Template-Type: ReDIF-Article 1.0

Author-Name: Petra Németh
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: petra.nemeth@uni-corvinus.hu

Title: The Life Cycle Model of the Fertility Choice in Hungary

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.

Classification-JEL: C61, D91, H31, J13, J18
Keywords: childbearing, family support, life cycle model
Pages: 5-35
Volume: 16
Issue: 4
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-16-4-st1-ne-meth.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:4:p:5-35