This paper explores the causal link between income and fertility by analyzing women's fertility response to the large and permanent income shock generated by a husband's job displacement. I find that the shock reduces total fertility, suggesting that the causal effect of income on fertility is positive. A model that incorporates the time cost of…

With data from the Survey of Income Program Participation, a structural model analyzed decision to use child care of married and single mothers. Simulations indicated that a refundable child care tax credit would distribute child care benefits more equally and would also increase labor force participation of mothers. (SK)