Cheap Children and the Persistence of Poverty

Maurice Falk Institute Discussion Paper No. 01.02

35 Pages Posted: 24 Aug 2001

See all articles by Omer Moav

Omer Moav

University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: February 12, 2004

Abstract

This paper develops a theory of fertility that offers an explanation for the persistence of poverty within and across countries. If educated individuals have a comparative advantage in raising educated children then parental fertility choice is shown to give rise to a poverty trap, in which the poor choose high fertility rates with low investment in child quality. Moreover, the impact of child quality choice on economic performance is amplified by the diluting effect of higher fertility on physical capital accumulation. The theory proposes insights regarding the effects of inequality, globalization, and life expectancy on economic growth and demographic transitions.

Keywords: Fertility, Human Capital, Growth

JEL Classification: J13, O11, O15, O40

Suggested Citation

Moav, Omer, Cheap Children and the Persistence of Poverty (February 12, 2004). Maurice Falk Institute Discussion Paper No. 01.02. Available at SSRN: https://ssrn.com/abstract=280856 or http://dx.doi.org/10.2139/ssrn.280856

Omer Moav (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www2.warwick.ac.uk/fac/soc/economics/staff/academic/moav

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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