Comparative Advantage, International Trade, and Fertility

We analyze theoretically and empirically the impact of comparative advantage in international trade on fertility. We build a model in which industries differ in the extent to which they use female relative to male labor, and countries are characterized by Ricardian comparative advantage in either fe...

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Main Authors: Do, Quy-Toan, Levchenko, Andrei A., Raddatz, Claudio
Format: Journal Article
Language:en_US
Published: Elsevier 2016
Subjects:
Online Access:http://hdl.handle.net/10986/23674
id okr-10986-23674
recordtype oai_dc
spelling okr-10986-236742021-04-23T14:04:16Z Comparative Advantage, International Trade, and Fertility Do, Quy-Toan Levchenko, Andrei A. Raddatz, Claudio fertility trade integration comparative advantage We analyze theoretically and empirically the impact of comparative advantage in international trade on fertility. We build a model in which industries differ in the extent to which they use female relative to male labor, and countries are characterized by Ricardian comparative advantage in either female-labor or male-labor intensive goods. The main prediction of the model is that countries with comparative advantage in female-labor intensive goods are characterized by lower fertility. This is because female wages, and therefore the opportunity cost of children are higher in those countries. We demonstrate empirically that countries with comparative advantage in industries employing primarily women exhibit lower fertility. We use a geography-based instrument for trade patterns to isolate the causal effect of comparative advantage on fertility. 2016-01-19T20:30:22Z 2016-01-19T20:30:22Z 2015-10-23 Journal Article Journal of Development Economics 0304-3878 http://hdl.handle.net/10986/23674 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic fertility
trade integration
comparative advantage
spellingShingle fertility
trade integration
comparative advantage
Do, Quy-Toan
Levchenko, Andrei A.
Raddatz, Claudio
Comparative Advantage, International Trade, and Fertility
description We analyze theoretically and empirically the impact of comparative advantage in international trade on fertility. We build a model in which industries differ in the extent to which they use female relative to male labor, and countries are characterized by Ricardian comparative advantage in either female-labor or male-labor intensive goods. The main prediction of the model is that countries with comparative advantage in female-labor intensive goods are characterized by lower fertility. This is because female wages, and therefore the opportunity cost of children are higher in those countries. We demonstrate empirically that countries with comparative advantage in industries employing primarily women exhibit lower fertility. We use a geography-based instrument for trade patterns to isolate the causal effect of comparative advantage on fertility.
format Journal Article
author Do, Quy-Toan
Levchenko, Andrei A.
Raddatz, Claudio
author_facet Do, Quy-Toan
Levchenko, Andrei A.
Raddatz, Claudio
author_sort Do, Quy-Toan
title Comparative Advantage, International Trade, and Fertility
title_short Comparative Advantage, International Trade, and Fertility
title_full Comparative Advantage, International Trade, and Fertility
title_fullStr Comparative Advantage, International Trade, and Fertility
title_full_unstemmed Comparative Advantage, International Trade, and Fertility
title_sort comparative advantage, international trade, and fertility
publisher Elsevier
publishDate 2016
url http://hdl.handle.net/10986/23674
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