Human Capital, Mortality and Fertility: A Unified Theory of the Economic and Demographic Transition

Matteo Cervellati and Uwe Sunde

No 2905, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper argues that accounting for the dynamic interactions between endogenous changes in longevity, the education composition of the population, and the associated fertility differential is crucial for understanding the economic and the demographic transition. In the model, heterogeneous individuals make optimal decisions about fertility, education of their children and type and intensity of investments in their own education. The interplay between different dimensions of mortality, and education and fertility decisions delivers a phase transition that replicates stylized facts that previously have been difficult to reconcile. Simulations illustrate the model dynamics and their consistency with historical and cross-country data.

Keywords: demographic transition; endogenous life expectancy; child mortality; heterogeneous human capital; technological change; long-term development; industrial revolution (search for similar items in EconPapers)
JEL-codes: E10 J10 O10 O40 O41 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2007-07
New Economics Papers: this item is included in nep-dge, nep-hea, nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (43)

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Related works:
Working Paper: Human Capital, Mortality and Fertility: A Unified Theory of the Economic and Demographic Transition (2007)
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