Paid Basic Income, Fertility Rates and Economic Growth

The purpose of this paper is to examine the effects of paid basic income on fertility rates in a model in which fertility rates are endogenous. I show that when child labor is not a crucial part of the income of the family, then paid basic income will lead to higher fertility rates. However, when child labor is a necessity, then in fact an increase in paid basic income will lead to a reduction in fertility rates.

Keywords: basic income, fertility rates; economic growth; child labor; Sibship size effect

JEL classification: B10, D10, J13