Redistribution, fertility, and growth: The effect of the opportunities abroad

Leonid V. Azarnert

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


This article analyzes the effect of the opportunities abroad on the growth path that a small open economy, in which redistribution policy in favor of less prosperous segments takes place, is expected to follow. The model shows that redistribution policy raises fertility among the unskilled recipients, lowers fertility among the contributing skilled, slows human capital accumulation, and reduces per-capita output growth. The paper demonstrates that the opportunities abroad determine the share of income redistributed and ultimately induce the offspring of the unskilled to invest in human capital and decrease their family size.

Original languageEnglish
Pages (from-to)785-795
Number of pages11
JournalEuropean Economic Review
Issue number4
StatePublished - Aug 2004
Externally publishedYes


  • Economic growth
  • Human capital
  • Redistribution


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