nep-dem New Economics Papers
on Demographic Economics
Issue of 2011‒12‒13
fifteen papers chosen by
Clarence Nkengne Tsimpo
University of Montreal and World Bank Group

  1. Child Poverty, Demographic Transition and Gender Bias in Education in India: Household Data Analysis (1993–94 and 2004–05) By D.P. Chaudhri; Raghbendra Jha
  2. Adaptation under Traditional Gender Roles: Testing the Baseline Hypothesis in South Korea By Robert Rudolf; Sung-Jin Kang
  3. Influence of age of child on differences in marital satisfaction of males and females in East Asian countries By Eiji Yamamura; Antonio R. Andrés
  4. From Shame to Game in One Hundred Years: The Rise in Premarital Sex and its Destigmitization By Fernández-Villaverde, Jesús; Greenwood, Jeremy; Guner, Nezih
  5. Financial Incentives, the Timing of Births, Birth Complications, and Newborns' Health: Evidence from the Abolition of Austria's Baby Bonus By Brunner, Beatrice; Kuhn, Andreas
  6. WAR, MARRIAGE MARKETS AND THE SEX RATIO AT BIRTH By Dirk Bethmann; Michael Kvasnicka
  7. Do Gender Differences in Risk Preferences Explain Gender Differences in Labor Supply, Earnings or Occupational Choice? By Cho, In Soo
  8. The Mom Effect: Family Proximity and the Labour Force Status of Women in Canada By admin, clsrn
  9. Do Marriage Markets Influence the Divorce Hazard? By Raphaela Hyee
  10. Ethnic Disparities in the Graduate Labour Market By Zorlu, Aslan
  11. Gender Differences in Major Choice and College Entrance Probabilities in Brazil By Alejandra Traferri
  12. Effect of universal health coverage on marriage, cohabitation and labor force participation By Azuara, Oliver
  13. Educating Children of Immigrants: Closing the Gap in Norwegian Schools By Bratsberg, Bernt; Raaum, Oddbjørn; Røed, Knut
  14. "One Muslim is Enough!" - Evidence from a Field Experiment in France By Adida, Claire L.; Laitin, David D.; Valfort, Marie-Anne
  15. Demographic Change Across The Globe Maintaining Social Security In Ageing Economies By Marga Peeters; Loek Groot

  1. By: D.P. Chaudhri; Raghbendra Jha
    Abstract: This paper begins by highlighting some key characteristics of the demographic transition and child education and their relation to household poverty status in India as evidenced by our analysis of Census data (1951–2001) and those from NSS surveys in 1993–94 and 2004–05. Although total fertility rates have declined for the country as a whole and for all states over the last three censuses of India there is considerable variation by space, by poverty status and by education of women in the household in the two cross sections. Child poverty rates exceed those for the whole population. The number of children in the household depends on the number of women in child-bearing age and their distribution across this age group, female education and per capita monthly expenditure of households as well as by social groups. We find evidence of gender bias in education and argue that for approximately half of India's children the Right to Education Act must involve substantial improvements in the quality of education to be meaningful and reflect the spirit of the RTE law.
    Keywords: Gender Bias in Education, Census, National Sample Survey, Demographic Transition, India
    JEL: J16 N35 O15 O53
    Date: 2011
  2. By: Robert Rudolf (Georg-August-University Göttingen); Sung-Jin Kang (Korea University, Seoul)
    Abstract: Using detailed longitudinal data from the Korean Labor and Income Panel Study (KLIPS) from 1998 to 2008, this paper analyzes gender-specific impacts as well as anticipation and adaptation to major life and labor market events. We focus on six major events: marriage, divorce, widowhood, unemployment, first job entry, and introduction of the five-day working week. While our results indicate full adaptation to some events, and even more so for women, to others we see no or only partial habituation. Yet, the results show striking gender-specific differences particularly regarding the impact of events related to marital status change. Husbands remain on a higher happiness level throughout marriage. They also suffer more from, and show less rapid or even no adaptation to widowhood and divorce. Women return to their baseline level of happiness relatively quick after marriage and divorce. Surprisingly, widowhood is not associated with negative effects for women. If anything, moderate positive effects can be found here. Husbands’ additional long-run happiness gain during marriage is equivalent to an (husband-only) increase of annual per-capita household income of approximately US$17,800. We show that the intra-marriage happiness gap between husband and wife is strongly related to the intra-couple earnings difference, providing evidence for both intra-household bargaining and the gender identity hypothesis. The studied labor market events point to a gender segregated labor market. The evidence shows that more effort is needed if Korea wants to achieve higher gender equity.
