From Malthus to modern growth : child labor, schooling and human capital

Vogel, Edgar

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URL:	https://ub-madoc.bib.uni-mannheim.de/2385
URN:	urn:nbn:de:bsz:180-madoc-23855
Document Type:	Working paper
Year of publication:	2008
The title of a journal, publication series:	Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung
Volume:	08-42
Place of publication:	Mannheim
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject:	300 Social sciences, sociology, anthropology
Classification:	JEL: O40 O11 J11 J13 I12 ,
Subject headings (SWD):	Bevölkerungsentwicklung , Kindersterblichkeit , Soziale Sicherheit , Kinderarbeit , Humankapital , Wachstum
Keywords (English):	Demographic transition , child mortality , precautionary demand , child labor , human capital , growth
Abstract:	This paper develops a dynamic general equilibrium model of fertility, human capital accumulation, child labor and uncertain child survival focusing on the qualitative and quantitative effect of declining mortality on household decisions and economic development. Due to uncertainty about child survival, parents have a precautionary demand for children. Rising survival probability leads to falling fertility, eventually to investment into schooling and the demise of child labor. Child labor can be an obstacle to development since it lowers the incentives of parents to educate children. Furthermore, the paper argues that the decline of precautionary child demand as a consequence of falling mortality is not sufficient to generate a demographic transition. Falling mortality can only explain a relatively small part of the fertility decline. A sizable reduction in fertility can only be achieved by human capital investment and the induced quantity-quality trade off.