nep-dem New Economics Papers
on Demographic Economics
Issue of 2012‒07‒14
25 papers chosen by
Clarence Nkengne Tsimpo
University of Montreal and World Bank Group

  1. DINKs, DEWKs & Co. Marriage, Fertility and Childlessness in the United States By Thomas BAUDIN; David de la CROIX; Paula GOBBI
  2. Making Yourself Attractive: Pre-Marital Investments and the Returns to Education in the Marriage Market By Jeanne Lafortune
  3. A Theory of Child Adoption By Bethmann, Dirk; Kvasnicka, Michael
  4. Gender Occupational Segregation in an Equilibrium Search Model By Usui, Emiko
  5. Who Marries Differently-Aged Spouses? Earnings, Ability and Appearance By Mansour, Hani; McKinnish, Terra
  6. Is it money or brains? The determinants of intra-family decision power By Bertocchi, Graziella; Brunetti, Marianna; Torricelli, Costanza
  7. Joint Leisure Before and After Retirement: A Double Regression Discontinuity Approach By Stancanelli, Elena G. F.; van Soest, Arthur
  8. What Happens the Morning After? The Costs and Benets of Expanding Access to Emergency Contraception By Tal Grossy; Jeanne Lafortune; Corinne Low
  9. The Effects of EITC Payment Expansion on Maternal Smoking By Averett, Susan L; Wang, Yang
  10. Income, the Earned Income Tax Credit, and Infant Health By Hilary W. Hoynes; Douglas L. Miller; David Simon
  11. Long-run growth and demographic prospects in advanced economies By Galo Nuño; Cristina Pulido; Rubén Segura-Cayuela
  12. Family structure and children's education outcome: Evidence from Uruguay By Cid, Alejandro; Stokes, Charles
  13. The Effect of Breastfeeding on Children's Cognitive and Noncognitive Development By Borra, Cristina; Iacovou, Maria; Sevilla-Sanz, Almudena
  14. When Does It Pay to Delay Social Security? The Impact of Mortality, Interest Rates, and Program Rules By John B. Shoven; Sita Nataraj Slavov
  15. Changing the Rules Midway: The Impact of Granting Alimony Rights on Existing and Newly-Formed Partnerships By Jeanne Lafortune; Pierre-Andre Chiappori; Murat Iyigun; Yoram Weiss
  16. Marry for What? Caste and Mate Selection in Modern India By Abhijit Banerjee; Esther Dufloi; Maitreesh Ghatak; Jeanne Lafortune
  17. The Effect of Pension Reform on Pension-Benefit Expectations and Savings Decisions in Japan By Okumura, Tsunao; Usui, Emiko
  18. Does Consumption Decline at Retirement?: Evidence from Repeated Cross-Section Data for Germany By Martin Beznoska; Viktor Steiner
  19. Kick It Like Özil? Decomposing the Native-Migrant Education Gap By Krause, Annabelle; Rinne, Ulf; Schüller, Simone
  20. Children and non-participation in a model of collective household labor supply By Jaime Andres Sarmiento Espinel
  21. How policy matters: Germany’s parental leave benefit reform and fathers’ behavior 1999-2009 By Esther Geisler; Michaela Kreyenfeld
  22. Evaluating the possible impact of pension reforms on future living standards in Europe By Grech, Aaron George
  23. Measuring a New Aspect of Ethnicity - The Appropriate Diversity Index By Philipp Kolo
  24. Divorce and Corruption: New Study, New Data By Kodila-Tedika, Oasis; Azia-Dimbu, Florentin; Kalemasi-Mosengo, Cedrick
  25. Aboriginal Labour Market Performance in Canada: 2007-2011 By Kar-Fai Gee; Andrew Sharpe

  1. By: Thomas BAUDIN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Université de Lille 3); David de la CROIX (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et sociale (IRES) and Center for Operations Research and Econometrics (CORE)); Paula GOBBI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: Among possible lifestyles, the DINKs (“double income no kids”) are couples choosing to be childless, while the DEWKs (“dually employed with kids”) are couples with children. We develop a theory of marriage and parenthood decisions, where we distinguish the choice to have children from the choice of the number of children. The deep parameters of the model are identified from the 1990 US Census. The quantitative model allows us to measure voluntary and involuntary childlessness from the data, and to understand (1) why single women are more likely to be childless than married women but, when mothers, their fertility is close to that of married mothers; (2) why childlessness exhibits a U-shaped relationship with education for both single and married women; and (3) why there is a hump-shaped relationship between marriage rates and education levels. We show how family patterns have been shaped over time by the rise in education levels and wage inequality, and by the shrinking gender wage gap.
