The Effect of Financial Resources on Fertility: Evidence from Administrative Data on Lottery Winners

68 Pages Posted: 23 Dec 2022 Last revised: 26 Dec 2023

See all articles by Yung­-Yu Tsai

Yung­-Yu Tsai

University of Missouri at Columbia - Harry S Truman School of Government and Public Affairs

Hsing-Wen Han

Tamkang University - Department of Accounting

Kuang-Ta Lo

National Chengchi University (NCCU)

Tzu-Ting Yang

Institute of Economics - Academia Sinica

Date Written: December 11, 2022

Abstract

This paper utilizes wealth shocks from winning lottery prizes to examine the causal effect of financial resources on fertility. We employ extensive panels of administrative data encompassing over 0.4 million lottery winners in Taiwan and implement a triple-differences design. Our analyses reveal that a substantial lottery win can significantly increase fertility, the implied wealth elasticity of which is around 0.06. Moreover, the primary channel through which fertility increases is by prompting first births among previously childless individuals. Finally, our analysis reveals that approximately 25% of the total fertility effect stems from increased marriage rates following a lottery win.

Suggested Citation

Tsai, Yung­-Yu and Han, Hsing-Wen and Lo, Kuang-Ta and Yang, Tzu-Ting, The Effect of Financial Resources on Fertility: Evidence from Administrative Data on Lottery Winners (December 11, 2022). Available at SSRN: https://ssrn.com/abstract=4300448 or http://dx.doi.org/10.2139/ssrn.4300448

Yung­-Yu Tsai

University of Missouri at Columbia - Harry S Truman School of Government and Public Affairs ( email )

615 Locust Street
Columbia, MO 65201
United States

Hsing-Wen Han

Tamkang University - Department of Accounting ( email )

No.151, Yingzhuan Rd., Danshui Dist.,
New Taipei, ROC, 251
Taiwan

Kuang-Ta Lo

National Chengchi University (NCCU) ( email )

#64, Chih-Nan Rd. Sec. 2
Wen-Shan District
Taipei, 116
Taiwan

Tzu-Ting Yang (Contact Author)

Institute of Economics - Academia Sinica ( email )

128 Sec 2, Academia Road
Taipei, 106
Taiwan

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