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Abortions, Inequality and Intergenerational Mobility: A Quantitative Evaluation

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  • Georgi Kocharkov

    (Universidad Carlos III de Madrid)

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    Abstract

    In the last three decades over a million abortions are performed annually in the United States. Empirical studies such as Donohue and Levitt (2001) and Gruber, Levine and Staiger (1999) assess the impact of legalization of abortions on crime and living conditions of children. They argue that legalization of abortions provides better living conditions and human capital endowments to surviving children. This paper takes seriously the hypothesis that the improved living conditions of children due to legalized abortion will alter their labor market outcomes. The main question of the paper is what are the aggregate implications of abortions for income inequality and intergenerational transmission of income? A model of fertility, human capital transmission, contraception and abortion decisions is built to answer this question quantitatively.

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    File URL: http://www.economicdynamics.org/meetpapers/2010/paper_974.pdf
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    Bibliographic Info

    Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 974.

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    Date of creation: 2010
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    Handle: RePEc:red:sed010:974

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    1. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2010. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Chapters, in: Demography and the Economy, pages 43-100 National Bureau of Economic Research, Inc.
    2. Jeremy Greenwood & Nezih Guner & John Knowles, 2002. "More on Marriage, Fertility and the Distribution of Income," RCER Working Papers 489, University of Rochester - Center for Economic Research (RCER).
    3. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
    4. Pedro Mira & Jes�s M. Carro, 2006. "A dynamic model of contraceptive choice of Spanish couples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 955-980.
    5. Nezih Guner & Remzi Kaygusuz & Gustavo Ventura, 2008. "Taxation, aggregates and the household," Working Papers 660, Federal Reserve Bank of Minneapolis.
    6. Mark Huggett & Gustavo Ventura & Amir Yaron, 2007. "Sources of Lifetime Inequality," NBER Working Papers 13224, National Bureau of Economic Research, Inc.
    7. Jonathan Gruber & Phillip Levine & Douglas Staiger, 1997. "Abortion Legalization and Child Living Circumstances: Who is the "Marginal Child?"," NBER Working Papers 6034, National Bureau of Economic Research, Inc.
    8. Diego Restuccia & Carlos Urrutia, 2004. "Intergenerational Persistence of Earnings: The Role of Early and College Education," American Economic Review, American Economic Association, vol. 94(5), pages 1354-1378, December.
    9. Mark Hugget & Gustavo Ventura & Amir Yaron, 2002. "Human Capital and Earnings Distribution Dynamics," NBER Working Papers 9366, National Bureau of Economic Research, Inc.
    10. Jonathan Guryan & Erik Hurst & Melissa Schettini Kearney, 2008. "Parental Education and Parental Time With Children," NBER Working Papers 13993, National Bureau of Economic Research, Inc.
    11. Donohue, John J. & Levitt, Steven D., 2000. "The Impact of Legalized Abortion on Crime," Berkeley Olin Program in Law & Economics, Working Paper Series qt00p599hk, Berkeley Olin Program in Law & Economics.
    12. Hotz, V Joseph & Miller, Robert A, 1993. "Conditional Choice Probabilities and the Estimation of Dynamic Models," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 497-529, July.
    13. Fernández, Raquel & Rogerson, Richard, 2000. "Sorting and Long-Run Inequality," CEPR Discussion Papers 2352, C.E.P.R. Discussion Papers.
    14. Sanders Korenman & David Neumark, 1992. "Marriage, Motherhood, and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 233-255.
    15. S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000. "On the State of the Union," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 213-244, April.
    16. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
    17. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
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