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Are Children Really Inferior Goods?: Evidence from Displacement-Driven Income Shocks
Abstract
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.
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“This result is consistent with the Beckerian view that children are a normal good in parents preferences and conrms recent results from Lindo (2010), Black et al. (2013), and Brueckner and Schwandt (2015).”
From Fertility Transitions in Developing Countries: Convergence, Timing, and Causes (2019) · cites this paper as Lindo (2010)
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Fertility Transitions in Developing Countries: Convergence, Timing, and Causes
Papagni, E. (2019) · SSRN Electronic Journal · doi:10.2139/ssrn.3522996 · Cited by 1
Metadata
- Authors
- Lindo, J. M.
- Corresponding author
- Lindo, Jason M.
- Venue
- Journal of Human Resources
- Publisher
- University of Wisconsin Press
- Published
- 2010-03
- Volume
- 45
- Issue
- 2
- Pages
- 301-327
- ISSN
- 0022-166X (ISSN-L)
- 1548-8004
- OpenAlex
- W4233719370
- Cited by
- 20
- References
- 0
- Citations by year
- 2025: 3 · 2024: 1 · 2023: 1 · 2022: 4 · 2021: 3 · 2019: 1 · 2018: 1 · 2017: 1 · 2016: 2 · 2015: 1 · 2012: 1
- FWCI
- 1.55
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Human Resources (publishedVersion)
- Topics
- Social Sciences › Gender Studies › Gender, Labor, and Family Dynamics
- Social Sciences › Demography › Family Dynamics and Relationships
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Keywords
- income and fertility, job displacement, assortative matching, childbearing timing, earnings growth
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