Answer to Question #186797 in Economics for Nisha Chaudhary

Question

Do you think that economic incentives and disincentives influence family size decisions,

keeping in view the microeconomic theory of fertility? Explain your answer, giving some

specific examples of such incentives and disincentives.

Answer 1

The Microeconomic Theory of Fertility is a theory that family formation has costs and benefits that determine the size of family formed.

In every society there are many social and economic incentives and disincentives that affect individual decisions about child-bearing and family size. Over the past century, many governments have experimented with such schemes, including specific incentives and disincentives, in order to lower or raise fertility. Most such schemes have had only marginal impact on fertility and in some cases have been counterproductive.