DP19805 Housing and Fertility
This paper examines the impact of access to housing on fertility rates using random variation from housing credit lotteries in Brazil. We find that obtaining housing increases the average probability of having a child by 3.8% and the number of children by 3.2%. For 20 to 25-year-olds, the corresponding effects are 32% and 33%, with no increase in fertility for people above age 40. The lifetime fertility increase for a 20-year old is twice as large from obtaining housing immediately relative to obtaining it at age 30. The increase in fertility is stronger for households in areas with lower quality housing, greater rental expenses relative to income, and those with lower household income and lower female income share. These results suggest that alleviating housing credit and physical space constraints can significantly increase fertility.
