Journal of Family and Economic Issues

, Volume 27, Issue 4, pp 626–642 | Cite as

The Influence of College Tuition and Fees on Fertility Rate in Taiwan

  • Jr-Tsung Huang
  • An-Pang Kao
  • Wen-Chuan Hung
Original Paper


This study investigates the influence of college tuition and fees (CTF) on fertility behavior as a mechanism to induce population growth. Using a fixed-effect regression model with various specifications of the fertility equation on contiguous panel data for the period 1990–2001, this study has determined of that CTF has a significantly negative influence on regional GFR (general fertility rate) in Taiwan. In addition, unemployment rates also have a negative impact on fertility though the male rate plays a greater role in the fertility decision than the female rate. Finally, this study calculates the cost in terms of CTF to the Central Government to induce population growth. For a 1% decrease in real CTF, the cost to the government and taxpayers at large, the cost of each additional child will range from US$90.31 to US$252.23 depending on the years considered and the model specifications.


College tuition and fees General fertility rate Higher education Taiwan 



The previous version of this study was presented at the 6th Biennial Conference of Asia Consumer and Family Economics Association (ACFEA) at the California State University, Sacramento, CA, USA, November 3–5, 2005. The authors are grateful to all participants at the ACFEA Biennial Conference, particularly Jing J. Xiao and Jessie Fan, and referees of JFEI for their helpful comments.


  1. Becker, G. S. (1960). An economic analysis of fertility. Demographic and economic change in developed countries. NBER.Google Scholar
  2. Blau, D. M., & Robins, P. K. (1989). Fertility, employment, and child-care costs. Demography, 26(2), 287–299.CrossRefGoogle Scholar
  3. Breusch, T., & Pagan, A. (1980). The LM test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239–253.CrossRefGoogle Scholar
  4. Cain, G. G., & Weininger, A. (1973). Economic determinants of fertility: Results from cross-sectional aggregate data. Demography, 10(2), 205–223.CrossRefGoogle Scholar
  5. Cheng, B. S., & Nwachukwu, S. L. S. (1997). The effect of education on fertility in Taiwan: A time series analysis. Economics Letters, 56(1), 95–99.CrossRefGoogle Scholar
  6. Cigno, A. (1994). Economic considerations in the timing of births: Theory and evidence. In J. Ermisch, & N. Ogawa (Eds.), The family, the market and the state in ageing societies. Oxford: Clarendon Press, (pp. 64–78).Google Scholar
  7. Georgellis, Y., & Wall, H. J. (1992). The fertility effect of dependent tax exemptions: estimates for the United States. Applied Economics, 24(10), 1139–1145.CrossRefGoogle Scholar
  8. Gohmann, S. F., & Ohsfeldt, R. L. (1994). The dependent tax exemption, abortion availability, and U.S. fertility rates. Population Research and Policy Review, 13(4), 367–381.CrossRefGoogle Scholar
  9. Hausman, J. (1978). Specification tests in econometrics. Econometrica, 46, 1251–1271.CrossRefGoogle Scholar
  10. Hill, C. R., Griffiths, W. E., & Judge, G. G. (2001), Undergraduate econometrics (2nd ed.). New York: John Wiley & Sons, Inc.Google Scholar
  11. Hsiao, C. (1995). Analysis of panel data. Cambridge: Cambridge University Press.Google Scholar
  12. Huang, J. -T. (1998). Three essays on marital births and taxes. Seattle, USA: Doctoral Dissertation, Department of Economics, University of Washington.Google Scholar
  13. Huang, J.-T. (2002). Personal tax exemption: The effect on fertility in Taiwan. The Developing Economies, 40(1), 32–48.CrossRefGoogle Scholar
  14. Huang, J.-T. (2003). Unemployment and family behavior in Taiwan. Journal of Family and Economic Issues, 24(1), 27–48.CrossRefGoogle Scholar
  15. Lam, D. A., & Miron, J. A. (1996). The effect of temperature on human fertility. Demography, 33(3), 291–305.CrossRefGoogle Scholar
  16. Land, K. C., & Cantor, D. (1983). Arima models of seasonal variation in U.S. birth and death rates. Demography, 20(4), 541–568.CrossRefGoogle Scholar
  17. Leete, R. (1987). The post-demographic transition in East and South-East Asia: Similarities and contrasts with Europe. Population Studies, 41(2), 187–206.CrossRefGoogle Scholar
  18. Liu, P. K. C. (1995). A comparative study on fertility transitions in China and Taiwan in historical perspective. (In Chinese, with English summary.) Academia Economic Papers, 23(2), 97–133.Google Scholar
  19. Mocan, N. H. (1990). Business cycles and fertility dynamics in the United States: a vector autoregressive model. Journal of Population Economics, 3(2), 125–146.CrossRefGoogle Scholar
  20. Mueller, E., & Cohn, R. (1977). The relation of income to fertility decisions in Taiwan. Economic Development and Cultural Change, 25(2), 325–347.CrossRefGoogle Scholar
  21. Schultz, P. T. (1973). A preliminary survey of economic analyses of fertility. American Economic Review, 63(2), 71–87.Google Scholar
  22. Schultz, P. T. (1988). Population programs: measuring their impact on fertility and the personal distribution of their effects. Journal of Policy Modeling, 10(1), 113–139.CrossRefGoogle Scholar
  23. Seiver, D. A. (1985). Trend and variation in the seasonality of U.S. fertility, 1947–1976. Demography, 22(1), 89–100.CrossRefGoogle Scholar
  24. White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48(4), 817–838.CrossRefGoogle Scholar
  25. Whittington, L. A. (1992). Tax and family: The impact of the tax exemption for dependents on marital fertility. Demography, 29(2), 215–226.CrossRefGoogle Scholar
  26. Whittington, L. A. (1993). State income tax policy and family size: Fertility and the dependency exemption. Public Finance Quarterly, 21(4), 378–398.CrossRefGoogle Scholar
  27. Whittington, L. A., Alam, J., & Peters, E. H. (1990). Fertility and the personal exemption: implicit pronatalist policy in the United States. American Economic Review, 80(3), 545–556.Google Scholar
  28. Yen, E. C., & Yen, G. (1992). Female education and fertility differentials: one effect or two? Anthology. Atlantic Economic Journal, 20(2), 104.CrossRefGoogle Scholar
  29. Yen, E. C., Yen, G., & Liu, B. C. (1989). Cultural and family effects on fertility decisions in Taiwan, R.O.C.: Traditional values and family structure are as relevant as income measures. American Journal of Economics and Sociology, 48(4), 415–426.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

  1. 1.Department of Public Finance & Taiwan Study CenterNational Chengchi UniversityTaipeiTaiwan
  2. 2.Department of Economics & Taiwan Study CenterNational Chengchi UniversityTaipeiTaiwan
  3. 3.Master Program for Eminent Public Administrators (MEPA)National Chengchi UniversityTaipeiTaiwan

Personalised recommendations