nep-dem New Economics Papers
on Demographic Economics
Issue of 2013‒09‒06
27 papers chosen by
Clarence Nkengne Tsimpo
University of Montreal and World Bank Group

  1. The impact of Migration on Infant Mortality Reduction in Albania By Narazani, Edlira
  2. "For the love or the Republic" Education, Secularism, and Empowerment By Selim Gulesci; Erik Meyersson
  3. A Provocative Perspective on Population Aging and Old-Age Financial Protection By Holzmann, Robert
  4. Testosterone and the Gender Wage Gap By Gielen, Anne C.; Holmes, Jessica; Myers, Caitlin Knowles
  5. Monkey see, monkey do? How do shifts in parental socio-economic class influence children's outcomes? By Jaimee Stuart; Gail Pacheco; Susan Morton
  6. Is there a Double-Negative Effect? Gender and Ethnic Wage Differentials. By Piazzalunga, Daniela
  7. The Causal Effect of Retirement on Mortality: Evidence from Targeted Incentives to Retire Early By Bloemen, Hans; Hochguertel, Stefan; Zweerink, Jochem
  8. The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis By Karolina Goraus; Joanna Tyrowicz
  9. Does Early Life Exposure to Cigarette Smoke Permanently Harm Childhood Health? Evidence from Cigarette Tax Hikes By David Simon
  10. Male Worker Migration and Women Empowerment: The case of Bihar, India By Singh, K.M.; Singh, R.K.P.; Kumar, Anjani
  11. Searching for a job is a beauty contest By Busetta, Giovanni; Fiorillo, Fabio; Visalli, Emanuela
  13. Child Labor and Learning By Emerson, Patrick M.; Ponczek, Vladimir; Portela Souza, André
  14. The transmission of longevity across generations: The case of the settler Cape Colony By Patrizio Piraino; Sean Muller; Jeanne Cilliers; Johan Fourie
  15. Family Functioning and Life Satisfaction and Happiness in South African Household By Ferdi Botha and Frikkie Booysen
  16. Economic class and labour market inclusion poor and middle class workers in developing Asia and the Pacific By Huynh, Phu; Kapsos, Steven
  17. Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives By Gong, Xiaodong; Breunig, Robert
  18. Birthplace Diversity and Economic Prosperity By Alesina, Alberto; Harnoss, Johann; Rapoport, Hillel
  19. Gibrat's law and the British Industrial Revolution By Alexander Klein; Tim Leunig
  20. Shorter, cheaper, quicker, better : linking measures of household food security to nutritional outcomes in Bangladesh, Nepal, Pakistan, Uganda, and Tanzania By Tiwari, Sailesh; Skoufias, Emmanuel; Sherpa, Maya
  21. Immigrants from Eastern Partnership (EaP) Countries in Spain By Farré, Lídia; Rodríguez-Planas, Núria
  22. Inequality-adjusted gender wage differentials in Germany By Ekaterina Selezneva; Philippe Van Kerm
  23. Long-Term Care and Lazy Rotten Kids By Cremer, Helmuth; Roeder, Kerstin
  24. Measuring capabilities with random scale models. Women’s freedom of movement By Andreassen, Leif; Dagsvik, John; Di Tommaso, Maria Laura
  25. Quelle reforme des retraites en 2013 ? By Henri Sterdyniak
  26. reforme des retraites en 2013 ?. By Sterdyniak, Henri
  27. The Preference for Larger Cities in China: Evidence from Rural-Urban Migrants By Xing, Chunbing; Zhang, Junfu

  1. By: Narazani, Edlira (University of Turin)
    Abstract: In the last two decades, Albania went through a substantial reduction in infant mortality rates together with a widespread migration experience. In this paper we investigate whether migration has played any role in this decreasing trend of infant mortality in Albania by using the Albanian Demographic and Health Survey 2008-09 (ADHS). First we assess whether migration has affected fertility decisions, namely, number of children and child sex composition among women aged 15 to 49 who have ever been married, but find no statistically significant evidence for any impact even when migration is instrumented. Afterwards, migration impact on child health status is investigated and the estimations results show that migrant households have had lower rates of infant mortality than non-migrant househol ds but only once the endogeneity of migration is tackled with country-specific instrumental variables.
