The Value of Time and The Interaction of the Quantity & Quality of Children

    Research output: Journal PublicationsJournal Article (refereed)

    Abstract

    Based on Becker's (1965) insight that consumption is costly in terms of both time and money, this paper extends the existing literature by assuming that the consumption of quantities is relatively time-intensive, while the consumption of qualities is relatively money-intensive, The analysis implies that the quantity of children is positively correlated with income only when incomes are relatively low. When people's incomes increase to a certain threshold level, fertility rate will decrease and will ultimately approach to a certain stable level as incomes rise. On the other hand, the analysis implies that the quality of children is not strongly correlated with income with incomes are low. However, when people's incomes reach a certain threshold level. further income increases will mainly lead to the increases of quality, rather than quantity, of children. Thus, this paper provides a unified theory that simultaneously explains why fertility is positively correlated with income when people's incomes are relatively low and why only the quality, but not the quantity. of children is positively correlated with income when people's incomes are relatively high.
    Original languageEnglish
    Pages (from-to)135-158
    JournalSeoul Journal of Economics
    Volume10
    Issue number2
    Publication statusPublished - 1997

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    Income
    Interaction
    Value of time
    Fertility
    Fertility rate

    Cite this

    @article{f5c98b3ca8c34dcabd6eb21276f955fe,
    title = "The Value of Time and The Interaction of the Quantity & Quality of Children",
    abstract = "Based on Becker's (1965) insight that consumption is costly in terms of both time and money, this paper extends the existing literature by assuming that the consumption of quantities is relatively time-intensive, while the consumption of qualities is relatively money-intensive, The analysis implies that the quantity of children is positively correlated with income only when incomes are relatively low. When people's incomes increase to a certain threshold level, fertility rate will decrease and will ultimately approach to a certain stable level as incomes rise. On the other hand, the analysis implies that the quality of children is not strongly correlated with income with incomes are low. However, when people's incomes reach a certain threshold level. further income increases will mainly lead to the increases of quality, rather than quantity, of children. Thus, this paper provides a unified theory that simultaneously explains why fertility is positively correlated with income when people's incomes are relatively low and why only the quality, but not the quantity. of children is positively correlated with income when people's incomes are relatively high.",
    author = "FAN, {Chengze Simon}",
    year = "1997",
    language = "English",
    volume = "10",
    pages = "135--158",
    journal = "Seoul Journal of Economics",
    issn = "1225-0279",
    publisher = "Seoul National University",
    number = "2",

    }

    The Value of Time and The Interaction of the Quantity & Quality of Children. / FAN, Chengze Simon.

    In: Seoul Journal of Economics, Vol. 10, No. 2, 1997, p. 135-158.

    Research output: Journal PublicationsJournal Article (refereed)

    TY - JOUR

    T1 - The Value of Time and The Interaction of the Quantity & Quality of Children

    AU - FAN, Chengze Simon

    PY - 1997

    Y1 - 1997

    N2 - Based on Becker's (1965) insight that consumption is costly in terms of both time and money, this paper extends the existing literature by assuming that the consumption of quantities is relatively time-intensive, while the consumption of qualities is relatively money-intensive, The analysis implies that the quantity of children is positively correlated with income only when incomes are relatively low. When people's incomes increase to a certain threshold level, fertility rate will decrease and will ultimately approach to a certain stable level as incomes rise. On the other hand, the analysis implies that the quality of children is not strongly correlated with income with incomes are low. However, when people's incomes reach a certain threshold level. further income increases will mainly lead to the increases of quality, rather than quantity, of children. Thus, this paper provides a unified theory that simultaneously explains why fertility is positively correlated with income when people's incomes are relatively low and why only the quality, but not the quantity. of children is positively correlated with income when people's incomes are relatively high.

    AB - Based on Becker's (1965) insight that consumption is costly in terms of both time and money, this paper extends the existing literature by assuming that the consumption of quantities is relatively time-intensive, while the consumption of qualities is relatively money-intensive, The analysis implies that the quantity of children is positively correlated with income only when incomes are relatively low. When people's incomes increase to a certain threshold level, fertility rate will decrease and will ultimately approach to a certain stable level as incomes rise. On the other hand, the analysis implies that the quality of children is not strongly correlated with income with incomes are low. However, when people's incomes reach a certain threshold level. further income increases will mainly lead to the increases of quality, rather than quantity, of children. Thus, this paper provides a unified theory that simultaneously explains why fertility is positively correlated with income when people's incomes are relatively low and why only the quality, but not the quantity. of children is positively correlated with income when people's incomes are relatively high.

    M3 - Journal Article (refereed)

    VL - 10

    SP - 135

    EP - 158

    JO - Seoul Journal of Economics

    JF - Seoul Journal of Economics

    SN - 1225-0279

    IS - 2

    ER -