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A Theory of Child Adoption

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  • Bethmann, Dirk
  • Kvasnicka, Michael

Abstract

Women can bear own children or adopt them. Extending economic theories of fertility, we provide a first theoretical treatment of the demand for adoption. We show that the propensity to adopt a child increases in the degree of own altruism, infertility, relatedness to the child, costs of own child birth, and any adoption-specific monetary return that is received net of the costs of adopting the child. Our model makes several testable predictions which receive empirical support. These include a higher propensity to adopt among infertile adults, relatives, women with high earnings potential, and celebrities.

Suggested Citation

  • Bethmann, Dirk & Kvasnicka, Michael, 2012. "A Theory of Child Adoption," Ruhr Economic Papers 342, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:342
    DOI: 10.4419/86788395
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    References listed on IDEAS

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    1. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    2. Palmer, John, 1986. "The social cost of adoption agencies," International Review of Law and Economics, Elsevier, vol. 6(2), pages 189-203, December.
    3. Mariagiovanna Baccara & Allan Collard-Wexler & Leonardo Felli & Leeat Yariv, 2014. "Child-Adoption Matching: Preferences for Gender and Race," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 133-158, July.
    4. Sofia Lundberg, 2000. "Child Auctions in Nineteenth Century Sweden: An Analysis of Price Differences," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 279-298.
    5. Gennetian, Lisa A, 1999. "The Supply of Infants Relinquished for Adoption: Did Access to Abortion Make a Difference?," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 412-431, July.
    6. Medoff, Marshall H, 1993. "An Empirical Analysis of Adoption," Economic Inquiry, Western Economic Association International, vol. 31(1), pages 59-70, January.
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    Cited by:

    1. Potter, Marina Haddock & Font, Sarah A., 2021. "State contexts and foster care adoption rates," Children and Youth Services Review, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Adoption; demand for adoption; fertility; children; altruism;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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