Abstract:

A Child-rearing Allowance is an important economic policy for parental support. It can address the positive externality of fertility behavior in modern society. In the era of negative population growth, a Child-rearing Allowance is a realistic necessity with strategic importance. However, the implementation of China’s Child-rearing Allowance scheme is in its exploratory period of policy practice and academic research. The basic issues and principal framework have yet to be clarified. Therefore, the policy connotation and conceptual boundary of Child-rearing Allowance should be defined based on the externality of fertility behavior. Developed countries entered the low-fertility stage earlier than China. Some formed relatively comprehensive policy responses. This paper summarizes the basic logic of addressing the positive externality of fertility behavior by categorizing the main types of current international Child-rearing Allowance and discussing their advantages and shortcomings. These policies can be optimized for China by defining subsidy focus, subsidy object, subsidy form, and subsidy level that will ultimately reduce the positive externality of fertility behavior.

Key words: child-rearing allowance, encouragement for reproduction, positive externality of fertility behavior, international experience