TY - JOUR
T1 - Redistribution, fertility, and growth
T2 - The effect of the opportunities abroad
AU - Azarnert, Leonid V.
PY - 2004/8
Y1 - 2004/8
N2 - This article analyzes the effect of the opportunities abroad on the growth path that a small open economy, in which redistribution policy in favor of less prosperous segments takes place, is expected to follow. The model shows that redistribution policy raises fertility among the unskilled recipients, lowers fertility among the contributing skilled, slows human capital accumulation, and reduces per-capita output growth. The paper demonstrates that the opportunities abroad determine the share of income redistributed and ultimately induce the offspring of the unskilled to invest in human capital and decrease their family size.
AB - This article analyzes the effect of the opportunities abroad on the growth path that a small open economy, in which redistribution policy in favor of less prosperous segments takes place, is expected to follow. The model shows that redistribution policy raises fertility among the unskilled recipients, lowers fertility among the contributing skilled, slows human capital accumulation, and reduces per-capita output growth. The paper demonstrates that the opportunities abroad determine the share of income redistributed and ultimately induce the offspring of the unskilled to invest in human capital and decrease their family size.
KW - Economic growth
KW - Human capital
KW - Redistribution
UR - http://www.scopus.com/inward/record.url?scp=3042690665&partnerID=8YFLogxK
U2 - 10.1016/j.euroecorev.2003.09.005
DO - 10.1016/j.euroecorev.2003.09.005
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AN - SCOPUS:3042690665
SN - 0014-2921
VL - 48
SP - 785
EP - 795
JO - European Economic Review
JF - European Economic Review
IS - 4
ER -
