A Theory of Occupational Choice with Endogenous Fertility

Dilip Mookherjee, Silvia Prina and Debraj Ray

American Economic Journal: Microeconomics, 2012, vol. 4, issue 4, 1-34

Abstract: Theories based on partial equilibrium reasoning alone cannot explain the widespread negative cross-sectional correlation between parental wages and fertility, without restrictive assumptions on preferences and childcare costs. We argue that incorporating a dynamic general equilibrium analysis of returns to human capital can help explain observed empirical patterns. Other by-products of this theory include explanations for intergenerational mobility without stochastic shocks, connections between mobility and fertility patterns, and locally determinate steady states. Comparative statics exercises on steady states shed light on the effects of education, childcare subsidies, child labor regulations, and income redistribution policy on long run living standards. (JEL H23, I31, J13, J24, J62, J82)

JEL-codes: H23 I31 J13 J24 J62 J82 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/mic.4.4.1
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Citations: View citations in EconPapers (8)

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