Fertility and endogenous gender bargaining power

We develop an intra-household bargaining model to examine the feedback effect of household fertility decisions on gender bargaining power. In our model, the household balance of power is endogenously determined reflecting social interactions, i.e., the fertility choices by the other couples in society. We show the presence of multiple equilibria in fertility outcome: one equilibrium characterized by patriarchal society with a high fertility rate, and another in which women are sufficiently empowered and the fertility rate is low. In other circumstances, this study also demonstrates a positive relationship between female wage rates and the fertility outcomes. Finally, we discuss its policy implications, comparing the effects of two family policies: the child allowance and the subsidies for market childcare.     

The Differential Mortality of Undesired Infants in Sub-Saharan Africa

With high rates of infant mortality in sub-Saharan Africa, investments in infant health are subject to tough prioritizations within the household, in which maternal preferences may play a part. How these preferences will affect infant mortality as African women have ever-lower fertility is still uncertain, as increased female empowerment and increased difficulty in achieving a desired gender composition within a smaller family pull in potentially different directions. I study how being born at a parity or of a gender undesired by the mother relates to infant mortality in sub-Saharan Africa and how such differential mortality varies between women at different stages of the demographic transition. Using data from 79 Demographic and Health Surveys, I find that a child being undesired according to the mother is associated with a differential mortality that is not due to constant maternal factors, family composition, or factors that are correlated with maternal preferences and vary continuously across siblings. As a share of overall infant mortality, the excess mortality of undesired children amounts to 3.3 % of male and 4 % of female infant mortality. Undesiredness can explain a larger share of infant mortality among mothers with lower fertility desires and a larger share of female than male infant mortality for children of women who desire 1–3 children. Undesired gender composition is more important for infant mortality than undesired childbearing and may also lead couples to increase family size beyond the maternal desire, in which case infants of the surplus gender are particularly vulnerable.     

Child mortality and fertility decline: Does the Barro-Becker model fit the facts?

I compare the predictions of three variants of the altruistic parent model of Barro and Becker for the relationship between child mortality and fertility. In the baseline model fertility choice is continuous, and there is no uncertainty over the number of surviving children. The baseline model is contrasted to an extension with discrete fertility choice and stochastic mortality and a setup with sequential fertility choice. The quantitative predictions of the models are remarkably similar. While in each model the total fertility rate falls as child mortality declines, the number of surviving children increases. The results suggest that factors other than declining infant and child mortality are responsible for the large decline in net reproduction rates observed in industrialized countries over the last century. Financial support by the National Science Foundation (grant SES-0217051) and the UCLA Academic Senate is gratefully acknowledged. I thank Sebnem Kalemli-Oczan, Rodrigo Soares, and two anonymous referees for comments that helped to substantially improve the paper. Olesya Baker and Ilya Berger provided excellent research assistance. Responsible editor: Junsen Zhang.     

The effect of child care and part time opportunities on participation and fertility decisions in Italy

Economic models of household behavior typically yield the prediction that increases in schooling levels and wage rates of married women lead to increases in their labor supply and reductions in fertility. In Italy, low labor market participation rates of married women are observed together with low birth rates. Our explanation involves the Italian institutional structure, particularly as reflected in rigidities and imperfections in the labor market and characteristics of the publicly-funded child care system. These rigidities tend to simultaneously increase the costs of having children and to discourage the labor market participation of married women. We analyze a model of labor supply and fertility, using panel data. The empirical results show that the availability of child care and part time work increase both the probability of working and having a child. Received: 14 February 2000/Accepted: 20 February 2001     

Fertility decline in the modern world and in the original demographic transition: Testing three theories with cross-national data

This study uses aggregate data on a large number of the world's societies to test three theories of fertility decline in the modern world and in the original demographic transition. One prominent theory relates fertility decline to the changing economic value of children. With industrialization and overall modernization the economic value of children's labor shifts from positive to negative. This interpretation has been challenged by those who claim that the flow of wealth in preindustrial societies is always from parent to child rather than from child to parent. An alternative interpretation is that fertility levels reflect people's efforts to promote their reproductive success, and that this requires the careful tracking of infant and child mortality. Fertility rates are adjusted to the rate of infant and child survival, and will be high when survival rates are low and low when survival rates are high. A third theory emphasizes female empowerment. Fertility will be high when women are highly subordinated to men, but as women gain more autonomy and control over their own lives they reduce their fertility levels because, among other possibilities, higher levels of fertility present them with serious burdens. We tested all three theories through multiple regression analyses performed on two samples of societies, the first a large sample of the world's nation-states during the period between 1960 and 1990, and the second a sample of now-developed societies between 1880 and 1940. Our findings showed that infant mortality was an excellent predictor of fertility, and that female empowerment was a good predictor. However, there was only weak support for the argument that the economic value of children's labor plays an important role in fertility decisions. The findings were discussed in the context of a broader interpretation of fertility behavior in societies with high levels of industrialization and modernization.     