    Keywords: Fertility, Childlessness, Marriage, Education, Structural Estimation
    JEL: J11 O11 O40
    Date: 2012–07–02
  2. By: Jeanne Lafortune
    Abstract: This paper explores how a rise in a gender’s scarcity may impact educational investments using exogenous variation in the marriage market of second generation Americans in early 20th century. Theoretically, one may expect this to occur through two potential channels: a change in matching possibilities or in post-match bargaining. Empirically, I find that worse marriage market conditions spurs higher pre-marital investments: the effect for males is significant (0.2 years of education for one standard deviation in the sex ratio) while for females, it is only observed in highly endogamous groups. When faced with an exogenously larger number of males per females, males’ marriages appear to be less stable and more likely to involve natives and more educated spouses while women are less likely to work and, for those in high endogamous groups, marry more immigrants.
    Keywords: Pre-marital investments, Sex ratios, Marriage market
    JEL: J12 J24 J61
    Date: 2012
  3. By: Bethmann, Dirk (University of Magdeburg); Kvasnicka, Michael (RWI)
    Abstract: Women can bear own children or adopt them. Extending economic theories of fertility, we provide a first theoretical treatment of the demand for adoption. We show that the propensity to adopt a child increases in the degree of own altruism, infertility, relatedness to the child, costs of own child birth, and any adoption-specific monetary return that is received net of the costs of adopting the child. Our model makes several testable predictions which receive empirical support. These include a higher propensity to adopt among infertile adults, relatives, women with high earnings potential, and celebrities.
    Keywords: children, fertility, demand for adoption, adoption, altruism
    JEL: J12 J13 D02
    Date: 2012–06
  4. By: Usui, Emiko
    Abstract: This paper develops an equilibrium search model to explain gender asymmetry in occupational distribution. Workers’ utility depends on salary and working hours, and women have a greater aversion to market hours than men. Simulations indicate that women crowd into shorter-hour, lower-paying jobs than men. If employers discriminate against women, offers are tailored more toward men’s preferences; employers require longer working hours, and fewer women work at these jobs. Similarly, if women have a disutility factor in their utility toward positions with a higher proportion of men, fewer women work at these jobs. In both cases, gender segregation is reinforced
    Keywords: Equilibrium Search, Gender preferences, Employer discrimination, Employee discrimination
    JEL: E24 J16 J64 J71
    Date: 2012–06
  5. By: Mansour, Hani (University of Colorado Denver); McKinnish, Terra (University of Colorado, Boulder)
    Abstract: In direct contrast to conventional wisdom and most economic models of gender differences in age of marriage, we present robust evidence that men and women who are married to differently-aged spouses are negatively selected. Earnings analysis of married couples in the 1960, 1970, 1980, 1990 and 2000 Decennial Censuses finds that male earnings decrease with within-couple age difference, regardless of whether the man is older or younger than his wife. In contrast, female earnings increase with within-couple age difference, but this is due to the fact that women with differently-aged spouses work more hours not because they command higher wages. We test for negative selection into differently-aged couples using three measures: average earnings per hour in occupation using Census data, cognitive skills assessments from the National Longitudinal Survey of Youth 1979 cohort (NLSY79), and measures of physical appearance from the National Longitudinal Study of Adolescent Health (Add Health). The point estimates indicate negative selection on all of these characteristics, although statistical significance varies by outcome and sample.
