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