Do Higher Rents Discourage Fertility? Evidence from US Cities, 1940-2000

60 Pages Posted: 27 Feb 2008

See all articles by Curtis J. Simon

Curtis J. Simon

Clemson University

Robert Tamura

Clemson University - John E. Walker Department of Economics; Federal Reserve Bank of Atlanta

Date Written: February 15, 2008

Abstract

This paper documents the existence of a negative cross-sectional correlation between the price of living space and fertility using U.S. Census data over the period 1940-2000. This correlation is not spurious, nor does it reflect the tendency of larger families to locate within less-expensive areas of a given metropolitan area. We examine the extent to which the results reflect the sorting of married couples across metropolitan areas on desired fertility. The relationship between the unit price of living space and fertility in fact tends to be more negative for households that have moved recently. However, the probability of migration between metropolitan areas is smaller for larger families, even those originating in more expensive cities. Moreover, Durbin-Wu-Hausman tests reveal only limited evidence of endogeneity. The weaker effects of the price of living space for less mobile couples seems to be at least in part a result of their choosing to live in less-expensive portions within a given metropolitan area.

Keywords: fertility, price of space, metropolitan differences

JEL Classification: J13, R21, R23

Suggested Citation

Simon, Curtis J. and Tamura, Robert, Do Higher Rents Discourage Fertility? Evidence from US Cities, 1940-2000 (February 15, 2008). Available at SSRN: https://ssrn.com/abstract=1098847 or http://dx.doi.org/10.2139/ssrn.1098847

Curtis J. Simon

Clemson University ( email )

Clemson, SC 29634
United States
8646563966 (Phone)
8646564192 (Fax)

HOME PAGE: http://people.clemson.edu/~cjsmn/

Robert Tamura (Contact Author)

Clemson University - John E. Walker Department of Economics ( email )

Clemson, SC 29634
United States
864-656-1242 (Phone)
864-656-4192 (Fax)

Federal Reserve Bank of Atlanta

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

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