nep-dem New Economics Papers
on Demographic Economics
Issue of 2013‒04‒27
forty-one papers chosen by
Clarence Nkengne Tsimpo
University of Montreal and World Bank Group

  1. Firm-Level Monopsony and the Gender Pay Gap By Webber, Douglas A.
  2. Financial inclusion and legal discrimination against women : evidence from developing countries By Demirguc-Kunt, Asli; Klapper, Leora; Singer, Dorothe
  3. Demographic Transition and an Ageing Society: Implications for Local Labour Markets in Poland By Cristina Martinez-Fernandez; Tamara Weyman; Jolanta Perek-Białas; Iwona Sagan; Piotr Szukalski; Piotr Stronkowski
  4. Children's Cognitive Abilities and Intrahousehold Parental Investment By Andrew Zuppann
  5. Women's Emancipation Through Education: A Macroeconomic Analysis By Fatih Guvenen; Michelle Rendall
  6. Data needs for gender analysis in agriculture: By Doss, Cheryl
  7. The Costs of Increasing the Fertility Rate in an Endogenous Growth Model By Stauvermann, Peter J.; Ky , Sereyvath; Nam, Gi-Yu
  8. Social Expenditure in New Zealand: Stochastic Projections By John Creedy; Kathleen Makale
  9. The Pill and Marital Stability By Andrew Zuppann
  10. Demographic Transition and Economic Welfare: The Role of Humanitarian Aid By Kyriakos C. Neanidis; Stephen M. Miller
  11. Family Subgroups and Impacts at Ages 2, 3, and 5: Variability by Race/Ethnicity and Demographic Risk. By Helen H. Raikes; Cheri Vogel; John M. Love
  12. Schooling, violent conflict, and gender in Burundi By Verwimp, Philip; Van Bavel, Jan
  13. Mommy tracks and public policy: On self-fulfilling prophecies and gender gaps in promotion By Kjell Erik Lommerud; Odd Rune Straume; Steinar Vagstad
  14. Stochastic Dominance and Demographic Policy Evaluation: A Critique By Cordoba, Juan Carlos; Liu, Xiying
  15. Impacts of Early Head Start Participation on Child and Parent Outcomes at Ages 2, 3, and 5. By Cheri Vogel; Jeanne Brooks-Gunn; Anne Martin; Mary M. Klute
  16. The Casual Effect of Family Income on Child Health: A Re-examination Using an Instrumental Variables Approach By Daniel Kuehnle
  17. How Much Does Women's Empowerment Influence their Wellbeing? Evidence from Africa By David Fielding
  18. Social Transfers and Child Protection By Armando Barrientos; Jasmina Byrne; Paola Peña; Juan Miguel Villa; UNICEF Innocenti Research Centre
  19. The impact of irrigation on nutrition, health, and gender: A review paper with insights for Africa south of the Sahara By Domenech, Laia; Ringler, Claudia
  20. Healthy life expectancy in Europe By Jean-Marie Robine; Emmanuelle Cambois
  21. How gender-sensitive are the National Adaptation Programmes of Action (NAPAs) of Sub-Saharan African countries? A gender-scan of 31 NAPAs By Holvoet, Nathalie; Inberg, Liesbeth
  22. Pomorskie Region: Responding to Demographic Transitions Towards 2035 By Iwona Sagan; Cristina Martinez-Fernandez; Tamara Weyman
  23. Does identity matter? By Koczan, Zs
  24. Does Experience Rating Reduce Disability Inflow? By Kyyrä, Tomi; Tuomala, Juha
  25. Single-parenthood among migrant children: Determinants and consequences for educational performance By Jaap Dronkers; Matthijs Kalmijn
  26. Impacts of Institutional Changes in Cambodia under the Pol Pot Regime By Kogure, Katsuo
  27. Life chances and class: Estimating inequality of opportunity in South Africa for various life stages By Asmus Zoch
  28. Towards a European Union Child Basic Income? Within and between country effects By Levy, Horacio; Matsaganis, Manos; Sutherland, Holly
  29. Women entrepreneurs in the informal economy: Is formalization the only solution for business sustainability? By Ramani, Shyama V.; Thutupalli, Ajay; Medovarski, Tamas; Chattopadhyay, Sutapa; Ravichandran, Veena
  30. Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France By Emmanuelle Lavaine; Matthew J. Neidell
  31. Towards an Age-Friendly City: The Constraints Preventing the Elderly's Participation in Community Programs in Akita City By Yoshihiko Kadoya
  32. The role of psychological and physiological factors in decision making under risk and in a dilemma By Jonas Fooken; Markus Schaffner
  33. Municipal vulnerability to climate change and climate related events in Mexico By Borja-Vega, Christian; de la Fuente, Alejandro
  34. Gender Norms, Work Hours, and Corrective Taxation By Aronsson, Thomas; Granlund, David
  35. Gender digital divide and online participation: A cross-national analysis By Chang, Younghoon; Shahzeidi, Mehri; Kim, Hyerin; Park, Myeong-cheol
  36. Lódzkie Region: Demographic Challenges Within an Ideal Location By Piotr Szukalski; Cristina Martinez-Fernandez; Tamara Weyman
  37. Is institutional trust related to the attitudes towards immigrants in Europe? A study of majority and minority population By Vivika Halapuu; Tiiu Paas; Tiit Tammaru
  38. Does integration increase life satisfaction? By Koczan, Zs
  39. Les espérances de vie en bonne santé des Européens By Jean-Marie Robine; Emmanuelle Cambois
  40. Building or bypassing recipient country systems : are donors defying the Paris declaration ? By Knack, Stephen
  41. Can Microinsurance Help Prevent Child Labor? An Impact Evaluation from Pakistan By Landmann, Andreas; Frölich, Markus

  1. By: Webber, Douglas A. (Temple University)
    Abstract: Using a dynamic labor supply model and linked employer-employee data, I find evidence of substantial search frictions, with females facing a higher level of frictions than males. However, the majority of the gender gap in labor supply elasticities is driven by across firm sorting rather than within firm differences, a feature predicted in the search theory literature, but which has not been previously documented. The gender differential in supply elasticities leads to 3.3% lower earnings for women. Roughly 60% of the elasticity differential can be explained by marriage and children penalties faced by women but not men.
