The effect of norms on fertility and its implications for the quantity-quality trade-off in Pakistan
Zainab Iftikhar ()
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Zainab Iftikhar: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)
No 2018014, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)
This study investigates the effect of fertility norms on quantity-quality trade-off in Pakistan. Due to the lack of information on investment in education of children (quality) I make use of indirect inference to assess the effect of norms on quality. I first estimate an auxiliary econometric model that shows a strong positive effect of norms on fertility. Next, I develop a quantity-quality model augmented with the role of fertility norms and childlessness. The structural parameters of the model are identified using the results of the empirical analysis. Quantitative analysis leads to conclusion that the 2/5th of the variation in the quantity between the women with highest and lowest fertility comes from difference in norms while the rest is explained by wage difference. Similarly, 1/5th of the variation in quality between the two type of women is explained by the norms while the rest comes from difference in wage. Less educated women are more responsive to changes in norms in terms of changes in quantity-quality trade-off. Women's response to quantity-quality trade-off due to changes in wages is governed by norms.
Keywords: Quantum fertility norms; Quantity-quality trade-off; Indirect inference; Zero-inflated poisson (search for similar items in EconPapers)
JEL-codes: C13 J13 D10 Z13 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2018014
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