The Relevance of the 'Easterlin hypothesis' and the 'new home economics' to fertility movements in Great Britain

Summary The hypothesis that a family's economic status relative to its aspirations (relative economic status) is an important determinant of its fertility behaviour has been developed and applied to the explanation of swings in American fertility by R. A. Easterlin. However, a recent application by Butz and Ward of a model derived from the 'new home economics' (pioneered by Becker and Mincer) strongly suggests that relative economic status is not the dominant factor in explaining fertility movements in the U.S.A. Rather, both current men's and women's wages operate independently in explaining the movement in fertility, and in particular the decline in fertility is attributed to rising women's wages. In this paper we explore the relevance of both the Easterlin hypothesis and the hypotheses derived from the 'new home economics' to the 1955-75 fertility swing in Great Britain. We find that we must reject the Easterlin hypothesis on the basis of the measures of relative economic status suggested by Easterlin and Wachter. A variant of the Easterlin hypothesis suggested by Oppenheimer does receive some support from the available evidence, and the evidence provides strong support for the model of fertility behaviour derived from the 'new home economics', which emphasizes the distinction between the effects of changes in men's and women's real wages on fertility decisions. The cause of the fertility decline is attributed to rising women's wages and employment opportunities through their direct effect on the opportunity cost of time and children among working wives and through their effect on the labour force participation of married women of childbearing age. The test of this model and the estimates of its parameters are not definitive, however, because of deficiencies in the data and problems of statistical estimation. We nevertheless conclude that both this model and the Oppenheimer variant of the Easterlin hypothesis, as well as other elements of a more comprehensive economic theory of fertility, point to a continuation of low fertility and the possibility of a secular decline with fertility approaching some lower asymptote.     

The Easterlin hypothesis in the recent experience of higher-income OECD countries: A panel-data approach

The Easterlin hypothesis emphasizes the effect of relative cohort size on fertility. Models based on the Easterlin hypothesis have performed well in explaining time series fertility data, although these results have been for long historical time series and have typically been restricted to single country studies. These models are not adequate to determine if the hypothesis still holds and if the success of the Easterlin hypothesis is an artifact of the time period chosen. We use panel data analysis and temporal causality tests to see of the Easterlin hypothesis holds for higher-income OECD countries. The results support the Easterlin hypothesis.All correspondence to Yongil Jeon. An earlier version, The Easterlin hypothesis in OECD countries, was presented at the annual conference of the European society for population economics, Bilbao, Spain, June 2002. We are grateful to two anonymous referees for their helpful comments. The usual caveat applies. Responsible editor: Junsen Zhang.     

Forecasting births in Greater London: An application of the easterlin hypothesis

Summary A model for forecasting fertility is proposed in which an attempt is made to represent the cyclical fluctuations in fertility typical of developed societies. R. A. Easterlin has put forward the hypothesis that relative affluence, i.e. tension between material aspirations and resources, is an important determinant of fertility behaviour. Relative cohort size in turn affects relative affluence, because the size of a cohort influences its competitive position in the labour market. However, predictions based on relative cohort size alone neglect other sources of periodic fluctuations in fertility, such as those arising from generational cycles. A periodic component which expresses fertility variations as a direct function of time is, therefore, included in this model. A time series of age-specific fertility rates and population estimates for England and Wales and for Greater London is used to assess the relationship between fertility, relative cohort size, and the periodic time function. There is evidence of significant cyclic effects and some support for the Easterlin hypothesis in that the fertility of younger age groups is inversely related to the relative size of older cohorts. Projections are made of the future trend in total fertility assuming a continuation of the observed relationship. Use of different assumed periodicities permits the generation of variant projections of fertility.     

Fertility and the Easterlin hypothesis: an assessment of the literature

Focusing just on the fertility aspects of the Easterlin hypothesis, this paper offers a critical assessment – rather than just a selective citation – of the extensive fertility literature generated by Easterlin, and a complete inventory of data and methodologies in seventy-six published analyses. With an equal number of micro- and macro-level analyses using North American data (twenty-two), the „track record” of the hypothesis is the same in both venues, with fifteen providing significant support in each case. The literature suggests unequivocal support for the relativity of the income concept in fertility, but is less clear regarding the source(s) of differences in material aspirations, and suggests that the observed relationship between fertility and cohort size has varied across countries and time periods due to the effects of additional factors not included in most models. Received: 16 July 1996 / Accepted: 26 September 1997     

A comparison and latent variable test of two fertile ideas

Perhaps the two most important recent strands in the economics of fertility have been developed by Becker and Easterlin. Both suggest possible biases due to unobserved variables. Becker earlier emphasized changing shadow prices for child quantity and quality and, more recently, intergenerational serially-correlated endowments, all with given preferences. Easterlin has focused on intergenerational serially-correlated preferences. Some demographers have suggested that the Becker and Easterlin approaches are converging and may not be identified from each other.We demonstrate that while the Becker endowment and Easterlin taste models can be expressed in terms of the same variables, it is possible to identify each of the models because of different signs in a latent variable system that uses information from individuals, siblings, and cousins. Estimates of this model are consistent with the Easterlin, but not the Becker formulation. But neither model results in significant income coefficient estimates.The authors thank NIH for research support and Alan Mathios for excellent research assistance. The usual disclaimer applies.     

