Abstract
This research theoretically analyzes the role of irreversible fertility decisions in economic growth in the presence of idiosyncratic ability shocks after childbirth. It argues that the irreversibility constraint delays the growth process by distorting the resource allocation between the quantity and quality of children. In underdeveloped stages, where family size is locked into large levels, education investment places a heavy financial burden on households. The impossibility of ex post fertility adjustment then deprives some competent children of learning opportunities. In more developed stages, by contrast, family size locked into smaller levels facilitates education investment even in some incompetent children. A redistributive policy to enhance aggregate human capital and the growth performance is proposed for each stage.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
