Demographic Changes and Economic Activityin Greece

This paper investigates the linkages among demographic changes (fertility choice, marriage decision and mortality), real wages and real output in Greece over the period 1960–1998. The results show that in the long run a decrease in infant mortality rates, taking into consideration economic performance and the labor market, causes a reduction in fertility rates. In addition, the results suggest that an increase in real wages decreases nuptiality and fertility. Employing vector error-correction models and impulse response functions, the empirical results support the endogeneity of fertility choice to infant mortality, the labor market and the growth process.