    Keywords: Life Satisfaction; Adaptation; Gender; Intra-marriage bargaining
    JEL: A13 D13 I31 J12 J16 J31
    Date: 2011–11–23
  3. By: Eiji Yamamura; Antonio R. Andrés
    Abstract: Using individual-level data for China, Korea, and Japan for 2006, this research examines how the age of children influences marital satisfaction for males and females in East Asian countries. Our results show that the marital satisfaction of males is barely affected by a child of the relationship, whereas the marital satisfaction of females with a young child is lower than that of females who do not have a child. This result holds for countries at different development stages. There is also a gender differential regarding the effect of young children on marital satisfaction. Furthermore, the more developed the country, the greater this difference becomes.
    Keywords: Marital satisfaction, child, East Asian countries, ordered probit.
    JEL: D19 J13 J16
    Date: 2011–11–19
  4. By: Fernández-Villaverde, Jesús; Greenwood, Jeremy; Guner, Nezih
    Abstract: Societies socialize children about sex. This is done in the presence of peer-group effects, which may encourage undesirable behavior. Parents want the best for their children. Still, they weigh the marginal gains from socializing their children against its costs. Churches and states may stigmatize sex, both because of a concern about the welfare of their flocks and the need to control the cost of charity associated with out-of-wedlock births. Modern contraceptives have profoundly affected the calculus for instilling sexual mores. As contraception has improved there is less need for parents, churches and states to inculcate sexual mores. Technology affects culture.
    Keywords: Add Health; children; church and state; contraception; culture; out-of-wedlock births; parents; peer- group effects; premarital sex; shame; socialization; stigmatization; technological progress
    JEL: E1 E13 J10 J13 N0 O11 O33
    Date: 2011–11
  5. By: Brunner, Beatrice (University of Zurich); Kuhn, Andreas (University of Zurich)
    Abstract: We analyze the fertility and health effects resulting from the abolition of the Austrian baby bonus in January 1997. The abolition of the benefit was publicly announced about ten months in advance, creating the opportunity for prospective parents to (re-)schedule conceptions accordingly. We find robust evidence that, within the month before the abolition, about 8% more children were born as a result of (re-)scheduling conceptions. At the same time, there is no evidence that mothers deliberately manipulated the date of birth through medical intervention. We also find a substantial and significant increase in the fraction of birth complications, but no evidence for any resulting adverse effects on newborns' health.
    Keywords: baby bonus, scheduling of conceptions, timing of births, policy announcement, abolition effect, birth complications, medical intervention
    JEL: H31 J13
    Date: 2011–11
  6. By: Dirk Bethmann (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Michael Kvasnicka (Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI))
    Abstract: In belligerent countries, male-to-female sex ratios at birth increased during and shortly after the two world wars. These rises still defy explanation. Several causes have been suggested (but not tested) in the literature. Many of these causes are proximate in nature, reflecting behavioral responses to the dramatically changed marriage market conditions for women and men that were induced by war-related declines in adult sex ratios. Based on county-level census data for the German state of Bavaria in the vicinity and aftermath of World War II, we explore the reduced-form relationship between changes in adult and offspring sex ratios. Our results suggest that war-induced shortfalls of men signficantly increased the percentage of boys among newborns.
