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Higher education and the income-fertility nexus

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  • Holger Strulik

    (University of Göttingen)

Abstract

Fertility and income are negatively related at the aggregate level. However, evidence from recent periods suggests that increasing income leads to higher fertility at the individual level. In this paper, I provide a simple theory that resolves the apparent contradiction. I consider the education and fertility choices of individuals with different learning abilities. Acquiring higher education requires an investment of time and income. As a result, people with higher education have fewer children but, controlling for the level of education, increasing income leads to higher fertility. Rising income and skill premiums motivate more people to pursue higher education, resulting in a negative income-fertility association at the aggregate level. I investigate the explanatory power of the theory in a model calibrated for the US during 1950–2010.

Suggested Citation

  • Holger Strulik, 2024. "Higher education and the income-fertility nexus," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-13, March.
    • Handle: RePEc:spr:jopoec:v:37:y:2024:i:1:d:10.1007_s00148-024-01017-8
    DOI: 10.1007/s00148-024-01017-8
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    More about this item

    Keywords

    Fertility; Income; Education; Skill premium; Inequality;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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