Differences in fertility determinants: Developed and developing countries

Abstract

This study estimates two separate fertility models for developed and underdeveloped countries to determine if they are the same. The model differs from past studies in two respects: (1) a simultaneous equation model is used, and (2) an opportunity cost of fertility is included in the fertility equation. When this more complete model of fertility is used, the sets of regression coefficients of the fertility equations of developed and developing countries prove hereroge‐neous, contrary to the conclusions of past studies. Thus, it is suggested that development planning’ in underdeveloped and developed countries might proceed differently as far as the population variable is concerned. Underdeveloped countries may find it necessary to allocate scarce capital to investment in human beings, for this seems to be a powerful tool whereby population growth can be limited. On the other hand, developed countries might find it advantageous to invest in human capital and also to encourage greater female participation in the labour force to limit fertility.

Notes

Benjamin Cheng is a research assistant, Department of Economics, University of Oklahoma. The authors wish to thank Professor C. K. Liew for his assistance. In addition, they are grateful to the Department of Economics and to the Bureau for Business and Economic Research of the University of Oklahoma for their support. We would also like to thank an anonymous reviewer of this journal for his comments.