Schooling, Skill Demand, and Differential Fertility in the Process of Structural Transformation
American Economic Journal: Macroeconomics
vol. 15,
no. 4, October 2023
(pp. 305-30)
Abstract
Demography and structural transformation are interrelated, and depend critically on education. At the turn of the twentieth century, US parents began having fewer children while increasing educational investment per child. This quantity-quality tradeoff facilitated job reallocation from the low-skilled agricultural sector to the high-skilled nonagricultural sector. This transformation is examined in a heterogeneous agent model with a nondegenerate human capital distribution, focusing on how fertility and education decisions affect structural transformation. The result shows that the quantity-quality decisions account for up to approximately one-third of the decline in the agricultural employment share.Citation
Cheung, T Terry. 2023. "Schooling, Skill Demand, and Differential Fertility in the Process of Structural Transformation." American Economic Journal: Macroeconomics, 15 (4): 305-30. DOI: 10.1257/mac.20180348Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- I21 Analysis of Education
- I26 Returns to Education
- J11 Demographic Trends, Macroeconomic Effects, and Forecasts
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- N31 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: Pre-1913
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