The Graduate Center, CUNY
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Institutional Affiliation: The Graduate Center, CUNY
NBER Working Papers and Publications
|January 2020||Economic Incentives Surrounding Fertility: Evidence from Alaska's Permanent Fund Dividend|
with Nishant Yonzan, Inas Rashad Kelly: w26712
Starting in 1982, the Alaska Permanent Fund Dividend allows each full-time resident in Alaska, including infants born in the qualifying year, to receive a sizable dividend. This dividend, which represents a form of a Universal Basic Income on a small scale, could alter incentives surrounding fertility. Using synthetic control and difference-in-differences models to account for confounding factors and unobserved heterogeneity, we model the effect of income on fertility by exploiting this income shock around 1982 using Natality files from Vital Statistics and abortion data from the Centers for Disease Control, merged with data from the Census on various state characteristics. Primary results suggest that the dividend increased fertility and reduced the spacing between births, particularly fo...