This paper benefited from the helpful comments of two anonymous referees, Patricia Apps, Bruce Chapman, Jenny Corbett, Akira Kawaguchi, Peter McDonald and other participants of AJRC 2011 and ACE 2011. The usual disclaimer applies.
Economic Growth, Gender Wage Gap and Fertility Rebound*
Article first published online: 27 JUN 2012
© 2012 The Economic Society of Australia
Special Issue: Selected Papers from the 40th Australian Conference of Economists
Volume 88, Issue Supplement s1, pages 88–99, June 2012
How to Cite
DAY, C. (2012), Economic Growth, Gender Wage Gap and Fertility Rebound. Economic Record, 88: 88–99. doi: 10.1111/j.1475-4932.2012.00799.x
- Issue published online: 27 JUN 2012
- Article first published online: 27 JUN 2012
Fertility and per capita income are now positively associated across most high income OECD countries. Low fertility and a gender wage gap persist in Japan. This paper presents a model where endogenous increases in the price of child-care and gender equity in the allocation of capital play important roles in the effect of per capita income growth and rising female relative wages on fertility. Results indicate that a positive relationship between fertility and per capita income is not robust: overall fertility rises with female relative wages if child-care productivity is sufficiently high; female relative wages may not rise with per capita income if men work with increasing capital relative to women.