HI6008: Relationship Between Income & Fertility Rate- Literature Review Assignment

Literature Review Assignment:


There is a progressive relationship between income and fertility among nations, and crosswise over family units, this converse affiliation is additionally regularly observed. Many studies discover fruitfulness is brought down among better-instructed ladies and is regularly higher among ladies whose families possess more land and resources. It is discovered that higher profit of men increases fertility among young wedded ladies. Holding men’s profit consistent, expanded wages of wedded ladies’ lesser fertility among the younger ladies and raise it among the more reputable ladies. In last three decades, the fertility rate has dropped suddenly in many established and emerging countries.

Literature Review:

Fertility is impacted by countless things, for example, age at marriage, utilization of contraceptives and economic factors like income, education, religion and occupation. But here we discuss more about income and fertility rate. Fertility is frequently higher in poorer families within the public and across nations, those with higher fertility tend to have brought down normal wage. Some sources of family income encourage, and other sources discourage fertility because various sources of family income modify the economic opportunities parents must sacrifice to have another child or the price of children in terms of parental time and market goods (Mincer 1963). According to Aliaksandr Amialchuk, “The classic models of Becker [1960] and Mincer [1963] first explored the connection between women’s wages, household income, and fertility. In these models, children are durable goods in the utility function of parents. While husband’s earnings were traditionally associated with higher demand for children, women’s wages were associated with both household income and the time cost of children, thereby having offsetting income and substitution effects on the demand for children.”

Research Questions/Hypothesis

Primary Question –
1. Why rich people have fewer kids?

Secondary Questions –
1. Why poor families have more children?
2. Why fertility rate goes down when income increases?

Justification – As discussed in the literature review that fertility rate depends on the income of parents. Besides this their occupation, lifestyle matters. Higher salary people do not have time to raise their children properly and wives have their jobs as well. They give more importance to their career.
On the other hand, poor families take their child as a source of income. So, they have more children. As more children, more income.

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