Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82898
Authors: 
Lundholm, Michael
Ohlsson, Henry
Year of Publication: 
2000
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 1998:23
Abstract: 
We study the Becker and Lewis (1973) quantity–quality model of children adding an explicit child care time constraint for parents. They can purchase day care or take care of the children themselves. Our results are: (i) If there is a combination of purchased and own care, the effect of income on fertility is ambiguous, even if quantity of children is a normal good in the standard sense. This is the Becker and Lewis (1973) result. (ii) If, however, there only is purchased care, the income effect on fertility is positive when quantity is a normal good. (iii) If, on the other hand, there only is own care, there is a different kind of quantity–quality trade–off. The income effect on fertility is positive if quantity is a closer complement than quality to the consumption of goods.
Subjects: 
fertility
child care
time constraint
quantity-quality trade-off
JEL: 
D10
J13
Document Type: 
Working Paper

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