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Comparative Advantage, International Trade, and Fertility

Author

Listed:
  • Quy-Toan Do

    (The World Bank)

  • Andrei A. Levchenko

    (University of Michigan and NBER)

  • Claudio Raddatz

    (Central Bank of Chile)

Abstract
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- or male-intensive goods. The main prediction of the model is that countries with comparative advantage in female-intensive goods are characterized by lower fertility. This is because female wages, and therefore the opportunity cost of child-rearing 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.

Suggested Citation

  • Quy-Toan Do & Andrei A. Levchenko & Claudio Raddatz, 2012. "Comparative Advantage, International Trade, and Fertility," Working Papers 624, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:624
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    More about this item

    Keywords

    Fertility; trade integration; comparative advantage; factor endowments;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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