Quantity-Quality Tradeoff and Household Division-Historical Evidence from Northeast China,1749-1909

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  We paint a detailed picture of how the social environment of the Qing with its household di-vision system in the absence of public education shaped the tradeoff between human capital and fertility decisions in China.Using data from China Multi-Generational Panel Dataset-Liaoning(CMGPD-LN),we trace more than 90000 males who lived in nearly 700 villages in Liaoning province between 1749 and 1909.Controlling for birth order effects,we apply both linear prob-ability model and IV procedures in case of potential endogeneity.Our findings suggest that sibship size has substantial negative effects on probability of being educated,and interaction of sibship size and household division has extra negative effects on human capital investment due to household division,indicating a strengthened quality-quantity tradeoff.Such findings provide a new explanation to fertility control,contribute to a better understanding of implications of social behavior.
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