    Keywords: monopsony, discrimination
    JEL: J42 J71
    Date: 2013–04
  2. By: Demirguc-Kunt, Asli; Klapper, Leora; Singer, Dorothe
    Abstract: This paper documents and analyzes gender differences in the use of financial services using individual-level data from 98 developing countries. The data, drawn from the Global Financial Inclusion (Global Findex) database, highlight the existence of significant gender gaps in ownership of accounts and usage of savings and credit products. Even after controlling for a host of individual characteristics including income, education, employment status, rural residency and age, gender remains significantly related to usage of financial services. This study also finds that legal discrimination against women and gender norms may explain some of the cross-country variation in access to finance for women. The analysis finds that in countries where women face legal restrictions in their ability to work, head a household, choose where to live, and receive inheritance, women are less likely to own an account, relative to men, as well as to save and borrow. The results also confirm that manifestations of gender norms, such as the level of violence against women and the incidence of early marriage for women, contribute to explaining the variation in the use of financial services between men and women, after controlling for other individual and country characteristics.
    Keywords: Access to Finance,Gender and Law,Financial Literacy,Gender and Development,Population Policies
    Date: 2013–04–01
  3. By: Cristina Martinez-Fernandez; Tamara Weyman; Jolanta Perek-Białas; Iwona Sagan; Piotr Szukalski; Piotr Stronkowski
    Abstract: This report outlines the findings of the Poland case study for the combined study regions of Lódzkie, Malopolska and Pomorskie for the international project, Local scenarios of demographic change. The demographic situation is changing significantly within Poland with two major trends occurring, population decline and population ageing, as a result of decreasing fertility rates and increased life expectancy. However, the Polish case study revealed the complexity of demographic challenges with each region experiencing different issues associated with socio-economic context such as: population ageing experienced in all three study regions; and population shrinkage in Lódzkie. These differences in demographic situations require a territorial, local and regional strategy co-ordinated policy response with national policy efforts. Policy themes and recommendations focus on sustainable economic development, family policy, ageing workforce, silver economy, and skills and education.
    Date: 2013–04–18
  4. By: Andrew Zuppann (University of Houston)
    Abstract: I estimate how new information about children's cognitive abilities leads parents to adjust investment within and across children. I use the National Longitudinal Survey of Youth matched mother-child data to construct measures of both child cognitive ability and parental investment during childhood. I find that parents respond to improvements in a child's cognitive abilities by devoting more resources towards that child.  I find that positive information about one child leads to compensating investments in other children, evidence that parents have a concern for equity within the household.
    Keywords: human capital, parental investment, household decisions, childhood cognitive ability
    JEL: J13 I2
    Date: 2013–04–14
  5. By: Fatih Guvenen; Michelle Rendall
    Abstract: In this paper, we study the role of education as insurance against a bad marriage. Historically, due to disparities in earning power and education across genders, married women often found themselves in an economically vulnerable position, and had to suffer one of two fates in a bad marriage: either they get divorced (assuming it is available) and struggle as low-income single mothers, or they remain trapped in the marriage. In both cases, education can provide a route to emancipation for women. To investigate this idea, we build and estimate an equilibrium search model with education, marriage/divorce/remarriage, and household labor supply decisions. A key feature of the model is that women bear a larger share of the divorce burden, mainly because they are more closely tied to their children relative to men. Our focus on education is motivated by the fact that divorce laws typically allow spouses to keep the future returns from their human capital upon divorce (unlike their physical assets), making education a good insurance against divorce risk. However, as women further their education, the earnings gap between spouses shrinks, leading to more unstable marriages and, in turn, further increasing demand for education. The framework generates powerful amplification mechanisms, which lead to a large rise in divorce rates and a decline in marriage rates (similar to those observed in the US data) from relatively modest exogenous driving forces. Further, in the model, women overtake men in college attainment during the 1990s, a feature of the data that has proved challenging to explain. Our counterfactual experiments indicate that the divorce law reform of the 1970s played an important role in all of these trends, explaining more than one-quarter of college attainment rate of women post-1970s and one-half of the rise in labor supply for married women.
