The Long-Run Effects of Mortality Decline in Developing Countries

Ulla Lehmijoki () and Tapio Palokangas
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Ulla Lehmijoki: University of Helsinki

No 5422, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Since World War II, mortality has declined in the developing world. This paper examines the effects of this mortality decline on demographic and economic growth by a family-optimization model, in which fertility is endogenous and wealth yields utility through its status. The decline in mortality stimulates investment and generates an income stream which promotes population growth, but the desire of status hampers fertility and prevents capital-diluting demographic expansion. If status-seeking is strong, then the decline of mortality decreases population growth below its original level.

Keywords: mortality; population growth; economic growth (search for similar items in EconPapers)
JEL-codes: J10 J13 O10 O41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011-01
New Economics Papers: this item is included in nep-dev, nep-dge, nep-fdg and nep-hea
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Citations: View citations in EconPapers (1)

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