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A Theory of Child Adoption

  • Dirk Bethmann


    (Faculty of Business Administration and Economics, University of Paderborn)

  • Michael Kvasnicka


    (Rheinisch-Westfälisches Institut für Wirtschaftsforschung)

Women can bear own children or adopt them. Extending economic theories of fertility, we provide a first theoretical treatment of the demand for adoption. We show that the propensity to adopt a child increases in the degree of own altruism, infertility, relatedness to the child, costs of own child birth, and any adoption-specific monetary return that is received net of the costs of adopting the child. Our model makes several testable predictions which receive empirical support. These include a higher propensity to adopt among infertile adults, relatives, women with high earnings potential, and celebrities.

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Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 120015.

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Length: 12 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:mag:wpaper:120015
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  1. Mariagiovanna Baccara & Allan Collard-Wexler & Leonardo Felli & Leeat Yariv, 2014. "Child-Adoption Matching: Preferences for Gender and Race," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 133-58, July.
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