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Family size, human capital and growth: structural path analysis of Rwanda

  • Temel, Tugrul

This paper analyzes the macroeconomic role that different household groups play in human capital formation, sectoral growth and income distribution in Rwanda. Using a disaggregated SAM for Rwanda and with the assistance of structural path analysis, the paper explores the macroeconomic implications of family size for human capital, sectoral growth and income distribution. The findings support the so-called quantity-quality trade-off hypothesis: the smaller the family size, the higher the investment in human capital. In particular, the human capital investment of households with 1-3 children tends to be more pronounced than that of households with more than 3 children. Moreover, households with 1-3 children act as an important intermediate pole transmitting the influence of human capital investment on agricultural production. As a result, promoting family planning programs seems to be a viable strategy for economic growth and poverty reduction.

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File URL: http://mpra.ub.uni-muenchen.de/31741/1/MPRA_paper_31741.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31741.

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Date of creation: 21 Jun 2011
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Handle: RePEc:pra:mprapa:31741
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  1. Angrist, Joshua & Lavy, Victor & Schlosser, Analia, 2006. "New Evidence on the Causal Link between the Quantity and Quality of Children," CEPR Discussion Papers 5668, C.E.P.R. Discussion Papers.
  2. Gary S. Becker & Kevin M. Murphy & Robert Tamura, . "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
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  6. Diao, Xinshen & Fan, Shenggen & Kanyarukiga, Sam & Yu, Bingxin, 2010. "Agricultural growth and investment options for poverty reduction in Rwanda:," Research reports Xinshen Diao, et al., International Food Policy Research Institute (IFPRI).
  7. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-87, June.
  8. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
  9. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  10. Hossain, Shaikh I., 1989. "Effect of public programs on family size, child education and health," Journal of Development Economics, Elsevier, vol. 30(1), pages 145-158, January.
  11. Becker, Gary S & Barro, Robert J, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 1-25, February.
  12. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
  13. Rosenzweig, Mark R. & Zhang, Junsen, 2006. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birthweight, and China's 'One Child' Policy," IZA Discussion Papers 2082, Institute for the Study of Labor (IZA).
  14. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586.
  15. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-36, March.
  16. St-Hilaire, France & Whalley, John, 1987. "A Microconsistent Data Set for Canada for Use in Regional General Equilibrium Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 33(3), pages 327-43, September.
  17. Roberts, Deborah, 1995. "UK Agriculture in the Wider Economy: The Importance of Net SAM Linkage Effects," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(4), pages 495-511.
  18. Rosenzweig, Mark R & Wolpin, Kenneth I, 1986. "Evaluating the Effects of Optimally Distributed Public Programs: ChildHealth and Family Planning Interventions," American Economic Review, American Economic Association, vol. 76(3), pages 470-82, June.
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  20. Ansoms, An, 2008. "A Green Revolution for Rwanda? The Political Economy of Poverty and Agrarian Change," IOB Discussion Papers 2008.06, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).
  21. Leonid Azarnert, 2006. "Child mortality, fertility, and human capital accumulation," Journal of Population Economics, Springer, vol. 19(2), pages 285-297, June.
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