    Keywords: marriage markets, age difference, selection
    JEL: J12 J16
    Date: 2012–06
  6. By: Bertocchi, Graziella; Brunetti, Marianna; Torricelli, Costanza
    Abstract: We empirically study the determinants of intra-household decision power with respect to economic and financial choices using a suitable direct measure provided in the 1989-2010 Bank of Italy Survey of Household Income and Wealth. Focusing on a sample of couples, we evaluate the effect of each spouse's characteristics, household characteristics, and background variables. We find that the probability that the wife is in charge is affected by household characteristics such as family size and total income and wealth, but more importantly that it increases with the difference between hers and her husband's characteristics in terms of age, education, and income. The main conclusion is that decision-making power over family economics is not only determined by strictly economic differences, as suggested by previous studies, but also by differences in human capital and experience. Finally, exploiting the time dimension of our dataset, we show that this pattern is increasing over time.
    Keywords: Family economics; gender differences; intra-household decision power
    JEL: D13 E21 G11 J12
    Date: 2012–06
  7. By: Stancanelli, Elena G. F. (CNRS); van Soest, Arthur (Tilburg University)
    Abstract: In the scant literature on partners' joint retirement decisions one of the explanations for joint retirement is externalities in leisure. In this study, we investigate how retirement affects the hours of leisure together of individuals in a couple. Exploiting the law on retirement age in France, we use a regression discontinuity approach to identify the causal effect of retirement on hours of leisure separate and together of individuals in a couple. We find that the retirement probability increases significantly at age 60 for both partners, supporting our identification strategy. We conclude that retirement of the husband significantly increases own hours of leisure of the husband but it does not increase joint leisure hours of the couple. Retirement of the wife increases joint leisure. This asymmetry in responses is well in line with recent literature on joint retirement and suggests that leisure complementarities may not be the main engine of joint retirement.
    Keywords: leisure, ageing, retirement, regression discontinuity
    JEL: D13 J22 J14 C1
    Date: 2012–06
  8. By: Tal Grossy; Jeanne Lafortune; Corinne Low
    Abstract: Emergency contraception (EC) can prevent pregnancy after sex, but only if taken within 72 hours of intercourse. Over the past 15 years, access to EC has been expanded at both the state and federal level. This paper studies the impact of those policies. We find that expanded access to EC has had no statistically significant effect on birth or abortion rates. Expansions of access, however, have changed the venue in which the drug is obtained, shifting its provision from hospital emergency departments to pharmacies. We find evidence that this shift may have led to a decrease in reports of sexual assault.
    Keywords: Desalination, Emergency contraception, Fertility, Abortion, Sexual assault
    JEL: J13 I18
    Date: 2012
  9. By: Averett, Susan L (Lafayette College); Wang, Yang (Lafayette College)
    Abstract: The Earned Income Tax Credit (EITC) is the largest anti-poverty program in the U.S. In 1993, the EITC benefit levels were changed significantly based on the number of children in the family such that families with two or more children experienced an exogenous expansion in their incomes. Using data from the National Longitudinal Survey of Youth 1979 cohort, we employ a triple differences plus Fixed-Effects framework to examine the effect of this change on the probability of smoking among low-educated mothers. We find that the probability of smoking for white and Hispanic low-educated mothers of two or more children decreased statistically significantly relative to those with only one child, and the results are robust to various specification tests. These results provide new evidence on the protective effect of income on health through changes in health behaviors, and therefore have important policy implications.
