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Endogenous fertility with a sibship size effect

Elise Brezis () and Rodolphe Dos Santos Ferreira

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Abstract: Since the seminal work of Becker, the dynamics of endogenous fertility has been based on the trade-off faced by parents between the quantity and the quality of their children. However, in developing countries, when child labor is an indispensable source of household income, parents actually incur a negative cost for having an extra child, so that the trade-offdisappears. The purpose of this paper is to restore the Beckerian quantity-quality trade-off in the case intergenerational transfers are upstream, so as to keep fertility endogenous. We do that by adding a negative "sibship size effect" on human capital formation to the standard Becker model. With a simple specification, we obtain multiplicity of steady states or, more fundamentally, the possibility of a jump from a state with high fertility and low income to a state with low fertility and high income, triggered by a continuous increase in the productivity of human capital formation.

Keywords: Endogenous fertility; Intergenerational transfers; Demographic transition; Human capital formation (search for similar items in EconPapers)
Date: 2016-12
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Citations: View citations in EconPapers (3)

Published in Macroeconomic Dynamics, 2016, 20 (08), pp.2046 - 2066. ⟨10.1017/S1365100515000255⟩

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Journal Article: ENDOGENOUS FERTILITY WITH A SIBSHIP SIZE EFFECT (2016) Downloads
Working Paper: Endogenous fertility with a sibship size effect (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01723075

DOI: 10.1017/S1365100515000255

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