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Thursday, February 26, 2009

High birth rate in France

France has a high birth rate, compared to other European countries. I asked a French friend for the reason. He identified two key factors:

1. The income tax system favours large families. The larger the family, the lower the effective tax rate. Some high income earners does not have to pay any income tax, if they have a few children.

2. There are adequate child care facilities in the community and the workplace.  This is supplemented by a system of nannies who take care of children in their homes. The cost of the nany is largely borne by the state.


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