    Keywords: low-income mothers, EITC, smoking
    JEL: I12 I38
    Date: 2012–06
  10. By: Hilary W. Hoynes; Douglas L. Miller; David Simon
    Abstract: This paper evaluates the health impact of a central piece in the U.S. safety net for families with children: the Earned Income Tax Credit. Using tax-reform induced variation in the federal EITC, we examine the impact of the credit on infant health outcomes. We find that increased EITC income reduces the incidence of low birth weight and increases mean birth weight. For single low education (<= 12 years) mothers, a policy-induced treatment on the treated increase of $1000 in EITC income is associated with 6.7 to 10.8% reduction in the low birth weight rate, with larger impacts for births to African American mothers. These impacts are evident with difference-in-difference models and event study analyses. Our results suggest that part of the mechanism for this improvement in birth outcomes is the result of more prenatal care and less negative health behaviors (smoking). We find little role for changes in health insurance. We contribute to the literature by establishing that an exogenous increase in income can improve health, and illustrating a health impact of a non-health program. More generally, we demonstrate the potential for positive external benefits of the social safety net.
    JEL: H2 H51 I38
    Date: 2012–07
  11. By: Galo Nuño (European Central Bank); Cristina Pulido (Banco de España); Rubén Segura-Cayuela (Bank Of America Merril Lynch)
    Abstract: This paper analyses the long-run growth rates of advanced economies, based on demographic factors. To this end, growth is broken down into two components: growth in productivity (GDP per working-age person) and the projected rate of growth of the working-age population. Productivity is assumed to grow in the long-run at a constant rate equal to that of the technology leader, whereas the demographic projections are those of the United Nations. This simple methodology abstracts from other factors normally considered in the literature on long-term growth, such as the convergence process (we focus on advanced economies) and heterogeneity in participation and employment rates. However, the results do not differ much from those obtained using these other approaches (which are richer, but also more speculative), although the growth rates turn out to be somewhat lower in most cases. They indicate a general deceleration of growth in advanced economies in the coming two decades, due to a slowdown in working-age population growth. Japan, Germany, Italy and Spain face the least favourable growth dynamics in our sample, as these countries face reductions in the size of their workforces. By 2050 France and the United Kingdom could have overtaken Germany to become the largest economies in Europe. In the case of Spain (whose working-age population is expected to peak in 2024) the growth rate of GDP will progressively decline to just below 2% over the following decade.
    Keywords: Advanced economies, demography, convergence, endogenous growth.
    JEL: E20 O40 O50
    Date: 2012–07
  12. By: Cid, Alejandro; Stokes, Charles
    Abstract: As the developed world has experienced a shift away from the traditional two-biological parent family, scholars have sought to understand how children are faring in non-traditional homes. Debate has arisen over assertions that children from non-traditional families do less well in school. Concerns about selection issues as well as a paucity of cross-cultural evidence, have led some scholars to question the influence of family structure on educational attainment. Using data from the 2006 Uruguayan household survey, we evaluate the relationship of family structure with children’s education using two different methods to deal with selection problems, an instrumental variables approach and propensity score matching. Both approaches yield evidence that growing up in non-traditional family structures seems to be negative related with the schooling of Uruguayan boys, with more muted results for girls. Interestingly, Uruguay is a developing country with two peculiarities, that is, a culture that experienced fairly rapid modernization in terms of institutions –including family transition-, especially compared with other South American nations, and meanwhile an intriguing high level of school drop-out, unusually high for Uruguay’s overall level of development.
    Keywords: academic achievement; family structure; instrumental variables; propensity score; selection effects
    JEL: J12
    Date: 2012
  13. By: Borra, Cristina (University of Seville); Iacovou, Maria (University of Essex); Sevilla-Sanz, Almudena (Queen Mary, University of London)
    Abstract: This paper uses propensity score matching methods to investigate the relationship between breastfeeding and children's cognitive and noncognitive development. We find that breastfeeding for four weeks is positively and statistically significantly associated with higher cognitive test scores, by around one tenth of a standard deviation. The association between breastfeeding and noncognitive development is weaker, and is restricted to children of less educated mothers. We conclude that interventions which increase breastfeeding rates would improve not only children's health, but also their cognitive skills, and possibly also their noncognitive development.
