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Do higher rents discourage fertility? Evidence from U.S. cities, 1940-2000

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Author Info
Simon, Curtis J.
Tamura, Robert

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Abstract

This paper documents the existence of a negative cross-sectional correlation between the price of living space as measured by rent per room and fertility using U.S. Census data over the period 1940-2000, the effect strengthening from 1940 to 1970 and weakening thereafter. The negative correlation does not merely reflect the tendency of larger families to locate within less-expensive areas of a given metropolitan area. Our study focuses on younger households, but analysis of completed fertility among older households reinforces the findings for younger households. Estimates for 36 CMSAs using the American Housing Survey, which permit us to construct persquare-foot measures of the price of living space, indicate that our findings are not merely an artifact of larger families occupying houses with more rooms. Durbin-Wu-Hausman tests reveal little evidence of endogeneity bias.

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Publisher Info
Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 39 (2009)
Issue (Month): 1 (January)
Pages: 33-42
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Handle: RePEc:eee:regeco:v:39:y:2009:i:1:p:33-42

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Keywords: Fertility Housing prices Living arrangements;

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References listed on IDEAS
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  1. Schultz, T. Paul, 1993. "Demand for children in low income countries," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 8, pages 349-430 Elsevier. [Downloadable!] (restricted)
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  1. Hiroshi Aiura & Yasuhiro Sato, 2009. "A model of urban demography," Discussion Papers in Economics and Business 09-18, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
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