How does the effect of child mortality reductions on fertility and educationvary across educational systems? To answer this question, we developan overlapping-generations model where altruistic parents care about both thenumber and human capital of their surviving children. We find that, under aprivate education system, if income is low initially, the economy converges toa Malthusian stagnation steady state. For a high level of initial income, theeconomy reaches a growth path in which children’s education rises and fertilitydecreases with income. In the growth regime under private education, exogenousshocks that lower child mortality are detrimental for growth: fertilityincreases and education declines. In contrast, under a public education system,the stagnation steady state does not exist, and health improvement shocks areno longer detrimental for growth. We therefore offer a new rationale for theintroduction of public education.
|Numero di pagine||24|
|Rivista||Journal of Population Economics|
|Stato di pubblicazione||Published - 2009|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics