Mass weddings, baby boom and full employment? : Nazi Germany's 1933 marriage loan and its efficacy in theory and practice

In 1933, the German government introduced the marriage loan for newlyweds, a policy aimed at increasing marriages and births as well as male employment, which entailed a work ban for the wife and sizeable credit deductions for children. This paper illustrates that the policy was rather ineffective based on a critical evaluation of the existing literature on the topic, how the policy was implemented in practice, as well as a correlation and interrupted time series analysis and consideration of the historical context of the period between 1925 and 1939. This result starkly contrasts to the substantial changes expected at the time of the introduction. In theory, only a small fraction of newlyweds was eligible for the loan. In practice, the development of marriages postintroduction significantly differed from the period prior to the policy, but causation is unclear. While births increased, this can be attributed to a combination of policies and the improved economic environment compared to the crisis years. The sharp decrease in unemployment probably resulted from the introduction of several targeted policies and embellishment of unemployment statistics.