In about last three decades, many developing countries have experienced a large decline in maternal mortality rates. Global initiatives leading to better maternal health policies may have contributed to this decline. In this paper, we investigate whether maternal health intervention also improves the fetal survival rate. For this purpose, we consider the Village Midwife Program in Indonesia, which was launched in 1989 as a part of the safe motherhood strategy. Using the Indonesian Family Life Survey (IFLS), we investigate the impact of midwives on fetal survival rate in terms of a change in the likelihood of a live birth being male. Our results show that the provision of a midwife in a community increases the probability of a live birth being male by about 3 percentage points. Greater antenatal care, skilled birth-attendance, and an improvement in nutrition among reproductive-age women—in terms of greater BMI—are the likely pathways. We do not find the results to be driven by pre-treatment trends, and they remain robust to a number of checks.

Since the seminal work of Becker, the dynamics of endogenous fertility has been based on the trade-off faced by parents between the quantity and the quality of their children. However, in developing countries, where child labor is an indispensable source of household income, parents actually incur a negative cost by having an extra child, so that the trade-off disappears. The purpose of this paper is to restore the Beckerian quantity–quality trade-off when intergenerational transfers are upstream, in order to keep fertility endogenous. We do that by adding a negative “sibship size effect” on human capital formation to the standard Becker model. With a simple specification, we obtain multiplicity of steady states or, more fundamentally, the possibility of a jump from a state with high fertility and low income to a state with low fertility and high income, triggered by a continuous increase in the productivity of human capital formation.

This paper analyzes policies by means of which a whole society in an initial state of illiteracy and low productivity can raise itself into a condition of continuous growth. Using an overlapping generations model in which human capital is formed through child rearing and formal education, we show that an escape from a poverty trap, in which children work full time and no human capital accumulation takes place, is possible through compulsory education or programs of taxes and transfers. If school attendance is unenforceable, temporary inequality is unavoidable if the society is to escape in finite time, but long-run inequalities are avoidable provided sufficiently heavy, but temporary, taxes can be imposed on the better off. Programs that aim simply at high attendance rates in the present can be strongly nonoptimal.