This paper utilizes wealth shocks from winning lottery prizes to examine the
effect of financial resources on fertility. Using administrative data on
Taiwanese lottery winners and a difference-in-differences design, we compare
the trend in fertility between households receiving lottery prizes of more than
1 million NT(33,000US) with those winning less than 10,000 NT(330US).
The results show that the receipt of a big lottery prize significantly
increases fertility, and effects are driven by households with less financial
resources. Moreover, big lottery wins mainly trigger childless households to
have children and induce people to get married earlier