Cheap Children and the Persistence of Poverty

23 Pages Posted: 28 Dec 2004

See all articles by Omer Moav

Omer Moav

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

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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, globalisation and life expectancy on economic growth and demographic transitions.

Suggested Citation

Moav, Omer, Cheap Children and the Persistence of Poverty. Economic Journal, Vol. 115, No. 500, pp. 88-110, January 2005. Available at SSRN: https://ssrn.com/abstract=639745

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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