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Fertility, social mobility and long run inequality

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  • Córdoba, Juan Carlos
  • Liu, Xiying
  • Ripoll, Marla

Abstract

Dynastic altruistic models with endogenous fertility have been shown to be unable to generate enough intergenerational persistence. Using a Bewley model with endogenous fertility we show that it is possible to recover persistence. Key ingredients for our result include exponential child discounting, discrete number of children, diminishing costs of child rearing, and an elasticity of intergenerational substitution larger than one. Our model provides a unified framework of analysis for long-run inequality that incorporates fertility choices.

Suggested Citation

  • Córdoba, Juan Carlos & Liu, Xiying & Ripoll, Marla, 2016. "Fertility, social mobility and long run inequality," Journal of Monetary Economics, Elsevier, vol. 77(C), pages 103-124.
  • Handle: RePEc:eee:moneco:v:77:y:2016:i:c:p:103-124
    DOI: 10.1016/j.jmoneco.2015.10.007
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    References listed on IDEAS

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    Cited by:

    1. Lucia Granelli, 2017. "Family Tax Policy with Heterogeneous Altruistic Households," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2017019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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