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Income Distribution, Non-convexities and the Fertility-Income Relationship

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  • Frédéric Docquier

Abstract

This paper presents a model of inequality, income determination and fertility, that is consistent with aggregated stylized facts and individual survey data on fertility and income. It shows that indivisibilities in human capital investments limit the possibility of trade-off between the quality and the quantity of children. This generates a non-monotonic relationship between income and fertility at the micro level. On the aggregate, the total fertility rate can increase or decrease with income, depending on the income distribution of the population and on the private cost of education. © The London School of Economics and Political Science 2004.

Suggested Citation

  • Frédéric Docquier, 2004. "Income Distribution, Non-convexities and the Fertility-Income Relationship," ULB Institutional Repository 2013/229564, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/229564
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    Cited by:

    1. Christoph Sax, 2011. "Constraint or choice? Disentangling fertility determinants by switching regressions," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(23), pages 723-754.
    2. Larry E. Jones & Michele Tertilt, 2006. "An Economic History of Fertility in the U.S.: 1826-1960," NBER Working Papers 12796, National Bureau of Economic Research, Inc.
    3. Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    4. Tomer Blumkin & Yoram Margalioth & Efraim Sadka, 2015. "The Re-distributive Role of Child Benefits Revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 476-501, June.
    5. Echávarri Aguinaga, Rebeca, 2009. "Education and the dynamics of family decisions," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    6. Dilip Mookherjee & Silvia Prina & Debraj Ray, 2010. "A Theory Of Endogenous Fertility With Occupational Choice," Boston University - Department of Economics - Working Papers Series WP2010-036, Boston University - Department of Economics.
    7. Hiroshi Goto & Keiya Minamimura, 2019. "Geography and Demography: New Economic Geography with Endogenous Fertility," The Japanese Economic Review, Springer, vol. 70(4), pages 537-568, December.
    8. Musab Kurnaz, 2021. "Optimal Taxation of Families: Mirrlees Meets Becker," The Economic Journal, Royal Economic Society, vol. 131(639), pages 2984-3011.
    9. Hiroshi Goto & Keiya Minamimura, 2014. "Fertility, Regional Demographics, and Economic Integration," Discussion Papers 1405, Graduate School of Economics, Kobe University.

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