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Equal opportunity and the quantity and quality of Japanese children
Abstract:
"This paper constructs and estimates a simple model of Japanese completed fertility. The analytical model shows that as a woman's lifetime wage rises, there is a decline in average 'quality' per child, but the effect on the quantity of children is ambiguous. Estimation of the model with rare household level data shows that increases in the husband's permanent income raises completed fertility for high income couples, but lowers fertility for the low income. If the wife's education is an appropriate instrument for her lifetime wage, then a rise in the wife's lifetime wage appears to lower her demand for children."
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