|
on Demographic Economics |
Issue of 2013‒03‒30
twenty-two papers chosen by Clarence Nkengne Tsimpo University of Montreal and World Bank Group |
By: | Rene Böheim (Department of Economics, University of Linz); Marco Francesconi (Department of Economics, University of Essex); Martin Halla (Department of Economics, Vienna University of Economics and Business) |
Abstract: | We examine the effect of joint custody on marriage, divorce, fertility and female employment in Austria using individual-level administrative data, covering the entire population. We also use unique data obtained from court records to analyze the effect on post-divorce outcomes. Our estimates show that joint custody significantly reduces divorce and female employment rates, significantly increases marriage and marital birth rates, and leads to a substantial increase in the total money transfer received by mothers after divorce. We interpret these results as evidence against Becker-Coase bargains and in support of a mechanism driven by a resource redistribution that favors men giving them greater incentives to invest in marriage specific capital. |
Keywords: | Divorce, Fertility, Bargaining, Intrahousehold Allocations, Austria |
JEL: | J12 J13 J18 K36 N32 R2 |
Date: | 2013–02 |
URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp149&r=dem |
By: | Stefania Marcassa (THEMA, Universite de Cergy-Pontoise and THEMA) |
Abstract: | At the end of 1960s, the U.S. divorce law underwent major changes and the divorce rate almost doubled in all of the states. This paper shows that changes in property division, alimony transfers,and child custody assignments account for a substantial share of the increase in the divorce rate,especially for young, college educated couples with children. I solve and calibrate a model where agents make decisions on their marital status, savings, and labor supply. Under the new financial settlements, divorced men gain from a higher share of property, while women gain from an increase in alimony and child support transfers. The introduction of the unilateral decision to divorce haslimited effects. |
Keywords: | Age-specific divorce rate, unilateral and consensual divorce, divorce laws, property division, alimony and child support, child custody |
JEL: | J12 D13 K36 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2013-06&r=dem |
By: | Martin Halla (Department of Economics, Vienna University of Economics and Business); Mario Lackner (Department of Economics, University of Linz); Johann Scharler (Department of Economics, University of Innsbruck) |
Abstract: | We study the effect of the size of the welfare state on family outcomes in OECD member countries. Exploiting exogenous variation in public social spending, due to varying degrees of political fractionalization (i.e. the number of relevant parties involved in the legislative process), we show that an expansion in the welfare state increases the fertility, marriage, and divorce rates with a quantitatively stronger effect on the marriage rate. We conclude that the welfare state supports family formation. Nevertheless, we also find that the welfare state decouples marriage and fertility, and therefore, alters the organization of the family. |
Keywords: | Marriage, divorce, fertility, welfare state, risk sharing |
JEL: | J12 J13 J18 D1 D62 H31 H53 |
Date: | 2013–02 |
URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp150&r=dem |
By: | Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Karel Neels; Michaela Kreyenfeld (Max Planck Institute for Demographic Research, Rostock, Germany) |
Abstract: | Several countries in Northern and Western Europe report cohort fertility rates of close to two children per woman, including Belgium, France, and Denmark. By contrast, most Central and Southern European countries have cohort fertility levels of only around 1.5-1.6 children. Germany is part of this second group. In order to explain these country differences in fertility levels, some scholars have stressed the role of the social policy context, while others have pointed to differences in social fertility norms. However, due to the interdependence of these two factors, it is cumbersome to isolate their impact on fertility trends. In our study we at-tempt to disentangle these influences by drawing on a quasi-natural experiment. In the after-math of World War I, Germany was forced to cede the territory of Eupen-Malmedy to Bel-gium. The population in this area retained its German linguistic identity, but has been subject to Belgian social policies since the early 1920s. Our main research question is whether the fertility trends in this German-speaking region of Belgium follow the Belgian or the German pattern more closely. To answer this question, we use (micro)-census data to compare the fertility behavior in the German-speaking region in Belgium with data for western Germany and the Belgian Flemish- and French-speaking regions, controlling for individual-level char-acteristics. Our findings indicate that the overall fertility outcomes of the German-speaking region in Belgium resemble the Belgian pattern more than the German one. This provides support for the view that institutional factors play an important role for understanding the current fertility differences in Western Europe. |
