IDEAS home Printed from https://ideas.repec.org/p/ibm/ibmecp/wpe_6.html
   My bibliography  Save this paper

Income Composition Endogenous Fertility and Schooling Investments in Children

Author

Abstract

This paper studies how the composition of income between mothers and fathers affects fertility and schooling investments in children, using data from the 1976 and 1996 PNAD, a Brazilian household survey. Income composition affects the time cost of fertility because mothers and fathers allocate different amounts of time to child-rearing. These effects are in turn transmitted to investments in children through a tradeoff between quantity and quality of children. The main contribution of this paper is twofold. First, it derives new implications about the relationship between household income composition and schooling investments in children. Second, this paper devises and implements an empirical approach to assess these implications, using two cross-sections of fertility and schooling data from Brazil. The main empirical findings of the paper can be summarized as follows. First, the empirical analysis shows that a larger negative effect of the mother's labor income on fertility in 1996 is associated with a larger positive effect on the adult child's schooling, reflecting the interaction between quantity and quality of children. Second, the larger negative effect of the mother's labor income on fertility in 1996 is associated with a reduction in the effect of other determinants of number of children. This suggests that an increase in the relative importance of time costs of fertility may be an important determinant of variations in fertility over time in Brazil and other developing countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Veloso, F.A., 2000. "Income Composition Endogenous Fertility and Schooling Investments in Children," Insper Working Papers wpe_6, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  • Handle: RePEc:ibm:ibmecp:wpe_6
    as

