Quotation Prettner, Klaus, Bloom, David E., Strulik, Holger. 2013. Declining Fertility and Economic Well-being: Do Education and Health Ride to the Rescue? Labour Economics. 22 70-79.


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Abstract

It is widely argued that declining fertility slows the pace of economic growth in industrialized countries through its negative effect on labor supply. There are, however, theoretical arguments suggesting that the effect of falling fertility on effective labor supply can be offset by associated behavioral changes. We formalize these arguments by setting forth a dynamic consumer optimization model that incorporates endogenous fertility as well as endogenous education and health investments. The model shows that a fertility decline induces higher education and health investments that are able to compensate for declining fertility under certain circumstances. We assess the theoretical implications by investigating panel data for 118 countries over the period 1980 to 2005 and show that behavioral changes partly mitigate the negative impact of declining fertility on effective labor supply.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Labour Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-C, WH-B
Language English
Title Declining Fertility and Economic Well-being: Do Education and Health Ride to the Rescue?
Volume 22
Year 2013
Page from 70
Page to 79
Reviewed? Y
URL https://www.sciencedirect.com/science/article/abs/pii/S0927537112000620
DOI https://doi.org/10.1016/j.labeco.2012.07.001
Open Access N

Associations

People
Prettner, Klaus (Details)
External
Bloom, David E. (Harvard T.H. Chan School of Public Health, United States/USA)
Strulik, Holger (University of Göttingen, Germany)
Organization
Department of Economics (Crespo Cuaresma) (Details)
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