IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/13609.html
   My bibliography  Save this paper

Structural Change and the Fertility Transition

Author

Listed:
  • Ager, Philipp
  • Herz, Benedikt

Abstract

This paper provides new insights on the relationship between structural change and the fertility transition. We exploit the spread of an agricultural pest in the American South in the 1890s as plausibly exogenous variation in agricultural production to establish a causal link between earnings opportunities in agriculture and fertility. Households staying in agriculture reduced fertility because children are a normal good, while households switching to manufacturing reduced fertility because of the higher opportunity costs of raising children. The lower earnings opportunities in agriculture also decreased the value of child labor which increased schooling, consistent with a quantity-quality model of fertility.

Suggested Citation

  • Ager, Philipp & Herz, Benedikt, 2019. "Structural Change and the Fertility Transition," CEPR Discussion Papers 13609, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:13609
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP13609
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marvin Towne & Wayne Rasmussen, 1960. "Farm Gross Product and Gross Investment in the Nineteenth Century," NBER Chapters, in: Trends in the American Economy in the Nineteenth Century, pages 255-316, National Bureau of Economic Research, Inc.
    2. Jenny Bourne Wahl, 1992. "Trading Quantity for Quality: Explaining the Decline in American Fertility in the Nineteenth Century," NBER Chapters, in: Strategic Factors in Nineteenth Century American Economic History: A Volume to Honor Robert W. Fogel, pages 375-397, National Bureau of Economic Research, Inc.
    3. Ager, Philipp & Brueckner, Markus & Herz, Benedikt, 2017. "Structural Change and the Fertility Transition in the American South," Discussion Papers on Economics 6/2017, University of Southern Denmark, Department of Economics.
    4. Hoyt Bleakley & Joseph Ferrie, 2016. "Shocking Behavior: Random Wealth in Antebellum Georgia and Human Capital Across Generations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1455-1495.
    5. Dan A. Black & Natalia Kolesnikova & Seth G. Sanders & Lowell J. Taylor, 2013. "Are Children “Normal”?," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 21-33, March.
    6. Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, September.
    7. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    8. Daniel Aaronson & Bhashkar Mazumder, 2011. "The Impact of Rosenwald Schools on Black Achievement," Journal of Political Economy, University of Chicago Press, vol. 119(5), pages 821-888.
    9. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
    10. Clay, Karen & Schmick, Ethan & Troesken, Werner, 2019. "The Rise and Fall of Pellagra in the American South," The Journal of Economic History, Cambridge University Press, vol. 79(1), pages 32-62, March.
    11. Michael F. Lovenheim & Kevin J. Mumford, 2013. "Do Family Wealth Shocks Affect Fertility Choices? Evidence from the Housing Market," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 464-475, May.
    12. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, September.
    13. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293, Elsevier.
    14. Collins, William J. & Margo, Robert A., 2006. "Historical Perspectives on Racial Differences in Schooling in the United States," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 3, pages 107-154, Elsevier.
    15. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.
    16. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-1079, July.
    17. Richard H. Steckel, 1992. "The Fertility Transition in the United States: Tests of Alternative Hypotheses," NBER Chapters, in: Strategic Factors in Nineteenth Century American Economic History: A Volume to Honor Robert W. Fogel, pages 351-374, National Bureau of Economic Research, Inc.
    18. Wanamaker, Marianne H., 2012. "Industrialization and Fertility in the Nineteenth Century: Evidence from South Carolina," The Journal of Economic History, Cambridge University Press, vol. 72(1), pages 168-196, March.
    19. Jutta Bolt & Jan Luiten Zanden, 2014. "The Maddison Project: collaborative research on historical national accounts," Economic History Review, Economic History Society, vol. 67(3), pages 627-651, August.
    20. Timothy W. Guinnane, 2011. "The Historical Fertility Transition: A Guide for Economists," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 589-614, September.
    21. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, December.
    22. Oded Galor, 2011. "Unified Growth Theory and Comparative Development," Rivista di Politica Economica, SIPI Spa, issue 2, pages 9-21, April-Jun.
    23. Baker, Richard B. & Blanchette, John & Eriksson, Katherine, 2020. "Long-Run Impacts of Agricultural Shocks on Educational Attainment: Evidence from the Boll Weevil," The Journal of Economic History, Cambridge University Press, vol. 80(1), pages 136-174, March.
    24. Osband, Kent, 1985. "The Boll Weevil Versus “King Cotton”," The Journal of Economic History, Cambridge University Press, vol. 45(3), pages 627-643, September.
    25. Sundstrom, William A. & David, Paul A., 1988. "Old-age security motives, labor markets, and farm family fertility in antebellum American," Explorations in Economic History, Elsevier, vol. 25(2), pages 164-197, April.
    26. Baker, Richard B., 2015. "From the Field to the Classroom: The Boll Weevil's Impact on Education in Rural Georgia," The Journal of Economic History, Cambridge University Press, vol. 75(4), pages 1128-1160, December.
    27. Avery Guest, 1981. "Social structure and U.S. inter-state fertility differentials in 1900," Demography, Springer;Population Association of America (PAA), vol. 18(4), pages 465-486, November.
    28. Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, vol. 112(482), pages 810-828, October.
    29. Deirdre Bloome & James Feigenbaum & Christopher Muller, 2017. "Tenancy, Marriage, and the Boll Weevil Infestation, 1892–1930," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 1029-1049, June.
    30. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
    31. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
    32. Clark, Gregory & Hamilton, Gillian, 2006. "Survival of the Richest: The Malthusian Mechanism in Pre-Industrial England," The Journal of Economic History, Cambridge University Press, vol. 66(3), pages 707-736, September.
    33. repec:ucp:bknber:9780226301129 is not listed on IDEAS
    34. Jeremy Greenwood & Ananth Seshadri, 2002. "The U.S. Demographic Transition," American Economic Review, American Economic Association, vol. 92(2), pages 153-159, May.
    35. Robert A. Margo, 1990. "Race and Schooling in the South, 1880-1950: An Economic History," NBER Books, National Bureau of Economic Research, Inc, number marg90-1.
    36. Daniel Aaronson & Fabian Lange & Bhashkar Mazumder, 2014. "Fertility Transitions along the Extensive and Intensive Margins," American Economic Review, American Economic Association, vol. 104(11), pages 3701-3724, November.
    37. Claudia Goldin & Kenneth Sokoloff, 1984. "The Relative Productivity Hypothesis of Industrialization: The American Case, 1820 to 1850," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 461-487.
    38. Oded Galor, 2011. "Unified Growth Theory," Economics Books, Princeton University Press, edition 1, number 9477.
    39. Clark, Gregory & Hamilton, Gillian, 2006. "Survival of the Richest: The Malthusian Mechanism in Pre-Industrial England," The Journal of Economic History, Cambridge University Press, vol. 66(03), pages 707-736, September.
    40. Jason M. Lindo, 2010. "Are Children Really Inferior Goods? Evidence from Displacement-Driven Income Shocks," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    41. Hoyt Bleakley & Fabian Lange, 2009. "Chronic Disease Burden and the Interaction of Education, Fertility, and Growth," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 52-65, February.
    42. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    43. Dorothy S. Brady, 1966. "Output, Employment, and Productivity in the United States after 1800," NBER Books, National Bureau of Economic Research, Inc, number brad66-1.
    44. Easterlin, Richard A., 1976. "Population Change and Farm Settlement in the Northern United States," The Journal of Economic History, Cambridge University Press, vol. 36(1), pages 45-75, March.
    45. Price V. Fishback & Michael R. Haines & Shawn Kantor, 2007. "Births, Deaths, and New Deal Relief during the Great Depression," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 1-14, February.
    46. Carruthers, Celeste K. & Wanamaker, Marianne H., 2013. "Closing the gap? The effect of private philanthropy on the provision of African-American schooling in the U.S. south," Journal of Public Economics, Elsevier, vol. 101(C), pages 53-67.
    47. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    48. Ager, Philipp & Brueckner, Markus & Herz, Benedikt, 2017. "The boll weevil plague and its effect on the southern agricultural sector, 1889–1929," Explorations in Economic History, Elsevier, vol. 65(C), pages 94-105.
    49. Gregory Clark, 2005. "Human Capital, Fertility, and the Industrial Revolution," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 505-515, 04/05.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Céline Zipfel, 2022. "The demand side of Africa's demographic transition: desired fertility, wealth, and jobs," STICERD - Economic Organisation and Public Policy Discussion Papers Series 71, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    2. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    3. Ager, Philipp & Goñi, Marc & Salvanes, Kjell Gunnar, 2023. "Gender-biased technological change: Milking machines and the exodus of women from farming," Discussion Paper Series in Economics 16/2023, Norwegian School of Economics, Department of Economics.
    4. Chan, Jeff, 2024. "The long-run effects of childhood exposure to market access shocks: Evidence from the US railroad network expansion," Explorations in Economic History, Elsevier, vol. 91(C).
