Human capital as a fertility determinant in an economically developed homogenous population

Analyzes the relationship between human capital and fertility in West Germany, an economically developed homogenous society that has been characterized by low and declining birthrates, a rise in educational levels, and increasing female labor force participation for more than a decade and a half. The theoretical links between human capital and fertility are 1st explored within the framework of an informal household optimization model drawn from the economics of fertility literature. Cross sectional empirical relationships are then assessed using OLS regression techniques. The impact of educational measures on desired family size is found to be statistically weaker than in prior studies. Evidence is presented for the existence of a general time trend in tastes as a source of falling fertility. It is argued that these results may stem from the existence of strong norms and other special characteristics of the society, casting doubt on the validity of the economic model in such a setting.