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Drill, baby, drill: Natural resource shocks and fertility in Indonesia

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  • Brehm, Margaret E.
  • Brehm, Paul A.

Abstract

We find that positive natural resource shocks lead to increased fertility in Indonesia by exploiting temporal variation in world oil prices and cross-sectional variation in oil endowments across regencies. Results are driven by women of all ages, by both first and higher order births, and we find no evidence of changes in birth spacing. Altogether, this indicates an increase in completed fertility. We present empirical evidence and cite prior literature demonstrating corresponding improvements in households’ economic outcomes, consistent with positive income effects on fertility in a developing economy.

Suggested Citation

  • Brehm, Margaret E. & Brehm, Paul A., 2022. "Drill, baby, drill: Natural resource shocks and fertility in Indonesia," Labour Economics, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:labeco:v:76:y:2022:i:c:s0927537122000690
    DOI: 10.1016/j.labeco.2022.102178
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    More about this item

    Keywords

    Natural resource shocks; Income effects; Fertility;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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