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

  • Frédéric Docquier

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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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 71 (2004)
Issue (Month): 281 (05)
Pages: 261-273

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Handle: RePEc:bla:econom:v:71:y:2004:i:281:p:261-273
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  1. Nils-Petter Lagerloef, 2000. "From Malthus to Modern Growth: The Three Regimes Revisited," Econometric Society World Congress 2000 Contributed Papers 1248, Econometric Society.
  2. Berthold U. Wigger, 1999. "Pay-as-you-go financed public pensions in a model of endogenous growth and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(4), pages 625-640.
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  15. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
  16. Ehrlich, Isaac & Lui, Francis, 1997. "The problem of population and growth: A review of the literature from Malthus to contemporary models of endogenous population and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 205-242, January.
  17. Daniel Chen & Michael Kremer, 1999. "Income-Distribution Dynamics with Endogenous Fertility," American Economic Review, American Economic Association, vol. 89(2), pages 155-160, May.
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