ECONOMIC VALUE OF CHILDREN IN INDIA

In recent years, there is greater awareness among economists and policymakers in India that the households" decisions on expenditures or investments in human capital such as education, health, nutrition, and children are important in influencing the rate and pattern of economic growth and income distribution. However, very little research work was done in extending the economic analysis to explain fertility behavior in India. The results of an analysis of the determinants of parent demand for children in rural India are presented. There are two primary reasons why the analysis in this paper is restricted to rural households. A brief description of the theoretical framework for the analysis of the data is given. The empirical results indicate that the area of land cultivated by the household and high child mortality rates will increase fertility. Wife"s education and reduction in child mortality levels will reduce the fertility rate. The results of the limited exercise demonstrate the usefulness of the economic framework for analysis which suggests that parents in rural India, in deciding the number of births they will have, do respond to the advantages and disadvantages of having children.