The Korean Economic Forum
Child Allowance and Fertility Rates: Evidence from OECD Member Countries
Seung Joo Han (Hanyang University ERICA CAMPUS) and Chung Choe (Hanyang University ERICA CAMPUS)Year 2019Vol. 12No. 1
This paper aims at suggesting a direction of the child allowance policy inKorea by examining the association between the family benefit size and the childallowance system among the OECD member countries. We find that the publicspending on family benefits and the child allowance payments are positivelyassociated with the total fertility rates. These indicate that, in order to overcomethe issue of low birth rates, the Korean government needs to consider a drasticincrease in the public spending by the level of developed countries, mostlynorthern and western European countries. More specifically, we recommend theconsiderable expansion of the child policy, in terms of age limit and the amountof cash benefit, to make the child policy valid in Korea.