    5. Yuzuru Kumon & Mohamed Saleh, 2023. "The Middle‐Eastern marriage pattern? Malthusian dynamics in nineteenth‐century Egypt," Economic History Review, Economic History Society, vol. 76(4), pages 1231-1258, November.
    6. Stefan Bauernschuster & Michael Grimm & Cathy M. Hajo, 2023. "The Impact of Margaret Sanger’s Birth Control Clinics on Early 20th Century U.S. Fertility and Mortality," CESifo Working Paper Series 10421, CESifo.
    7. Yung-Yu Tsai & Hsing-Wen Han & Kuang-Ta Lo & Tzu-Ting Yang, 2022. "The Effect of Financial Resources on Fertility: Evidence fromAdministrative Data on Lottery Winners," IEAS Working Paper : academic research 22-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    8. Yung-Yu Tsai & Hsing-Wen Han & Kuang-Ta Lo & Tzu-Ting Yang, 2022. "The Effect of Financial Resources on Fertility: Evidence from Administrative Data on Lottery Winners," Papers 2212.06223, arXiv.org, revised Dec 2023.
    9. Yuri Barreto & Rodrigo Oliveira, 2022. "The unintended long-run impacts of agro-terrorism in Brazil," WIDER Working Paper Series wp-2022-175, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ager, Philipp & Brueckner, Markus & Herz, Benedikt, 2017. "Structural Change and the Fertility Transition in the American South," Discussion Papers on Economics 6/2017, University of Southern Denmark, Department of Economics.
    2. Jakob Madsen & Holger Strulik, 2023. "Testing unified growth theory: Technological progress and the child quantity‐quality tradeoff," Quantitative Economics, Econometric Society, vol. 14(1), pages 235-275, January.
    3. Abebe HAILEMARIAM, 2024. "Income and differential fertility: evidence from oil price shocks," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(1), pages 31-54, March.
    4. Nguyen Thang Dao & Julio Dávila & Angela Greulich, 2021. "The education gender gap and the demographic transition in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 431-474, April.
    5. Yu Bai & Yanjun Li & Pak Hung Lam, 2023. "Quantity-quality trade-off in Northeast China during the Qing dynasty," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1657-1694, July.
    6. Jun, Bogang, 2013. "The Trade-off between Fertility and Education: Evidence from the Korean Development Path," MPRA Paper 43971, University Library of Munich, Germany.
    7. Alan Fernihough, 2017. "Human capital and the quantity–quality trade-off during the demographic transition," Journal of Economic Growth, Springer, vol. 22(1), pages 35-65, March.
    8. Marc Klemp & Jacob Weisdorf, 2019. "Fecundity, Fertility and The Formation of Human Capital," The Economic Journal, Royal Economic Society, vol. 129(618), pages 925-960.
    9. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.
    10. Alberto Basso & David Cuberes, 2013. "Fertility and Financial Development: Evidence from U.S. Counties in the 19th Century," Working Papers 2013011, The University of Sheffield, Department of Economics.
    11. Daniel Aaronson & Fabian Lange & Bhashkar Mazumder, 2014. "Fertility Transitions along the Extensive and Intensive Margins," American Economic Review, American Economic Association, vol. 104(11), pages 3701-3724, November.
    12. Claude Diebolt & Audrey-Rose Menard & Faustine Perrin, 2017. "Behind the fertility–education nexus: what triggered the French development process?," European Review of Economic History, European Historical Economics Society, vol. 21(4), pages 357-392.
    13. Diebolt, Claude & Mishra, Tapas & Perrin, Faustine, 2021. "Gender empowerment as an enforcer of individuals’ choice between education and fertility: Evidence from 19th century France," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 408-438.
    14. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
    15. Michael Grimm, 2021. "Rainfall risk, fertility and development: evidence from farm settlements during the American demographic transition," Journal of Economic Geography, Oxford University Press, vol. 21(4), pages 593-618.
    16. Jonathan J. ADAMS, 2022. "Urbanization, Long-run Growth, and the Demographic Transition," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 88(1), pages 31-37, March.
    17. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2010. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Chapters, in: Demography and the Economy, pages 43-100, National Bureau of Economic Research, Inc.
    18. Kubitza, Christoph & Gehrke, Esther, 2018. "Why does a labor-saving technology decrease fertility rates? Evidence from the oil palm boom in Indonesia," EFForTS Discussion Paper Series 22, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    19. Claude Diebolt & Faustine Perrin, 2013. "From Stagnation to Sustained Growth: The Role of Female Empowerment," American Economic Review, American Economic Association, vol. 103(3), pages 545-549, May.
    20. Carol H. Shiue, 2017. "Human capital and fertility in Chinese clans before modern growth," Journal of Economic Growth, Springer, vol. 22(4), pages 351-396, December.

    More about this item

    Keywords

    Fertility transition; Structural change; Industrialization; Agricultural income;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:13609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.