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Bargaining over Babies

Author

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  • Fabian Kindermann

    (University of Wuerzburg)

  • Matthias Doepke

    (Northwestern University)

Abstract

It takes a woman and a man to make a baby. This observation suggests that for a birth to take place, both parents should agree that they are better off with another child. In this paper, we first show empirically that agreement between the parents indeed makes a birth much more likely. We then build a bargaining model of fertility choice and calibrate the model to data on fertility preferences and realized fertility. The quantitative model can be used to examine how policies such as child subsidies and public provision of child care affect childbearing. Unlike a theory that abstracts from bargaining, our analysis shows that the distribution of benefits among mothers and fathers is the key determinant of a policy’s impact on fertility.

Suggested Citation

  • Fabian Kindermann & Matthias Doepke, 2014. "Bargaining over Babies," 2014 Meeting Papers 670, Society for Economic Dynamics.
    • Handle: RePEc:red:sed014:670
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    References listed on IDEAS

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    1. Jeremy Greenwood & Nezih Guner & John A. Knowles, 2003. "More on Marriage, Fertility, and the Distribution of Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 827-862, August.
    2. Timo Hener, 2010. "Do Couples Bargain over Fertility? Evidence Based on Child Preference Data," ifo Working Paper Series 92, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. James Feyrer & Bruce Sacerdote & Ariel Dora Stern, 2008. "Will the Stork Return to Europe and Japan? Understanding Fertility within Developed Nations," Journal of Economic Perspectives, American Economic Association, vol. 22(3), pages 3-22, Summer.
    4. Nava Ashraf & Erica Field & Jean Lee, 2014. "Household Bargaining and Excess Fertility: An Experimental Study in Zambia," American Economic Review, American Economic Association, vol. 104(7), pages 2210-2237, July.
    5. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
    6. Rasul, Imran, 2008. "Household bargaining over fertility: Theory and evidence from Malaysia," Journal of Development Economics, Elsevier, vol. 86(2), pages 215-241, June.
    7. Alexander Kemnitz & Marcel Thum, 2015. "Gender Power, Fertility, and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(1), pages 220-247, January.
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    Cited by:

    1. Field, Erica & Molitor, Vera & Schoonbroodt, Alice & Tertilt, Michèle, 2016. "Gender Gaps In Completed Fertility," Journal of Demographic Economics, Cambridge University Press, vol. 82(2), pages 167-206, June.
    2. Klaus Prettner & Holger Strulik, 2017. "It's a Sin—Contraceptive Use, Religious Beliefs, and Long-run Economic Development," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 543-566, August.
    3. Gobbi, Paula E., 2018. "Childcare and commitment within households," Journal of Economic Theory, Elsevier, vol. 176(C), pages 503-551.
    4. Doepke, Matthias & Kindermann, Fabian, 2014. "Intrahousehold Decision Making and Fertility," IZA Discussion Papers 8726, Institute of Labor Economics (IZA).

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