Socioeconomic response by age group to the Australian Baby Bonus: a multivariate analysis of birth data from 2001-13

Abstract

To deal with the demographic trends of declining fertility rates and ageing populations, many developed countries have implemented pronatalist policies designed to increase fertility rates. A key pronatalist policy introduced in Australia was the 'Baby Bonus' payment scheme announced in May 2004. Responding to a gap in the literature, this paper assesses changes in birth rates by age group and socioeconomic status after the introduction of the Baby Bonus, using national birth data for Australia from 2001-2013. Our results show that during the key years of the Baby Bonus policy, the overall birth rate for all socioeconomic groups in the 15-19 age group rose by 8.1%. Of particular note were the lowest two socioeconomic quintiles, for whom birth rates rose by 10% and 12% respectively.