Keywords: | Belgium, Europe, Germany (Alte Bundesländer), family policies, fertility trends, social norms |
JEL: | J1 Z0 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2013-003&r=dem |
By: | Akihiko Kato (Max Planck Institute for Demographic Research, Rostock, Germany) |
Abstract: | In Japan, many scholars and policymakers as well as ordinary people, have accepted the family nuclearization theory—that is, that the Japanese family system has changed from a traditional stem family into the modern nuclear or conjugal family in the latter half of the twentieth century. Although the number of nuclear family households doubled during the period of high economic growth (1955-1974), this can be brought about under the stem family principle by a marriage boom among non-heir sons and daughters born in the 1930s and the 1940s, who have many siblings due to the demographic transition. This paper examines continuity, change, and regionality in the Japanese family over the twentieth century, using retrospective longitudinal data from nationally representative survey implemented in 2002. The proportion of couples co-residing with the husband’s parent(s) or with the wife’s parent(s) at the time of marriage decreased from about 35% for those born in the 1930s to 20% for those born in the 1960s. However, the latter cohort started living with their parent(s) soon after marriage, and then over 30% of them co-reside 10–15 years after marriage, showing a delayed co-residence tendency. The results from a discrete-time logistic regression analysis reveal that the spread of conjugal family ideology, industrialization, and urbanization are the primary causes of the decrease in intergenerational co-residence at marriage. However, these effects start to weaken immediately after marriage and then fade out sooner or later, inconsistent with the nuclearization theory. By contrast, the intergenerational transfer of family property, especially house and/or land, and intergenerational reciprocity have powerful impacts from the time of marriage onward, never weakening with the passing of time. These features are clearer among younger cohorts than among their parental cohorts, suggesting intrinsic forces that form stem families continue to work in depth. Moreover, there is the persistence of the stem family in terms of regionality over the twentieth century, concluding that the Japanese family is still based on the stem family system. The evidence presented in this paper could provide several insights into the family systems of other strong family countries. |
Keywords: | Japan |
JEL: | J1 Z0 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2013-004&r=dem |
By: | Breda, Thomas; Ly, Son Thierry |
Abstract: | We investigate the link between subject-related gender stereotypes and gender discrimination, and its consequences for the gender gap in science. Stereotypes and social norms influence girls' academic self-concept and push girls to choose humanities rather than science. Do recruiters reinforce this strong selection by discriminating more against girls in more male-connoted subjects? Taking the entrance exam of a French higher education institution (the Ecole Normale Supérieure) as a natural experiment, we show the opposite: discrimination works in favor of females in more male-connoted subjects (e.g. math, philosophy) and in favor of males in more female-connoted subjects (e.g. literature, biology), inducing a rebalancing of gender ratios between students recruited for research careers in science and humanities majors. We identify discrimination from systematic differences in students' scores between oral tests (not gender blind) and anonymous written tests (gender blind). By making comparisons of these oral/written score differences across subjects for a given student, we are able to control both for students’ abilities in each subject and their overall ability at oral exams. Selection issues, external validity and the mechanisms driving this discrimination running against stereotypes are also discussed. |
Keywords: | discrimination; gender stereotypes; natural experiment; sex and science |
JEL: | I23 J16 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:1303&r=dem |
By: | ADRIENNE M. LUCAS (Department of Economics,University of Delaware); NICHOLAS L.WILSON (Department of Economics, Williams College) |
Abstract: | One in five Zambian children lives with an HIV/AIDS-infected adult. We estimate the effect that the availability of adult antiretroviral therapy (ART) has on the health of such children. Using a triple difference specification, we find that adult access to ART resulted in increased weight-for-age and decreased incidence of stunting among children younger than 60 months who resided with an infected father or other infected adult in an intact household. Because the increased availability of adult ART in sub-Saharan Africa has multigenerational effects, cost-effectiveness estimates restricted to direct recipients understate the economic benefit of the treatment. |
