Children as insurance
AbstractThis paper presents a dynamic model of fertility decisions in which children serve as an incomplete insurance good. The model incorporates uncertainty about future income and the survival of children as well as a discrete representation of the number of children. It contributes to the understanding of the negative relation between fertility and education, shows why parents may demand children even if the return is negative, and explains why fertility might rise with increasing income when income is low and decrease when income is high. Furthermore, the model can account for the decline in fertility when the risk of infant and child mortality decreases. Finally, the implications for empirical tests of the demand for children are also examined.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 14 (2001)
Issue (Month): 1 ()
Note: Received: 8 September 1998/Accepted: 9 June 1999
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Other versions of this item:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
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