Childbirth, Baby Bonus, and Maternal Mental Health

We study the impacts of childbirth on maternal mental health, the role of pro-natalist cash transfers, and the fertility consequences of maternal mental health. Using claims-level data from South Korea's universal healthcare system, we find that mental health diagnoses rise by 34.8% (198.7%) after the first (second) birth. We find little evidence that cash transfers mitigate these effects. As potential mechanisms, we examine liquidity constraints, labor market changes, time use, and social stigma. Lastly, we document that poor mental health after childbirth is negatively associated with the likelihood of having another child.