    Keywords: World War II, Adult Sex Ratio, Marriage Markets, Sex Ratio at Birth
    Date: 2011–11
  7. By: Cho, In Soo
    Abstract: This paper examines the extent to which differences in risk preferences between men and women explain why women have a lower entrepreneurship rate, earn less, and work fewer hours than men.  Data from the NLSY79 confirms previous findings that women are more risk averse than men.  However, while less risk averse men tend to become self-employed and more risk averse men are likely to choose paid-employment, there is no significant effect of risk preferences on women’s entrepreneurship decisions.  Similarly, more risk aversion is associated with higher earnings for male entrepreneurs, but it has no effect on female entrepreneurial earnings. Rising rates of risk aversion lower earnings for women, consistent with theoretical effects of risk preferences on labor earnings, but the effects are of modest magnitude.  Risk preferences do not explain variation in hours of work for either men or women.  These findings suggest that widely reported differences in risk preferences across genders play only a trivial role in explaining differences in labor market outcomes between men and women.
    Keywords: risk aversion; earnings; labor supply; gender gap; self-employment; Blinder-Oaxaca decomposition
    JEL: J16 J22 J24 J31
    Date: 2011–12–02
  8. By: admin, clsrn
    Abstract: In this paper, we examine the effect of family co-residence and proximity on the labour force participation and working hours of Canadian women. Using Cycle 21 of the Canadian General Social Survey, we describe proximity patterns in Canada and show that the labour force attachment of women is related to the proximity of their mothers. Lower labour market attachment is found for married women without young children who co-reside with their mothers (those women most likely to care for their elderly mothers) and for married women with young children who live more than half a day away from their mothers (those women least likely to benefit from the availability of family provided childcare). On the intensive margin, both married and single women with children work fewer hours if they live far from their mothers. The results hold only for proximity to living mothers (as opposed to proximity to widowed fathers), suggesting that it is the mothers themselves, and not merely the home location, that drives the results. The results are consistent in IV estimations. To the extent that the positive effect of close proximity is related to the availability of grandchild care, policies that impact the labour force behaviour of grandmothers may also impact the labour force behaviour of their daughters. Moreover, the regional patterns in proximity suggest that national childcare and labour market policies may yield different results across the country.
    Keywords: Women’s labour supply; Family proximity; Childcare
    JEL: J11 J22 J13
    Date: 2011–11–28
  9. By: Raphaela Hyee (Queen Mary, University of London)
    Abstract: This paper demonstrates that a woman's propensity to separate from her husband or live-in partner depends positively on male wage inequality on her local marriage market - the more heterogeneous potential future mates are in terms of earnings power, the more likely a woman is to end her relationship. This effect is strongest for couples, were one has a college education but the other one does not. Because of the high degree of assortative matching according to education on the marriage market, college educated individuals are those most likely to marry a college graduate - if they are not currently married to one, they have the most to gain from divorcing and going back to the marriage market. This incentive becomes stronger if the college premium (the wage advantage college graduates enjoy over non-graduates) rises. The effect is robust to the inclusion of a variety of controls on the individual level, as well as state and time fixed effects and state specific time trends.
    Keywords: Education, Inequality, Divorce
    JEL: J12 J31 D31 I24
    Date: 2011–12
  10. By: Zorlu, Aslan (University of Amsterdam)
    Abstract: This paper examines ethnic wage differentials for the entire population of students enrolled in 1996 using unique administrative panel data for the period 1996 to 2005 from the Dutch tertiary education system. The study decomposes wage differentials into two components: a component which can be explained by the observed characteristics and unexplained component. The analysis provides novel evidence for the magnitude and the origin of ethnic wage differentials by gender. In general, ethnic wage gap is larger for migrant women than migrant men and larger for Western and Caribbean migrants than Mediterranean migrants. Ethnic minority students appear to have large wage surplus which is almost entirely explained from their favourable observed characteristics. Most notably, Mediterranean female graduates have significant positive wage discrimination while Western female graduates seem to face a small wage penalty.
    Keywords: college, university, wages, qualifications, dropout
    JEL: J15 J24 J31
    Date: 2011–11
  11. By: Alejandra Traferri
    Abstract: I study gender differences in major choice and college entrance probabilities in University of Campinas, a Brazilian public university dependent on the State of Sao Paulo. As with most Brazilian public universities, students select a major, and then compete for a place in that major by taking a major-specific entrance exam. This singular characteristic of the Brazilian case allows me to differentiate the effect of gender on major-specific entrance probabilities and preferences. I propose a model and econometric strategy which can account for two important issues, selectivity bias and the fact that expected utility depends on the probability of entering the different majors. I find evidence of gender differences in preferences and entrance probabilities. For most majors, gender differences in major choice are mostly explained by differences in preferences. However, for the most demanding majors (those that require higher grades from students), differences in major choice are explained in a large proportion by differences in entrance probabilities. Finally, I find that gender has important interactions with other variables. In particular, gender effects depend on education, socioeconomic characteristics and family background.