    JEL: D13 E24 J12
    Date: 2013–04
  6. By: Doss, Cheryl
    Abstract: To support gender analysis in agriculture, household surveys should be better designed to capture gender-specific control and ownership of agricultural resources such as male-owned, female-owned, and jointly owned assets. This paper offers guidelines on how to improve data collection efforts to ensure that women farmers are interviewed and that their voices are heard.
    Keywords: Agriculture; Gender; Women; Surveys; Household behavior; Household survey; methodologies;,
    Date: 2013
  7. By: Stauvermann, Peter J.; Ky , Sereyvath; Nam, Gi-Yu
    Abstract: In this paper, we apply an Overlapping Generations (OLG) model with endogenous fertility and a pay as you go (PAYG) pension system to find out what are the economic consequences of different policy measures to increase the number of children. Especially, we take into account the introduction of a child dependent PAYG pension system, child allowances financed by a labor income tax, and a reduction of the child rearing costs. Some authors have shown that in small open economies with exogenous growth it is possible to increase the fertility without harming any generation. Here we show that this is impossible in a model with endogenous growth.
    Keywords: Fertility, endogenous growth, pay-as-you-go pension, child allowances
    JEL: D10 H5 J13
    Date: 2013–01
  8. By: John Creedy; Kathleen Makale (The Treasury)
    Abstract: This paper presents stochastic projections for 13 categories of social spending in New Zealand over the period 2011-2061. These projections are based on detailed demographic estimates covering fertility, migration and mortality disaggregated by single year of age and gender. Distributional parameters are incorporated for all of the major variables, and are used to build up probabilistic projections for social expenditure as a share of GDP using simulation methods, following Creedy and Scobie (2005). Emphasis is placed on the considerable uncertainty involved in projecting future expenditure levels.
    Keywords: Population, projections, stochastic simulation, social expenditure, fiscal costs, New Zealand
    JEL: E61 H50 J11
    Date: 2013–03
  9. By: Andrew Zuppann (University of Houston)
    Abstract: Better contraception will have competing impacts on marital stability and divorce rates. Preexisting marriages are likely to become less stable as better contraception raises the value of reentering the dating market. Subsequent marriages are likely to be more stable as couples delay marriages and use better contraception to search for better partners.  I investigate this hypothesis using variation in access to the birth control pill by state and cohort as developed by Goldin and Katz (2002).  Access to the pill decreased stability of preexisting marriages and increased stability of subsequent marriages.
    Keywords: contraception, pill, divorce, marriage, marital stability
    JEL: J13 N3 I0
    Date: 2012–09–20
  10. By: Kyriakos C. Neanidis (Department of Economics, University of Manchester); Stephen M. Miller (Department of Economics, University of Nevada, Las Vegas)
    Abstract: This paper considers the effects of humanitarian aid on economic welfare through a demographic transition channel. We develop a two-period overlapping generations model where reproductive agents face a non-zero probability of death in childhood. As adults, agents allocate their time to work, leisure, and child rearing activities. Health status in adulthood exhibits “state dependence,” as it depends on health in childhood. In this framework, we examine the effects of changes in in-kind and monetary humanitarian aid on economic welfare. We conclude that if parents strongly value children, giving monetary aid produces more children and yields higher welfare. This positive welfare effect dominates an indirect negative welfare effect due to a lower growth rate. But, if parents value the quality of their children (health status), they achieve greater utility by in-kind aid, which also lowers fertility and augments economic growth.
    Keywords: aid; fertility; health; growth; welfare
    JEL: C23 F35 F43 I12 O41
    Date: 2012–04
  11. By: Helen H. Raikes; Cheri Vogel; John M. Love
    Keywords: Early Head Start, Family Subgroups, Race Ethnicity, Demographic Rish
    JEL: I
    Date: 2013–02–28
  12. By: Verwimp, Philip; Van Bavel, Jan
    Abstract: This paper investigates the effect of exposure to violent conflict on human capital accumulation in Burundi. It combines a nationwide household survey with secondary sources on the location and timing of the conflict. Only 20 percent of the birth cohorts studied (1971-1986) completed primary education. Depending on the specification, the probability of completing primary schooling for a boy exposed to violent conflict declines by 7 to 17 percentage points compared to a nonexposed boy, with a decline of 11 percentage points in the preferred specification. In addition, exposure to violent conflict reduces the gender gap in schooling, but only for girls from nonpoor households. Forced displacement is one of the channels through which conflict affects schooling. The results are robust to various specifications and estimation methods.
