In "An Economic Analysis of Fertility," Gary S. Becker presents an economic framework for understanding fertility decisions. He argues that fertility is influenced by income, child costs, knowledge, uncertainty, and tastes. Children are viewed as durable goods, primarily consumer durables that provide psychic income to parents. Fertility is determined by income, child costs, knowledge, uncertainty, and tastes. An increase in income and a decline in price would increase the demand for children, although it is necessary to distinguish between the quantity and quality of children demanded. The quality of children is directly related to the amount spent on them.
Each family must produce its own children since children cannot be bought or sold in the market place. This is why every uncertainty in the production of children (such as their sex) creates a corresponding uncertainty in consumption. It is also why the number of children in a family depends not only on its demand but also on its ability to produce or supply them. Some families are unable to produce as many children as they desire and some have to produce more than they desire. Therefore, actual fertility may diverge considerably from desired fertility.
Becker explores the implications of this theory, suggesting that it may largely explain the postwar rise in fertility in Western nations, the relatively small cyclical fluctuation in fertility compared to that in other durables, some observed relations between the quantity and quality of children, and why rural women are more fertile than urban women. He also tests the implication that the number of children desired is directly related to income. Crude cross-sectional data show a negative relationship with income, but when contraceptive knowledge is held constant, a positive relationship appears. This view is supported by the positive correspondence between cyclical movements in income and fertility. The secular decline in fertility may also be consistent with a positive relationship since the secular decline in child mortality and the secular rise in both contraceptive knowledge and child costs could easily have offset the secular rise in income.In "An Economic Analysis of Fertility," Gary S. Becker presents an economic framework for understanding fertility decisions. He argues that fertility is influenced by income, child costs, knowledge, uncertainty, and tastes. Children are viewed as durable goods, primarily consumer durables that provide psychic income to parents. Fertility is determined by income, child costs, knowledge, uncertainty, and tastes. An increase in income and a decline in price would increase the demand for children, although it is necessary to distinguish between the quantity and quality of children demanded. The quality of children is directly related to the amount spent on them.
Each family must produce its own children since children cannot be bought or sold in the market place. This is why every uncertainty in the production of children (such as their sex) creates a corresponding uncertainty in consumption. It is also why the number of children in a family depends not only on its demand but also on its ability to produce or supply them. Some families are unable to produce as many children as they desire and some have to produce more than they desire. Therefore, actual fertility may diverge considerably from desired fertility.
Becker explores the implications of this theory, suggesting that it may largely explain the postwar rise in fertility in Western nations, the relatively small cyclical fluctuation in fertility compared to that in other durables, some observed relations between the quantity and quality of children, and why rural women are more fertile than urban women. He also tests the implication that the number of children desired is directly related to income. Crude cross-sectional data show a negative relationship with income, but when contraceptive knowledge is held constant, a positive relationship appears. This view is supported by the positive correspondence between cyclical movements in income and fertility. The secular decline in fertility may also be consistent with a positive relationship since the secular decline in child mortality and the secular rise in both contraceptive knowledge and child costs could easily have offset the secular rise in income.