The dynamics of income, schooling, and fertility distributions over the course of economic development

"We develop a dynamic model of fertility and income distribution in which both are linked to the formation and distribution of human capital among families. Our model offers a dynamic version of Becker's (1967) model of income distribution within an endogenous growth framework. We view the population as consisting of heterogeneous families, which are subject to intra-family and inter-family interactions. Families determine fertility, human capital formation in children, and savings. We thus link income and fertility distributions over an entire development path, extending from a low-income, stagnant state to a self-sustaining growth regime. In this context, we also reexamine the "Kuznets hypothesis" concerning the relation between income inequality and income growth over a transitional development period. The paper offers new insights and supporting empirical evidence concerning the time-paths of distributional measures of fertility, educational attainments, and three income-related measures: family-income inequality, income-group inequality, and the Gini coefficient"--National Bureau of Economic Research web site.