Human Capital and Ferility Decisions: A Comparative Microeconometric Analysis in Europe

Abstract

In this paper we have investigated the relationship between human capital proxied by the schooling level and fertility decisions for some EU countries. For this purpose we have resorted to a dynamic random effect probit model controlling for unobserved heterogeneity and initial problem, by using eight waves of 2001 European Community Household Panel (ECHP) data. The main objective has been to compare the effects of education on the probability of having a child for some EU countries. Since the probability of having a child is affected by the same probability related to the previous year, we have implemented a dynamic model instead of a static one. From the empirical results, we have found out a significant relationship between the schooling level and fertility decisions.