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Brooks Wilson's Economics Blog: Are Kids Normal or Inferior Goods?

Tuesday, June 14, 2011

Are Kids Normal or Inferior Goods?

Justin Wolfers asks the following question in post in Freakonomics.

Are you likely to have more kids if you are rich or poor?  Or to put this in econo-jargon: Are kids normal or inferior goods?  (Reminder: When you get rich you buy more of a “normal good,” and less of an “inferior good.” And yes, the language of economics can be a bit cold.)

Read the post “The Rich vs Poor Debate: Are Kids Normal or Inferior Goods?” to get the answer.

1 comment:

  1. Morgan Heeke3/7/11 10:57 PM

    I believe that children are an inferior good. The average cost of having a child is over $200,000, which for many families is several years of income. If you are not financially set and you start a family, you will struggle. Many people don't seem to realize all of the small costs for having a child. Many women stay at home to raise their children because they realize the opportunity cost of staying at home is less than paying a nanny.