Monetary Pronatalism: Performance Evaluation

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Monetary Pronatalism: Performance Evaluation

Journal Title: Демографія та соціальна економіка - Year 2013, Vol 19, Issue

Abstract

Practically all countries of the world used money to encourage childbirth at some stage of their development. Soviet Union, began to resort to monetary pronatalism, but the birth rate incentives of the second half of 1980 resulted in only short-term increase in the number of newborns. Since 2005, the monetary pronatalism became the dominant trend of population policy in Ukraine as a result of the introduction of substantial financial assistance at birth. As a result of these measures the birth rate indicators have improved, namely: the number of births increased from 426 thousand children in 2005 to 502 thousand in 2011, the birth rate has increased from 1.21 to 1.45, respectively. However, we stress that such results were achieved not only through the use of monetary instruments – during this period the numerous generation of women born in the second half of 1980’s entered child-bearing age. Increasing living standards also had a positive impact on reproductive behavior of the population. Year after year the amount of assistance at birth is increasing in Ukraine, i.e. the “price” of a child for the national budget increases. Our calculations show that, on average, public spending per infant has increased 6-fold since 2005, while the number of newborns during this period has grown only by 17%. Assistance at childbirth has evolved in our country from a pronatalist instrument into a component of social security. Author’s calculations indicate that in 2005 government payments at first birth were almost 2 times higher than the minimum wage, in 2011 this excess was 1.4 times. This fact suggests the possibility of abuse by marginal minded population, because welfare payments in this case exceed labor incomes. Under the influence of modern pronatalist policy a slight increase in birth rate is observed, but it is unknown which category of the population is increasing the number of children. The increase in the number of children in the so-called marginalized sectors of the population, i.e. those with a low educational level, unemployed and socially disadvantaged people, is a cause for concern. In order to achieve sustainable birth rates the combination of monetary stimulus of childbirth and other measures of socio-demographic policies aimed at addressing the urgent problems of young families – housing, creation of opportunities for combining motherhood and work (study), development of preschool educational institutions (both public and private), etc. is important.

Authors and Affiliations

V. P. Dumanska

Keywords

pronatalism childbirth stimulation demographic crisis demographic policy birth rate monetary pronatalism.

EP ID EP287251
DOI 10.15407/dse2013.01.028
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