Pro-natalist cash grants and fertility: A panel analysis

Sok Chul Hong, Young Il Kim, Jae Young Lim, Mee Young Yeo

Research output: Contribution to journalArticlepeer-review


By exploiting variations in pro-natalist cash grant amounts across 225 municipal districts in South Korea from 2005 to 2010, we estimated the causal impact of cash grants on fertility. After controlling for administrative district fixed effects, a system GMM analysis revealed a rise in grant amounts by 1,000 USD increased the crude birth rate by 4.4%. The results imply that the required grant amount for one extra birth increases with the parity of births. The sub-group analysis by maternal age suggests that the grant may have a significant permanent impact on the completed lifetime fertility.

Original languageEnglish
Pages (from-to)331-354
Number of pages24
JournalKorean Economic Review
Issue number2
Publication statusPublished - 2016 Dec 1


  • Fertility
  • Policy impact
  • Pro-natalist cash grant
  • Subsidy

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


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