Tzu-Ting Yang, Academia Sinica - The Effect of Financial Resources on Fertility: Evidence from Lottery Winners in Taiwan

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Title: The Effect of Financial Resources on Fertility: Evidence from Lottery Winners in Taiwan

Abstract: This paper investigates how receiving a large cash windfall affects people's fertility, using administrative data on Taiwanese lottery winners. We employ a difference-in-differences design by comparing the fertility decisions made by households winning lottery prizes with more than 1 million NT$ (i.e. 33,000 US$) with those winning less than 10,000 NT$ (i.e. 330 US$). Our results suggest that, on average, winning a lottery prize of more than 1 million NT$ increases households' number of children ever born by 20%. The implied wealth elasticity of fertility is 0.04. In addition, we find that the effects are mainly driven by single-person households, suggesting a positive wealth shock increases fertility through encouraging people to get married.

Presenter: Tzu-Ting Yang, Academia Sinica

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