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Private Incentives and Social Interactions: Fertility Puzzles in Israel

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Author Info

  • Charles F. Manski

    (Northwestern University,)

  • Joram Mayshar

    (Hebrew University of Jerusalem,)

Abstract

This paper explores how private and social incentives for fertility may have combined to produce the complex fertility pattern observed in Israel in the past half-century. Fertility has declined within some ethnic-religious groups, moderately increased in others, and parts of the ultra-Orthodox Jewish population have experienced a reverse fertility transition, in which childbearing has increased rapidly and substantially. We present a theoretical analysis of the social dynamics of fertility that shows how private preferences, preferences for conformity to social norms in childbearing, and piecewise linear child allowances could have combined to yield such a complex fertility pattern. We then explain the identification problem that makes it so difficult to infer the actual Israeli fertility process from data on completed fertility. (JEL:J13, Z13, H53) Copyright (c) 2003 The European Economic Association.

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Bibliographic Info

Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 1 (2003)
Issue (Month): 1 (03)
Pages: 181-211

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Handle: RePEc:tpr:jeurec:v:1:y:2003:i:1:p:181-211

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Cited by:
  1. Ciliberto, Federico & Miller, Amalia R & Nielsen, Helena S & Simonsen, Marianne, 2013. "Playing the Fertility Game at Work: An Equilibrium Model of Peer Effects," CEPR Discussion Papers 9429, C.E.P.R. Discussion Papers.
  2. Evgenia Bystrov, 2012. "The Second Demographic Transition in Israel: One for All?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 27(10), pages 261-298, August.
  3. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Rajshri Jayaraman, 2013. "Linear Social Interactions Models," NBER Working Papers 19212, National Bureau of Economic Research, Inc.
  4. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2007. "Do Financial Incentives Affect Fertility?," NBER Working Papers 13700, National Bureau of Economic Research, Inc.
  5. Chen, Hung-Ju, 2013. "Child Allowances, Educational Subsidies and Economic Growth," MPRA Paper 51279, University Library of Munich, Germany.
  6. Karin Monstad & Carol Propper & Kjell G. Salvanes, 2011. "Is teenage motherhood contagious? Evidence from a Natural Experiment," The Centre for Market and Public Organisation 11/262, Department of Economics, University of Bristol, UK.
  7. Nicoletta Balbo & Nicola Barban & Melinda Mills, 2013. "Friend and peer effects on entry into marriage and parenthood: A multiprocess approach," Working Papers 056, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
  8. Thorsten Janus, 2013. "The political economy of fertility," Public Choice, Springer, vol. 155(3), pages 493-505, June.
  9. Asphjell, Magne K. & Hensvik, Lena & Nilsson, J. Peter, 2013. "Businesses, Buddies, and Babies: Fertility and Social Interactions at Work," Working Paper Series, Center for Labor Studies 2013:8, Uppsala University, Department of Economics.
  10. Ebenstein, Avraham & Hazan, Moshe & Simhon, Avi, 2014. "Changing the Cost of Children and Fertility: Evidence from the Israeli Kibbutz," Discussion Papers 164526, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  11. Merrouche, Ouarda, 2007. "The Long Term Impact of French Settlement on Education in Algeria," Working Paper Series 2007:2, Uppsala University, Department of Economics.
  12. Jona Schellekens, 2009. "Family allowances and fertility: Socioeconomic differences," Demography, Springer, vol. 46(3), pages 451-468, August.
  13. Iyer, S. & Weeks, M., 2009. "Social Interactions, Ethnicity and Fertility in Kenya," Cambridge Working Papers in Economics 0903, Faculty of Economics, University of Cambridge.

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