Are Children Really Inferior Goods? Evidence from Displacement-Driven Income Shocks
AbstractThis paper explores the causal link between income and fertility by analyzing women’s fertility response to the large and permanent income shock generated by a husband’s job displacement. I find that the shock reduces total fertility, suggesting that the causal effect of income on fertility is positive. A model that incorporates the time cost of children and assortative matching of spouses can simultaneously explain this result and the negative cross-sectional relationship. I also find that a husband’s displacement accelerates childbearing, which is consistent with lifecycle models of fertility in which the incentive to delay is driven by expected earnings growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 45 (2010)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://jhr.uwpress.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Michael Lovenheim & Kevin Mumford, 2010.
"Do Family Wealth Shocks Affect Fertility Choices? Evidence from the Housing Market Boom and Bust,"
Discussion Papers, Stanford Institute for Economic Policy Research
09-004, Stanford Institute for Economic Policy Research.
- Michael F. Lovenheim & Kevin J. Mumford, 2010. "Do Family Wealth Shocks Affect Fertility Choices? Evidence from the Housing Market Boom and Bust," Purdue University Economics Working Papers 1228, Purdue University, Department of Economics.
- Lisa J. Dettling & Melissa Schettini Kearney, 2011. "House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby," NBER Working Papers 17485, National Bureau of Economic Research, Inc.
- Kristiina Huttunen & Jenni Kellokumpu, 2012.
"The Effect of Job Displacement on Couples? Fertility Decisions,"
Working Papers, Government Institute for Economic Research Finland (VATT)
29, Government Institute for Economic Research Finland (VATT).
- Huttunen, Kristiina & Kellokumpu, Jenni, 2012. "The effect of job displacement on couples' fertility decisions," MPRA Paper 36964, University Library of Munich, Germany.
- Huttunen, Kristiina & Kellokumpu, Jenni, 2012. "The Effect of Job Displacement on Couples' Fertility Decisions," IZA Discussion Papers 6707, Institute for the Study of Labor (IZA).
- Hashimoto, Yuki & Kondo, Ayako, 2012.
"Long-term effects of labor market conditions on family formation for Japanese youth,"
Journal of the Japanese and International Economies,
Elsevier, vol. 26(1), pages 1-22.
- Yuki Hashimoto & Ayako Kondo, 2010. "Long-term effects of labor market conditions on family formation for Japanese youth," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0789, Institute of Social and Economic Research, Osaka University.
- Riddell, W. Craig, 2011. "Unemployment Compensation and Adjustment Assistance for Displaced Workers: Policy Options for Canada," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2011-31, Vancouver School of Economics, revised 22 Dec 2011.
- Burlando, Alfredo, 2014. "Transitory shocks and birth weights: Evidence from a blackout in Zanzibar," Journal of Development Economics, Elsevier, Elsevier, vol. 108(C), pages 154-168.
- Aliaksandr Amialchuk & Maksim Yemelyanau & Katerina Lisenkova & Mykhaylo Salnykov, 2011. "Economic Determinants of Fertility in Belarus: a Micro-Data Analysis," BEROC Working Paper Series, Belarusian Economic Research and Outreach Center (BEROC) 13, Belarusian Economic Research and Outreach Center (BEROC).
- Lindo, Jason M., 2011.
"Parental job loss and infant health,"
Journal of Health Economics, Elsevier,
Elsevier, vol. 30(5), pages 869-879.
- Jessamyn Schaller & Ann Huff Stevens, 2014. "Short-run Effects of Job Loss on Health Conditions, Health Insurance, and Health Care Utilization," NBER Working Papers 19884, National Bureau of Economic Research, Inc.
- Andrea Menclova, 2013. "The Effects of Unemployment on Prenatal Care Use and Infant Health," Journal of Family and Economic Issues, Springer, Springer, vol. 34(4), pages 400-420, December.
- Dettling, Lisa J. & Kearney, Melissa S., 2014. "House prices and birth rates: The impact of the real estate market on the decision to have a baby," Journal of Public Economics, Elsevier, Elsevier, vol. 110(C), pages 82-100.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.