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 › peer-review

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)

Cite this

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title = "Pro-natalist cash grants and fertility: A panel analysis",

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.",

keywords = "Fertility, Policy impact, Pro-natalist cash grant, Subsidy",

author = "Hong, {Sok Chul} and Kim, {Young Il} and Lim, {Jae Young} and Yeo, {Mee Young}",

note = "Funding Information: We would like to thank the editor and the two anonymous referees for their helpful comments. We appreciate the comments and suggestions made by Jungho Kim, Chulhee Lee, Byeongseon Seo, and seminar participants at National ChengChi University workshop and Korean Association of Applied Economics Meetings. Kim?s work was supported by a Sogang University Research Grant of 2011210060.01. Lim thanks the support by the National Research Foundation of Korea (NRF- 2013S1A3A2053959). Publisher Copyright: {\textcopyright} 2016, Korean Economic Association. All rights reserved.",

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AU - Hong, Sok Chul

AU - Kim, Young Il

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N1 - Funding Information: We would like to thank the editor and the two anonymous referees for their helpful comments. We appreciate the comments and suggestions made by Jungho Kim, Chulhee Lee, Byeongseon Seo, and seminar participants at National ChengChi University workshop and Korean Association of Applied Economics Meetings. Kim?s work was supported by a Sogang University Research Grant of 2011210060.01. Lim thanks the support by the National Research Foundation of Korea (NRF- 2013S1A3A2053959). Publisher Copyright: © 2016, Korean Economic Association. All rights reserved.

PY - 2016/12/1

Y1 - 2016/12/1

N2 - 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.

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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KW - Policy impact

KW - Pro-natalist cash grant

KW - Subsidy

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Pro-natalist cash grants and fertility: A panel analysis

Abstract

Keywords

ASJC Scopus subject areas

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