Pro-natalist cash grants and fertility: A panel analysis

Sok Chul Hong; Young Il Kim; Jae-Young Lim; Mee Young Yeo

Pro-natalist cash grants and fertility: A panel analysis

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

Department of Food and Resource Economics

Research output: Contribution to journal › Article

Abstract

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 language	English
Pages (from-to)	331-354
Number of pages	24
Journal	Korean Economic Review
Volume	32
Issue number	2
Publication status	Published - 2016 Dec 1

Keywords

Fertility
Policy impact
Pro-natalist cash grant
Subsidy

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

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AB - 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.

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