    Keywords: Post Conflict Reconstruction,Education For All,Population Policies,Rural Poverty Reduction,Primary Education
    Date: 2013–04–01
  13. By: Kjell Erik Lommerud (Department of Economics, University of Bergen, Norway); Odd Rune Straume (Universidade do Minho - NIPE and University of Bergen (Health Economics Bergen, Department of Economics), Norway); Steinar Vagstad (Department of Economics, University of Bergen, Norway)
    Abstract: Consider a model with two types of jobs. The profitability of promoting a worker to a fast-track job depends not only on his or her observable talent, but also on incontractible effort. We investigate whether self-fulfilling expectations may lead to higher promotion standards for women. If employers expect women to do more household work than men, thereby exerting less effort in their paid job, then women must be more talented to make promotion profitable. Moreover, specialization in the family will then result in women doing most of the household work. Such self-fulfilling prophecies can be defeated: both affirmative action and family policy can make women spend more effort in the market, which can lead the economy to a non-discriminatory equilibrium. However, we find that it is unlikely that temporary policy can move the economy to a symmetric equilibrium: policy must be made permanent. Anti-discrimination policy need not enhance efficiency, and from a distribution viewpoint this is a policy with both winners and losers.
    Keywords: self-fulfilling prophecies; gender discrimination; promotion
    JEL: D13 J16 J22 J71
    Date: 2013
  14. By: Cordoba, Juan Carlos; Liu, Xiying
    Abstract: Stochastic dominance (SD) is commonly used to rank income distribution and assesssocial policies. The literature argues that SD is a robust criterion for policy evaluationbecause it requires minimal knowledge of the social welfare function. We argue that,on the contrary, SD is not a robust criterion. We do this by carefully introducing mi-crofoundations into a model by Chu and Koo (1990) who use SD to provide support tofamily-planning programs aiming at reducing the fertility of the poor. We show thatfertility restrictions are generally detrimental for both individual and social welfare inspite of the fact that SD holds. Our Â…findings are an application of the LucasÂ’Critique.
    Keywords: Fertility; Welfare; income distribution; children; demographic policies; one child policy; stochastic dominance.
    JEL: I I1 I3 J J1 O O5
    Date: 2013–04–14
  15. By: Cheri Vogel; Jeanne Brooks-Gunn; Anne Martin; Mary M. Klute
    Keywords: Early Head Start, Child and Parent Outcomes, Ages 2, 3, and 5
    JEL: I
    Date: 2013–02–28
  16. By: Daniel Kuehnle (Department of Economics, Friedrich-Alexander-University Erlangen-Nuremberg)
    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. 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: 2013–04
  17. By: David Fielding (Department of Economics, University of Otago, New Zealand)
    Abstract: One of the eight Millennium Development Goals is to 'promote gender equality and empower women.' However, only 1% of official foreign aid is currently spent on gender equality and human rights. Using individual-level survey data from 39 villages in northern Senegal, we model the effects that freedom within the home have on married women's subjective wellbeing. We find the direct effects on wellbeing to be of a similar magnitude to the direct effects of consumption, education and morbidity. These results suggest the need for a review of aid allocation priorities.
    Keywords: wellbeing; health; women's empowerment
    JEL: O15 J12 I15
    Date: 2013–04
  18. By: Armando Barrientos; Jasmina Byrne; Paola Peña; Juan Miguel Villa; UNICEF Innocenti Research Centre
    Abstract: The paper assesses the available evidence on the potential effects of social transfers on child protection outcomes in low- and middle-income countries: the negative outcomes or damaging exposure of children to violence, exploitation, abuse and neglect, and improved outcomes or a reduction in exposure to these phenomena. The study identifies and evaluates three possible channels through which social transfers can influence child protection outcomes: direct effects observed where the objectives of social transfers are explicit chid protection outcomes; indirect effects where the impact of social transfers on poverty and exclusion leads to improved child protection outcomes; and potential synergies in implementation of social transfers and child protection. It also discusses how the design and implementation of social transfers can contribute to improved child protection outcomes.
    Keywords: child protection; poverty; rights of the child; social security benefits; transfer income;
    JEL: H0
    Date: 2013
  19. By: Domenech, Laia; Ringler, Claudia
    Abstract: The hypothesis underlying this review paper is that how irrigation gets deployed in SSA will be decisive not only for environmental sustainability (such as deciding remaining forest cover in the region) and poverty reduction, but also for health, nutrition, and gender outcomes in the region. The focus of this paper is on the health, nutrition, and gender linkage.
    Keywords: Irrigation; Nutrition; Health; Gender; Women; Water resources; Environmental impacts; Water use.;,
    Date: 2013
  20. By: Jean-Marie Robine (INED); Emmanuelle Cambois (INED)
    Abstract: Each year since 2005, Eurostat has calculated life expectancy without activity limitations, known as"healthy life years". While life expectancy at age 65 increased by one year in the European Union between2005 and 2010, the years lived in poor perceived health decreased (by 0.5 years for men and 1.1 years for women)despite an increase in years with chronic morbidity (1.6 years for men, 1.3 years for women). Years withoutlimitation of activity remained unchanged. This paradoxcan be explained in part by more systematic detection and improved management of health problems, whoseprevalence may thus increase without necessarily producing an increase in reported activity limitations or innegative perceptions of health.
