For this study, I examined the literature that motivates and tests it analysis of socioeconomic variables as a possible determinant of fertility phenomena.
The theoretical model for this study is a modified version of the neoclassical theory of consumer behavior, especially Becker’s work. This model suggests that children may be considered as a special kind of consumption good, so that fertility is the result of rational economic choice within the household. The basis idea is that parents seek to maximize their satisfaction by selecting optimum quantities of children, other goods, and children’s quality, subject to an income constraint. Following the traditional neoclassical microeconomic theory of consumer demand, a positive income effect and negative substitute effect is postulated. That is, ceteris paribus, the desired number of children can be expected to vary directly with household income, inversely with the opportunity cost of children and the strength of tastes for goods relative to children. In this model, children like many material objects such as cars and houses, provide utility to the consumer (parent). According to this model parents compare utility derived from children with that derived from other goods. The form of the utility function is assumed to be determined by “taste” which, in turn, may be determined by the family’s religion, race, the like. Fertility is thus seen to be determined by income, child cost, and the tastes.
This paper concentrates on the effects of household income, female labor- force participation, female education, female age at first marriage, and the age structure of female population. The OLS regression technique is used to estimate the parameters in this study. The unit of observation is provincial area in Iran.
The results of the empirical analysis suggest that the basic socio-economic factors identified by the economic theory of fertility are relevant in explaining reproductive behavior in rural Iran.