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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. 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.
  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. Monstad, Karin & Propper, Carol & Salvanes, Kjell G, 2011. "Is teenage motherhood contagious? Evidence from a Natural Experiment," CEPR Discussion Papers 8505, C.E.P.R. Discussion Papers.
  4. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2007. "Do Financial Incentives Affect Fertility?," NBER Working Papers 13700, National Bureau of Economic Research, Inc.
  5. Merrouche, Ouarda, 2007. "The Long Term Impact of French Settlement on Education in Algeria," Working Paper Series 2007:2, Uppsala University, Department of Economics.
  6. 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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