Desire and Development

33 Pages Posted: 28 Jan 2016

See all articles by Holger Strulik

Holger Strulik

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences

Date Written: January 26, 2016

Abstract

This paper explores the impact of gender differences in the desire for sex and the distribution of power in the household on the onset of the demographic transition and the take-off to growth. Depending on the price and efficacy of modern contraceptives, the gender wage gap, and female bargaining power, the economy assumes one of two possible equilibria. At the traditional equilibrium, contraceptives are not used, fertility is high and education and growth are low. At the modern equilibrium, contraceptives are used, fertility is low and further declining with increasing income, and education and growth are high. The theory motivates a “wanted fertility reversal”: At the traditional equilibrium, men prefer more children than women whereas at the modern equilibrium, men prefer fewer children than women. Female empowerment nudges households to provide more education for their children and leads to an earlier uptake of modern contraceptives and an earlier onset of the demographic transition and the take-off to modern growth.

Keywords: fertility, sex, contraceptive use, education, economic development

JEL Classification: O40, I25, J10, N30

Suggested Citation

Strulik, Holger, Desire and Development (January 26, 2016). Available at SSRN: https://ssrn.com/abstract=2722557 or http://dx.doi.org/10.2139/ssrn.2722557

Holger Strulik (Contact Author)

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences ( email )

Germany

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