Tax reforms can boost fertility but reduce female employment, study finds.
The article explores how different family policies affect fertility rates and female employment. By using a model that considers how taxes and benefits impact household decisions, the researchers found that policies increasing family budgets raise fertility but lower female employment. On the other hand, policies that increase tax revenues can boost female employment but reduce fertility. However, a balanced approach, like reforming benefits and moving towards individual taxation while increasing in-kind benefits, can lead to positive outcomes for both fertility rates and female labor participation.