Occupational Variation in Quantity-Quality Trade-off in a Brawn-Based Economy

The paper revisits the theory of the quantity-quality trade-off and demonstrates that the relationship between quantity and health of children is subject to occupational variation in physical energy requirements. It embeds, in a simple household optimisation model, a minimum consumption requirement that rises with physical work intensity of occupation. Occupational differences in minimum consumption requirement generates variation in child nutritional status - the shadow price of quantity, which in turn generates varying quantity-quality relationships. The model yields an equilibrium relationship between the number and nutritional status of children that is positive for households in strenuous occupations and ambiguous for other households. A numerical example using a calibrated model illustrates that these trade-offs are consistent with the phenomenon of intergenerational persistence of nutritional status. These new insights into the nature of the quantity-quality trade-off help reconcile some inconsistent empirical findings on such trade-offs.