Exactly this. European governments have put various financial incentives in place for having kids, yet they're scratching their heads why they're not working.
At least in Austria, it pretty much doesn't matter how much your household earns, up to a certain level (it's somewhere around €2300/month net if I remember correctly), as long as you have at least 2 kids. The child benefits plus family tax breaks compensate for low income. The benefits are diminished (not just proportionally) at higher income levels, which basically means there's an incentive for poor people to have kids. Having a kid probably won't reduce your standard of living if it comes with a 50% raise or whatever. One parent dropping from full-time to part time will also have little to zero financial impact at that level.
At higher income levels, none of that is true. The jobs tend to be more demanding, working part time is hardly an option, and daytime childcare is expensive. The €100/month/child or so the government give you won't even get close to covering that.
I don't know if the incentives are working among those with lower income - they have more kids, but for all I know they would have more anyway, but the current setup is useless for encouraging reproduction across the board.