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Changes in the Fertility of Highly Skilled Women: Accounting for Heterogeneity in Preferences for Children

Author

Listed:
  • DongIk Kang

    (Yonsei University)

  • Youngjae Lee

    (Kyungpook National University)

Abstract

Over the past four decades, the negative relationship between income and fertility in the United States has flattened. We document two additional patterns: fertility variation within income groups has increased, and the average preference for children among high income women has risen. We propose a novel channel through which heterogeneity in fertility preferences interacts with changes in the wage and price structures to reshape the income–fertility relationship as documented. To assess its quantitative importance, we develop an overlapping generations model with heterogeneity in productivity and fertility preferences, alongside existing mechanisms from the literature. The model reproduces the joint evolution of fertility rates, fertility variation, and fertility preferences, and shows that the proposed mechanism is important for changes in fertility behavior across the income distribution. (Copyright: Elsevier)

Suggested Citation

  • DongIk Kang & Youngjae Lee, 2026. "Changes in the Fertility of Highly Skilled Women: Accounting for Heterogeneity in Preferences for Children," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 62, November.
    • Handle: RePEc:red:issued:25-62
    DOI: 10.1016/j.red.2026.101366
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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