Female Literacy Rate and Fertility Rate

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1.Female Literacy

a)Main observation: countries with low fertility rates have high literacy rates and vice versa. Tthe fertility rate of a country is thus inversely proportional to female literacy rate. At the literacy rate of 60%, fertility rate is about 7.72.

At the litaracy rate of 100%, fertility rate is about 1.21.

b)Cost of having a baby
explicit
short term: Birth and pre-natal expenses

long term:Housing
Food
Education
Transport
Clothing
Healthcare
Miscellaneous (entertainment, vacations)

Cost estimated at between USD 10,000 (third world countries)[assuming children are included in study of the poor that live with as low as USD2.50 a day as stated by www.globalissues.org] to USD 235,000 (first world countries) to raise a child from birth to the 18th birthday. This is excluding the cost of tertiary education, which can raise the cost nearer to USD500,000

implicit
Career Advancement
(delayed promotions, no-pay leave, dismissal or resignation from job, employment discrimination)
Alternative Investment in Money spent on child

The cost of raising a child is higher for educated woman. This is because the implicit costs (opportunity costs) are higher for educated women who tend to have better paying jobs and spend more on their children

Trend: The higher the female literacy rate, the higher the education level of women. The higher the education level of women, the higher the cost of raising a child. The higher the cost of raising a child, the lower the number of children are raised. Hence the higher the female literacy rate, the lower the fertility rate.

c. Alternative Explanation 1: Higher fertility rate, more money and time spend on raising child. More money and time spend on child, less money and time for education. Less money and time for education, lower female literacy.

Citations
1.http://www.cnpp.usda.gov/Publications/CRC/crc2011.pdf USDA: Expenditure on Children by...
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