Human capital and economic development

"This paper develops a general equilibrium model of fertility and human capital investment with young adult mortality. Parents maximize expected utility producing a precautionary demand for children. Because young adult mortality is negatively related to average young adult human capital, human capital accumulation lowers mortality, inducing a demographic transition and an industrial revolution. Data confirm the model prediction that young adult mortality affects human capital investments. The model prediction of a positive relationship between infant mortality and young adult mortality is confirmed. Further, the data indicate a negative relationship between total factor productivity growth and accumulation of schooling. The model fits the data on world and country populations, per capita incomes, age at entry into the labor force, total fertility rates, infant mortality, life expectancy, and conditional life expectancy"--Federal Reserve Bank of Atlanta web site.