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Skill Composition, Fertility and Economic Growth

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  • Creina Day

Abstract

While high fertility persists in the poorest countries and fertility declines with per capita income in developing countries, fertility and per capita income are now positively associated across most developed countries. This paper presents a model where a Ushaped relationship between overall fertility and per capita income reflects within country differences in workforce skill composition and household choice of occupation, fertility and childrearing. The fraction of skilled workers rises with economic growth. By allowing for both differences in the fertility of skilled and unskilled workers and purchased childrearing inputs, we explain a poverty trap with high fertility, fertility decline with economic development and the possible reversal of fertility decline in a developed economy where most workers are skilled.

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File URL: https://cama.crawford.anu.edu.au/files/publication/cama_crawford_anu_edu_au/2013-08/47_2013_day.pdf
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Bibliographic Info

Paper provided by Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University in its series CAMA Working Papers with number 2013-47.

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Length: 16 pages
Date of creation: Aug 2013
Date of revision:
Handle: RePEc:een:camaaa:2013-47

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Keywords: fertility; economic growth; education; childrearing;

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