Children as insurance

This paper presents a dynamic model of fertility decisions in which children serve as an incomplete insurance good. The model incorporates uncertainty about future income and the survival of children as well as a discrete representation of the number of children. It contributes to the understanding of the negative relation between fertility and education, shows why parents may demand children even if the return is negative, and explains why fertility might rise with increasing income when income is low and decrease when income is high. Furthermore, the model can account for the decline in fertility when the risk of infant and child mortality decreases. Finally, the implications for empirical tests of the demand for children are also examined. Received: 8 September 1998/Accepted: 9 June 1999     

Bargaining over family size: The determinants of fertility in Brazil

Understanding how households make fertility decisions is important to implementing effective policy to slow population growth. Most empirical studies of this decision are based on household models in which men and women are assumed to act as if they have the same preferences for the number of children. However, if men and women have different preferences regarding fertility and are more likely to assert their own preferences as their bargaining power in the household increases, policies to lower fertility rates may be more effectively targeted toward one spouse or the other. In this paper, we test the relevance of the single preferences model by investigating whether men and women's nonwage incomes have the same effects on the number of children in the household. We find that while increases in both the man and woman's nonwage income lower the number of children in the household, an equivalent increase in the woman's income has a significantly stronger effect than the man's. In addition, we find that increases in women's nonwage transfer income have the strongest effects on the fertility decisions of women with low levels of education. The most important policy implication of our results is that policies aimed at increasing the incomes of the least-educated women will be the most effective in lowering fertility rates.     

Death Clustering,Mothers' Education and the Determinants of Child Mortality in Rural Punjab,India

In this paper the behavioural factors which make for continuing high levels of child mortality in rural Punjab, despite favourable conditions in terms of nutrition, income, women's literacy and health care facilities are examined. A major factor is that inadequate attention has been paid to improved health care practices within the home. Women's autonomy, social class, and mothers' education significantly influence child survival. One of the pathways by which mothers' education affects child survival is through improved child care. In this society, a woman's autonomy is lowest during that part of her life-cycle which also contains her peak childbearing years: this perverse overlap raises child mortality. The risk of dying is distributed very unevenly amongst children, as the majority of child deaths are clustered amongst a small proportion of the families. The death-clustering variable remained significant even after several possible biological and socio-economic reasons for clustering had been controlled. It is argued that this clustering of deaths is partly due to the poor basic abilities of some mothers and other carers.     

On private incentives to acquire household production skills

In non-cooperative family models, being good at contributing to family public goods like household production may reduce one's utility, since it tends to crowd out contributions from one's spouse. Similar effects also arise in cooperative models with non-cooperative threat point: improved contribution productivity entails loss of bargaining power. This strategic effect must be traded against the benefits of household production skills, in terms of increased consumption possibilities. Since cooperation involves extensive specialization, incentives to acquire household production skills are strikingly asymmetric, with the one not specializing in household production having strong disincentives for household skill acquisition. Received: 06 July 1999/Accepted: 08 June 2000     

Banking on fewer children: financial intermediation,fertility and economic development

This paper shows that financial intermediation can influence fertility and labor allocation decisions by raising market wages. The increase in wages induces some households to abandon “traditional” labor intensive methods of production managed at the household level and supply labor to “modern” sector firms. Since it is optimal for households in the modern sector to have fewer children, the labor allocation decision leads to lower national fertility. A panel VAR using financial intermediation, fertility and industrial employment share data in 87 countries is estimated. The empirical results show that the data are consistent with the theoretical predictions. Received: 20 October 1997/Accepted: 31 August 1998     

The cost of children: May the collective approach to household behavior help?

