A Fund for the Newborn. A Proposal for Italy

Massimo Livi-Bacci, University of Florence

Fertility in Italy has been below replacement for the last quarter of a century, and around 1.3 during the last 15 years. Low fertility implies diseconomies that are widely acknowledged, but public transfers to families and children are way below the European Union average. An hypothesis of reform of the welfare system that could have pro-natalist effects envisages the creation of a fund for each newborn child that would be accrued by yearly public transfers (and, within limits, by donations of relatives and friends). Up to fifty percent of the yearly transfer can be used by the family in order to support the child. The fund comes to maturity when the child comes of age: at this point the young may use it in order to improve his education, as a startup for an economic activity or for any other productive use. Repayment is spread over the working life.