Using Fertility Choices to Estimate Labor Income Shocks

Fatih Karahan and Flavio Cunha

No 1146, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: This paper builds on methods developed to estimate ex ante inequality. We use a life cycle fertility model to estimate how much people know about their income at different points in time. We exploit the key idea that if people know something and use that information in their fertility decisions, it will affect their fertility choices. Moreover, since fertility decisions are made every period, we can document how the agent's information set evolves over time.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed009:1146

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