PUBLIC-POLICY AS THE FUEL OF FERTILITY - EFFECTS OF A POLICY REFORM ON THE PACE OF CHILDBEARING IN SWEDEN IN THE 1980S

In 1980, Sweden made a 'speed premium' on childbearing statutory by le tting parents retain the parental leave benefits paid after the birth of one child until after the next birth if it arrived within two years ; in 1986 this eligibility interval was extended to thirty months. For longer birth intervals, benefit rights must be re-established by earn ing a work-related income. During a period of a general rise in fertil ity in Sweden, parents reacted by increasing their fertility particula rly strongly before the end of the eligibility interval. This paper di splays these developments. It is a rare demonstration of a direct caus al effect of a policy reform on demographic behavior. The general deve lopment of fertility levels at the various birth orders has some indep endent interest and is presented as a background.