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Comparative advantage, international trade, and fertility, Volume 1
 
Author:Do, Quy-Toan; Levchenko, Andrei; Raddatz, Claudio; Country:World;
Date Stored:2014/06/18Document Date:2014/06/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Trade Policy; Labor Policies; Population Policies; Labor Markets
Language:EnglishMajor Sector:Industry and trade
Rel. Proj ID:1W-Globalization And The Gender Gap -- -- P146041;Region:The World Region
Report Number:WPS6930Sub Sectors:Other domestic and international trade
Collection Title:Policy Research working paper ; no. WPS 6930Volume No:1

Summary: This paper analyzes theoretically and empirically the impact of comparative advantage in international trade on fertility. It builds 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. The paper demonstrates empirically that countries with comparative advantage in industries employing primarily women exhibit lower fertility. The analysis uses a geography-based instrument for trade patterns to isolate the causal effect of comparative advantage on fertility.

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