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The Child is Father of the Man: Implications for the Demographic Transition

  • Omar Licandro

    (IUE)

  • David de la Croix

    (CORE)

face a second trade-off in allocating their time between increasing their own human capital and rearing children. The model displays different regimes. In a Malthusian regime with no education fertility increases with adult life expectancy. In the modern growth regime, life expectancy and fertility move in opposite directions. The dynamics display the key features of the demographic transition, including the hump in both population growth and fertility, and replicate the observed rise in educational attainment, adult life expectancy and economic growth. Consistent with the empirical evidence, a distinctive implication of our theory is that improvements in childhood development precede the increase in education.

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Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 186.

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Date of creation: 2008
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Handle: RePEc:red:sed008:186
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/society.htm
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