Parental Transfers, Intra-household Bargaining and Fertility Decision

Emin Gahramanov, Khusrav Gaibulloev and Younas Javed
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Younas Javed: Economics, American University of Sharjah, Sharjah, United Arab Emirates

The B.E. Journal of Economic Analysis & Policy, 2019, vol. 19, issue 1, 17

Abstract: This paper examines the role of parental transfers on family size. We introduce a simple theoretical model of fertility decision where preferences towards children may differ between female and male spouses. Parental transfers increase both the household income and the bargaining power of the recipient spouse. Therefore, transfers from wife’s and husband’s parents may have dissimilar effects on the number of children. Our empirical result, based on a unique household-level data for Japan, supports this hypothesis. In particular, received transfers from the wife’s parents are negatively associated with the demand for children. In contrast, both received and expected transfers from the husband’s parents are positively associated with the demand for children. These results hold important policy implications.

Keywords: family size; fertility; parental transfers; bargaining power; collective framework; quantity-quality model (search for similar items in EconPapers)
JEL-codes: D10 D64 J13 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1515/bejeap-2018-0118

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