Asset Accumulation and Family Size
Utilizing panel data on families, estimates are made of the effects of children on asset accululation, asset composition, consumption, and family income. Young children are found to depress savings for young families but to increase savings for marriages of duration greater than five years. The principal channel through which children act to reduce savings is the decline in female earnings associated with the child- induced withdrawal of wives from the labor force. Family consumption actually decreases with the birth of a child, but this reduction is insufficient, for young families, to offset the fall in income. For families in which the wife does not work the estimates suggest that savings may actually increase with children.
|Date of creation:||01 Mar 2004|
|Date of revision:|
|Note:||Type of Document - pdf; pages: 18. Demography, Vol. 17, No. 3, August 1980, pp. 243-260|
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- James P. Smith, 2004.
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Labor and Demography
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NBER Working Papers
0079, National Bureau of Economic Research, Inc.
- Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
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