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