THE EFFECTS OF GENDER CONTROL ON FERTILITY AND CHILDRENS CONSUMPTION

Effects of sex preference on investments in children's human capital, bequests and fertility are studied, with and without sex selection, in a model based on parental altruism. Both pure sex preference, a featu re of the parental utility function, and indirect preference, which ar ises from gender-related differences in earnings opportunities, are ex amined. When there is no gender control the impact of pure sex prefere nce is seen in smaller consumption for daughters than for sons. Howeve r, when gender control is exerted, sex preference raises the sex ratio and it is possible that sisters may, on average, consume no less than their more numerous brothers. In an example of the model with specifi c functional forms, parents who practise gender control have larger fa milies than if sex selection techniques were unavailable. The effect i s magnified if sons' earnings opportunities are better than daughters' .