Intergenerational Effects on Fertility Behavior and Earnings Mobility in Spain

Feliciano Hernandez-Iglesias and Michelle Riboud

The Review of Economics and Statistics, 1988, vol. 70, issue 2, 253-58

Abstract: Using Spanish data, the authors estimate Gary Becker's model of int ergenerational transmission of endowments. Income elasticities are positive both in fertility and in quality regressions. Signs of coeff icients in fertility equations are as predicted by the model. A lower bound of 0.17 is found for the transmission of endowments coefficien t. A strong positive effect of grandparents' earnings in quality equa tions implies that Becker's model alone cannot explain these data. Th e transmission of endowment mechanism is accompanied by a direct effe ct of grandparents' income, which increases quality and reduces ferti lity. Copyright 1988 by MIT Press.

Date: 1988
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