| Abstract: | A model of fertility and child schooling is developed using the Quality-Quantity Interaction framework proposed by Becker et al. The relationship between fertility and child schooling is shown to depend on the financial constraints faced by households and whether marginal parent-child transfers are in the form of schooling.
Empirical results confirm that fertility and schooling are simultaneously determined. Due to this interaction, fertility is observed to be negatively related to income and independent of mother's education. However, holding child schooling constant, fertility is positively related to both income and mother's education. These results imply that numbers of children are not an inferior commodity and that the growth of women's productivity is not biased against fertility. |
