Born on the First of July: An (Un)Natural Experiment in Birth Timing

  title={Born on the First of July: An (Un)Natural Experiment in Birth Timing},
  author={J. Gans and A. Leigh},
  journal={Journal of Public Economics},
  • J. Gans, A. Leigh
  • Published 2009
  • Economics
  • Journal of Public Economics
  • It is well understood that government policies can distort behavior. But what is less often recognized is that the anticipated introduction of a policy can introduce its own distortions. We study one such "introduction effect," using evidence from a unique policy change in Australia. In 2004, the Australian government announced that children born on or after July 1, 2004 would receive a $3000 "Baby Bonus." Although the policy was only announced seven weeks before its introduction, parents… CONTINUE READING
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