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Income Distribution, Non-convexities and the Fertility-Income Relationship

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  • Frédéric Docquier

Abstract

This paper presents a model of inequality, income determination and fertility, that is consistent with aggregated stylized facts and individual survey data on fertility and income. It shows that indivisibilities in human capital investments limit the possibility of trade-off between the quality and the quantity of children. This generates a non-monotonic relationship between income and fertility at the micro level. On the aggregate, the total fertility rate can increase or decrease with income, depending on the income distribution of the population and on the private cost of education. Copyright The London School of Economics and Political Science 2004.

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  • Frédéric Docquier, 2004. "Income Distribution, Non-convexities and the Fertility-Income Relationship," Economica, London School of Economics and Political Science, vol. 71(281), pages 261-273, May.
  • Handle: RePEc:bla:econom:v:71:y:2004:i:281:p:261-273
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    Cited by:

    1. Hiroshi Goto & Keiya Minamimura, 2014. "Fertility, Regional Demographics, and Economic Integration," Discussion Papers 1405, Graduate School of Economics, Kobe University.
    2. Christoph Sax, 2011. "Constraint or choice? Disentangling fertility determinants by switching regressions," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(23), pages 723-754, November.
    3. Larry E. Jones & Michele Tertilt, 2006. "An Economic History of Fertility in the U.S.: 1826-1960," NBER Working Papers 12796, National Bureau of Economic Research, Inc.
    4. Naufal, George S & Vargas-Silva, Carlos, 2009. "Changing Fertility Preferences One Migrant at a Time: The Impact of Remittances on the Fertility Rate," IZA Discussion Papers 4066, Institute for the Study of Labor (IZA).
    5. 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.
    6. Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    7. Tomer Blumkin & Yoram Margalioth & Efraim Sadka, 2015. "The Re-distributive Role of Child Benefits Revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 476-501, June.
    8. Echávarri Aguinaga, Rebeca, 2009. "Education and the dynamics of family decisions," DFAEII Working Papers 2009-01, University of the Basque Country - Department of Foundations of Economic Analysis II.

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