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Abstract
Prior to 1996, Israelis in collective communities (kibbutzim) shared the
costs of raising children equally. This paper examines the impact of the privatization
of kibbutzim on fertility behavior among members. We find that
fertility declined by 6-15 percent following the shift to privatization. In light
of the massive change in financial costs associated with childbearing due
to privatization, our results suggest that financial considerations may be a
more modest factor in fertility decisions than generally regarded.