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| Le Wang and Joao Ricardo Faria |
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| ''Employment and Fertility Choice: A Differential Game Approach'' |
| ( 2007, Vol. 10 No.9 ) |
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| For OECD countries there is
an intriguing variety of combinations between total fertility rate (TFR) and
female labor force participation rate (FPR) suggesting the existence of multiple
equilibria. This paper provides a differential game framework where the
employment choices by husband and wife affect a family's fertility. The model
has multiple open-loop equilibria characterized by different combinations of FPR
and TFR that are consistent with the empirical cross-country evidence. The
dynamic trajectory from one equilibrium point to another also sheds lights on
possible demographic transition of individual countries as displayed in their
time series data. The model stresses that the husband's employment decisions
are as important as wife's in determining family size. |
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| Keywords: |
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| Manuscript Received : Jun 27 2007 | | Manuscript Accepted : Jun 27 2007 |
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