BoI research links high birthrate to child allowances

New research by the Bank of Israel has found that cancellation of child allowances would lower the overall birthrate in the Bedouin and Haredi sectors. The research found that the Haredi birthrate would drop an average of 0.2 less children, in other words 1 child less for every five families, while Negev Bedouin women would have a birthrate of 0.4 less children, or two children less for every five families.

The research also found that cancellation of child allowances would make no change to the birthrate of non-Haredi Jewish women and Druze women.

The Bank of Israel examined the connection between the level of child allowance payments between 1994 and 2007 and its effect on the birthrates of Israeli women in various population sectors. The research proved what many have instinctively felt for many years, that the level of child allowances does influence women in sectors with high birthrates.

The research also found that paying an allowance of between NIS 500-560 for each child from the fourth child to the seventh child as happened between 1994 and 2004, increased the birthrate of Arab women by 6%-7% and of Haredi women by 3% compared with a situation in which they would receive no child allowance.

Published by Globes [online], Israel business news - undefined - on December 15, 2009

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