Full Citation

Title: Easterlin revisited: Relative income and the baby boom

Citation Type: Journal Article

Publication Year: 2015

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This paper reexamines the first viable and a still leading explanation for mid-twentieth century baby booms: Richard Easterlin's relative income hypothesis. He suggested that when incomes are higher than material aspirations (formed in childhood), birth rates would rise. This paper uses microeconomic data to formulate a measure of an individual's relative income. The use of microeconomic data allows the researcher to control for both state fixed effects and cohort fixed effects, both have been absent in previous examinations of Easterlin's hypothesis. The results of the empirical analysis are consistent with Easterlin's assertion that relative income influenced fertility decisions, although the effect operates only through childhood income. When the estimated effects are contextualized, they explain 12% of the U.S. baby boom.

Url: http://www.sciencedirect.com/science/article/pii/S0014498314000412

User Submitted?: No

Authors: Hill, Matthew J.

Periodical (Full): Explorations in Economic History

Issue:

Volume: 56

Pages: 71-85

Data Collections: IPUMS USA

Topics: Fertility and Mortality

Countries: