Does monetary incentives affect birth rates in Singapore?

• Main Authors: Chen, Li Li, Tan, Yinfei, Yap, Hsiang Ju
• Other Authors: School of Humanities and Social Sciences
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/59081
• Institution: Nanyang Technological University

To reverse declining trends in birth rates, monetary incentives were widely employed to boost fertility. This paper investigates empirically the marginal effect of the Baby Bonus Scheme on fertility in Singapore. The theoretical framework was based on Becker (1960). Contrary to existing literatures on fertility, this paper used PCI instead of individual income. PCI captures the trade-off between the quality and quantity of children based on joint fertility decision of the couple. Results obtained were consistent with Becker (1960). The second and third phase of the Baby Bonus Scheme has a positive and significant impact on fertility in Singapore. For a positive significant impact on fertility, longer implementation of the Baby Bonus Scheme is required.