Question

Since household incomes have risen over the last 1oo years and stds of living have increased, but there has been a decline in children. Does this indicate that children are an inferior good?

Answer 1

Yes.

http://economics.about.com/cs/economicsglossary/g/inferior_good.htm

Answer 2

Thanks. I am a bit confused though. To me it seems that children can be either a normal good or inferior depending on the situation. Are you saying that Malthusians model of fertility is no longer valid?

Answer 3

Children become an inferior good when the number of births per woman declines.