A test is constructed to distinguish between the Becker and the Easterlin models of the economics of fertility. Both suggest possible biases due to unobserved variables. It is demonstrated that "while the Becker endowment and Easterlin taste models can be expressed in terms of the same variables, it is possible to identify each of the models because of different signs in a latent variable system that uses information from individuals, siblings, and cousins. Estimates of this model are consistent with the Easterlin, but not the Becker formulation. But neither model results in significant income coefficient estimates." The geographical focus is on the United States.
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