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Fertility Regulation in an Economic Crisis

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  • Christopher McKelvey
  • Duncan Thomas
  • Elizabeth Frankenberg

Abstract

Substantial international aid is spent reducing the cost of contraception in developing countries as part of a larger effort to reduce global fertility and increase investment per child worldwide. The importance for fertility behaviors of keeping contraceptive prices low, however, remains unclear. Targeting of subsidies and insufficient price variation have hindered prior attempts to estimate the effect of monetary and nonmonetary contraceptive costs on fertility behavior. Using longitudinal survey data from the Indonesia Family Life Survey, we exploit dramatic variation in prices and incomes that was induced by the economic crisis in the late 1990s to pin down the effect of contraceptive availability and costs as well as household resources on contraceptive use and method choice. The results are unambiguous: monetary costs of contraceptives and levels of family economic resources have a very small (and well-determined) impact on contraceptive use and choice of method.

Suggested Citation

  • Christopher McKelvey & Duncan Thomas & Elizabeth Frankenberg, 2012. "Fertility Regulation in an Economic Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 61(1), pages 7-38.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/666950
    DOI: 10.1086/666950
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    2. Torrisi, Orsola, 2024. "Violent instability and modern contraception: Evidence from Mali," World Development, Elsevier, vol. 177(C).
    3. Karra, Mahesh & Wilde, Joshua, 2023. "Economic Foundations of Contraceptive Transitions: Theories and a Review of the Evidence," IZA Discussion Papers 15889, Institute of Labor Economics (IZA).
    4. Konstantinos Matakos & Dimitrios Minos & Ari Perdana & Elizabeth Radin, 2022. "“Dragon boating” alone? Community ties and systemic income shocks," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(1), pages 55-81, January.
    5. J.M. Ian Salas, 2012. "Consequences of withdrawal : Free condoms and birth rates in the Philippines," UP School of Economics Discussion Papers 201220, University of the Philippines School of Economics.
    6. Athey, Susan & Bergstrom, Katy & Hadad, Vitor & Jamison, Julian C. & Ozler, Berk & Parisotto, Luca & Sama, Julius Dohbit, 2021. "Shared Decision-Making: Can Improved Counseling Increase Willingness to Pay for Modern Contraceptives?," Research Papers 3987, Stanford University, Graduate School of Business.
    7. Steven F. Koch, 2017. "User Fee Abolition and the Demand for Public Health Care," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 242-258, June.
    8. Sellers, Samuel & Gray, Clark, 2019. "Climate shocks constrain human fertility in Indonesia," World Development, Elsevier, vol. 117(C), pages 357-369.
    9. Brian C. Thiede & Sara Ronnkvist & Anna Armao & Katrina Burka, 2022. "Climate anomalies and birth rates in sub-Saharan Africa," Climatic Change, Springer, vol. 171(1), pages 1-20, March.
    10. Olukorede Abiona, 2017. "The Impact of Unanticipated Economic Shocks on the Demand for Contraceptives: Evidence from Uganda," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1696-1709, December.

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