城市较高收入群体生育意愿偏高的现象及其理论解释——基于上海的调查

本文通过在上海市闵行区的实地调查结果,同时结合其他研究文献和社会新闻报道的资料,对发达地区较高收入者生育意愿偏高的现象及其特征进行了总结．并利用伊斯特林相对期群假说对这一现象产生的原因进行了理论分析。     

A test of the Easterlin fertility model using income

An important dimension of Easterlin's seminal work on fertility is the hypothesis of intergenerational taste formation, or the relative income hypothesis. Previous estimates have not had data on income in two generations, so the estimated own-income effects may have had a downward bias. This article uses data with income from two generations to estimate the Easterlin model directly. Own income is still not positively significant. A simple single-equation test is developed to distinguish this model from a Becker intergenerational serially correlated endowments model that he claims is observationally equivalent. The test results favor the Becker formulation.     

Time series analysis of fertility and female labor market behavior

Cointegration methods are employed to investigate relations among total fertility, female wages, labor force participation, educational attainment, and male relative cohort size. Two long run relations among the series are found, and these are identified as a fertility and a labor supply equation. All covariates enter into these relations with significant coefficients and theoretically plausible signs. Innovation analysis shows that both fertility and female labor force participation respond to changes in relative cohort size in directions consistent with the Easterlin hypothesis. Female labor force participation responds significantly to fertility shocks, but reverse effects are insignificant.All correspondence to Robert McNown. The authors wish to thank Cristobal Ridao-Cano, Kenneth Land, Alessandro Cigno, and an anonymous referee for comments on an earlier draft of this paper. Responsible editor: Alessandro Cigno.     

Limit cycle oscillations of the human population

This paper investigates a mathematical model for the growth of an age-structured population. The model includes the idea (due to Easterlin) that fertility is affected by the size of the cohort in which an individual is born. It is important to note that the model investigated represents only a reasonable first step in the direction of reality from the unrealistic assumption that mortality and fertility do not change with passing time. It is shown that this general model can lead to self-excited, persistent oscillations (called limit cycles in mathematical parlance) of the birth trajectory of the population. Using data for the United States from the twentieth century, it is shown that variations in the number of births are consistent with the model discussed.     

Age structure,growth, attrition and accession: A new synthesis

This paper shows that each equation describing relationships among demographic parameters in a stable population is a special case of a similar and equally simple equation that applies to any closed population and demonstrates some implications of these new equations for demographic theory and practice. Much of formal demography deals with functions that pertain to individuals passing through life, or to a stationary population in which births of individuals are evenly distributed over time. These functions include life expectancy, probabilities of survival, net and gross reproduction rates, expected years spent in various states and the probability that certain events will occur in the course of life. The stable population model permits the translation of population structure or processes in a more general type of population, with constant growth rates, back into equivalent populations for a stationary population. The method for translation developed in this paper, requiring only a set of age-specific growth rates is even more general, applying to any population. Age specific growth rates may also be useful for performing reverse translations, between a population's life table and its birth rate or its age distribution. Tables of numbers of females by single years of age in Sweden are used to illustrate applications. Tables summarize the basic relations among certain functions in a stationary population, a stable population and any population. Applications of new equations, particularly to demographic estimation of mortality, fertility and migration, from incomplete data, are described. Some other applications include; the 2 sex problem, increment decrement tables, convergence of population to its stable form, and cyclical changes in vital rates. Stable population models will continue to demonstrate long term implications of changes in mortality and fertility. However, in demographic estimation and measurement, new procedures will support most of those based on stable assumptions.     

The formal dynamics of controlled populations and the echo,the boom and the bust

This paper analyzes the pattern of fluctuations of births in an age-structured population whose growth is subject to environmental or economic constraint. It synthesizes the traditional demographic analysis of age-structured renewal with constant vital rates and the economic analysis which treats population change endogenously. When cohort fertility depends on relative cohort size, or when period fertility depends on labor force size, fluctuations of forty or more years replace the traditional "echo" or generation-length cycle. Twentieth-century U. S. fertility change agrees well with the theory, as the "Easterlin Hypothesis" suggests; but the period model fits better than the cohort model.     

