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Pro-natalist Cash Grants and Fertility: A Panel Analysis

Authors
Hong, Sok ChulKim, Young-IlLim, Jae-YoungYeo, Mee-Young
Issue Date
2016
Publisher
KOREAN ECONOMIC ASSOCIATION
Keywords
Fertility; Pro-natalist Cash Grant; Subsidy; Policy Impact
Citation
KOREAN ECONOMIC REVIEW, v.32, no.2, pp.331 - 354
Indexed
SSCI
SCOPUS
KCI
Journal Title
KOREAN ECONOMIC REVIEW
Volume
32
Number
2
Start Page
331
End Page
354
URI
https://scholar.korea.ac.kr/handle/2021.sw.korea/91527
ISSN
0254-3737
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.
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