Keywords: | antiretroviral therapy, HIV, health, anthropometrics, children, Zambia |
JEL: | I12 I15 J13 O12 O15 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:dlw:wpaper:13-02.&r=dem |
By: | Kuehnle, Daniel |
Abstract: | Despite a recent growth in studies examining the association between family income and child health, very few studies investigate whether this is a causal relationship. This paper addresses this major methodological gap and examines the causal effect of family income on child health in the UK. Using rich observational data from a British cohort study, we exploit exogenous variation in local labour market characteristics to instrument for family income. We estimate the effect of family income on subjective child health and control for potential transmission channels through which income could affect child health. The results from our models provide novel evidence that income has a small but significant causal effect on subjective child health. Moreover, the analysis shows that parental health does not drive a spurious relationship between family income and child health as argued in recent contributions. We do not find significant effects of family income on chronic indicators of child health. The results are robust to different sets of instrumental variables, and to alternative measures of income. -- |
Keywords: | child health,income gradient,instrumental variables,transmission channels,UK |
JEL: | I1 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:70821&r=dem |
By: | Singh, K.M.; Meena, M.S.; Kumar, Abhay; Singh, R.K.P. |
Abstract: | Agriculture occupies a key position in the Indian economy providing a source of livelihood for a majority of the population. Successes in agricultural front with high production levels, especially in food grains have indeed been achieved. But more energy in the form of mineral fertilizers, chemical pesticides and farm machinery are required every year to produce the same quantity of farm products. Historically, women have been the managers of natural resources as they are dependent on them for their livelihood and their family’s needs. The consequences of over exploitation of these resources have rendered them scarce. The rural women collect over 28% of all energy consumed in India in the form of firewood. Most of the 140 million tonnes of firewood burnt annually come from forests. Poverty and unemployment in rural areas have resulted in large-scale migration to urban areas. Women are being forced to take up more drudgerous jobs as a source of livelihood as most of the migrants are absorbed into the construction sector. Women form the largest work force in agricultural sector. Caring for livestock comes naturally to women. The most drudgerous jobs in livestock production like cleaning of the cattle sheds, feeding the cattle, collection of fodder etc. always fall on the woman. Care for young animals and backyard livestock is also largely done by women. In caring for sick young animals women have evolved several ethno veterinary practices. Despite recent agricultural innovations there is no respite for rural women. While agricultural innovations leads to the reallocation of family labour and the assignment to men of complete control over output and income, without associated changes in the allocation of obligations, welfare and nutritional status of the family may actually decline |
Keywords: | Women, NRM, Livelihood, Gender issue |
JEL: | Q0 Q1 Q19 |
Date: | 2013–01–08 |
URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:45401&r=dem |
By: | Govert Bijwaard (NIDI, The Hague, IZA, Bonn); Hans van Kippersluis (Erasmus University Rotterdam); Justus Veenman (Erasmus University Rotterdam) |
Abstract: | We aim to disentangle the relative contributions of (i) cognitive ability, and (ii) education on health and mortality using a structural equation model suggested by Conti et al. (2010). We extend their model by allowing for a duration dependent variable, and an ordinal educational variable. Data come from a Dutch cohort born around 1940, including detailed measures of cognitive ability and family background at age 12. The data are subsequently linked to the mortality register 1995-2011, such that we observe mortality between ages 55 and 75. The results suggest that the treatment effect of education (i.e. the effect of entering secondary school as opposed to leaving school after primary education) is positive and amounts to a 4 years gain in life expectancy, on average. Decomposition results suggest that the raw survival differences between educational groups are about equally split between a 'treatment effect' of education, and a 'selection effect' on basis of cognitive ability and family background. |
Keywords: | Education; Cognitive Ability; Mortality; Structural Equation Model; Duration Model |