    Keywords: breastfeeding
    JEL: I10 J0
    Date: 2012–06
  14. By: John B. Shoven; Sita Nataraj Slavov
    Abstract: Social Security benefits may be commenced at any time between ages 62 and 70. As individuals who claim later can, on average, expect to receive benefits for a shorter period, an actuarial adjustment is made to the monthly benefit to reflect the age at which benefits are claimed. In earlier work (Shoven and Slavov, 2012), we investigated the actuarial fairness of this adjustment for individuals with average life expectancy for their cohort. We found that for current real interest rates, delaying is actuarially advantageous for a large subset of people, particularly for primary earners in married couples. In this paper, we quantify the degree of actuarial advantage or disadvantage for individuals whose mortality differs from the average. We find that at real interest rates close to zero, most households – even those with mortality rates that are twice the average – benefit from some delay, at least for the primary earner. At real interest rates closer to their historical average, however, singles with mortality that is substantially greater than average do not benefit from delay; however, primary earners with high mortality can still improve the present value of the household’s benefits through delay. We also investigate the extent to which the actuarial advantage of delay has grown since the early 1960s, when the choice of when to claim first became available, and we decompose this growth into three effects: (1) the effect of changes in Social Security's rules, (2) the effect of changes in the real interest rate, and (3) the effect of changes in life expectancy.
    JEL: D14 H55
    Date: 2012–07
  15. By: Jeanne Lafortune; Pierre-Andre Chiappori; Murat Iyigun; Yoram Weiss
    Abstract: The paper analyzes the effect of a reform granting alimony rights to cohabiting couples in Canada, exploiting the fact that each province extended these rights in different years and required different cohabitation length. A theoretical analysis, based on a collective household model with a matching framework, predicts that changes in alimony laws would affect existing couples and couples to-be differently. For existing couples, legislative changes aimed at favoring (wo)men do benefit them, especially if the match quality is low. However, for couples not yet formed, they generate offsetting intra-household transfers (in our model, of leisure) and lower intra-marital allocations for the spouses who are the intended beneficiary. Our empirical analysis confirms these predictions. Among cohabiting couples united long enough before the reform, obtaining the right to petition for alimony led women to lower their labor force participation. These results, however, do not hold | and, in some cases, are reversed for newly formed cohabiting couples.
    Keywords: Alimony, Cohabitation, Bargaining, Policy neutrality, Labor supply
    JEL: J12 J22 K36
    Date: 2012
  16. By: Abhijit Banerjee; Esther Dufloi; Maitreesh Ghatak; Jeanne Lafortune
    Abstract: This paper analyzes how preferences for a non-economic characteristic, such as caste, can affect equilibrium patterns of matching in the marriage market, and empirically evaluates this in the context of arranged marriages among middle-class Indians. We develop a model that demonstrates how the equilibrium consequences of caste depend on whether we observe a bias towards one’s own group or if there is a preference for “marrying up”. We then estimate actual preferences for caste, education, beauty, and other attributes using a unique data set on individuals who placed matrimonial advertisements in a major newspaper, the responses they received, and how they ranked them. Our key empirical finding is the presence of a strong preference for in-caste marriage. We find that in equilibrium, as predicted by our theoretical framework, these preferences do little to alter the matching patterns on non-caste attributes, and so people do not have to sacrifice much to marry within caste. This suggests a reason whycaste remains a persistent feature of the Indian marriage market.
    Keywords: Caste, Marriage, Stable matching
    JEL: D10 J12 O12
    Date: 2012
  17. By: Okumura, Tsunao; Usui, Emiko
    Abstract: Using the Japanese Study of Aging and Retirement (JSTAR), a new Japanese panel survey of people age 50 or older, we find that many Japanese in their early 50s - compared with those in their late 50s and early 60s - expect their level of public pension benefits to decline. We find that recent pension reform, which raised the pensionable age, affected people by increasing the age when they expect to claim their benefits by almost the exact same amount for all. The reform decreases their expectations for public pension benefits, although this effect is not necessarily significant. We also find evidence that individuals’ anxiety about the public pension program’s future induces an increase in their private savings.
