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A Theory of Child Adoption

Author

Listed:
  • Dirk Bethmann

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

  • Michael Kvasnicka

    () (Rheinisch-Westfälisches Institut für Wirtschaftsforschung)

Abstract

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.

Suggested Citation

  • Dirk Bethmann & Michael Kvasnicka, 2012. "A Theory of Child Adoption," FEMM Working Papers 120015, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  • Handle: RePEc:mag:wpaper:120015
    as

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    File URL: http://www.fww.ovgu.de/fww_media/femm/femm_2012/2012_15.pdf
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    References listed on IDEAS

    as
    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 133-158, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Adoption; Demand for Adoption; Fertility; Children; Altruism;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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