Human Capital, Mortality and Fertility: A Unified Theory of the Economic and Demographic Transition
Series
IZA - Discussion papers
Type
discussion paper
Date Issued
2007-07-01
Author(s)
Sunde, Uwe
;
Cervellati, Matteo
Abstract
This paper argues that accounting for the dynamic interactions between endogenous changes in longevity, the education composition of the population, and the associated fertility differential is crucial for understanding the economic and the demographic transition. In the model, heterogeneous individuals make optimal decisions about fertility, education of their children and type and intensity of investments in their own education. The interplay between different dimensions of mortality, and education and fertility decisions delivers a phase transition that replicates stylized facts that previously have been difficult to reconcile. Simulations illustrate the model dynamics and their consistency with historical and cross-country data.
Language
English
Keywords
long-term development
demographic transition
endogenous life expectancy
child mortality
heterogeneous human capital
technological change
industrial revolution
HSG Classification
contribution to practical use / society
Refereed
Yes
Publisher
IZA
Number
2905
Start page
1
End page
56
Pages
56
Subject(s)
Division(s)
Eprints ID
71610