    Date: 2013
  21. By: Holvoet, Nathalie; Inberg, Liesbeth
    Abstract: The recent (draft) decision of the 2012 Conference of the Parties (CoP) to the United Nations Framework Convention on Climate Change (UNFCCC) recognises that a more balanced representation of women from developed and developing countries in the UNFCCC process is important in order to create climate policies that are responding to the different needs of men and women in national and local contexts (UNFCCC, 2012). In the context of the UNFCC, countries that are most vulnerable to climate change list their priority adaptation projects in National Adaptation Programmes of Action (NAPAs). Guidelines for drafting NAPAs have been made gender-sensitive drawing upon equality, effectiveness and efficiency arguments. More specifically, climate change affect men and women differently and therefore, policies and programmes that do not take into account the particular needs and capacities of both men and women will fail to be effective and may even worsen the already existing male bias. Against this background of increased acknowledgement of the importance of gender mainstreaming in climate change policies, we aim at confronting rhetorics with reality. Our study investigates to what extent and in what way the 31 available Sub Sahara African NAPAs integrate a gender dimension into the different phases (diagnosis, selection of projects, budgeting, monitoring and evaluation) of the NAPA cycle and the different sectors that are especially related to climate change (in addition to the energy sector, these are the agriculture, forestry, water and sanitation and health sectors). Additionally, we also analyse the degree of participation of women and gender experts in diagnosis and decision-making as well as the gender sensitivity of the format used for participation. The findings of the gender scan among others demonstrate that there is a decline in gendersensitivity throughout the cycle, which is particularly outspoken when translation priorities into budgets and indicators. Next, processes have been more gender sensitive than the actual content of NAPAs which hints at the fact that the gender actors around the table in NAPA decision making have not always been able to influence the content of the NAPAs. This could among others be related to a low track record of these gender actors in the area of climate change. Local climate change experts on the other hand often lack operational ‘gender’ tools and approaches which are framed in their own terminology. When it comes to an integration of gender issues in climate change budgets, our study suggests that the insights, approaches and tools of gender budgeting could be particularly useful.
    Keywords: Sub-Saharan Africa; National Adaptation Programmes of Action; NAPA
    Date: 2013–03
  22. By: Iwona Sagan; Cristina Martinez-Fernandez; Tamara Weyman
    Abstract: This paper outlines the findings of the Poland case study of the Pomorskie region for the international project, Local scenarios of demographic change. The Pomorskie region is located in the northern part of Poland on the coast of the Baltic Sea, regional boarders were established during the 1999 administrative reforms. Despite the region experiencing population growth, there is a growing share of elderly people in the social structure and the number of people in the pre-working age is decreasing. Although the authorities are aware of the demographic challenges, local and regional policy must be applied to manage the demographic transition, with emphasis being placed on infrastructure and services for the ageing population, developing the silver economy, encouraging life-long learning and examining the opportunities provided by being within the Baltic Sea region.
    Date: 2013–04–18
  23. By: Koczan, Zs
    Abstract: We examine the question of whether identity is just a `label' or whether it matters in affecting outcomes, such as education, employment or political orientation, using data on Turkish and ex Yugoslavian second generation immigrants in Austria and Germany. We begin with an empirical investigation of identity formation, with a focus on parental investment in their child's identity, and use this to understand the impact of the child's own identity on own outcomes, a generation later. The results suggest that identity does not have a significant effect on education, employment and political orientation, thus suggesting that a strong ethnic/ religious minority identity does not constrain the second generation or hamper socioeconomic integration.
    Keywords: Identity, second generation immigrants, integration
    JEL: F22 J15 O15
    Date: 2013–04–19
  24. By: Kyyrä, Tomi (VATT, Helsinki); Tuomala, Juha (VATT, Helsinki)
    Abstract: This study explores whether the experience rating of employers' disability insurance premiums affects the inflow of older employees to disability benefits in Finland. To identify the causal effect of experience rating, we exploit a pension reform that extended the coverage of the experience-rated premiums. The results show that a new disability benefit claim can cause substantial cost to the former employer through an increased premium. Nonetheless, we find no evidence of the significant effects of experience rating on the disability inflow. The lack of the behavioral effects may be due to the complexity of experience rating calculations and/or limited employer awareness.
    Keywords: experience rating, disability insurance, early retirement
    JEL: J14 J26 H32
    Date: 2013–04
  25. By: Jaap Dronkers (Maastricht University); Matthijs Kalmijn (University of Amsterdam)
    Abstract: In this paper we address both the occurrence of single-motherhood among migrant mothers in OECD countries and the effect of living in a single-mother family on the math scores of 15-year old migrant pupils in OECD countries. We use the PISA 2009 data with an international comparative perspective, which contains 14,794 migrant pupils coming from 54 origin countries (grouped into 13 origins regions) and living in 15 OECD destination countries. We select only two-parent families and single-mother families for this analysis. Pupils have a higher risk of living in a single-mother family when one parent was born in the destination country, when they speak the destination language at home, and when they have a low socio-economic status. The risk of single parenthood also coincides with the prevalence of single parenthood in the origin country but does not reflect the prevalence of single parenthood in the destination countries. After controlling for mothers’ socio-economic status and migration history, migrant pupils from single-mother families score 4 point lower on the math test than migrant pupils who live with both parents. This effect does not depend on the prevalence of single parenthood in the origin or the destination country.
