Land ownership, the subsistence constraint, and the demographic transition

Joel M. Guttman, Avi Tillman

Research output: Contribution to journalArticlepeer-review

Abstract

We develop a novel model of fertility choice predicting an increase and subsequent decrease in fertility levels without introducing a quality–quantity tradeoff, mortality changes, or urbanization. The model highlights the roles of a subsistence constraint and non-wage income deriving from the ownership of land. We show that the sign of the effect of the wage rate on fertility depends on whether non-wage income is greater or less than a minimum consumption level. Suggestive evidence supporting the model, on changes in fertility from 1851 to 1891 across French départements, is provided. Finally, we embed our static model in a model of endogenous growth, and provide a numerical illustration of the working of the model.

Original languageEnglish
Pages (from-to)1017-1036
Number of pages20
JournalReview of Economics of the Household
Volume15
Issue number3
DOIs
StatePublished - 1 Sep 2017

Bibliographical note

Publisher Copyright:
© 2015, Springer Science+Business Media New York.

Keywords

  • Demographic transition
  • Fertility decline
  • Land ownership
  • New household economics
  • Subsistence constraint

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