Child Home Care Allowance and the Transition to Second- and Third-Order Births in Finland

Using register data from the Finnish Census Panel, this paper studies the relationship between the use of the child home care allowance and second and third births among women aged 20-44 in Finland during the period 1992-2007. Discrete-time event-history analysis is applied to examine (i) whether women taking up the child home care allowance while their previous child was under the age of 3 have a higher risk to proceed to subsequent childbearing, (ii) whether these women proceed to a further birth more quickly, and (iii) whether the risk to proceed to a subsequent birth is related to educational level. The results show that women using the allowance have a higher risk of having a second and a third birth than women not using it. The risk of having a second birth is higher than that of having a third birth. Also, women using the allowance get their subsequent child sooner than women not using the allowance. No large educational differences in the effect of allowance use are found for second or third births.