THE ECONOMIC VALUE OF CHILDREN IN VIETNAM

Vietnam has some of the highest land densities in the world, and its population is still growing. This paper studies the causes of population growth with a focus on the economic value of children. I develop a model of household demand for children that emphasizes the allocation of childrens time across productive activities: work on the farm, in the labor market, and going to school. Demand for child labor on the farm and in the family enterprise, school attendance, and mothers schooling are estimated to have a large effect on family size. Child mortality, son preference, and access to contraceptives also affect family size but the magnitude of the effect is small. The results suggest that the governments focus on contraceptive delivery to reduce Vietnams population growth should be complemented by policies that affect the economic motives for having children