More on the determinants of the fertility transition

The economic approach to fertility is an application of the economics theory of consumer behavior. It is assumed that consumers of children are utility-maximizers with stable preferences over time. Thus, changes in fertility are related to changes in household income and the "price" of children. One concern in this approach is that demographic changes are a product of changes in tastes rather than exogenous changes in economic factors such as the earning ability of women. In this paper, the effect of economic variables on the demand for children in the United States in 1950, 1960, 1970, and 1980 is examined. Support is provided for the hypothesis that the earning ability of women is an important determinant of fertility.