Publication
The Korean Journal of Economic Studies
Effect of Cash Benefit on Marital Fertility: Evidence from the Basic Child Care Allowance in Gangwon Province
Chulhee Lee (, Seoul National University) and So-Young Lee (Korea Institute for Health & Social Affairs)Year 2022Vol. 70No. 2
Abstract
This study analyzes the effect of cash benefit on marital fertility. The results
of county panel fixed model estimation shows that pro-natal cash benefits of
local governments significantly increased marital fertility. The Basic Child Care
Allowance (BCCA) in Gangwon Province offers a unique opportunity to examine
the effect of a large-scale increase in pronatal cash benefit. A decomposition
of change in the number of births suggests that marital fertility (especially the
probability of having first child among married women with no child) sharply
rose after the provision of the BCCA, playing a role of increasing the number
of births. The results of difference-in-difference estimations based on
county-level data suggest that the BCCA increased the marital fertility rates by
15~20% of the average rate during the sample period.