Does the ethnic composition environment matter ? Peer effects on fertility among foreign wives in Korea

The main purpose of this paper is to explore socio-demographic differentials and peer effects on fertility among foreign wives in Korea. Attention is focused on examining the effects of the number of foreign wives and the ethnic composition of residential area on the level and tempo of fertility of foreign wives. Favorable ethnic composition of the residential area and increased accessibility to other foreign wives are likely to reduce the real or perceived social disadvantages, constraints and insecurities of foreign wives that might otherwise lead to lower fertility. Another question to be examined is whether and to what extent foreign wives show distinctive levels of fertility according to household composition. Micro-data from the 2009 Korean National Multi-culture Family Survey and Marriage and Divorce Registration Data for 2009-2011 are analyzed. Preliminary results of the analysis show that the ethnic composition environment exerts an independent effect on fertility, apart from socioeconomic and demographic variables. Propensity to have children ceteris paribus rises substantially among foreign wives who live in an area with a large population of transnational couples. Peer effects tend to be stronger when a foreign wife lives with her husband’s parents. Further evidence is found to be consistent with peer effects.