April 28, 2007
Baby boom
FRANCE: Generous family benefits help reverse falling birth rates
By Susan Sachs, For The Straits Times
PARIS - WITH the highest birth rate in Europe, France seems to be bucking the trend that England and much of western Europe are reeling under - an ageing population.
Nearly 830,000 babies were born in France last year, a bumper crop that was the largest in 25 years.
The birth rate, defined as the number of live births per 1,000 people, increased from 1.8 to 2.1 per cent last year. On average, according to the government, French women of child-bearing age are having two children each.
But as they have more children, French women will disappear from the workforce.
Experts believe that, in its eagerness to take the financial sting out of raising big families, the government has created a system that induces mothers with few skills or poor education to stop working.
Almost 80 per cent of mothers with one young child, however, continue to work. With two children, that percentage drops to 60 per cent, and with three or more children, only 37 per cent of mothers remain in the workforce.
Generous family benefits also make it easier for many women to have children without having to give up their career ambitions or their creature comforts.
France spends more than most industrialised countries on social benefits, about 44 per cent of its GDP. And, according to the most recent figures available, for 2003, France spent 16 billion euros (S$33 billion) just on programmes to help parents with young children.
In addition, tax credits for working parents who hired nannies amounted to 545 million euros.
France has long pursued a deliberate policy of encouraging women to have children, by offering free day-care centres, government grants to stay-at-home parents, cash bonuses for large families, generous parental leave and an array of other subsidies.
The abundance of babies is evident in any French city.
Municipal day-care centres in Paris, for example, are filled to capacity and the competition for the services of a 'nourrisse', or licensed nanny, is fierce.
Any afternoon in good weather, the lucky children, strapped into six-seat strollers, are wheeled about the sidewalks of residential neighbourhoods and parks.
Ms Cristina Melo, a Portuguese grandmother who takes care of five children ranging from three months to two years old, said she is hired by mothers who are students, executives and teachers.
'There is a lot of business,' she said as she tried to keep her charges quiet. 'Lots of babies these days.'
Although only 20 per cent of preschool children in France are able to find places in public childcare centres, the government provides support, through tax breaks and other grants, to parents who have to pay for private child care.
Parental leave rules are liberal, allowing mothers or fathers of newborns to take up to six months off from work with nearly full pay and a guarantee of reclaiming their old jobs. Parents also receive a back-to-school cheque from the government for about US$350 (S$530) for each school-age child.
Last year, France took its baby policy a step further, boosting the incentives for women to have three or more children by sweetening the benefits, including discounts of about 30 per cent on train tickets, 50 per cent off public transportation cards, and discounts on rental cars, food, clothing, newspaper subscriptions, hotels and even pizza parlours.
But the big-family bonuses have done little to change the modern preference for having just one or two children.
The number of families with just three children has remained stable, at about 15 per cent of all households with children, for years. And only 4 per cent of households have four or more children, according to the government.
One-third of these big families live in public housing for the poor.
However, despite subsidies, many French couples say they cannot afford big families and do not want their work life or lifestyles to suffer from the demands of a lot of children. But they do want children.
'I just have a different life than my parents had,' said Mr Thomas Lebraud, a 27-year-old real estate agent in Paris who is one of five children. 'They married in their early 20s and started having kids right away. I'm not even married yet and there are lots of things I want to do first.'
Still, Mr Lebraud said, his girlfriend would like to have a baby. She is his age but has been bouncing from one low-paid internship to another in public relations companies.
Paradoxically, her bleak financial prospects make it a favourable time for the couple to plunge ahead.
'She hasn't been able to find a full-time job and so she has the time,' he said.
'And because she's living partly on (welfare), she'd be able to get reasonable help from the state to cover a lot of our costs.'