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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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    Cited by:

    1. Juan Carlos Córdoba & Marla Ripoll, 2019. "The Elasticity of Intergenerational Substitution, Parental Altruism, and Fertility Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 1935-1972.
    2. Musab Kurnaz & Mehmet Soytas, 2019. "Early Childhood Investment and Income Taxation," 2019 Meeting Papers 290, Society for Economic Dynamics.
    3. Abebe HAILEMARIAM, 2024. "Income and differential fertility: evidence from oil price shocks," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(1), pages 31-54, March.
    4. Juan Cordoba & Marla Ripoll & Xiying Liu, 2019. "Accounting for the International Quantity-Quality Trade-off," 2019 Meeting Papers 156, Society for Economic Dynamics.
    5. Cordoba, Juan Carlos & Liu, Xiying, 2018. "Efficiency with Endogenous Population and Fixed Resources," ISU General Staff Papers 201811010700001062, Iowa State University, Department of Economics.
    6. Gallipoli, Giovanni & Low, Hamish & Mitra, Aruni, 2020. "Consumption and Income Inequality across Generations," CEPR Discussion Papers 15166, C.E.P.R. Discussion Papers.
    7. Klaus Prettner & Andreas Schaefer, 2021. "The U‐Shape of Income Inequality over the 20th Century: The Role of Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 645-675, April.
    8. Gayle, George-Levi & Golan, Limor & Soytas, Mehmet A., 2022. "What is the source of the intergenerational correlation in earnings?," Journal of Monetary Economics, Elsevier, vol. 129(C), pages 24-45.
    9. Lucia Granelli, 2017. "Family Tax Policy with Heterogeneous Altruistic Households," LIDAM Discussion Papers IRES 2017019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    10. Kurnaz, Musab & Soytas, Mehmet A., 2019. "Intergenerational Income Mobility and Income Taxation," GLO Discussion Paper Series 409, Global Labor Organization (GLO).

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