The effect of income on fertility

Abstract Cross-sectional data and long-period time series data have generally shown an inverse relationship between income and fertility. But short-period time series data over the business cycle have shown a direct relationship. The first part of this paper resolves this apparent paradox by showing that it arises from a statistical illusion-specification bias due to omitted lagged variables. The second part of the paper then considers the likely unconditional effect of income on fertility in several sorts of situations: (a) secular income increase in less developed countries; (b) cyclical income change in industrialized countries; (c) secular income increase in industrialized countries; and (d) incentive payments for higher and lower fertility.     

An empirical study of the effects of socioeconomic development on fertility rates

Recent studies by Adelman and by Friedlander and Silver, which have investigated whether regression equations derived from cross-section data can be used to predict the impact of socioeconomic development on changing levels of fertility, are reviewed critically. Regression analyses based on data for 57 countries c. 1960 show that fertility (gross reproduction rate) varies cross-sectionally with region as well as with level of development (as measured by per capita income, percent labor force in primary sector, expectation of life, illiteracy rate). Using equations derived from the cross-section study and time-series data for five European countries during the period that their fertility rates fell, it is shown that predictions about past fertility changes are in error. The results suggest caution in the use of cross-section relations to predict the course of fertility in developing countries.     

Total fertility rate,women's education,and women's work: What are the relationships?

This paper presents the results of a statistical study, using cross-national data, on the relationships between total fertility rate and women's level of education and women's labor participation. Aggregate data on seventy-one countries were collected from numerous sources. Eight variables related to women's fertility, mortality, economic status, labor participation, and education are analyzed using multivariate linear regression analyses. Two models are considered. The first model regresses five variables on total fertility rate: per capita Cross National Product (GNP), percentage of women ages 15 to 19 who are married, female life expectancy at birth, calories available as a percentage of need, and percentage of married couples using contraception. The second model includes two additional regressors: the average number of years of schooling for women, and the percentage of women in the labor force. These seven variables are regressed on total fertility rate. Although the data are crude, the results of the analyses suggest that the model which incorporates women's level of education and women's labor participation captures the data better than the smaller model. The full model suggests that the percentage of women in the labor force is directly related to total fertility rate, whereas the average number of years of education for women is indirectly related to total fertility rate.     

Social security and fertility: An international perspective

A number of population scholars have asserted that social security programs such as old-age programs lead to decreased fertility levels because parents need not rely on children for "security" in old age. There is, however, a paucity of empirical data on the above. This paper analyzes 67 countries and shows that social security programs have a measurable negative effect on subsequent levels of fertility. In fact, the social security programs appear to have as much of an independent impact on fertility as do the traditional correlates of fertility (infant mortality, education and per capita income).     

Fertility and development in Brazil

In the past, one of the concomitants of development has been a sustained reduction in fertility. As a result of this experience, demographers hypothesize that in a society in which fertility is lower in urban areas, among the upper socioeconomic status groups and the better-educated, fertility will decline to a moderate level as the country changes from a rural, agricultural socioeconomic structure, with low levels of living and education, to an urban, industrial structure, with rising levels of living and education.The data analyzed in this study indicate, however, that though substantial social and economic development (as measured by changes in industrial structure, per capita income, urbanization, and education) occurred in Brazil from at least 1920-40 to 1960, during which time fertility differentials of the kind indicated above existed, fertility has shown little or no tendency to decline. Between 1940 and 1960, in fact, the birth rate appears to have remained fairly constant around 43. With the death rate steadily dropping, the rate of natural increase and population growth (given a small net in-migration) has been accelerating. p ]From a theoretical point of view, these facts reinforce a growing realization, based on similar findings in some other developing countries, that the prevailing theoretical ideas concerning the relationship between development and fertility require modification, particularly in the direction of greater specificity. On the practical side, the question is raised whether Brazil's rate of economic development during the postwar period up to 1960 can be maintained, let alone increased, in the face of a population growth rate which will probably average 3.2-3.5 percent for the period 1960-70 and which, in the absence of a decline in fertility, is likely to accelerate further.     

Socio-economic status, permanent income, and fertility: a latent-variable approach

This paper examines how permanent income and other components of socio-economic status (SES) are related to fertility in less developed countries. Because permanent income cannot be measured directly, we employ a latent-variable method. We compare our results with those of the more common proxy-variable method and investigate the consequences of not accounting for measurement error. Using data from Ghana and Peru, we find that permanent income has a large, negative influence on fertility and that research must take the latent nature of permanent income into account to uncover its influence. Controlling for measurement error in the proxies for permanent income can also lead to substantial changes in the estimated effects of control variables. Finally, we examine which of the common proxies for permanent income most closely capture the concept. The results have implications beyond this specific dependent variable, providing evidence on the sensitivity of microanalyses to the treatment of long-term economic status.     

