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Life-Cycle Fertility and Human Capital Accumulation

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  • George-Levi Gayle
  • Robert A. Miller

Abstract

This paper develops and implements a semiparametric estimator for investi-gating, with panel data, the importance of human capital accumulation, nonsep-arable preferences of females and child care costs on females life-cycle fertility and labor supply behaviors. It presents a model in which the agents’ expecta-tions are correlated with their future choices and provides a set of conditions under which statistical inferences are possible from a short panel. Under the assumption that observed allocations are Pareto optimal, a dynamic model of female labor supply, labor force participation and fertility decision is estimated. In that model, experience on the job raises future wages, time spent nurturing children a ?ects utility, while time spent o ?the job in the past directly a ?ects current utility( or, indirectly through productivity in non-market sector). This paper then uses the estimates from the model to conduct di ?erent policy sim-ulations which shows that human capital accumulation is the most important determinant of life-cycle fertility behavior.

Suggested Citation

  • George-Levi Gayle & Robert A. Miller, 2002. "Life-Cycle Fertility and Human Capital Accumulation," GSIA Working Papers 2003-16, Carnegie Mellon University, Tepper School of Business.
    • Handle: RePEc:cmu:gsiawp:-1750215465
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    Cited by:

    1. Jérôme Adda & Christian Dustmann & Katrien Stevens, 2017. "The Career Costs of Children," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 293-337.
    2. Marc K. Chan & Kai Liu, 2018. "Life‐cycle and intergenerational effects of child care reforms," Quantitative Economics, Econometric Society, vol. 9(2), pages 659-706, July.
    3. Mehmet Soytas & Limor Golan & George-Levi Gayle, 2014. "What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?," 2014 Meeting Papers 83, Society for Economic Dynamics.
    4. George‐Levi Gayle & Limor Golan & Mehmet A. Soytas, 2018. "Estimation of dynastic life‐cycle discrete choice models," Quantitative Economics, Econometric Society, vol. 9(3), pages 1195-1241, November.
    5. Nkechi S. Owoo & Monica P. Lambon-Quayefio, 2022. "Does Job Security Affect Fertility and Fertility Intentions in Ghana? Examining the Evidence," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 86-99, March.

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