Fertility rate and Income Inequality

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Fertility rate and Income Inequality

Postby 3Boys » Wed Aug 15, 2012 2:33 pm

An interesting read, I thought.

--> http://www.economist.com/node/21560247? ... abymonitor

"ECONOMIES benefit when people start having smaller families. As fertility falls, the share of working-age adults in the population creeps up, laying the foundation for the so-called “demographic dividend”. With fewer children, parents invest more in each child’s education, increasing human capital. People tend to save more for their retirement, so more money is available for investment. And women take paid jobs, boosting the size of the workforce. All this is good for economic growth and household income. A recent NBER study* estimated that a decrease of Nigeria’s fertility rate by one child per woman would boost GDP per head by 13% over 20 years. But not every consequence of lower fertility is peachy. A new study by researchers at the Harvard School of Public Health identifies another and surprising effect: higher inequality in the short term."

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Re: Fertility rate and Income Inequality

Postby verykiasu2010 » Wed Aug 15, 2012 3:30 pm

3Boys wrote:An interesting read, I thought.

--> http://www.economist.com/node/21560247? ... abymonitor

"ECONOMIES benefit when people start having smaller families. As fertility falls, the share of working-age adults in the population creeps up, laying the foundation for the so-called “demographic dividend”. With fewer children, parents invest more in each child’s education, increasing human capital. People tend to save more for their retirement, so more money is available for investment. And women take paid jobs, boosting the size of the workforce. All this is good for economic growth and household income. A recent NBER study* estimated that a decrease of Nigeria’s fertility rate by one child per woman would boost GDP per head by 13% over 20 years. But not every consequence of lower fertility is peachy. A new study by researchers at the Harvard School of Public Health identifies another and surprising effect: higher inequality in the short term."


yet to read the details but my hunch is it can't be rosy all the time

it will be a long cycle of boom and bust once the non-econ productive silver population becomes a majority, the economic burden to the families and the society will be huge. shanghai and beijing are already seeing it faster than they imagined
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