JEL: | C41 I14 I24 |
Date: | 2013–03–15 |
URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20130044&r=dem |
By: | Ludovica Gambaro; Kitty Stewart; Jane Waldfogel |
Abstract: | This paper examines how the quality of formal early childhood education and care is associated with children's background. By using different indicators of quality, the research also explored how the relationship varies depending on the way quality is measured. The analysis combines information from three administrative datasets - the Early Years Census, the Schools Census and the Office for Standards in Education, Children's Services and Skills (Ofsted) dataset on inspections (2010-11). The results suggest that children from disadvantaged background have access to better qualified staff. However, services catering for more disadvantaged children are more segregated and receive poorer quality ratings from Ofsted, the national inspectorate. |
Keywords: | Early childhood, Pre-school, Child care, Quality, Disadvantaged families |
JEL: | I24 I38 J13 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:cep:sticas:casecase171&r=dem |
By: | Tilman Brück; Damir Esenaliev |
Abstract: | We investigate long-term trends in the intergenerational transmission of education in a low income country undergoing a transition from socialism to a market economy. We draw on evidence from Kyrgyzstan using data from three household surveys collected in 1993, 1998 and 2011. We find that Kyrgyzstan, like Eastern European middle income transition economies, generally maintained high educational mobility, comparable to the levels during Soviet times. However, we find that the younger cohorts, who were exposed to the transition during their school years, experienced a rapid decline in educational mobility. We also document that gender differences in schooling and educational mobility, found among older-aged individuals, disappeared in the younger population. |
Keywords: | intergenerational mobility, educational attainment, gender, transition economy, Kyrgyzstan, Central Asia |
JEL: | J62 P36 I25 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1284&r=dem |
By: | Qingyuan Du; Shang-Jin Wei |
Abstract: | Motivated by recent empirical work, this paper formalizes a theory of competitive savings - an arms race in household savings for mating competition that is made more fierce by an increase in the male-to-female ratio in the pre-marital cohort. Relative to the empirical work, the theory can clarify a number of important questions: What determines the strength of the savings response by males (or households with a son)? Can women (or households with a daughter) dis-save? What are the conditions under which aggregate savings would go up in response to a higher sex ratio? While the theory can be best tested using data from countries with a sex ratio imbalance, the competitive saving motive is likely to be present and important in all countries. |
JEL: | E2 F3 O16 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18911&r=dem |
By: | Ted Aranki & Corrado Macchiarelli |
Abstract: | The decision to cease working is traditionally influenced by a wide set of socio-economic and environmental variables. In this paper, we study transitions out of work for 26 EU countries over the period 2004-2009 in order to investigate the determinants of retirement based on the Eurostat Survey on Income and Living Conditions (EU-SILC). Applying standard survivor analysis tools to describe exits into retirement, we do not find any significant differences in the patterns into retirement between the average euro area and EU non-euro area countries. Moreover, we find that shifts into retirement have increased during the onset of the 2009 economic and financial crisis. Income, together with flexible working arrangements, is found to be important as regards early retirement decisions, compared to retiring beyond the legal retirement age. Finally, we show that institutional measures (such as, state/health benefits, minimum retirement age) could not be sufficient alone if individuals withdraw earlier from the labour market due to a weakening of their health. Especially, these latter results are of importance for structural and macroeconomic policy, for instance, in increasing the employment of both people and hours worked against the background of population ageing. |
Date: | 2013–02–12 |
URL: | http://d.repec.org/n?u=RePEc:erp:leqsxx:p0058&r=dem |
By: | A. Bussu; Claudio Detotto |
