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Do People Have Children when They Become Rich? Evidence from Lottery Winners in Taiwan

  • Date 2020-12-01 (Tue)
  • Time 02:30 PM
  • Venue Conference Room B110
  • Presider Professor Terry Cheung
  • Speaker Professor Tzu-Ting Yang
  • Background Professor Yang received his Ph.D. in Economics from University of British Columbia in 2015. He is currently an Assistant Research Fellow at the Institute of Economics, Academia Sinica. His research interests are Public Economics and Applied Econometrics.
  • Abstract This paper investigates how receiving a large windfall gain affects people's fertility, using administrative data on Taiwanese lottery winners. We employ a difference-in-differences design by comparing the fertility decisions made by households winning lottery prizes with more than 1 million NT$ (i.e. 33,000 US$) with those winning less than 10,000 NT$ (i.e. 330 US$). Our results suggest that receiving a large windfall gain significantly increases fertility. The implied income elasticity of fertility is 0.18.