Fertility and income volatility

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Other Title
  • 出生率と所得ボラティリティ
  • シュッショウリツ ト ショトク ボラティリティ

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Description

In this paper, we analyze the theoretical relationship between income volatility and fertility. Higher economic growth rate lowers fertility (Perotti, 1996). Here, we show that the relationship between income volatility and fertility is an inverted U-shape. As a result, there is an optimal degree of income volatility that maximizes fertility. There are two reasons. First, as the volatility related to household income derived from human capital increases, volatility raises fertility through the effect it has on expected income. Second, volatility above a certain level causes larger income differences, and so becomes socially unstable and thus lowers fertility.

Journal

  • 經濟學論叢

    經濟學論叢 64 (2), 553-570, 2012-09-20

    The Doshisha Economic Association

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