Asian and Pacific population targets

2 population targets for the Asian and Pacific regions were established in 1981-82: 1) by the Asian Conference of Parliamentarians on Population and Development at Beijing, China to attain 1% population growth rate for the Asian region by the year 2000, and 2) by the 3rd Asian and Pacific Population Conference at Colombo, Sri Lanka, to attain replacement level of fertility by the year 2000. In an attempt to ascertain whether these targets can be achieved and/or related, the Population Division of the UN's Economic and Social Commission for Asia and the Pacific (ESCAP) prepared population projections in which the 2 targets are achieved. These projections were prepared by aggregating the total population of member countries. When net reproduction rate (NRR) equals 1 (replacement level fertility) it will lead to a stable population with a growth rate of zero. In the short-term a population with replacement level fertility will continue to increase if it has a young age structure due to previous higher levels of fertility. Some projections for the period 1980-2005 are: 1) population growth rate will decrease from 1.78% to 1.05%, 2) total fertility rate will decrease from 3.63-2.11, 3) male life expectancy will increase from 59.8-67.3, and 4) infant mortality rate will decrease from 67.3-34.5. For the ESCAP region, a target of NRR of 1 would be easier to achieve than a growth rate of 1%. The UN projects the total population of the region to be 3,382,000,000 in the year 2000. If the NRR can be lowered to 1 by then, however, the total population would be 3,342,000,000 and if the growth rate can be reduced to 1% by the end of the century the resulting population would be 3,300,000,000. Major demographic benefits will be attained in terms of the age structure of the population if a 1% growth rate is achieved; the proportion under age 15 was 37.1% in 1980 but will be 27.2% in 2000 with a dependency ratio of 48.8 compared to 70.8 for 1980.     

Migrant fertility in Ghana: selection versus adaptation and disruption as causal mechanisms

The aim of the study presented in this paper is to disentangle the roles of three mechanisms -- selection, adaptation, and disruption -- in influencing migrant fertility in Ghana. Using data from the 1998 Ghana Demographic and Health Survey, we fit Poisson and sequential logit regression models to discern the effects of the above mechanisms on cumulative fertility and annual probabilities of birth. Characteristics of migrants from four types of migration stream are examined and compared with those of non-migrants at origin and destination. We find substantial support for the selection hypothesis among both rural-urban and urban-rural migrants. Disruption is evident only in the fertility timing of second and higher-order births in Ghana. Our finding that migrants bear children at about the same rates as the natives at destination implies that the growth rate of cities will slow down quickly and that the rural population will continue to have high fertility. Thus to achieve a reduction in the national fertility level, family planning activities need to be directed towards rural areas.     

Public policy and the total fertility rate: cross-sectional evidence from the LDCs

A framework developed by Easterlin for the analysis of fertility in developing societies is modified and then tested using a sample of 65 less-developed countries. The focus is on assessing the impact of public policy on the national fertility rate. Public policy is reflected in the average levels of education and health in the population and in the condition of the national family planning program. To test for threshold effects with respect to socioeconomic development, the sample is divided on the basis of the infant mortality rate. Fertility rates in those nations characterized by high infant mortality are likely to be determined more by conditions of natural fertility. Those nations with lower infant mortality, and hence greater socioeconomic development, are more likely to exhibit deliberate fertility control. The results of the regression analysis do suggest that different factors influence the national fertility rate depending upon the stage of development. For the least-developed nations, the secondary school enrollment rate, an indicator of the extent of economic mobility, and the ratio of school age children to teachers, a proxy for the national commitment to human capital formation, are important. For the more advanced of the LDCs, adult literacy and the infant mortality rate seem to predominate. For all the developing nations, however, the results confirm the importance of strong family planning programs. The paper concludes with a discussion of the policy implications of the research.     

