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

52 Pages Posted: 23 Dec 2022

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 effect of financial resources on fertility. Using administrative data on Taiwanese lottery winners and a difference-in-differences design, we compare the trend in fertility between households receiving lottery prizes of more than 1 million NT$ (33,000 US$) with those winning less than 10,000 NT$ (330 US$). The results show that the receipt of a big lottery prize significantly increases fertility, and effects are driven by households with less financial resources. Moreover, big lottery wins mainly trigger childless households to have children and induce people to get married earlier.

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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