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Quebec's new birth bonuses.


 In May 1988, the provincial government of Quebec instituted a payment schedule of new birth allowances. It is explicitly a cash bonus for having children. Parents receive US $500 for the 1st and 2nd children and US $3000 for each additional child paid in 8 tax exempt installments over 2 years. In addition, there are income tax cuts and interest free home loans for parents. Quebec also pays monthly child allowances until age 6 (up to US $500/year). Quebec's 1988 population of 6.6 million is 26% of Canada's population. Quebec is overwhelmingly French, with 80% of Canada's French speakers. Rivalry between French and English speakers is believed to contribute to concern about Quebec's falling fertility. Massive social and economic changes in the 1950s, with transition from a largely agricultural economy to industrialization, led to a decline in total fertility rate from 3.7 lifetime children/woman in 1958 to 1.4 in 1988. Quebec has Canada's lowest total fertility rate and has also experienced significant out-migration due to economic problems. Experience in Czechoslovakia and Romania indicates that incentives produce a temporary upward "bump" in fertility with an eventual return to former levels.