Fertility and the economy

I relate the demand for children to parental incomes and the cost of rearing children — especially to the value of the time spent on child care and to public policies that change the cost of children. This paper also links the demand for children to investments in their human capital and other dimensions of the so-called quality of children. Fertility is shown to depend too on child and adult mortality, uncertainty about the sex of children — if there is a preference for boys, girls, or for variety — uncertainty about how long it takes to produce a conception, and other variables.Since biological necessity dictates that succeeding generations overlap, it is not surprising that fertility in one generation influences the fertility of succeeding generations. The overlapping generations approach provides a useful framework for relating fertility choices to population growth and macroeconomic changes.The modern approach to fertility leads to very different interactions between population growth and economic growth than is implied either by Malthusian or the usual neo-classical growth models. In particular, it provides a framework for analyzing how societies escape a Malthusian-like stagnating equilibrium and embark on the journey toward becoming modern economies, where per capita incomes, human capital, and physical capital all continue to grow, fertility declines to rather low levels, and married women participate extensively in the labor force.This essay was prepared for the Nobel Jubilee Symposium, Lund, Sweden, December 5–7, 1991. I have had valuable comments from James Heckman, Robert Willis and my discussants at the symposium: Allesandro Cigno and Richard Easterlin, and useful assistance from Becky Kilburn. I am indebted to the National Institute for Child Health and Human Development award R37-HD22054 and National Science Foundation award SES-90-10748.     

Fertility model and population projection]

Different models for projecting fertility rates for the projection of population, are discussed. It is suggested that the age span cumulative fertility rate (ASCFR) can replace the traditional age span fertility rate because the former is more accurate. A gradual decrease from the highest childbearing age (49) to lower ages will yield fertility rates at all ages based on the ASCFR curve.     

中国人口转变、人口红利与经济增长的实证

我国人口年龄结构的变动使得劳动负担逐渐下降,这对于储蓄水平的上升和劳动力投入效率的提高具有显著的促进作用;我国劳动负担比与经济增长呈现出明显的负相关,劳动负担比每下降1个百分点,经济增长将提高1.06个百分点,在过去的30年里劳动负担降低累计带来的经济增长占总增长的27.23%。通过计量检验证明人口年龄结构变动所产生的促进经济增长的人口红利是存在的。由此我们推断,由于未来的人口年龄结构变动趋向人口老龄化,劳动负担逐步上升,这将会对未来的经济增长造成制约。利用未来10～20年时间较轻的劳动负担的机遇期,我们应当建立良好的教育、人力资本投资、社会保障等方面的制度以及制定积极的人口政策,调整当前生育政策、适时执行宏观经济政策(劳动就业政策)来应对已发生的、正在进行的人口变动,使我国的经济继续保持强有力的增长态势。     

On the derivation of a two-sex stable population model

It is well known that the intrinsic rates of growth derived separately for the males and females in a population, when one assumes the continuation of their respective mortality and fertility experiences, usually turn out to be different. Noting that the phenomenon of human reproduction is a product of the cooperation between the two sexes, we have attempted in this paper to define the sex-age-specific fertility rates as a function not only of age but also of time, where the latter is implicitly introduced in the model through the sex composition of the reproductive population. It has been shown that a stable model can then be defined based on such changing sex-age-specific fertility rates and given sets of unchanging mortality rates. The fertility rates stabilize with time, and the common intrinsic rates of growth for the two sexes are found to lie in the interval generated by the corresponding rates of the two one-sex models. Several other interesting relationships among the parameters of this model have been presented in the paper. Among other alternatives, a least square solution has been presented for the values of sex-age-specific fertility rates that are minimally discrepant with the observed rates but are consistent in terms of the parametric estimates they generate. It is interesting to note that a relatively modest adjustment in the sex-age-specific fertility rates is all that it takes to eliminate the inconsistencies generated by the separate one-sex models.     

On the dependence of age structure on asequence of mortality and fertility schedules: An exposition of a cyclical model of population change

In this paper a method to investigate the dependence of age structure and growth rate on a given sequence of fertility and mortality schedules under the conditions of unchanging mortality and absence of migration is discussed. The method consists in projecting an arbitrary population classified by age to the ends of successive periods assuming that a given age pattern of mortality will remain without change and that a given sequence of fertility schedules will repeatedly operate on the population in a cyclical fashion. It is shown that after a sufficiently large number of repetitions of the cycle, the shifts in age structure between the ends of successive periods and the changes in the growth of the different age groups from one period to the next show a cyclical pattern. Formulas are derived expressing the above changes in terms of a sequence of k growth multipliers, k being the number of schedules in the fertility sequence, and the survival rates in the mortality schedule. A numerical illustration of the theory is given using fertility data from Finland.     

Capital accumulation,aspiration adjustment,and population growth: limit cycles in an Easterlin-type model

"One of the recent interesting hypotheses of population growth is due to Easterlin who suggests the possibility of self-generating fluctuations in birth numbers. The present paper tries to answer the question whether feedback mechanisms produce persistent oscillations in population growth. A system of two nonlinear differential equations for the per capita capital stock and the aspiration level is studied by a phase portrait analysis. Using the Poincare-Bendixson theorem we derive sufficient conditions for the existence of a stable limit cycle." (SUMMARY IN FRE)