Relative income and fertility

Area of Science:

• Sociology
• Demography
• Economics

Background:

• The relative income hypothesis suggests individuals
• base financial decisions on income relative to their social group.
• Previous research primarily focused on cumulative fertility.

Purpose of the Study:

• To examine the relationship between relative income and fertility behaviors.
• To test assumptions of the relative income model of fertility.
• To investigate relative income's impact on birth spacing and cumulative fertility.

Main Methods:

• Utilized data from the 1967-1968 Canadian Family Growth Study.
• Analyzed the association between relative income and fertility, including spacing behavior.
• Tested specific hypotheses regarding fertility norms, consumption, and relative income.

Main Results:

• Relative income demonstrated a stronger association with birth spacing than cumulative fertility.
• The relationship was most pronounced in couples with high education, occupation, and life planning.
• Hypotheses supporting the relative income model were confirmed in the expected direction.

Conclusions:

• The relative income model provides a valid framework for understanding fertility decisions.
• Relative income is a significant predictor of fertility spacing, particularly for certain demographic groups.
• The model shows predictive capability for correlative behaviors beyond fertility.