Human capital,technological progress and the demographic transition*

We emphasize the importance to consider components of population growth — fertility and mortality ‐ separately, when modeling the mutual interaction between population and economic growth. Our model implies that two countries with the same population growth will not converge towards the same level of per capita income. The country with the lower level of birth and death rates will be better off in the long run. Introducing a spill over effect of average human capital on total productivity our model implies multiple equilibria as illustrated in Becker el al. (1990) and Strulik (1999). Besides the existence of a low and high level equilibrium ‐ as characterized by low and high levels of per capita output respectively ‐ we show the existence of multiple low level (Malthusian) equilibria. Initial conditions and parameters of technological progress and human capital investment determine whether an economy is capable to escape the low level equilibrium trap and to enjoy sustained economic growth.     

The multilevel dependence of contraceptive use on socioeconomic development and family planning program strength

Using World Fertility Survey data for 15 developing countries, we estimate an equation in which the dependent variable—whether the respondent has ever used an efficient contraceptive method—depends on the respondent’s education and location of childhood residence. All of the coefficients of this equation, including the intercept, vary over countries. Analysis based on new methodology shows that the intercept and education effects vary as a function of national family planning program efforts and that none of the parameters of the equation depend on gross national product per capita. The results demonstrate the efficacy of multilevel analysis, provide a partial test of the theory underlying the analysis, and refocus discussion of the contributions of development and policy variables to fertility reduction.     

Fertility and Financial Development in South Asia

The paper empirically examines old-age security hypothesis to explain fertility rates in South Asia. Panel data is used for the period 1972–2013 for seven South Asian countries which include Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The estimated results reveal that in South Asia fertility rate decreases with the increase in financial development. Thus, the findings support old-age security hypothesis that parents use children as financial instruments to secure their old age. This paper validates the theory that the availability of alternative financial tools reduces the incentives of households to have large offspring. Infant mortality is also shown an important factor for high fertility rate in South Asia. This implies that households cover their risk from losing children by producing more children. The results also reveal that fertility rate decreases with the increase in per capita income, which implies that households treat children as inferior good in this region. In other words, households prefer quality of children over quantity of children when their income level increases. The results have also shown that fertility decreases with the increase in education, urbanization, agriculture productivity and industrialization. The study has some important policy implications.     

Many Chinas? The Economic Diversity of China's Provinces

This note analyzes China's provincial diversity from two perspectives. First, the regional gross domestic products of China's 31 mainland provinces are compared with the national GDP of other countries. This demonstrates that China's most advanced provinces and urban areas have per capita GDP levels comparable to those of Sweden and Singapore. On the other hand, China's least developed provinces have a standard of living similar to those of Sudan and Honduras. The second part of the analysis demonstrates that China's economic diversity is not unique. In fact, European countries exhibit almost the same degree of income diversity as do Chinese provinces.     

南京市人口发展对耕地保护的压力分析

逐步回归分析指出,在总人口、城市化水平、人均可支配收入、居住消费比重、交通消费比重、非农产业产值和非农产业的万元产值占地系数等变量中,总人口是南京市耕地总量变化的根本因素。总人口通过居住和就业影响耕地变化。未来一段时间,南京市总人口还将持续增加,人均可支配收入也有提高的基础,居民消费结构还要升级,这些都对耕地保护构成了压力。调节南京市人地矛盾可以考虑推行适度城市化政策,提高非农产业的万元产值占地系数,还可在耕地保护的制度上寻求创新。     

Comparing relative effects of education and economic resources on infant mortality in developing countries

Research on the social determinants of health has often considered education and economic resources as separate indicators of socioeconomic status. From a policy perspective, however, it is important to understand the relative strength of the effect of these social factors on health outcomes, particularly in developing countries. It is also important to examine not only the impact of education and economic resources of individuals, but also whether community and country levels of these factors affect health outcomes. This analysis uses multilevel regression models to assess the relative effects of education and economic resources on infant mortality at the family, community, and country level using data from demographic and Health Surveys in 43 low-and lower-middle-income countries. We find strong effects for both per capita gross national income and completed secondary education at the country level, but a greater impact of education within families and communities.     

Population growth and poverty in the developing world

The links between rapid population growth and the absolute poverty currently affecting 780 million people in the developing countries (excluding China and other centrally planned economies) were examined. Absolute poverty is defined as having less than the income necessary to ensure a daily diet of 2150 calories per person ($200 per person a year in 1970 United States dollars). Focus is on poverty and demography in the developing world (defining poverty; income, fertility and life expectancy; demographic change and poverty), effect of poverty on fertility, family planning programs and the poor, and the outlook for the future. Rapid population growth stretches both national and family budgets thin with the increasing numbers of children to be fed and educated and workers to be provided with jobs. Slower per capita income growth, lack of progress in reducing income inequality, and more poverty are the probable consequences. Many characteristics of poverty can cause high fertility -- high infant mortality, lack of education for women in particular, too little family income to invest in children, inequitable shares in national income, and the inaccessibility of family planning. Experience in China, Indonesia, Taiwan, Colombia, Korea, Sri Lanka, Cuba and Costa Rica demonstrate that birthrates can decline rapidly in low income groups and countries when basic health care, education, and low-cost or free family planning services are made widely available.     

