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A Theory Of Endogenous Fertility With Occupational Choice


  • Dilip Mookherjee

    () (Department of Economics, Boston University)

  • Silvia Prina

    () (CaseWestern Reserve University and)

  • Debraj Ray

    () (New York University)


This paper introduces endogenous fertility into a model of occupational choice, and studies its steady states. Three main results are obtained. First, despite the presence of both income and substitution e ects in fertility choice, general equilibrium e ects operating via endogenous wages in steady state yield a negative correlation between parental wages and fertility. (b) Occupational mobility arises in steady state, generated by di erential fertility across various occupational categories. Unlike the mobility created by stochastic shocks, such occupational drift has a predictable direction depending on the income-fertility relationship. (c) Steady states are locally determinate, permitting the analysis of the long-run e ects of altering child-care or education costs, child labor regulations, redistributive tax-transfer policies and family planning subsidies.

Suggested Citation

  • Dilip Mookherjee & Silvia Prina & Debraj Ray, 2010. "A Theory Of Endogenous Fertility With Occupational Choice," Boston University - Department of Economics - Working Papers Series WP2010-036, Boston University - Department of Economics.
  • Handle: RePEc:bos:wpaper:wp2010-036

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    References listed on IDEAS

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    12. Mookherjee, Dilip & Napel, Stefan, 2007. "Intergenerational mobility and macroeconomic history dependence," Journal of Economic Theory, Elsevier, vol. 137(1), pages 49-78, November.
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    16. Dilip Mookherjee & Debraj Ray, 2008. "A Dynamic Incentive-Based Argument for Conditional Transfers," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 2-16, September.
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