. Monthly data on the 50 Spanish provinces between 01/2000 and 12/2017. Dependent variable is the daily birth rate among women in a given age group, expressed per 100,000 women in that age group, in each calendar month. Births in 12/2010 and 01/2011 are set to missing. (Un)employment rates are included with a lag of three quarters. Standard errors are clustered at the province level.

Additional Files

  • Figures
  • Tables
  • Free alternate access to The Journal of Human Resources supplementary materials is available at https://uwpress.wisc.edu/journals/journals/jhr-supplementary.html

    • 0220-10725R2_repmat.zip
    • 0220-10725R2_supp.pdf
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Journal of Human Resources: 58 (3)
Journal of Human Resources
Vol. 58, Issue 3
1 May 2023
  • Table of Contents
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Cash Transfers and Fertility
Libertad González, Sofia Karina Trommlerová
Journal of Human Resources May 2023, 58 (3) 783-818; DOI: 10.3368/jhr.59.1.0220-10725R2

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Cash Transfers and Fertility
Libertad González, Sofia Karina Trommlerová
Journal of Human Resources May 2023, 58 (3) 783-818; DOI: 10.3368/jhr.59.1.0220-10725R2
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    • ABSTRACT
    • I. Introduction
    • II. Institutional Background
    • III. Expected Effects and Their Timing
    • IV. Data Sources
    • V. Methodology
    • VI. Results
    • VII. Discussion
    • VIII. Conclusions
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