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The Effect of Cognitive Skills on Fertility Timing

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  • Agustín Díaz Casanueva

Abstract

The paper studies the relationship between cognitive ability, education outcomes, wages, and fertility timing, focusing on how cognitive ability influences fertility decisions. First, the paper presents empirical evidence on the relationship between cognitive ability, early pregnancies, and pregnancy intention using NLSY79 data. Second, I build and estimate a life-cycle model to quantify the importance of cognitive ability, wages, marriage, and edu-cation outcomes on women’s fertility. To explain the data, the model needs heterogeneous contraception costs by ability, as the relation between cognitive ability with education and labor opportunities can not explain the relation of cognitive ability with fertility timing. Next, I use the model to analyze how decreasing contraception costs affect early pregnancies and women’s educational outcomes. Finally, I study the mechanism behind the decline in teen pregnancies during the ’90s.

Suggested Citation

  • Agustín Díaz Casanueva, 2023. "The Effect of Cognitive Skills on Fertility Timing," Working Papers Central Bank of Chile 1001, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:1001
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_1001.pdf
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    References listed on IDEAS

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    1. Diego Amador, 2017. "The Consequences of Abortion and Contraception Policies on Young Women’s Reproductive Choices, Schooling and Labor Supply," Documentos CEDE 15635, Universidad de los Andes, Facultad de Economía, CEDE.
    2. V. Joseph Hotz & Susan Williams McElroy & Seth G. Sanders, 2005. "Teenage Childbearing and Its Life Cycle Consequences: Exploiting a Natural Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
    3. Wolpin, Kenneth I, 1984. "An Estimable Dynamic Stochastic Model of Fertility and Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 852-874, October.
    4. Michael P. Keane & Kenneth I. Wolpin, 2010. "The Role Of Labor And Marriage Markets, Preference Heterogeneity, And The Welfare System In The Life Cycle Decisions Of Black, Hispanic, And White Women," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 851-892, August.
    5. Elizabeth M. Caucutt & Nezih Guner & John Knowles, 2002. "Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 815-855, October.
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