    Date: 2013–04
  26. By: Kogure, Katsuo
    Abstract: This paper presents an econometric analysis of impacts of the communist revolution by the Khmer Rouge (1975-’79) in Cambodia on economic behaviors of survivors after 1979. Specifically, we compare forced marriages in the Pol Pot regime with regular marriages after its collapse, and make econometric evaluations of their educational investments for children. Our econometric results are interpreted as meaning that forced-marriage couples invested less in their children’s education than the regular-marriage couples. We consider those results, by reflecting upon social and political structures of Cambodia under and after the Pol Pot regime.
    Keywords: educational investments for children, family organizations, institutions, norms, political economy, violence
    JEL: I24 N35 O12 P26
    Date: 2013–03
  27. By: Asmus Zoch (Department of Economics, University of Stellenbosch)
    Abstract: This paper aims to determine the degree to which class and socio-economic background influence a child’s life chances and their future perspectives. We build on the growing number of papers that deal with the concept of inequality of opportunity. Comparing children from poor and middle class households we find significant differences in terms of access to basic education, sanitation, clean water and mobility. Our multivariate analysis highlights the importance of class membership for schooling outcomes and labour market prospects of a child. The single most important variable to explain schooling outcomes are mother’s education. While income seems to be less important for younger ages it becomes increasingly important for the chances of reaching matric and obtaining tertiary education. The results are robust for various models and panel data.
    Keywords: Inequality of opportunity, Intergenerational mobility, South Africa, Middle class
    JEL: D63 I24 J62
    Date: 2013
  28. By: Levy, Horacio; Matsaganis, Manos; Sutherland, Holly
    Abstract: This paper explores the within and between country distributional implications of an illustrative Child Basic Income (CBI) operated at EU level. Using EUROMOD, we establish that a universal payment of 50 per month per child aged under 6 could take 800,000 children in this age group out of poverty. It could be financed by an EU flat tax of 0.2% on all household income, assuming that it would also be taxed nationally as income. Most member states and virtually all families with children aged under 6 would be net gainers. We simulate two versions of EU CBI, with the benefit rate of 50 per month adjusted or not for differences in purchasing power between member states. In general, fiscal flows between member states, and also poverty reduction, would be smaller under the adjusted version. The political feasibility of such a scheme might be questioned, especially within the net contributor countries. Nevertheless, for those seeking ways to strengthen solidarity across national boundaries, a scheme supporting the incomes of families with young children, wherever in the EU they might reside could be a demonstration of the EUs commitment to children, to the future (EC 2012a: 62).
    Date: 2013–03–28
  29. By: Ramani, Shyama V. (Brunel University, UNU-MERIT, and STI4Change); Thutupalli, Ajay (UNU-MERIT); Medovarski, Tamas (STI4Change); Chattopadhyay, Sutapa (UNU-MERIT); Ravichandran, Veena (IDRC)
    Abstract: The existing marketing, strategy and economics literature have little to offer by way of recommendations to promote entrepreneurship in the informal economy, except to advocate that multinationals, local firms, state and public agencies should work together to bring the informal economy into the fold of the formal economy. In contrast, this paper argues that the business sustainability of women entrepreneurs in the informal economy depends upon their engagements or business partnerships with other women (and men) and women-focussed intermediaries. More than formalization, women entrepreneurs need 'spaces' for dialogue with other women (and men) to learn and build business capabilities. Both the State and firms wanting to penetrate the informal economy can create such spaces through partnerships with NGOs and women-focussed organizations. While formalization of entrepreneurial activity is favourable under some circumstances, it can be detrimental under others - necessitating a case by case evaluation rather than a general rule. In order to ensure the business sustainability of women's ventures in the informal economy, any sort of formalization must occur through a gradual process accompanied by intermediaries. These results are formulated through the compilation and analysis of the existing literature and the study of six detailed case studies of women entrepreneurs from developing countries validated by extensive interviews. The results are then used to propose a closed model of linkages between formal and informal economies which has novel organizational implications for firms competing to establish consumer bases and business partnerships in the Base of Pyramid (BoP) markets of developing countries.
    Keywords: Informal economy, entrepreneurship, gender, business sustainability
    JEL: L26 B54 E26
    Date: 2013
  30. By: Emmanuelle Lavaine; Matthew J. Neidell
    Abstract: This paper examines the effect of energy production on newborn health using a recent strike that affected oil refineries in France as a natural experiment. First, we show that the temporary reduction in refining lead to a significant reduction in sulfur dioxide (SO2) concentrations. Second, this shock significantly increased birth weight and gestational age of newborns, particularly for those exposed to the strike during the third trimester of pregnancy. Back-of-the-envelope calculations suggest that a 1 unit decline in SO2 leads to a 196 million euro increase in lifetime earnings per birth cohort. This externality from oil refineries should be an important part of policy discussions surrounding the production of energy.
