NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Daniel Chen

ETH Zurich

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NBER Working Papers and Publications

March 2013The Construction of Morals
with Susan Yeh
in Economics of Religion and Culture, Daniel Hungerman and Daniel L. Chen, editors
February 2000Income-distribution Dynamics with Endogenous Fertility
with Michael Kremer: w7530
Developing countries with highly unequal income distributions, such as Brazil or South Africa, face an uphill battle in reducing inequality. Educated workers in these countries have a much lower birthrate than uneducated workers. Assuming children of educated workers are more likely to become educated, this tends to increase the proportion of unskilled workers, reducing their wages, and thus their opportunity cost of having children, creating a vicious cycle. A model incorporating this effect generates multiple steady-state levels of inequality, suggesting that in some circumstances, temporarily increasing access to educational opportunities could permanently reduce inequality. Empirical evidence suggests that the fertility differential between the educated and uneducated is greater in ...

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