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Are Children “Normal”?

Author

Listed:
  • Dan A. Black

    (University of Chicago, IZA, and NORC)

  • Natalia Kolesnikova

    (Federal Reserve Bank of St. Louis and nowat the University of Mississippi)

  • Seth G. Sanders

    (Duke University)

  • Lowell J. Taylor

    (Carnegie Mellon University and NORC)

Abstract

We examine Becker's (1960) contention that children are “normal.” For the cross-section of non-Hispanic white married couples in the United States, we show that when we restrict comparisons to similarly educated women living in similarly expensive locations, completed fertility is positively correlated with the husband's income. The empirical evidence is consistent with children being “normal.” In an effort to show causal effects, we analyze the localized impact on fertility of the mid-1970s' increase in world energy prices, an exogenous shock that substantially increased men's incomes in the Appalachian coal-mining region. Empirical evidence for that population indicates that fertility increases with men's income. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Dan A. Black & Natalia Kolesnikova & Seth G. Sanders & Lowell J. Taylor, 2013. "Are Children “Normal”?," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 21-33, March.
    • Handle: RePEc:tpr:restat:v:95:y:2013:i:1:p:21-33
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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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