    JEL: I12 Q4
    Date: 2013–04
  31. By: Yoshihiko Kadoya
    Abstract: The inclusion of the elderly in community life is a major factor in achieving an age-friendly city. However, there has been little research investigating the constraints preventing the elderly's interaction with society. With that in mind, this paper is pioneering the investigation of such constraints using the results from the "Questionnaire towards an Age-Friendly City" by Akita City Government in Japan, a member of the World Health Organization (WHO)'s Global Network of Age-friendly Cities and Communities. This paper reveals two policy implications. First, living with someone encourages elderly to interact with society. Second, the elderly's ability to be mobile fosters their social participation.
    Date: 2013–04
  32. By: Jonas Fooken; Markus Schaffner
    Abstract: We study the difference in the result of two different risk elicitation methods by linking estimates of risk attitudes to gender, age, personality traits, a decision in a dilemma situation, and physiological states measured by heart rate variability (HRV). Our results indicate that differences between the methods are reflected in a different effect of gender and personality traits. Furthermore, HRV is linked to risk-taking in the experiment for one of the methods, suggesting that emotionally more stressed individuals display more risk aversion. However, we cannot determine if these are significantly related to the difference on the results of the two methods. Finally, we find that risk attitudes are not predictive of the ability to decide in a dilemma, but personality traits are. There is also no apparent relationship between the physiological state during the dilemma situation and the ability to make a decision.
    Keywords: s risk preferences
    JEL: D81 D87
    Date: 2013–04–18
  33. By: Borja-Vega, Christian; de la Fuente, Alejandro
    Abstract: A climate change vulnerability index in agriculture is presented at the municipal level in Mexico. Because the index is built with a multidimensional approach to vulnerability (exposure, sensitivity and adaptive capacity), it represents a tool for policy makers, academics and government alike to inform decisions about climate change resilience and regional variations within the country. The index entails baseline (2005) and prediction (2045) levels based on historic climate data and future-climate modeling. The results of the analysis suggest a wide variation in municipal vulnerability across the country at baseline and prediction points. The vulnerability index shows that highly vulnerable municipalities demonstrate higher climate extremes, which increases uncertainty for harvest periods, and for agricultural yields and outputs. The index shows at baseline that coastal areas host some of the most vulnerable municipalities to climate change in Mexico. However, it also shows that the Northwest and Central regions will likely experience the largest shifts in vulnerability between 2005 and 2045. Finally, vulnerability is found to vary according to specific variables: municipalities with higher vulnerability have more adverse socio-demographic conditions. With the vast municipal data available in Mexico, further sub-index estimations can lead to answers for specific policy and research questions.
    Keywords: Climate Change Mitigation and Green House Gases,Science of Climate Change,Population Policies,Climate Change Economics,Statistical&Mathematical Sciences
    Date: 2013–04–01
  34. By: Aronsson, Thomas (Department of Economics, Umeå School of Business and Economics); Granlund, David (Department of Economics, Umeå School of Business and Economics)
    Abstract: This paper deals with optimal income taxation based on a model with households where men and women allocate their time between market work and household production, and where households differ depending on which spouse has comparative advantage in market work. The purpose is to analyze the tax policy implications of gender norms represented by a market-work norm for men and household-work norm for women. We also distinguish between a welfarist government that respects all aspects of household preferences, and a paternalist government that disregards the disutility to households of deviating from the norms. The results show how the welfarist government may use tax policy to internalize the externalities caused by these norms, and how the paternalist government may use tax policy to make the households behave as if the norms were absent.
    Keywords: Social norms; household production; optimal taxation; paternalism
    JEL: D03 D13 D60 D62 H21
    Date: 2013–04–15
  35. By: Chang, Younghoon; Shahzeidi, Mehri; Kim, Hyerin; Park, Myeong-cheol
    Abstract: To achieve the information society for all, access for all is crucial. However, many countries have reported to have large gender discrepancies in online access and participation. This study empirically verified user perception data and compared the data across countries and genders to determine the differences between countries and genders. The results of surveys in Cambodia, Iran, and Korea verify that each aspect of the digital divide and online participation has a different influence on each aspect of digital access and online participation between the genders in each country. In this study, we propose measurement items of digital access and user participation in the online context. This paper also offers guidelines for online policy and business strategy for targeting users with different levels of digital access. --
    Keywords: Digital Divide,Gender Digital Divide,Access,Online Participation,Cross-national
    Date: 2012
  36. By: Piotr Szukalski; Cristina Martinez-Fernandez; Tamara Weyman
    Abstract: This paper outlines the findings of the Poland case study of the Lódzkie region for the international project, Local scenarios of demographic change. The Lódzkie region is located in the central part of Poland, at the intersection of several major arterial roads; Berlin-Moscow and Gdansk-Vienna. Despite the excellent location, the region is affected by several demographic challenges, partly related to the region’s proximity to Warsaw, the Polish capital city. The official strategic documents for regional development have been focused on “hard” infrastructure development, with limited attention being paid to current or future demographic and social challenges, such as the declining and ageing population, which pose significant obstacles to future regional development. Profound public interest in demographic change, however, has resulted in the creation of a plan for 2013-2014 to forestall this predicted depopulation, and also, in the preparation of a demographic development strategy for the following years.
