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Human Capital and the Timing of the First Birth

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  • Jesse Naidoo

Abstract

I construct and partially characterize the solution of a life-cycle model of fertility choice and human capital accumulation. Because children take time to raise, women face a trade-off between lifetime earnings and childbearing. The model implies that (i) earnings must drop discontinuously at the time of a birth; (ii) age at first birth and human capital will be positively correlated; and (iii) a permanently higher demand for skill causes women to delay first births. I show that the second of these predictions holds in a sample of South African women drawn from the first wave of the National Income Dynamics Study.

Suggested Citation

  • Jesse Naidoo, 2021. "Human Capital and the Timing of the First Birth," ERSA Working Paper Series, Economic Research Southern Africa, vol. 0.
    • Handle: RePEc:rza:ersawp:v::y:2021:i::id:52
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/52/36
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