    Download full text from publisher

    File URL: http://www.insper.edu.br/sites/default/files/2000_wpe015.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    2. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    3. George J. Borjas, 2021. "Ethnic Capital And Intergenerational Mobility," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 6, pages 107-134, World Scientific Publishing Co. Pte. Ltd..
    4. Birdsall, Nancy, 1988. "Economic approaches to population growth," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 12, pages 477-542, Elsevier.
    5. Song Han & Casey B. Mulligan, "undated". "Human Capital, Heterogeneity, and the Estimation of Degrees of Intergenerational Mobility," University of Chicago - Population Research Center 97-3, Chicago - Population Research Center.
    6. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
    7. Theodore W. Schultz, 1974. "Economics of the Family: Marriage, Children, and Human Capital," NBER Books, National Bureau of Economic Research, Inc, number schu74-1, June.
    8. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 14-64, Part II, .
    9. Schultz, Theodore W., 1979. "The Economics of Being Poor," Nobel Prize in Economics documents 1979-1, Nobel Prize Committee.
    10. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
    11. Kremer, Michael & Chen, Daniel L, 2002. "Income Distribution Dynamics with Endogenous Fertility," Journal of Economic Growth, Springer, vol. 7(3), pages 227-258, September.
    12. Lam, David & Levison, Deborah, 1991. "Declining inequality in schooling in Brazil and its effects on inequality in earnings," Journal of Development Economics, Elsevier, vol. 37(1-2), pages 199-225, November.
    13. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    14. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 1-25.
    15. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    16. Ben-Porath, Yoram, 1973. "Economic Analysis of Fertility in Israel: Point and Counterpoint," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 202-233, Part II, .
    17. Theodore W. Schultz, 1974. "Fertility and Economic Values," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 3-22, National Bureau of Economic Research, Inc.
    18. Jere R. Behrman & Paul Taubman, 1990. "The Intergenerational Correlation Between Children'S Adult Earnings And Their Parents' Income: Results From The Michigan Panel Survey Of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-127, June.
    19. Abhijit V. Banerjee & Andrew F. Newman, 1991. "Risk-Bearing and the Theory of Income Distribution," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 211-235.
    20. Lam, David, 1986. "The Dynamics of Population Growth, Differential Fertility, and Inequality," American Economic Review, American Economic Association, vol. 76(5), pages 1103-1116, December.
    21. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    22. De Tray, Dennis N, 1973. "Child Quality and the Demand for Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 70-95, Part II, .
    23. Behrman, Jere R & Taubman, Paul, 1990. "The Intergenerational Correlation between Children's Adult Earnings and Their Parents' Income: Result from the Michigan Panel Survey of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-127, June.
    24. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    25. Robert T. Michael, 1974. "Education and the Derived Demand for Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 120-159, National Bureau of Economic Research, Inc.
    26. repec:ucp:bknber:9780226740867 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando Veloso, 2000. "Wealth Composition, Endogenous Fertility and the Dynamics of Income Inequality," Econometric Society World Congress 2000 Contributed Papers 1281, Econometric Society.
    2. Jorge Alberto Charles Coll & Elizabeth Lizeth Mayer Granados & Nazhle Faride Cheín Schekaiban, 2018. "Desigualdad en el ingreso y crecimiento económico de los municipios mexicanos: el efecto natalidad - capital humano\Income inequality and economic growth in Mexican municipalities: The fertility - hum," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 33(2), pages 195-217.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fernando Veloso, 2000. "Wealth Composition, Endogenous Fertility and the Dynamics of Income Inequality," Econometric Society World Congress 2000 Contributed Papers 1281, Econometric Society.
    2. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    3. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Movilidad intergeneracional en América Latina," Research Department Publications 4268, Inter-American Development Bank, Research Department.
    4. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Intergenerational Mobility in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 1-44, August.
    5. Piketty, Thomas, 2000. "Theories of persistent inequality and intergenerational mobility," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 8, pages 429-476, Elsevier.
    6. John Ermisch & Marco Francesconi & Thomas Siedler, 2004. "Intergenerational Economic Mobility and Assortative Mating," Discussion Papers of DIW Berlin 448, DIW Berlin, German Institute for Economic Research.
    7. Damian Clarke, 2018. "Children And Their Parents: A Review Of Fertility And Causality," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 518-540, April.
    8. Michael Grimm, 2003. "Family and economic growth: A review," Mathematical Population Studies, Taylor & Francis Journals, vol. 10(3), pages 145-173.
    9. Ermisch, John & Francesconi, Marco, 2002. "Intergenerational Social Mobility and Assortative Mating in Britain," IZA Discussion Papers 465, Institute of Labor Economics (IZA).
    10. Nathan D. Grawe & Casey B. Mulligan, 2002. "Economic Interpretations of Intergenerational Correlations," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 45-58, Summer.
    11. Grossmann, Volker, 2008. "Risky human capital investment, income distribution, and macroeconomic dynamics," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 19-42, March.
    12. Veloso, Fernando A., 2003. "A Competitive Growth Model with Endogenous Fertility," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 23(1), May.
    13. Nancy Birdsall & Jere R. Behrman & Miguel Székely, 1998. "Movilidad de la enseñanza intergeneracional y condiciones macro y políticas de enseñanza en América Latina," Research Department Publications 4145, Inter-American Development Bank, Research Department.
    14. Schäfer, Andreas, 2002. "Endogenous Growth with Endogenous Fertility and Social Discrimination in Education," Thuenen-Series of Applied Economic Theory 35, University of Rostock, Institute of Economics.
    15. Thomas Baudin, 2011. "Family Policies: What Does the Standard Endogenous Fertility Model Tell Us?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(4), pages 555-593, August.
    16. Ben-Halima, B. & Chusseau, N. & Hellier, J., 2014. "Skill premia and intergenerational education mobility: The French case," Economics of Education Review, Elsevier, vol. 39(C), pages 50-64.
    17. Alison L. Booth & Hiau Joo Kee, 2009. "Intergenerational Transmission of Fertility Patterns," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(2), pages 183-208, April.
    18. Ramses H. ABUL NAGA, 1998. "Estimating the Intergenerational Correlation of Incomes : An Errors in Variables Framework," Cahiers de Recherches Economiques du Département d'économie 9812, Université de Lausanne, Faculté des HEC, Département d’économie.
    19. Florencia Torche, 2015. "Analyses of Intergenerational Mobility," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 37-62, January.
    20. Yew, Siew Ling & Zhang, Jie, 2013. "Socially optimal social security and education subsidization in a dynastic model with human capital externalities, fertility and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 154-175.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibm:ibmecp:wpe_6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ibmecbr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Naercio Menezes (email available below). General contact details of provider: https://edirc.repec.org/data/ibmecbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.