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ERIC Number: EJ883106
Record Type: Journal
Publication Date: 2010-Mar
Pages: 27
Abstractor: As Provided
Reference Count: 46
ISBN: N/A
ISSN: ISSN-0022-166X
Are Children Really Inferior Goods? Evidence from Displacement-Driven Income Shocks
Lindo, Jason M.
Journal of Human Resources, v45 n2 p301-327 Mar 2010
This paper explores the causal link between income and fertility by analyzing women's fertility response to the large and permanent income shock generated by a husband's job displacement. I find that the shock reduces total fertility, suggesting that the causal effect of income on fertility is positive. A model that incorporates the time cost of children and assortative matching of spouses can simultaneously explain this result and the negative cross-sectional relationship. I also find that a husband's displacement accelerates childbearing, which is consistent with lifecycle models of fertility in which the incentive to delay is driven by expected earnings growth. (Contains 3 figures, 7 tables, and 28 footnotes.)
University of Wisconsin Press. 1930 Monroe Street, Madison, WI 53711-2059. Tel: 608-263-0668; Fax: 608-263-1173; e-mail: journals@uwpress.wisc.edu; Web site: http://www.wisc.edu/wisconsinpress/journals
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A