An Econometric Analysis of the Relationship Between Millennium Development Goals,Economic Growth and Financial Development in South Africa

The relationship between financial development, economic growth and millennium development goals are unsettled in the literature. Using four indicators of financial development, this paper studies the link between the three variables in South Africa. In general, per capita income improves per capita spending on education in the short run. However, total domestic credit to GDP ratio decreases spending on education. There are highly significant long run relationships among the variables. Improving access to private sector credit and increasing per capita incomes are associated with improvement in health outcomes in South Africa. There are no short run nor long run relationships between household spending on clothes, economic growth and financial sector development. Improved private sector credit also improves household spending on food. In general, there are long run relationships between per capita spending on food, per capita income and financial sector development.

     

教育投入与社会保障对城乡收入差距的联合影响

当前城乡收入差距扩大化趋势引起广泛关注。文章使用世代交叠模型研究公共教育和社会保障对收入分配的作用机制,在此基础上分析公共教育和社会保障对城乡收入差距的影响。研究发现,公共教育通过作用于教育投资、社会保障通过作用于有效家庭时间共同影响人力资本积累从而影响收入。一方面,数值模拟结果显示公共教育和社会保障的增加能够显著地增加收入;另一方面,结合中国城乡实际的实证研究结果显示,本应该起到调节和缩小城乡收入差距的公共教育和社会保障制度,并没有发挥其收入再分配的功能,反而形成了"逆向调节"的负效应,扩大了城乡收入差距,对此,文章通过理论与实证得出,缩小我国城乡人均教育投资和社会保障税率差距对缩小城乡收入差距具有重要的现实意义。     

The effects of demographic factors on age composition and the implications for per capita income

Multiple regression analysis techniques are used to measure the impact of variations in fertility and mortality rates on the population of labor-force age. The results of this analysis suggest that the impact of reductions in mortality on age composition are dependent on the level of mortality already attained, whereas reductions in fertility, as expected, increase the population in the nondependent age groups. The direct effect of vital rates on potential per capita income is assessed using the results of the regression equations, and such results suggest that variations in per capita income as large as 20 percent could be accounted for by variations in vital rates.     

The Effect of Urbanization on China’s Fertility

The relationship between urbanization and fertility decline is known to be inverse in developed countries. However, the nature of this relationship in developing countries that already have relatively low fertilities is not well-understood. This study aims to illustrate how much urbanization contributed to China’s fertility decline between 1982 and 2008 and forecasts how much it can contribute to future reductions in fertility. The study examines changes in the total fertility rate (TFR) at both the national and provincial levels, given regional differences in the urbanization rate. The results show that changes in rural fertility behavior accounted for most of the decline in the national TFR between 1982 and 2008. This finding suggests that official birth control policies were instrumental in curbing China’s population growth. However, urbanization was responsible for about 22% of the decrease in TFR during this period, and its effect was especially important during the latter years (2001–2008). In most provinces, urbanization associated with a decline in provincial-level fertility. The forecasts indicate that urbanization will become the primary factor behind future declines in national fertility. Given the negative effect of urbanization on the TFR, it is possible to relax the one-child policy without having adverse implications for population growth.     

Relative Income,Race, and Fertility

If a white husband's income is higher than expected for men of his age, race, education, job characteristics, and region, economic theory predicts higher complete fertility for his wife. In the present study one per cent public use samples from the 1970 Census for California and Hawaii were used to examine the effect of relative income on Japanese, Chinese, and black fertility. Relative income was defined in two ways: (1) with regard to earnings of husbands of the same race, education, employment, and state; (2) with regard to earnings of white husbands of the same education, employment, and state. High relative incomes defined in each way were associated with increased completed fertility of Japanese and Chinese in Hawaii, where Orientals form a majority. Neither definition of high relative income was associated with the completed fertility of Japanese, Chinese, or blacks in California, where non-whites form a minority. The results suggest that the effect of relative income on fertility for a racial group will be positive only where there are few racial barriers to their attainment of high incomes.     

经济增长、生育政策与生育率——基于跨国面板数据的实证研究

文章基于不同发展水平、采取不同生育政策分布在不同地区的十个国家1970—2009年的面板数据对经济增长、生育政策与生育率之间的关系进行实证分析,对近年来部分学者提出的经济增长与生育率之间的U形关系,采取选择不同样本、加入政策变量和其他与生育率相关的重要经济指标如妇女的教育程度、城镇化率、工业化率等进行再检验,结果支持该假说,经济增长在经济发展程度整体较低的阶段与生育率呈现较高的负相关,但当经济增长达到一定程度时,收入效应取代替代效应对生育率起主要推动作用,如果再辅之以相关的激励政策和措施,生育率会出现轻微的反弹。因此,对于已采取生育控制政策的国家,可以结合经济社会发展指标权衡利弊,适时调整政策。