Does fertility decrease household consumption?
AbstractThis paper presents an empirical analysis of the relationship between fertility and a direct measure of poverty for Indonesia, a country, which has experienced unprecedented economic growth and sharp fertility declines over recent decades. It focuses on illustrating the sensitivity of the effect of fertility on household consumption with respect to the equivalence scale by applying the propensity score matching method. The analysis suggests that a newborn child decreases household consumption per person by 20 percent within four years. When the estimates of equivalence scales implied by the Indonesian sample are applied, the effect of a child on household consumption is still negative, but the magnitudes are in the range from 20 to 65 percent of that found with the per-capita expenditure as a measure of consumption. Therefore, it is suggested that the analysis based on the conventional measure of poverty is likely to exaggerate the effect of fertility on poverty at least because of the neglect of the proper equivalence scale.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Max Planck Institute for Demographic Research, Rostock, Germany in its journal Demographic Research.
Volume (Year): 20 (2009)
Issue (Month): 26 (June)
Contact details of provider:
Web page: http://www.demogr.mpg.de/
consumption; equivalence scale; fertility; Indonesia; poverty dynamics;
Find related papers by JEL classification:
- J1 - Labor and Demographic Economics - - Demographic Economics
- Z0 - Other Special Topics - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ravallion, Martin, 1996.
"Issues in measuring and modeling poverty,"
Policy Research Working Paper Series
1615, The World Bank.
- Martin Browning & Pierre-Andre Chiappori, 2006.
"Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power,"
Economics Series Working Papers
289, University of Oxford, Department of Economics.
- Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1267-1303.
- Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
- Martin Browning & Pierre-AndrÃ©e Chiappori & Arthur Lewbel, 2004. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Boston College Working Papers in Economics 588, Boston College Department of Economics, revised 01 Sep 2010.
- Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-40, January.
- Omer Moav, 2005.
"Cheap Children and the Persistence of Poverty,"
Royal Economic Society, vol. 115(500), pages 88-110, 01.
- Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
- Deaton, A. & Paxson, C., 1997.
"Economies of Scale, Household Size, and the Demand for Food,"
178, Princeton, Woodrow Wilson School - Development Studies.
- Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
- Angrist, Joshua D & Evans, William N, 1998.
"Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size,"
American Economic Review,
American Economic Association, vol. 88(3), pages 450-77, June.
- Joshua D. Angrist & William N. Evans, 1996. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," NBER Working Papers 5778, National Bureau of Economic Research, Inc.
- Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2004.
"Economic Shocks, Wealth and Welfare,"
Labor and Demography
- Koulovatianos, Christos & Schroder, Carsten & Schmidt, Ulrich, 2005.
"On the income dependence of equivalence scales,"
Journal of Public Economics,
Elsevier, vol. 89(5-6), pages 967-996, June.
- Lanjouw, Peter & Ravallion, Martin & DEC, 1994.
"Poverty and household size,"
Policy Research Working Paper Series
1332, The World Bank.
- Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-44, August.
- Browning, M. & Chiappori, P.A., 1994.
"Efficient Intra-Household allocations: A General Characterization and Empirical Tests,"
DELTA Working Papers
94-16, DELTA (Ecole normale supérieure).
- M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
- Martin Browning & Pierre-Andre Chiappori, 1994. "Efficient Intra-Household Allocations: a General Characterization and Empirical Tests," Department of Economics Working Papers 1994-02, McMaster University.
- Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
- Rosenzweig, Mark R & Schultz, T Paul, 1985. "The Demand for and Supply of Births: Fertility and Its Life Cycle Consequences," American Economic Review, American Economic Association, vol. 75(5), pages 992-1015, December.
- Banks, James & Johnson, Paul, 1994. "Equivalence Scale Relativities Revisited," Economic Journal, Royal Economic Society, vol. 104(425), pages 883-90, July.
- Cheolsung Park, 2004.
"Marriage Market, Parents' Bargaining Powers, and Children's Nutrition and Education,"
Econometric Society 2004 Australasian Meetings
262, Econometric Society.
- Cheolsung Park, 2007. "Marriage Market, Parents' Bargaining Powers, and Children's Nutrition and Education," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 773-793, December.
- Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
- Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267.
- Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
- Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
- Agnes R. Quisumbing & John A. Maluccio, 2003. "Resources at Marriage and Intrahousehold Allocation: Evidence from Bangladesh, Ethiopia, Indonesia, and South Africa," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 283-327, 07.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Office).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.