Abstract: | Gambling represents a channel through which some relevant aspects of our social life, such as audacity, competition and risk, manifest themselves. Gambling is both a pleasing diversion and a way of socialisation, where gratification and problematic issues alternate. Most gamblers are social players who participate in games without any relevant implications on their life, regardless of how frequently they engage in the activity. Unfortunately, in some cases gaming activities can have a dramatic impact on the player to the point that he/she has little control over them. In such cases, the approach to gaming can be defined as critical or even pathological. Pathological gambling is a serious form of addiction that causes gamblers to suffer from social and financial problems as they constantly look for ways to increase their “dose”. This study proposes a bivariate ordered probit approach aimed at examining the emotional factors of gambling expenditures and problematic behaviour or addiction while also controlling for socio-economic determinants. It is based on a survey among 1,315 gamblers in Sardinia (Italy) in the time span from June 2004 to March 2005. To measure gambling-related problems and gaming addiction we use survey responses on the existence of problems caused by game participation (in terms of psychological, relational, economic, labour difficulties directly linked to gambling) and on the need for help and/or the intention to stop the gambling experience. The findings show that women bet less than men and that income and gambling frequency are positively correlated with the amount of money allocated to gambling. Furthermore, having a sense of omnipotence and being willing to replay in case of a win increase the propensity to bet more money. Notably, women have a higher probability to be problematic gamblers after controlling for all other characteristics. Income is negatively associated with problematic gamblers while those who experience guilt or frustration after a loss and bet a higher amount of money have a higher probability of exhibiting gambling-related problems. Those who have other players in their family (wife/husband, children, brother/sister, parents and grandparents), do not play alone and gamble for many hours a day have a higher probability to become pathological gamblers. In addition, income positively affects the probability to have pathological consequences while education is negatively correlated to it. Finally, experiencing satisfaction in case of a win, disappointment in case of loss and excitement in the middle of the game is negatively associated with pathological players. |
Keywords: | problem gambling; risk factors; emotional factors; gambling behaviour |
JEL: | D01 D81 C35 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201305&r=dem |
By: | Patrick Doupe |
Abstract: | This paper studies the variation in village head selection rules across Indonesia using panel data over 1997–2007. The selection of village heads is often thought of as being determined by national level legislation, with elections in villages located in kabupaten and directly appointed village heads for villages within kota. However, existing legislation allows a degree of autonomy by villages to determine their own village's institutional structure. I find that a larger majority of an ethnic group within Indonesian villages is associated with having elected village heads. Further, evidence is found that the changing composition of governments at the district level, as well as changes in village level ethnic majority size is associated with village level institutional change. I argue that the results provide valuable empirical evidence into constitutional change and further evidence on the role of ethnicity in political economy. |
Keywords: | constitutional political economy, Indonesia, ethnicity, new institutional economics |
Date: | 2013–01–01 |
URL: | http://d.repec.org/n?u=RePEc:een:crwfrp:1305&r=dem |
By: | Morissette, Rene<br /> Picot, Garnett<br /> Lu, Yuqian |
Abstract: | La presente etude examine comment les salaires des travailleurs canadiens ont evolue de 1981 a 2011, selon cinq dimensions : sexe, age, niveau de scolarite, industrie et profession. |
Keywords: | Travail, Education, formation et apprentissage, Salaires, traitements et autres gains, Industries, Resultats educationnels, Professions |
Date: | 2013–03–15 |
URL: | http://d.repec.org/n?u=RePEc:stc:stcp3f:2013347f&r=dem |
By: | Gopi Shah Goda; Damon Jones; Colleen Flaherty Manchester |
Abstract: | Employer-provided pension plans may affect employee mobility both through an “incentive effect,” where the bundle of benefit characteristics such as vesting rules, pension wealth accrual, risk, and liquidity affect turnover directly, and a “selection effect,” where employees with different underlying mobility tendencies select across plans or across firms with different types of plans. In this paper, we quantify the role of selection by exploiting a natural experiment at a single employer in which an employee’s probability of transitioning from a defined benefit (DB) to a defined contribution (DC) pension plan was exogenously affected by default rules. Using regression discontinuity as well as differences-in-regression-discontinuities (DRD) methods, we find evidence that employees with higher mobility tendencies self-select into the DC plan. Our results suggest that selection likely contributes to the observed positive relationship between the transition from DB to DC plans and employee mobility in settings where employees sort into plans or employers. Counter to conventional wisdom, we find a negative direct effect of the DC plan on turnover relative to the DB plan, which underscores the multi-dimensional difference between these plans. |
