• sub: time spent away is worth more
  • income: wages up, now that we can afford more, more CS
  • net effect: increase CS
  • quality: how good the life is
  • quantity: how many children
  • sub effect → price of CS up so you should reduce in order to work more
  • income effect → we feel richer, more goods
  • pin down relative magnitudes
    • use unique lack of sub. for mother's time
  • working generates more money, more income to finance investment in child quality
  • demand shift for quality is larger than for quantity
  • demand shift: if mother's wages go up, generating CS more costly
  • demand shifts more bc it is easier to sub income for quality
  • mother's time plays bigger role in quantity
  • quality: income larger than substitution
  • when mother's wages go up, what happens to CS?
    • reduce quantity in children, but increase quality

  • leading explanation for reduced fertility: increase in women's wages

  • other explanations:

    1. men's wages
    2. improved contraception
      • allows people to have control
    3. women's labor force participation goes up
    4. changing preferences

    SF = shared marital output to woman

    • women are the supply curve
    • men are demanders
    • y axis: women's well-being
    • leftward shift of demand
      • less demand
    • men less willing to marry if SF goes up