The collective approach to household consumption behavior tries to infer from variables supposed to affect the general bargaining position of household members information on the allocation of consumptions goods and tasks among them. This paper investigates the extension of previous work to the case where children may be considered as a public consumption good by the two adult members of a household. The main question being asked is whether it is possible to retrieve from the aggregate consumption behaviour of the household and the relative earnings of the parents information on the allocation of goods between them and children. This alternative approach to the estimation of the ‘cost of children’ is contrasted with the conventional approach based on a ‘unitary’ representation of and demographic separability assumptions on household consumption behaviour. Received: 29 August 1997/Accepted: 26 November 1998     

中国大城市不同人群生育意愿的 变迁趋势及比较研究 ——以上海市为例

生育意愿研究有水平研究和趋势研究两个视角,后者更能反映人们观念的变迁,更能预判未来生育水平的变动。文章以上海市为例,采用横断历史元分析法(Cross-temporal meta-analysis),将1981年以来的30多年间上海市范围内开展的26项涉及居民生育意愿调查的结果串联起来,结合其中5项调查的个案数据分析,考察我国大城市不同社会经济特征人群的生育意愿纵向变化趋势并进行子人群间的比较。研究发现20世纪80年代以来上海户籍城乡居民的生育意愿均不断减弱并且二者逐渐趋同,生育意愿的"城乡之别"已然消失;在沪外省市流动人口的生育意愿强于户籍人口,"内外之分"仍然存在,但也显示出未来有趋同的可能性;独生子女与非独生子女的生育意愿比较显示户籍人口中独生子女与非独生子女的生育意愿差异极小,流动人口中非独生子女的生育意愿略强于独生子女;从不同文化程度和收入水平的人群比较来看,文化程度越高的户籍人口生育意愿越强,流动人口的生育意愿随文化程度的提高呈现"两头高、中间低"的特征,无论是户籍人口还是流动人口,高收入人群的生育意愿均相对较高;但是无论哪个人群的平均意愿子女数均已低于2个孩子。     

Women's autonomy,women's status and fertility-related behavior in Zimbabwe

Women's household decision-making autonomy is a potentially important but less studied indicator of women's ability to control their fertility. Using a DHS sample of 3,701 married black African women from Zimbabwe, I look at women who have no say in major purchases, whether they should work outside the home,and the number of children. When men dominated all household decisions, women were less likely to approve of contraceptive use, discuss their desired number of children with their spouse, report ever use of a modern method of contraception, and to intend to use contraception in the future. However, women's decision-making autonomy was not associated with current modern contraceptive use. Women who had no decision-making autonomy had 0.26 more children than women who had some autonomy. These autonomy measures provide additional independent explanatory power of fertility-related behavior net of traditional measures of women's status such as education and labor force participation.     

Skill premium effects on fertility and female labor force supply

In the last twenty years the United States has seen a positive relationship between female labor supply and total fertility rates, which differs from the pattern observed over the preceding years. We construct a general equilibrium overlapping generations model capable of generating this changing relationship between fertility and female labor supply. We argue that skilled biased technological change in recent decades has increased the skill premium and has therefore decreased the relative cost of (unskilled) child care services. The positive effect of the increase in female mean wages on fertility rates, and the inducement for labor force participation provided by the reduction in the relative cost of child care services, generated the positive relationship between fertility rates and female labor force participation in the last two decades.All correspondence to Amaia Iza. This paper has benefited particularly from comments by Juan Carlos Conesa, Pedro Mira and Sara de la Rica. We also acknowledge countless conversations with María Paz Espinosa and useful comments from Jaime Alonso, Jose María Da-Rocha, Tim Kehoe, José Victor Rios-Rull, when the paper was presented at the IV Workshop of Dynamic Macroeconomics held in Vigo (Spain, July 1999) and in Universidade de Vigo (October, 2000). We also thank an anonymous referee whose comments enabled us to improve the paper considerably. Financial support from Universidad del País Vasco 9UPV 00035.321-13511/2001, Ministerio de Educación y Ciencia PB097-0620, MCYT BEC2000/1394 and Instituto de la mujer (Ministerio de Trabajo y Asuntos Sociales) MTAS 33/00 is gratefully acknowledged. Any remaining errors are the authors responsibility. Responsible editor: Junsen Zhang.     

