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Land ownership, the subsistence constraint, and the demographic transition

Author

Listed:
  • Joel M. Guttman

    (Bar-Ilan University)

  • Avi Tillman

    (University College London
    Bar-Ilan University)

Abstract

We develop a novel model of fertility choice predicting an increase and subsequent decrease in fertility levels without introducing a quality–quantity tradeoff, mortality changes, or urbanization. The model highlights the roles of a subsistence constraint and non-wage income deriving from the ownership of land. We show that the sign of the effect of the wage rate on fertility depends on whether non-wage income is greater or less than a minimum consumption level. Suggestive evidence supporting the model, on changes in fertility from 1851 to 1891 across French départements, is provided. Finally, we embed our static model in a model of endogenous growth, and provide a numerical illustration of the working of the model.

Suggested Citation

  • Joel M. Guttman & Avi Tillman, 2017. "Land ownership, the subsistence constraint, and the demographic transition," Review of Economics of the Household, Springer, vol. 15(3), pages 1017-1036, September.
    • Handle: RePEc:kap:reveho:v:15:y:2017:i:3:d:10.1007_s11150-015-9286-9
    DOI: 10.1007/s11150-015-9286-9
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    More about this item

    Keywords

    Demographic transition; Subsistence constraint; Fertility decline; New household economics; Land ownership;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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