Fertility Model

Utility Function

U(c,n) = logC + logn where c is consumption and n is number of children

what is budget contraint

c+ψn=wm​+[1−(1−s)φn]wf​

φ

time cost per child

ψ

monetary cost per child

wm

Wage males

s

government provides share of childcare

Optimal fertiliy n*

what is d

prefrence for fertility

reminder of quotient rule

Steps to get to optimal fertility equation

• sub budget contraint into the U function and then use first order condition

China one child policy problems

caused selective abortion which led to sex imbalances

Global effort to reduce fertility through which policies

• one child policy

• contraceptives

• mass communication

• monetary incentives

• sterilization

Explanations for falling fertility

• opportunity costs for women

• changing norms

• higher availability of contraceptives

Evidence papers

Ferrara (2012) - Strong affects of mass communication on young mothers

Bauernschuster (2016)

• expansion of german childcare services led to boosted fertility