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.
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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.
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