Endogenous Growth with Endogenous Fertility and Social Discrimination in Education
AbstractWe simulate a two-sectoral, three-period OLG-model with endogenous fertility and endogenous education. Parents receive utility from quantity and quality (education) of their offspring, generating a trade-off between the former and the latter. Since education governs efficiency in production, hence wage income and growth, labour supply and education per child increase and fertility declines dur- ing the process of economic development. Therefore, the model is able to explain the recent fertility decline, in all developed countries, and to single out the determinants for long-run growth in per capita terms. The transition speed towards the steady state is governed by the growth rate of the wage rate, which in turn depends on education investments and fertility of previous generations, leading to an intergenerational persistence in these variables. Due to this effect, social discrimination in the education sector leads to high fertility and low education in the low-income percentiles, while the opposite is true for the upper ones. Hence, the average level of education declines and hinders growth. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Rostock, Institute of Economics in its series Thuenen-Series of Applied Economic Theory with number 35.
Date of creation: 2002
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary S. Becker & Robert J. Barro, .
"A Reformulation of the Economic Theory of Fertility,"
University of Chicago - Population Research Center
85-11, Chicago - Population Research Center.
- Becker, Gary S & Barro, Robert J, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 1-25, February.
- Gary S. Becker & Robert J. Barro, 1986. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc.
- Oded Galor & David N. Weil, 1993.
"The Gender Gap, Fertility, and Growth,"
NBER Working Papers
4550, National Bureau of Economic Research, Inc.
- DE LA CROIX, David & DOEPKE, Matthias, 2001.
"Inequality and Growth : Why Differential Fertility Matters,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2001008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
- DE LA CROIX, David & DOEPKE, Matthias, . "Inequality and growth: why differential fertility matters," CORE Discussion Papers RP -1676, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Kremer, Michael, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 681-716, August.
- Dessy, Sylvain E., 1998. "Education Subsidy, Fertility, and Growth," Cahiers de recherche 9822, Université Laval - Département d'économique.
- Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
- Dahan, Momi & Tsiddon, Daniel, 1998.
" Demographic Transition, Income Distribution, and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 3(1), pages 29-52, March.
- Dahan, M & Tsiddon, D, 1996. "Demographic Transition, Income Distribution and Economic Growth," Papers 42-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Glomm, Gerhard & Ravikumar, B., 1997. "Productive government expenditures and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 183-204, January.
- Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
- King, Robert G. & Plosser, Charles I. & Rebelo, Sergio T., 1988. "Production, growth and business cycles : I. The basic neoclassical model," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 195-232.
- Glomm, Gerhard, 1997. "Parental choice of human capital investment," Journal of Development Economics, Elsevier, vol. 53(1), pages 99-114, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.