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Bequest Receipt And Family Size Effects

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  • NATHAN D. GRAWE

Abstract

This article tests the connection between credit constraints and negative family size effects on child earnings using bequest receipt to signal access to credit markets. The dominant economic model of fertility predicts a negative relationship between family size and child achievement. In the model, limits on borrowing create this “quality‐quantity trade‐off.” This article tests for the relevance of credit constraints using Panel Study of Income Dynamics data to compare family size effects across groups defined by bequest receipt. Contrary to the credit constraints explanation, those receiving large bequests exhibit large family size effects, while those not receiving bequests show little to no effect. (JEL J13, D1, I2)

Suggested Citation

  • Nathan D. Grawe, 2010. "Bequest Receipt And Family Size Effects," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 156-162, January.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:1:p:156-162
    DOI: 10.1111/j.1465-7295.2008.00208.x
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    Cited by:

    1. Dale R. DeBoer & Edward C. Hoang, 2017. "Inheritances and Bequest Planning: Evidence from the Survey of Consumer Finances," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 45-56, March.
    2. David W Lawson & Arijeta Makoli & Anna Goodman, 2013. "Sibling Configuration Predicts Individual and Descendant Socioeconomic Success in a Modern Post-Industrial Society," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-9, September.
    3. Kosec, Katrina & Ghebru, Hosaena & Holtemeyer, Brian & Mueller, Valerie & Schmidt, Emily, 2016. "The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia," IFPRI discussion papers 1594, International Food Policy Research Institute (IFPRI).
    4. Nathan Grawe, 2008. "The quality–quantity trade-off in fertility across parent earnings levels: a test for credit market failure," Review of Economics of the Household, Springer, vol. 6(1), pages 29-45, March.
    5. Katrina Kosec & Hosaena Ghebru & Brian Holtemeyer & Valerie Mueller & Emily Schmidt, 2018. "The Effect of Land Access on Youth Employment and Migration Decisions: Evidence from Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(3), pages 931-954.

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D1 - Microeconomics - - Household Behavior
    • I2 - Health, Education, and Welfare - - Education

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