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 a¤ects 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.
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Date of creation: Mar 2012
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Fertility ; Birth Timing ; Population ; Dynastic Altruism ; OLG Model;
Other versions of this item:
- PESTIEAU, Pierre & PONTHIERE, Grégory, 2012. "Optimal lifecycle fertility in a Barro-Becker economy," CORE Discussion Papers 2012010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-21 (All new papers)
- NEP-DEM-2012-03-21 (Demographic Economics)
- NEP-DGE-2012-03-21 (Dynamic General Equilibrium)
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