 |
Child Survival and the Decline in Hours Worked
1 : Departamento de Análisis Económico, Universidad del País Vasco
(EHU/UPV)
-
Website
* : Corresponding author
This paper presents a two-periods OLG model in which families make decisions about their labor supply, quantity and quality of children taking into account that spending more per child improves their offspring's survival chances. Due to this last feature, the model can explain why higher earning individuals, despite raising fewer children, devote more time to child-rearing activities and work fewer hours. Moreover, these microeconomic patterns allow us to build a unified growth model that yields a downwards trend in hours worked consistent with recent findings.