    Date: 2013–07
  2. By: Selim Gulesci; Erik Meyersson
    Abstract: We exploit a change in compulsory schooling laws in Turkey to estimate the causal effects of education on religiosity and women's socio-economic status. A new law, implemented in 1998 bound individuals born after a specific date to 8 years of schooling while those born earlier could drop out after 5 years. This allows the implementation of a Regression Discontinuity (RD) Design and the estimation of meaningful causal estimates of schooling. Using the 2008 Turkish Demographic Health Survey, we show that the reform resulted in a one-year increase in years of schooling among women on average, although it did not increase schooling among men. Over a period of ten years, this education increase resulted in women having lower religiosity, greater decision rights over marriage and fertility, and higher household wealth. We find that a muted average RD effect on labor force participation shrouds heterogenous effects depending on socioeconomic background; women from more socially conservative backgrounds tend to obser ve no increase in labor force participation whereas women from less conservative backgrounds experience a large increase. Education thus empowers women across a wide spectrum of a Muslim society, yet faces limits in allowing women in the conservative communities from realizing their full potential through the labor market. JEL Classification: J16, I25, Z12
    Date: 2013
  3. By: Holzmann, Robert (University of Malaya)
    Abstract: Population aging is typically associated with economic challenges for productivity and financial threats for the old-age financial protection system of a country. This paper takes an optimistic position and outlines key ingredients to make it a successful experience. Yet to turn this challenge into an opportunity requires a significant change in a society's mindset and policies, such as recognizing that population aging and increased life expectancy are quite likely the biggest challenge to mankind in recorded history. This calls for a review and revision of societal institutions, from the likely oldest one – marriage – to one of the youngest – retirement income schemes. Mere tinkering at the margin of existing retirement income programs will be neither sufficient nor helpful. To develop the arguments, the paper reviews and proposes changes to the measurement of population aging – globally and for East Asian countries; outlines critical policy paths to address population aging successfully; analyzes the implications of population aging for the selection of an old-age financial protection system; and offers guidance to this end.
    Keywords: NDC, life expectancy, measuring population aging, happy aging, FDC
    JEL: H55 J11 J14 J26
    Date: 2013–08
  4. By: Gielen, Anne C. (Erasmus University Rotterdam); Holmes, Jessica (Middlebury College); Myers, Caitlin Knowles (Middlebury College)
    Abstract: Testosterone, which induces sexual differentiation of the male fetus, is believed to transfer from males to their littermates in placental mammals. Among humans, individuals with a male twin have been found to exhibit greater masculinization of sexually dimorphic attributes relative to those with a female twin. We therefore regard twinning as a plausible natural experiment to test the link between prenatal exposure to testosterone and labor market earnings. For men, the results suggest positive returns to testosterone exposure. For women, however, the results indicate that prenatal testosterone does not generate higher earnings and may even be associated with modest declines.
    Keywords: gender wage gap, twins, testosterone
    JEL: J16 J31
    Date: 2013–08
  5. By: Jaimee Stuart (Centre for Longitudinal Research, University of Auckland, New Zealand); Gail Pacheco (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Susan Morton (Centre for Longitudinal Research, University of Auckland, New Zealand)
    Abstract: This paper utilises the Aberdeen Children of the 1950s (ACONF) cohort to investigate how both perinatal factors and changes in a child’s environment impacts on IQ development between the ages of 7 and 11 years. Two methodological frameworks were utilised; (1) linear and logistic regression, the latter of which enabled calculation of odds ratios to predict likelihood of IQ growth above or below the population average, and (2) latent growth curve modelling (LGCM) which permitted estimation of determinants of two latent factors: an intercept and slope (which in this case equated to IQ at age 7 and the predicted growth trajectory in IQ between age 7 and 11). Results from both approaches were consistent. All of the perinatal factors were found to predict initial levels of IQ and some (mother’s age, parity, gestational age, and gender) were found to predict change in IQ over time. Interestingly, after controlling for relevant perinatal factors, we found the effect of a downward trajectory in socio-economic status (SES) was related to lower IQ at age 7, whereas upward mobility in SES was associated with the converse. Consequently, our results illustrate that while perinatal factors are important in determining IQ in early childhood, growth in intelligence does appear to be responsive to changes in a child’s environment, in this case proxied by mobility of paternal SES.
