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Lam, David, and Kermyt G. Anderson. Women’s schooling, fertility, and investments in children in South Africa. Presented at the Population Association of America, May 2002.
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It is widely observed that parental schooling has a negative effect on fertility and a positive effect on children’s schooling outcomes. This paper explores the mechanisms through which schooling affects fertility and investments in children, and examines empirical evidence from South Africa. Modeling the effects of schooling on choices about the quality and quantity of children, we demonstrate that a plausible outcome of increased parental schooling is that parents will increase investments in child quality while decreasing the quantity of children. We show that increases in wives’ labor supply need not accompany the decrease in fertility, since home productivity may rise s fast as labor market productivity, especially at low levels of schooling. Empirical evidence from South African survey data indicates surprisingly weak effects of schooling on female labor supply at low schooling levels, in spite of declines in fertility and increases in market wages. There are much stronger effects of parental schooling on children’s schooling attainment. The results suggest that the most important effects of schooling on fertility work through increased investments in child quality, with a relatively small role played by increases in wages and labor market opportunities. 

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Last modified: 05-30-03
by Kermyt G. Anderson
    

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