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Housing wealth and fertility: evidence from China

Author

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  • Hong Liu

    (Renmin University of China)

  • Lili Liu

    (Zhejiang Gongshang University)

  • Fei Wang

    (Renmin University of China)

Abstract

This study examines how an increase in home value affects fertility decisions of homeowners in China by exploiting regional heterogeneity in housing markets driven by local regulatory and geographic land constraints. In sharp contrast to the literature on developed countries, our instrumental variable results show a negative fertility response to house value growth driven by the recent housing boom in China, where a 100,000-yuan increase in lagged home values—about 43% of the average housing wealth at baseline—results in a 14% decrease in the likelihood of home-owning women giving birth. Further evidence suggests that underdeveloped credit markets may suppress the positive wealth effect of house value growth on childbearing.

Suggested Citation

  • Hong Liu & Lili Liu & Fei Wang, 2023. "Housing wealth and fertility: evidence from China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 359-395, January.
    • Handle: RePEc:spr:jopoec:v:36:y:2023:i:1:d:10.1007_s00148-021-00879-6
    DOI: 10.1007/s00148-021-00879-6
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    More about this item

    Keywords

    Fertility; Housing wealth; Housing market; China;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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