Fertility decisions when infant survival is endogenous

There is evidence that fertility is positively correlated with infant mortality, and that a child‘s chance of surviving to maturity increases with the level of nutrition, medical care, etc. received in the early stages of life. By modelling parental decisions as a problem of choice under uncertainty, the paper shows that fertility and infant mortality are most likely to move in opposite directions if, as implicitly assumed by existing economic theories, parents believe that there is nothing they can do to improve the survival chances of their own children. By contrast, if parents realize that those chances improve with the amount they spend for the health, nutrition, etc. of each child that they put into the world, then fertility and infant mortality may move in the same direction. Under such an assumption, the model has the strong policy implication that directly death-reducing public expenditures are most effective, but stimulate population growth, at low levels of development. By contrast, at high levels of development, such expenditures tend to crowd out parental expenditures, and are a factor in fertility decline. Received: 14 October 1996 / Accepted: 28 July 1997     

Who takes care of the children? The quantity-quality model revisited

We study the Becker and Lewis (1973) quantity-quality model of children adding an explicit child care time constraint for parents. Parents can take care of the children themselves or purchase day care. Our results are: (i) If there only is own care, a quantity-quality trade-off, different from that of Becker and Lewis (1973), arises. The income effect on fertility is positive if child quantity is a closer complement than child quality to the consumption of goods. (ii) If, instead, 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 extended to a situation with a binding child care time constraint. The conclusion is that the Becker and Lewis (1973) result holds as long as at least some child care is purchased. Received: 12 November 1999/Accepted: 1 September 2000     

Fertility effects of child benefits

We exploit the 1996 reform of the German child benefit program to identify the causal effect of heterogeneous child benefits on fertility. While generally the reform increased child benefits, the exact amount of the increase varied by household income and the number of children. We use these heterogeneities to identify their causal effects on fertility in a difference-in-difference setting. We apply the large samples of the German Mikrozensus and the rich data of the German Socio-Economic Panel (SOEP). The reform effects on low-income couples are not statistically significant. We find some support for positive fertility effects for higher as opposed to lower income couples deciding on a second birth.     

The effects of female employment status on the presence and number of children

The main concern of this paper is to analyze the effects of female employment status on the presence and number of children in households in the Netherlands. For this purpose a hurdle count data model is formulated and estimated by the generalized method of moments. The hurdle takes explicitly into account the interrelationship between female employment status and timing of first birth. The number of children, once children are present in the household, is modeled conditional on female employment status. The empirical results show that female employment status is a major determinant of the presence and number of children in households: employed women schedule children later in life and have fewer children compared to nonemployed women, holding educational attainment constant. After controlling for female employment status, the educational attainment of both the woman and the man in the households are found to have relatively small effects on the presence and number of children. Received: 3 November 1998/Accepted: 22 September 1999     

How female education affects reproductive behavior in urban Pakistan

Although Pakistan remains in a pretransitional stage (contraceptive prevalence of only 11.9% among married women in 1992), urban women with post-primary levels of education are spearheading the gradual move toward fertility transition. Data collected in the city of Karachi in 1987 were used to determine whether the inverse association between fertility and female education is attributable to child supply variables, demand factors, or fertility regulation costs. Karachi, with its high concentration of women with secondary educations employed in professional occupations, has a contraceptive prevalence rate of 31%. Among women married for less than 20 years, a 10-year increment in education predicts that a woman will average two-fifths of a child less than other women in the previous 5 years. Regression analysis identified 4 significant intervening variables in the education-fertility relationship: marriage duration, net family income, formal sector employment, and age at first marriage. Education appears to affect fertility because it promotes a later age at marriage and thus reduces life-time exposure to the risk of childbearing, induces women to marry men with higher incomes (a phenomenon that either reduces the cost of fertility regulation or the demand for children), leads women to become employed in the formal sector (leading to a reduction in the demand for children), and has other unspecified effects on women's values or opportunities that are captured by their birth cohort. When these intervening variables are held constant, women's attitude toward family planning loses its impact on fertility, as do women's domestic autonomy and their expectations of self-support in old age. These findings lend support to increased investments in female education in urban Pakistan as a means of limiting the childbearing of married women. Although it is not clear if investment in female education would have the same effect in rural Pakistan, such action is important from a human and economic development perspective.     

Household income and child survival in Egypt

This article uses household-level economic and fertility survey data to examine the relationship between household income and child survival in Egypt. Income has little effect on infant mortality but is inversely related to mortality in early childhood. The relationship persists with other associated socioeconomic variables controlled. The mechanisms underlying the income effects are not evident from this analysis: income differentials in sources of household drinking water, type of toilet facilities, and maternal demographic characteristics do not explain the net impact of income on child mortality. The absence of effects on child survival of the size of the place of residence and the relatively weak effects of maternal schooling are also notable.