    Keywords: subjective expectations, pension reform, uncertainty, savings
    JEL: E21 H55
    Date: 2012–06
  18. By: Martin Beznoska; Viktor Steiner
    Abstract: The life-cycle hypothesis implies that consumption would not decline at retirement. However, several studies found relevant declines in food consumption after retirement for the United States. Others concluded that this contradiction of the life-cycle hypothesis is solved by allowing for broader measures of consumption than food. Using repeated cross-section data for Germany, this paper analyzes the retirement consumption puzzle for the German case. For our broadest consumption measure, which includes the flow of durables' consumption, we find, on average, no significant consumption decline at retirement. This also holds if the potential endogeneity of indidual retirement is controlled for in instrumental variable regressions. We also find heterogeneity in retirement effects among birth cohorts, the level of household wealth, and the level of consumption, but these effects do not support the hypothesis that retirement is associated with a strong reduction of consumption among poorer households.
    Keywords: Retirement consumption puzzle, life-cycle hypothesis, wealth effects, repeated cross-section data
    JEL: D12 D91 H31 H55
    Date: 2012
  19. By: Krause, Annabelle (IZA); Rinne, Ulf (IZA); Schüller, Simone (IZA)
    Abstract: We investigate second generation migrants and native children at several stages in the German education system to analyze the determinants of the persistent native-migrant gap. One part of the gap can be attributed to differences in socioeconomic background and another part remains unexplained. Faced with this decomposition problem, we apply linear and matching decomposition methods. Accounting for differences in socioeconomic background, we find that migrant pupils are just as likely to receive recommendations for or to enroll at any secondary school type as native children. Comparable natives, in terms of family background, thus face similar difficulties as migrant children. Our results point at more general inequalities in secondary schooling in Germany which are not migrant-specific.
    Keywords: migration, education, human capital, Germany, tracking
    JEL: J15 J24 I21
    Date: 2012–06
  20. By: Jaime Andres Sarmiento Espinel (El Colegio de México)
    Abstract: The collective model of household behavior is extended to consider the existence of public consumption, like expenditures on children, together with the possibility of non-participation in the labor market of one partner of the adult couple. This model argues that structural elements of the decision process, such as individual preferences and the intra-household distribution rule of non-public expenditure, can be identified by observing labor supply of each individual and total expenditures on the public good. The identification rests on the existence of a variable that affects household behavior only through its impact on the decision process, i.e. a distribution factor, and the existence and uniqueness of a reservation wage for each household member at which both members are indifferent to whether a member participates or not. This setting provides a conceptual framework for addressing issues related to the impact of the potential wage of a non-participating member on household allocations and the targeting of specific benefits or taxes.
    Keywords: collective household models, children, labor supply, non-participation
    JEL: D11 J13 J22
    Date: 2012–05
  21. By: Esther Geisler (Max Planck Institute for Demographic Research, Rostock, Germany); Michaela Kreyenfeld (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: In 2007, Germany enacted a radical new parental leave benefit scheme that grants parents 67 percent of their previous income, and includes two “daddy months.” In this paper, we use data from the German Microcensus for the period 1999 to 2009 to explore how this reform has changed fathers’ use of parental leave. We find strong overall increase in parental leave usage among men. Two groups of men in particular changed their behavior: highly educated men and fathers who are on fixed-term employment contracts.
