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Desire and Development

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  • Strulik, Holger

Abstract

This paper sets up a unified growth model and explores the impact of gender differences in the desire for sex and the distribution of power in the household for the onset of the demographic transition and the take-off to growth. Depending on the price and efficacy of modern contraceptives, the gender wage gap, and female bargaining power the model assumes one of two possible solutions. At the traditional equilibrium, contraceptives are not used, fertility is high and education and growth are low. At the modern equilibrium, contraceptives are used, fertility is low and further declining with increasing income, and education and growth are high. The theory motivates an endogenous preference reversal. At the traditional equilibrium (i.e. in poor economies) men want to have more children than women whereas at the modern equilibrium (in developed economies) men prefer fewer children than women. Female empowerment leads to lower fertility and more education at the traditional equilibrium and to an earlier onset of the demographic transition and the take-off to modern growth.

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  • Strulik, Holger, 2015. "Desire and Development," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112818, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:112818
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    1. Jakob Madsen & Holger Strulik, 2023. "Testing unified growth theory: Technological progress and the child quantity‐quality tradeoff," Quantitative Economics, Econometric Society, vol. 14(1), pages 235-275, January.
    2. Hiller, Victor & Touré, Nouhoum, 2021. "Endogenous gender power: The two facets of empowerment," Journal of Development Economics, Elsevier, vol. 149(C).
    3. Manuel Santos Silva & Stephan Klasen, 2021. "Gender inequality as a barrier to economic growth: a review of the theoretical literature," Review of Economics of the Household, Springer, vol. 19(3), pages 581-614, September.
    4. Balasubramanian, Pooja & Ibanez, Marcela & Khan, Sarah & Sahoo, Soham, 2024. "Does women's economic empowerment promote human development in low- and middle-income countries? A meta-analysis," World Development, Elsevier, vol. 178(C).

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    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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