    Keywords: Major choice, gender differences, college entrance, test, vestibular, brazilian universities
    JEL: C35 I21 J24
    Date: 2011
  12. By: Azuara, Oliver
    Abstract: This paper examines the impact of universal health coverage on cohabitation, marriage, and labor force participation. Economic gains from marriage when non-labor income increases among partners. I use the expansion of non-contributory health insurance in Mexico to test this. This insurance scheme, called Seguro Popular (SP), provides a minimum set of health benefits to the population not covered by formal social security. The rollout of SP started in 2002 across municipalities. This variation makes possible examine the effect of health insurance on marital status among workers. The analysis of this paper shows that non-contributory health insurance coverage has a significant negative effect on the probability of marriage among poor and low educated males and females, and a positive effect on the probability of cohabitation. SP, however, has no effect on labor force participation.
    Keywords: Marriage; cohabitation; health insurance; Seguro Popular; Oportunidades; Mexico
    JEL: J1 J0 I1
    Date: 2011–06–01
  13. By: Bratsberg, Bernt (Ragnar Frisch Centre for Economic Research); Raaum, Oddbjørn (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research)
    Abstract: Children of immigrant parents constitute a growing share of school cohorts in many OECD countries, and their educational performance is vital for successful social and economic integration. This paper examines educational outcomes of first and second generation non- OECD immigrants in Norway. We show that children of immigrants, and particularly those born outside Norway, are much more likely to leave school early than native children. Importantly, this gap shrunk sharply over the past two decades and second generation immigrants are now rapidly catching up with the educational performance of natives. For childhood immigrants, upper secondary completion rates decline with age at arrival, with a particularly steep gradient after age seven. Finally, we find that immigrant-native attainment gaps disappear when we condition on grade points from compulsory school.
    Keywords: immigrant children, educational attainment, school performance
    JEL: J15 I21 I24
    Date: 2011–11
  14. By: Adida, Claire L. (University of California, San Diego); Laitin, David D. (Stanford University); Valfort, Marie-Anne (University of Paris 1 Panthéon-Sorbonne)
    Abstract: Anti-Muslim prejudice is widespread in Western countries. Yet, Muslims are expected to constitute a growing share of the total population in Western countries over the next decades. This paper predicts that this demographic trend will increase anti-Muslim prejudice. Relying on experimental games and a formal model, we show that the generosity of rooted French toward Muslims is significantly decreased with the increase of Muslims in their midst, and demonstrate that these results are driven by the activation of rooted French taste-based discrimination against Muslims when Muslim numbers increase. Our findings call for solutions to anti-Muslim prejudice in the West.
    Keywords: discrimination, Islam, France, group salience, experimental economics, economic theory, group threat theory, intergroup contact theory
    JEL: A12 C90 D03 J15 J71 Z12
    Date: 2011–11
  15. By: Marga Peeters; Loek Groot
    Abstract: This paper investigates the fiscal pressure from demographic change in relation to the labour marketspace for fifty countries that cover 75% of the world population. The pressure-to-space indicator ranks Poland, Turkey and Greece high. Apart from Turkey and India, developing countries rank low due to low spending on the old (pensions, health care) and the young (education, family costs). Peculiarly, economies with higher pressure have more space. The hypothesis that ageing economies have started using their space in anticipation to higher demographic pressure is rejected. Raising the retirement age in developed economies by five years alleviates the pressure by almost 30% and creates 10% more labour market space.
    Keywords: Demography, dependency rates, labour market, social security, pensions, government spending.
    JEL: D6 E24 E62 H51 H52 H53 H55 J0 J11 J18 J21 J26 O57
    Date: 2011–11–18

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