    Keywords: Germany, family
    JEL: J1 Z0
    Date: 2012–07
  22. By: Grech, Aaron George
    Abstract: Successive reforms enacted since the 1990s have dramatically changed Europe’s pensions landscape. This paper tries to assess the impact of recent reforms on the ability of systems to alleviate poverty and maintain living standards, using estimates of pension wealth for a number of hypothetical cases. By focusing on all prospective pension transfers rather than just those at the point of retirement, this approach can provide additional insights on the efficacy of pension systems in the light of increasing longevity. Our estimates indicate that while reforms have decreased generosity significantly, in most countries poverty alleviation remains strong. However, moves to link benefits to contributions have made some systems less progressive, raising adequacy concerns for certain groups. In particular, unless the labour market outcomes of women and of lower-income individuals change substantially over the coming decades, state pension transfers will prove inadequate, particularly in Eastern European countries. Similarly while the generosity of minimum pensions appears to have either been safeguarded by pension reforms, or improved in some cases, these transfers generally remain inadequate to maintain individuals above the 60% relative poverty threshold throughout retirement. Our simulations suggest that the gradual negative impact of price indexation on the relative adequacy of state pensions is becoming even more substantial in view of the lengthening of the time spent in receipt of retirement benefits. The consumption smoothing function of state pensions has declined noticeably, strengthening the need for longer careers and additional private saving. When pressed, policymakers, particularly in Western Europe, seem to have been more willing to sacrifice the income smoothing function of pensions rather than its poverty alleviation function. Policymakers in some counties, notably Germany, France and the UK, have sought to refocus state pension systems towards generating better outcomes for people in the bottom half of the income distribution, probably with the insight that middle- to high-income individuals are possibly in a better position to accommodate the effect of state pension reforms by increasing their private saving. However in some cases, notably in Eastern Europe, results suggest that policymakers may not have fully considered the full impact of their policies on those on low incomes, on those with incomplete careers and on women.
    Keywords: Social Security; Public Pensions; Retirement; Poverty; Retirement Policies
    JEL: H55 I38 J26
    Date: 2012–05
  23. By: Philipp Kolo
    Abstract: Combined with the expansion of economic literature on the role of ethnicity, new indices were developed to do justice to its complexity. The current indices are generally based on pre-defined groups, disregarding the (dis)similarities between them. This is sufficient to calculate the most common indices of ethnic fractionalization and polarization. But they do not measure ethnic diversity as for any diversity index the introduction of distances between groups is essential. This paper includes the distance between groups as a crucial aspect of a country’s ethnic set-up. Language, ethno-racial and religious characteristics are combined in a consistent way for a composite (dis)similarity value. The resulting distance adjusted ethno-linguistic fractionalization index (DELF) is based on an extensive amount of data, containing more than 12,000 groups defined along all three characteristics and covering a wide range of countries. By applying the equivalent approach as that of the diversity measure for single countries, the DELF offers an assessment of cultural differences between countries. As the new index measures a country’s ethnic diversity, it is a good starting point to review some of the existing approaches linking ethnicity to economic outcomes.
    Keywords: Composite Index, Distance, Ethno-Linguistic Fractionalization (ELF), Measurement
    JEL: C43 D63 O10 Z10
    Date: 2012–07–06
  24. By: Kodila-Tedika, Oasis; Azia-Dimbu, Florentin; Kalemasi-Mosengo, Cedrick
    Abstract: This paper aims at identifying the effects of divorce alongside on corruption controlling. We find no significant effect of divorce on corruption. The same conclusion is found in cross-section and panel data.
    Keywords: Divorce; corruption; Europe
    JEL: J12 Z13
    Date: 2012–05–13
  25. By: Kar-Fai Gee; Andrew Sharpe
    Abstract: The objective of this report is to examine Aboriginal labour market performance in Canada from 2007 to 2011 using data from the Labour Force Survey, which excludes people living on-reserve or in the territories. This is performed by first providing an overview of how the recession affected the Canadian labour market, followed by a Canada-wide portrait of the Aboriginal labour market in 2011. The Aboriginal labour market performance from 2007 to 2011 is then compared to the rest of the labour force on a national level, before being broken down by province and main heritage group. Using this information, the report then discusses the implications of future labour market developments for Aboriginal Canadians and for the labour market policies and programs that support their labour market performance.
    Date: 2012–04

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