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BEQUEST RECEIPT AND FAMILY SIZE EFFECTS
Author(s) -
GRAWE NATHAN D.
Publication year - 2010
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2008.00208.x
Subject(s) - bequest , receipt , economics , panel study of income dynamics , earnings , quality (philosophy) , panel data , fertility , demographic economics , labour economics , econometrics , population , demography , finance , accounting , philosophy , epistemology , sociology , political science , law
This article tests the connection between credit constraints and negative family size effects on child earnings using bequest receipt to signal access to credit markets. The dominant economic model of fertility predicts a negative relationship between family size and child achievement. In the model, limits on borrowing create this “quality‐quantity trade‐off.” This article tests for the relevance of credit constraints using Panel Study of Income Dynamics data to compare family size effects across groups defined by bequest receipt. Contrary to the credit constraints explanation, those receiving large bequests exhibit large family size effects, while those not receiving bequests show little to no effect . ( JEL J13, D1, I2)