    Keywords: intelligence, socio-economic mobility, childhood, life-course
  6. By: Piazzalunga, Daniela (University of Turin)
    Abstract: This paper investigates the gender and ethnic wage differentials for female Immigrants, applying the Oaxaca ecomposition to estimate the level of discrimination. The gender pay gap is quite small (7.42%), but it's not explained by observable differences, whilst the ethnic wage gap is larger (27.11%), but the explained components account for about 30%. Ultimately, we will evaluate how the multiple levels of discrimination (due to being a woman and a foreigner at the same time) intersect, following the decomposition suggested by Shamsuddin (1998). The double - negative effect is estimated to be 56 - 62%.
    Date: 2013–07
  7. By: Bloemen, Hans (VU University Amsterdam); Hochguertel, Stefan (VU University Amsterdam); Zweerink, Jochem (VU University Amsterdam)
    Abstract: This paper identifies and estimates the impact of early retirement on the probability to die within five years, using administrative micro panel data covering the entire population of the Netherlands. Among the older workers we focus on, a group of civil servants became eligible for retirement earlier than expected during a short time window. This exogenous policy change is used to instrument the retirement choice in a model that explains the probability to die within five years. Exploiting the panel structure of our data, we allow for unobserved heterogeneity by way of individual fixed effects in modeling the retirement choice and the probability to die. We find for men that early retirement, induced by the temporary decrease in the age of eligibility for retirement benefits, decreased the probability to die within five years by 2.5 percentage points. This is a strong effect. We find that our results are robust to several specification changes.
    Keywords: instruments, retirement, mortality
    JEL: C26 I1 J26
    Date: 2013–08
  8. By: Karolina Goraus (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)
    Abstract: This study evaluates quantitatively the context of gender discrimination in transition countries in terms of access to the labor market. Over economic transition female labor market participation has generally weakened. Notwithstanding, transition countries differ in institutional design, structural labor supply patterns, labor demand characteristics and the speed of transition processes. We propose to evaluate the contribution of these effects to the observed extent of gender discrimination. Using estimators of gender discrimination obtained from a panel of micro-datasets covering a possibly large set of transition countries, we seek determinants cross-country variation in gender discrimination in the labor market. Empirical evidence suggest that while countries with generally higher female labor force participation are characterized by less discrimination, ceteris paribus, this pattern does not hold for the transition countries.
    Keywords: gender wage gap, transition, non-parametric estimates
    JEL: C24 J22 J31 J71
    Date: 2013
  9. By: David Simon (University of Connecticut)
    Abstract: Recent evidence suggests that smoking during pregnancy has adverse effects on fetal health. However, it remains unknown if smoke exposure causes lasting harm to health through childhood. To mitigate omitted variables bias, I exploit variation in cigarette taxes. By leveraging cigarette tax hikes, I shed light on the ability of these taxes to change health behavior in a way that improves long-term child outcomes. In-utero exposure to a tax hike leads to large and significant improvements to a child’s wellbeing. I find that a one dollar increase (in 2009 dollars) in the state cigarette excise tax causes a 10% decrease in sick days from school, and a 4.5% decrease in the likelihood of having two or more doctor visits in the past 12 months. I also find suggestive evidence that early life exposure to a cigarette tax hike decreases hospitalizations and asthma attacks. I find support for my identifying assumptions in a number of falsification tests. This study supports the hypothesis that that in-utero exposure to cigarette smoke caries significant medium-term costs.