JEL: | H0 J26 J32 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18902&r=dem |
By: | Vincenzo Atella (University of Rome "Tor Vergata"); Valentina Conti (University of Rome "Tor Vergata") |
Abstract: | There exists a large body of literature, mainly based on hospital costs, showing that time to death is by far a better predictor of health spending than age. In this paper, we investigate if this finding holds true also in presence of outpatient costs (drugs, diagnostic tests and specialist visits). To accomplish this task we use data from the Health Search-SiSSI dataset, a large unbalanced panel of Italian patients that collects detailed information on patient clinical records and costs. Our results show that age is a strong driver of outpatient costs in Italy. In particular, we find that age produces a 500% increase in health costs from age 40 to 80, while proximity to death rises costs only by about 30%. Our advice for policy makers is then to use disaggregated models to better disentangle the role that age and time to death may have on different components of health expenditure. |
Keywords: | ageing, time to death, outpatient health care expenditure, cost of dying |
JEL: | J14 I12 |
Date: | 2013–03–08 |
URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:267&r=dem |
By: | Betsey Stevenson; Justin Wolfers |
Abstract: | Progress in closing differences in many objective outcomes for blacks relative to whites has slowed, and even worsened, over the past three decades. However, over this period the racial gap in well-being has shrunk. In the early 1970s data revealed much lower levels of subjective well-being among blacks relative to whites. Investigating various measures of well-being, we find that the well-being of blacks has increased both absolutely and relative to that of whites. While a racial gap in well-being remains, two-fifths of the gap has closed and these gains have occurred despite little progress in closing other racial gaps such as those in income, employment, and education. Much of the current racial gap in well-being can be explained by differences in the objective conditions of the lives of black and white Americans. Thus making further progress will likely require progress in closing racial gaps in objective circumstances. |
JEL: | D6 I32 J1 J7 K0 K31 N3 |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18916&r=dem |
By: | Matthew S. Rutledge |
Abstract: | Both unemployment insurance (UI) extensions and the availability of disability benefits have disincentive effects on job search. But UI extensions can reduce the efficiency cost of disability benefits if UI recipients delay disability application until they exhaust their unemployment benefits. This paper, the first to focus on the effect of UI extensions on disability applications, investigates whether UI eligibility, extension, and exhaustion affect the timing of disability applications and the composition of the applicant pool. Jobless individuals are significantly less likely to apply to Social Security Disability Insurance (SSDI) during UI extensions, and significantly more likely to apply when UI is ultimately exhausted. Healthier potential applicants appear more likely to delay, as state allowance rates increase after a new UI extension. Simulations find that a 13-week UI extension decreases SSDI and Medicare costs, offsetting about half of the increase in UI payments; this suggests that the benefits of UI extensions may be understated — permanent disability benefits are diverted to shorter-run unemployment benefits and, potentially, new jobs, while easing the burden on the nearly insolvent SSDI Trust Fund. |
Date: | 2013–03 |
URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:13-10&r=dem |
By: | Eva Moreno - Galbis; Thepthida Sopraseuth (GRANEM (University of Angers); THEMA, Universite de Cergy-Pontoise) |
Abstract: | This paper extends on French data a previous finding on US data: employment growth has been more important in the lower and upper tail of the job quality distribution. The originality of the paper is to argue that the diffusion of ICT cannot explain alone the polarization at the lower tail of the distribution. However, when combined with population aging, our framework predicts a progressive concentration of employment in the service sector (bottom tail of the job quality distribution). This results from a purely demand shift, since, as revealed by our estimations goods and services are complementary for seniors. The decrease in the relative price of goods induced by ICT diffusion is thus associated with an increased demand for services if the proportion of seniors is increasing. |
Keywords: | Job Polarization, Occupational Structure, Aging |
JEL: | J14 J21 J24 O33 |
Date: | 2013 |
URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2013-08&r=dem |