A Theory of Occupational Choice with Endogenous Fertility

Posted: 21 May 2011

See all articles by Dilip Mookherjee

Dilip Mookherjee

Boston University - Department of Economics

Silvia Prina

affiliation not provided to SSRN

Debraj Ray

New York University (NYU) - Department of Economics; Autonomous University of Barcelona - Instituto de Analisis Economico (CSIC)

Date Written: November 1, 2010

Abstract

By incorporating occupational choice into a theory of endogenous fertility, this paper provides an explanation of observed patterns linking parental incomes to fertility. Our approach does not rely on assumptions concerning the relative strength of substitution and wealth effects in parental preferences. While arguing that the wage-fertility relationship is generally negative, the results imply exceptions in developing countries or within particular occupational segments in developed countries. Moreover, steady state mobility arises without stochastic shocks, and steady states are locally determinate. Comparative statics exercises on steady states shed light on policy questions such as income redistribution and family planning subsidies.

Suggested Citation

Mookherjee, Dilip and Prina, Silvia and Ray, Debraj, A Theory of Occupational Choice with Endogenous Fertility (November 1, 2010). Fifth Annual PopPov Conference on Population, Reproductive Health, and Economic Development, 2011, Available at SSRN: https://ssrn.com/abstract=1845895

Dilip Mookherjee

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-4392 (Phone)
617-353-4143 (Fax)

Silvia Prina (Contact Author)

affiliation not provided to SSRN ( email )

Debraj Ray

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10003
United States
212-998-8906 (Phone)
212-995-4186 (Fax)

Autonomous University of Barcelona - Instituto de Analisis Economico (CSIC)

Campus UAB
E-08193 Bellaterra
Spain

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