Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308858 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Population Economics [ISSN:] 1432-1475 [Volume:] 36 [Issue:] 4 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2023 [Pages:] 2205-2240
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
This paper develops a model wherein parents choose the number of children, enroll some children in school at indivisible education costs, and receive supplemental earnings from uneducated children. The model accounts for the positive relationship between enrollment ratios and parental earnings and the N-shaped relationship between fertility and parental earnings in Brazil and Indonesia. When children's living costs are high (low) relative to education costs and children's earnings, fertility increases (decreases) with parental earnings due to a dominant income (substitution) effect. A decline in the ratio of child earnings to parental earnings or a rise in education subsidy rates can increase enrollment ratios and decrease fertility. Under progressive income taxes and favorable education subsidies for poor families, educated parents' fertility could be higher than that of illiterate parents' when incomes are low. However, the relationship will be reversed partially because of the rising education subsidy.
Subjects: 
School enrollment
Fertility differential
Growth
Demographic transition
JEL: 
I24
J13
O10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.