Apartment for a Child, Car for a Preschooler: Demographics Hammer Local Governments

Local governments face demographic challenges as public spending on child allowances fails to boost birth rates.

Ineffectiveness of Public Child Allowances

The simplest approach is to allocate public funds to child allowances such as ‘becikowe.’ However, similar to the flagship ‘800 plus’ program, these initiatives fail to increase birth rates.

Questioning the Impact of Incentives

Perhaps these allowances only prompt applications from families expecting a child. Frankly, I cannot explain these actions otherwise. In fact, I suspect that if municipalities were to offer apartments to families deciding to have children, we still wouldn’t see a sudden surge in natural growth.

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