    Date: 2013–04–18
  37. By: Vivika Halapuu (University of Tartu, Estonia); Tiiu Paas (University of Tartu, Estonia); Tiit Tammaru (University of Tartu, Estonia)
    Abstract: The paper examines the factors that are related to attitudes towards immigrants in Europe, with a particular focus on the role of institutional trust in shaping these attitudes. We go one step further compared to previous studies by investigating separately two different groups of people — members of the ethnic majority and ethnic minority populations in European countries. We use data from the European Social Survey fourth round database for 27 countries. The main finding is that social trust is important for both groups, while trust in institutions is more strongly related to the attitudes among ethnic majorities. Other biggest differences between members of the ethnic minority and majority population are related to type of area where one lives, human capital and economic factors. The first two are more strongly related to the attitudes towards immigrants for the majority populations, while economic factors (especially labour market status) are more important for the minority populations in European countries.
    Keywords: immigration, attitudes, trust in institutions, minority/majority populations
    JEL: J61 J15 C31 P51
    Date: 2013–04
  38. By: Koczan, Zs
    Abstract: In recent years there has been increasing interest in measuring subjective well-being in economics; most of the literature on immigrants has however continued to focus on `objective' measures of integration such as employment and education outcomes. This paper aims to complement these studies by analysing the life satisfaction of immigrants once settled in the host country, examining which elements of integration matter for life satisfaction. We find that in terms of simple averages immigrants appear to be less satisfied than natives. However, contrary to the results of some recent papers, this difference can be explained by factors related to economic integration, such as the details of their employment conditions, rather than cultural factors such as feelings of not belonging, which often loom large in the public mind. Also segregation does not affect their life satisfaction per se. While having host country citizenship appears to have a large, significant positive effect in a simple pooled ordinary least squares specification, exploiting a natural experiment of changes in the citizenship law in the host country we find that this is driven by a selection effect rather than an increase in life satisfaction due to obtaining citizenship.
    Keywords: Integration, subjective well-being, segregation, citizenship law
    JEL: J15 O15
    Date: 2013–04–19
  39. By: Jean-Marie Robine (Ined); Emmanuelle Cambois (Ined)
    Abstract: Depuis 2005 Eurostat calcule chaque année l'espérance de vie sans limitation d'activité sous le nom d'« années de vie en bonne santé ». Si l'espérance de vie à 65 ans s'est allongée d'un an dans l'Union européenne entre 2005 et 2010, le temps vécu en mauvaise santé perçue a diminué (de 0,5 à 1,1 an selon le sexe), et ce en dépit de l'augmentation des années de vie s'accompagnant de maladies chroniques (de 1,6 à 1,3 an selon le sexe), le temps vécu sans limitation d'activité restant inchangé. Ce paradoxe peut s'expliquer en part ie par un repérage plus systématique et par une meilleure prise en charge des problèmes de santé, dont la fréquence a pu augmenter sans pour autant que les déclarations de limitations d'activité ou la perception négative de sa santé aient augmenté.
    Date: 2013
  40. By: Knack, Stephen
    Abstract: The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. It also calls for donors to be more responsive to the quality of recipient country systems: the optimal level of their use, in terms of maximizing the development effectiveness of aid, is believed to vary with their quality. This study investigates the degree to which donors'use of country systems is in fact positively related to their quality, using indicators explicitly endorsed for this purpose by the Paris Declaration and covering the 2005-2010 period. The results of these tests strongly confirm a positive and significant relationship, and show it is robust to corrections for potential sample selection, omitted variables, or endogeneity bias. The result holds even when estimates are informed only by variation over time within each donor-recipient pair in use and quality of country systems. Moreover, donor-specific tests show that use of country systems varies positively with their quality for the vast majority of donors. These findings contradict several other studies that claim there is no relation and imply that donors in this respect are failing to live up to their commitments under the Paris Declaration. The author's interpretation of the available evidence on use of country systems is more favorable: donors'behavior over the measurement period is largely consistent with their commitments in this area. In this respect, at least, donors appear to have modified their aid practices in ways that build rather than undermine administrative capacity and accountability in recipient country governments.
    Keywords: Technology Industry,Gender and Health,Poverty Monitoring&Analysis,Microfinance,Public Sector Expenditure Policy
    Date: 2013–04–01
  41. By: Landmann, Andreas (University of Mannheim); Frölich, Markus (University of Mannheim)
    Abstract: Child labor is a common consequence of economic shocks in developing countries. We show how reducing vulnerability can affect child labor and schooling. We exploit the extension of a health and accident insurance scheme by a Pakistani microfinance institution (MFI) that was set up as a randomized controlled trial and accompanied by household panel surveys. Together with increased coverage the MFI offered assistance with claim procedures in treatment branches. Using Difference-in-difference techniques we find lower incidence of child labor and lower child labor earnings caused by the innovation. Separating the two parts of the innovation package, the effects of claim assistance are mostly insignificant, while increased insurance coverage has large effects on child labor outcomes and days missed at school. Consistent with a theoretical model we develop in this paper, the effect is largely due to an ex-ante feeling of protection as opposed to a shock-mitigation effect.
    Keywords: child labor, health insurance, Pakistan
    JEL: J20 J82 O12
    Date: 2013–04

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