This study searches for an inverted āUā fertility path over the demographic transition. A GMM/IV estimator is employed to estimate how fertility is causally related to education and income and whether fertility responds differently to changes in those variables within different phases of the transition. The data suggest that (1) increases in education have a positive effect on fertility when education and income are low and fertility is high, (2) increases in education lower fertility only when income is sufficiently high and (3) increases in income are the dominant causal factor of fertility decline during the demographic transition.
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Paper provided by VCU School of Business, Department of Economics in its series Working Papers with number
0302.
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