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Intergenerational transfers and the fertility-income relationship

Author

Listed:
  • Cordoba, Juan Carlos
  • Ripoll, Marla

Abstract

Evidence from cross-sectional data reveals a negative relationship between family income and fertility. This article argues that constraints to intergenerational transfers are crucial for understanding this relationship. If parents could legally impose debt obligations on their children to recover the costs incurred in raising them, then fertility would be independent of parental income. A relationship between fertility and income arises when parents are unable to leave debts because of legal, enforcement or moral constraints. This relationship is negative when the intergenerational elasticity of substitution is larger than one, a case in which parental consumption is a good substitute for children’s consumption.

Suggested Citation

  • Cordoba, Juan Carlos & Ripoll, Marla, 2014. "Intergenerational transfers and the fertility-income relationship," ISU General Staff Papers 201401010800001023, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201401010800001023
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    Cited by:

    1. is not listed on IDEAS
    2. Juan Carlos Córdoba & Marla Ripoll, 2019. "The Elasticity of Intergenerational Substitution, Parental Altruism, and Fertility Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 1935-1972.
    3. de la Croix, David & Pommeret, Aude, 2021. "Childbearing postponement, its option value, and the biological clock," Journal of Economic Theory, Elsevier, vol. 193(C).
    4. Juan Cordoba & Marla Ripoll & Xiying Liu, 2019. "Accounting for the International Quantity-Quality Trade-off," 2019 Meeting Papers 156, Society for Economic Dynamics.
    5. Aguilar-Gomez, Sandra & Arceo-Gomez, Eva O. & De la Cruz Toledo, Elia, 2026. "Inside the black box of child penalties: Unpaid work and household structure," Journal of Development Economics, Elsevier, vol. 178(C).
    6. Bishnu, Monisankar & Garg, Shresth & Garg, Tishara & Ray, Tridip, 2023. "Intergenerational transfers: Public education and pensions with endogenous fertility," Journal of Economic Dynamics and Control, Elsevier, vol. 153(C).
    7. Narjinary, Glory & Goli, Srinivas, 2024. "Diverging destinies: How children are faring under demographic transition," Economics & Human Biology, Elsevier, vol. 55(C).
    8. Juan Carlos Cordoba, 2015. "Children, Dynastic Altruism and the Wealth of Nations," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 774-791, October.
    9. Melindi-Ghidi, Paolo & Seegmuller, Thomas, 2019. "The love for children hypothesis and the multiplicity of fertility rates," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 89-100.
    10. Gori, Luca & Sodini, Mauro, 2021. "A Contribution To The Theory Of Fertility And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 25(3), pages 753-775, April.
    11. David de la Croix & Clara Delavallade, 2018. "Religions, Fertility, And Growth In Southeast Asia," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 907-946, May.
    12. Julio Dávila, 2023. "Bequests or education," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(4), pages 1039-1069, May.
    13. Cordoba, Juan Carlos & Liu, Xiying, 2014. "Altruism, fertility and risk," ISU General Staff Papers 201404050700001022, Iowa State University, Department of Economics.
    14. repec:isu:genstf:201501010800005546 is not listed on IDEAS
    15. Wenguang Yu & Yixin Gao & Rui Wang & Xiaohan Feng & Rong Sun & Yujuan Huang, 2024. "OLG Model Analysis of Delayed Retirement and Social Pension Effects on Family-Based Elderly Care in China," Mathematics, MDPI, vol. 12(21), pages 1-18, October.
    16. Kevin Williams & Christopher Smith, 2025. "Does crime reduce fertility? Evidence from Jamaica," Economics Bulletin, AccessEcon, vol. 45(4), pages 1898-1914.

    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J1 - Labor and Demographic Economics - - Demographic Economics

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