Post on 20-Sep-2015
description
Demography
February 14, 2015
Buddhi Nirukshi Panagoda
Lahara Ranaweera
Readings
Banerjee, A.V., and Duflo, E., (2006). The Economic Lives of the Poor.
Udry, Christopher, (2004). Child Labor,
Chapter 9: Population Growth and Economic Development, Development Economics, pp. 314 325.
Chapter 3: Population, Development Microeconomics, pp. 20 32.
- Banerjee and Duflo -
Mortality Large number of children &
Fertility Elderly dependents
Fertility Fewer dependents &
More ability to save and invest
Relationship between Poverty and Population Growth
Lack of access to
education and health care
Few job prospects
& low earnings
Poor health &
nutrition; stunted
physical/mental
development
Lack
of energy
Poor
performance in school,
work, & overall learning
Lack of job prospects outside of manual labor, subsistence
farming
More children needed to provide labor and
security in old age
Return on Investment
Children
Parents investment in
his/her human capital
Adults
Produces income, makes transfers to parents, and
invests in children
Elderly
Receives transfers from children and
returns from assets
More Children = More Return on Investment
Cost- Benefit Approach
More Children = More Cost
Direct Cost
Food, Health Care, Education, etc.
Indirect Cost
Income foregone in the process of bringing up the child
Different Preferences...?
Educated Mother:
Knowledge to limit child birth
Higher value on education
Fewer children with higher
investment in human capital in
each child
Attitude Matters!
Poverty is not an accident.
Like slavery and apartheid,
it is man-made and can be removed
by the actions of human beings.
- Nelson Mandela