Optimal lifecycle fertility in a Barro-Becker economy
AbstractParenthood postponement is a key demographic trend of the last three decades. In order to rationalize that stylized fact, we extend the canonical model by Barro and Becker (1989) to include two - instead of one - reproduction periods. We examine how the cost structure of early and late children in terms of time and goods affects the optimal fertility timing. Then, focusing a stationary equilibrium with stationary population, we provide two alternative explanations for the observed postponement of births: (1) a fall of the direct cost of late children (thanks to medical advances); (2) a rise in hourly productivity, which increases the (relative) opportunity costs of early children in comparison to late children.
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.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2012010.
Date of creation: 08 Mar 2012
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
fertility; birth timing; population; dynastic altruism; OLG model;
Other versions of this item:
- Pierre Pestieau & Grégory Ponthière, 2012. "Optimal Lifecycle Fertility in a Barro Becker Economy," PSE Working Papers halshs-00676500, HAL.
- D10 - Microeconomics - - Household Behavior - - - General
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald Lee, 2003. "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 167-190, Fall.
- Cigno, Alessandro & Ermisch, John, 1989. "A microeconomic analysis of the timing of births," European Economic Review, Elsevier, vol. 33(4), pages 737-760, April.
- PESTIEAU, Pierre & PONTHIERE, Grégory, 2011.
"Optimal fertility along the lifecycle,"
CORE Discussion Papers
2011033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Barro, R.J. & Becker, G.S., 1988.
"Fertility Choice In A Model Of Economic Growth,"
University of Chicago - Economics Research Center
88-8, Chicago - Economics Research Center.
- Robert J. Barro & Gary S. Becker, . "Fertility Choice in a Model of Economic Growth," University of Chicago - Population Research Center 88-8, Chicago - Population Research Center.
- Shekhar Aiyar & Carl-Johan Dalgaard, 2005.
"Total Factor Productivity Revisited: A Dual Approach to Development Accounting,"
IMF Staff Papers,
Palgrave Macmillan, vol. 52(1), pages 82-102, April.
- Shekhar Aiyar & Carl-Johan Dalgaard, 2004. "Total Factor Productivity Revisited: A Dual Approach to Development Accounting," EPRU Working Paper Series 04-07, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Ermisch, John & Ogawa, Naohiro, 1994. "Age at Motherhood in Japan," Journal of Population Economics, Springer, vol. 7(4), pages 393-420, November.
- John Ermisch, 1988. "Econometric Analysis of Birth Rate Dynamics in Britain," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 563-576.
- Siv Gustafsson, 2001. "Optimal age at motherhood. Theoretical and empirical considerations on postponement of maternity in Europe," Journal of Population Economics, Springer, vol. 14(2), pages 225-247.
- Schultz, T Paul, 1985. "Changing World Prices, Women's Wages, and the Fertility Transition: Sweden, 1860-1910," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1126-54, December.
- repec:hal:wpaper:hal-00612609 is not listed on IDEAS
- d'Albis, Hippolyte & Augeraud-Véron, Emmanuelle & Schubert, Katheline, 2010.
"Demographic-economic equilibria when the age at motherhood is endogenous,"
Journal of Mathematical Economics,
Elsevier, vol. 46(6), pages 1211-1221, November.
- Hippolyte D'Albis & Emmanuelle Augeraud-Véron & Katheline Schubert, 2010. "Demographic-economic equilibria when the age at motherhood is endogenous," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00547274, HAL.
- Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
- Heather Joshi, 2002. "Production, Reproduction, and Education: Women, Children, and Work in a British Perspective," Population and Development Review, The Population Council, Inc., vol. 28(3), pages 445-474.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If references are entirely missing, you can add them using this form.