Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216331 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13019
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper utilizes a large-scale natural experiment aimed at increasing fertility in Russia. Motivated by a decade-long decrease in fertility and population, the Russian government introduced a sequence of sizable child subsidies (called Maternity Capitals) in 2007 and 2012. We find that the Maternity Capital resulted in a significant increase in fertility both in the short run and in the long run, and has already resulted in an increase in completed fertility for a large cohort of Russian women. The subsidy is conditional and can be used mainly to buy housing. We find that fertility grew faster in regions with a shortage of housing and with a higher ratio of subsidy to housing prices. We also find that the subsidy has a substantial general equilibrium effect. It affected the housing market and family stability. Finally, we show that this government intervention comes at a substantial cost: the government's willingness to pay for an additional birth induced by the program equals approximately 50,000 dollars.
Subjects: 
fertility
maternity capital
housing
JEL: 
J1
H1
I1
Document Type: 
Working Paper

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