Fertility Policy in Developed Countries

This article examines how direct and indirect pronatalist policies implemented in many developed countries to promote childbearing affect fertility. More specifically, it reviews the extant empirical literature on direct subsidies, family leave, child care, publically provided health insurance, and tax policy. Before evaluating the evidence in these five areas, the article first considers the theoretical association between pronatalist policies and fertility, as well as the common empirical methods utilized in this literature. It then summarizes some of the major findings on child subsidies, family leave policies, child care cost and availability, public health insurance, and tax incentives. Finally, it highlights several gaps that need to be addressed in future research.