2026
January 2nd
Monetary Incentives Increase Fertility
Do cash-for-kids policies actually work? In a 2025 IFS research brief, a review of the literature showed a positive relationship between policy generosity and estimated effect on birth rates. Generally, a benefit increase worth 4% of GDP per capita per child is associated with a 1% increase in birth probabilities. It’s not only these academic studies that demonstrate the effectivity of cash incentives. Looking at 17 countries who recently implemented major cash-based pronatal policies, we found more evidence that cash-for-kids does indeed work. On average, the policies increased fiscal transfers to families by about 0.7% of GDP and increased fertility rates by about 9%.
