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Female labor supply, fertility rebounds, and economic development

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  • Akira Yakita

Abstract

We show that a fertility rebound can occur as the female wage rate rises concomitantly with economic development. Under plausible conditions, capital accumulation raises the marginal product of labor and hence the female wage rate. Unless the economy is trapped in a lower equilibrium, the fertility rate starts to decline at a certain level of the female wage rate and then turns upward at a higher wage level, presenting a fertility rebound. For such fertility rebounds to appear without policy intervention, the availability of external child care at high female wage rates is crucially important. The external child‐care price must be lower at high female wage rates. Otherwise the fertility rate might continue to decline.

Suggested Citation

  • Akira Yakita, 2018. "Female labor supply, fertility rebounds, and economic development," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1667-1681, November.
    • Handle: RePEc:bla:rdevec:v:22:y:2018:i:4:p:1667-1681
    DOI: 10.1111/rode.12411
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    Cited by:

    1. Akira Yakita, 2020. "Fertility decisions of families in an intergenerational exchange model," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1447-1462, November.
    2. Aso, Hiroki, 2021. "A note on the fertility-income relationship and childcare outside home," MPRA Paper 108543, University Library of Munich, Germany.
    3. Abebe HAILEMARIAM, 2024. "Income and differential fertility: evidence from oil price shocks," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(1), pages 31-54, March.
    4. Yakita, Akira, 2020. "Economic development and long-term care provision by families, markets and the state," The Journal of the Economics of Ageing, Elsevier, vol. 15(C).
    5. Nakabayashi, Masaki, 2019. "From family security to the welfare state: Path dependency of social security on the difference in legal origins," Economic Modelling, Elsevier, vol. 82(C), pages 280-293.
    6. Wang, Ruiting & Xu, Gang, 2020. "Can child allowances improve fertility in a gender discrimination economy?," Economic Modelling, Elsevier, vol. 93(C), pages 162-174.
    7. Yakita, Akira, 2023. "Elderly long-term care policy and sandwich caregivers’ time allocation between child-rearing and market labor," Japan and the World Economy, Elsevier, vol. 65(C).
    8. Johanna Etner & Natacha Raffin & Thomas Seegmuller, 2022. "Postponement, career development and fertility rebound," AMSE Working Papers 2225, Aix-Marseille School of Economics, France.
    9. Georgios Mavropoulos & Theodore Panagiotidis, 2021. "On the drivers of the fertility rebound," Economic Change and Restructuring, Springer, vol. 54(3), pages 821-845, August.

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