Tan Kin Lian - Perspectives Cost of allowance to parent who stays at home
I propose that the state provide an allowance of $700 to $1,000 per child to the parent, who stays at home to raise up to 3 children. This allowance is paid until the child is 12 years old.

The cost per child is $800 X 12 X 12 = $120,000 say. If this incentive produces an additional 20,000 births a year, the cost to the state is $2.4 billion a year.

This cost is small and is acceptable to achieve the goal of raising the birth rate to reach the replacement level.

The additional births will add to the current births that are now produced by families with two working parents.

Tan Kin Lian

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