The trade-off between child quantity and education is a crucial ingredient of unified growth models that explain the transition from Malthusian stagnation to modern growth. We present first evidence that such a trade-off indeed existed before the demographic transition, exploiting a unique census-based dataset of 334 Prussian counties in 1849. Estimating two separate instrumental-variable models that instrument education by landownership inequality and distance to Wittenberg and fertility by previous-generation fertility and sex-imbalance ratio, we find that causation between fertility and education runs both ways. Furthermore, education in 1849 predicts the fertility transition in 1880-1905.
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Gary D. Hansen & Edward C. Prescott, 2002.
"Malthus to Solow,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1205-1217, September.
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Other versions:
Gary D. Hansen & Edward C. Prescott, 1998.
"Malthus to Solow,"
NBER Working Papers
6858, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Gary D. Hansen & Edward C. Prescott, 1999.
"Malthus to Solow,"
Staff Report
257, Federal Reserve Bank of Minneapolis.
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Gary S. Becker & James S. Duesenberry & Bernard Okun, 1960.
"An Economic Analysis of Fertility,"
NBER Chapters,
in: Demographic and Economic Change in Developed Countries, pages 225-256
National Bureau of Economic Research, Inc.
[Downloadable!]