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Working women and their fertility choices

Author

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  • Marji Lines

Abstract

The paper formulates the fertility choice of a representative working woman in the context of a two-period OLG model. The starting point is a young working woman faced with the dilemma of having to simultaneous rear children and participate in the labor force. Discrete variable equivalents of marginal conditions are derived for a woman with no children to have one, and a woman with one child to have another. Explicit functional forms focus on the costs, benefits and trade-offs involved in the decision process. A discussion of the effects of introducing a pay-as-you-go pension scheme with an endogenous growth rate follows. An extension gives more detail to the working period by including a phase after child-rearing and before retirement. This formulation captures complications such as the choice to exit and possibly re-enter the labor force

Suggested Citation

  • Marji Lines, 2004. "Working women and their fertility choices," Computing in Economics and Finance 2004 87, Society for Computational Economics.
  • Handle: RePEc:sce:scecf4:87
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    More about this item

    Keywords

    intertemporal choice; OLG models; demographic economics;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • J1 - Labor and Demographic Economics - - Demographic Economics

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