corresponding drop in fertility. This is contrary to the robust negative relationship between income and fertility that has been … income. The model predicts that: i) the perceived level of subsistence consumption fundamentally determines whether fertility … and income are positively or negatively related; ii) once incomes decline below a threshold, declining labor income causes …

idiosyncratic labor income risk. Ceteris paribus, an individual would prefer to marry a "hedge" (i.e. a spouse whose income is … love is very persistent, for example, and the resolution of uncertainty to agents' income is early, then those who in fact … resolution of uncertainty to agents' income is predominantly later, then those who in fact marry hedges will in fact be less …