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Be fruitful or multiply: On the interplay between fertility and economic development

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  • Avner Ahituv

    (Department of Economics, Hebrew University of Jerusalem, 91905 Jerusalem, Israel.)

Abstract

This paper develops and estimates an empirical model of the interplay between fertility and economic development. Using panel data, this study finds that a one-percent decrease in population growth increases GDP per capita growth by more than three percent. In addition, because families with low levels of human capital choose to have more children, income per capita grows faster in developed countries than in developing countries. Finally, this study shows that the estimates of the interplay between fertility and output obtained from single cross-country regressions are biased downward because that method of estimation is unable to control for unobservable country effects and measurement errors. The neoclassical approach fails to account for these effects. The present study contributes to the now-standard growth model, and provides a better description of international differences in standards of living.

Suggested Citation

  • Avner Ahituv, 2001. "Be fruitful or multiply: On the interplay between fertility and economic development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(1), pages 51-71.
    • Handle: RePEc:spr:jopoec:v:14:y:2001:i:1:p:51-71
    Note: Received: 25 March 1998/Accepted: 11 June 1999
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic growth · fertility · Panel data;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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