Housing Wealth and Fertility: Australian Evidence

Kadir Atalay, Ang Li and Stephen Whelan

No 2017-08, Working Papers from University of Sydney, School of Economics

Abstract: This paper examines the impact of housing wealth on fertility related decisions by exploiting geographic variation in house price changes in Australia. Using data from the Household Income and Labour Dynamics in Australia (HILDA) survey, we fi nd changes in house prices signifi cantly affect the household decisions around fertility outcomes and fertility intentions. Our estimates indicate that, among home owners, a $100,000 increase in house prices increases the likelihood of having a child by a 7.5 percent. An increase in house prices of this order leads to an increase in the intention to have a child, measured on a scale of 0-10, by a 2.5 percent. We show that the positive housing wealth effect on fertility is largely driven by females in their early 30s, with at least one child, and within a formally married relationship.

Keywords: house prices; housing wealth; fertility choice; fertility intention (search for similar items in EconPapers)
Date: 2017-01
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Citations: View citations in EconPapers (6)

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