    JEL: J13 J18 I14
    Date: 2013–08
  10. By: Singh, K.M.; Singh, R.K.P.; Kumar, Anjani
    Abstract: Migration of population has been a recurrent phenomenon since the dawn of human history. Though its form has changed but it remains a dominant event in the global social system. In modern days also people migrate from underdeveloped areas to the developed ones in search of better opportunities. Several theories have been propounded to explain the occurrence of migration. A number of social, cultural, economic, spatial, climatic, demographic factors induce migration. Among them, the economic factors are considered as the primary reasons for inducing migration. Migration of male labour force from Bihar has increased during last two decades which prompted us to analyze its consequences on efficiency of input in agricultural production, livelihood through remittances and also the empowerment of women left behind at place of origin. It was observed that the efficiencies of human labour and irrigation in rice production were higher than non-migrant households and statistically significant, indicating rational use of these two critical inputs on migrant households in Bihar. The migration seems to have helped in judicious use of human labour at native place due to migration of surplus labour force for gainful employment to destination of migration. Remittances have been utilized for meeting consumption needs, improved livelihood, better education to children and better health care facilities which help in overall improvement in livelihood on migrant households in Bihar. Migrant households also preferred to save money to meet their requirements in unforeseen situations. It can thus be infered that migration may be one of risk-coping strategies for the weaker sections of the society and has helped developing the saving habits among migrant households. The allocation of remittances on agricultural inputs could have increased if proper infrastructure facilities were present in rural areas for faster dissemination of modern agricultural technology for increasing agricultural production. Level of women employment has increased on migrant households, particularly on poor households; however, work load of women has also increased. It has been observed that role of women of migrant households changed from unpaid female labour to managers of the household, however, they face problem in management of fund, technology and input-output marketing. There is a need to launch a programme for their training to improve their knowledge in financial, technological and marketing management.
    Keywords: Migration, Women empowerment, Labor migration, Remittances, Bihar
    JEL: J01 J16 J22 J43 J61 O15 Q12 Q16
    Date: 2013–08–15
  11. By: Busetta, Giovanni; Fiorillo, Fabio; Visalli, Emanuela
    Abstract: The paper deals with the impact of beauty on employability of people, stressing the first stage of the hiring process. In particular, we studied if there exists a preference for attractive candidates and if it does whether it depends on sex, physical features and racial characteristics. We monitored all relevant agencies offering jobs in Italy from August 2011 to September 2012 sending 11008 CVs to 1542 advertised job openings. To do so, we construct fake CVs and we sent the same CV 8 times, changing only name and surname, address, and the photo included. In particular, we sent 4 CVs with photo of an attractive and unattractive man and women, and 4 CVs without photo of an Italian and a foreign men and women to each job opening. Callbacks rates are statistically significant higher for attractive women and men than unattractive ones. Racial discrimination appears to be statistically relevant, but less than discrimination based on the physical features, especially for women.
    Keywords: beauty premium, racial discrimination, experimental economics.
    JEL: C93 J71
    Date: 2013–08–30
  12. By: Burkhard Heer (University of Augsburg); Andreas Irmen (CREA, Université de Luxembourg)
    Abstract: We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor productivity are more profitable. We incorporate this channel in a new dynamic general equilibrium model with endogenous economic growth and heterogeneous overlapping generations. We calibrate the model for the US economy and obtain the following results. First, the effect of a decline in population growth on labor productivity growth is positive and quantitatively significant. In our benchmark, it is predicted to increase from an average annual growth rate of 1.74% over 1990-2000 to 2.41% in 2100. Second, institutional characteristics of the pension system matter both for the growth performance and for individual welfare. Third, the assessment of pension reform proposals may depend on whether economic growth is endogenous or exogenous.
    Keywords: Growth, Demographic Transition, Capital Accumulation, Pension Reform
    JEL: O41 C68 O11 D91
  13. By: Emerson, Patrick M. (Oregon State University); Ponczek, Vladimir (Sao Paulo School of Economics); Portela Souza, André (Sao Paulo School of Economics)
    Abstract: This paper investigates the impact of working while in school on learning outcomes through the use of a unique micro panel dataset of students in the São Paulo municipal school system. The potential endogeneity of working decisions and learning outcomes is addressed through the use of a difference-in-difference estimator and it is shown that the results are robust. A negative and significant effect of working on learning outcomes in both math and Portuguese is found. The effects of child work from the benchmark regressions range from 3% to 8% of a standard deviation decline in test score which represents a loss of about a quarter to a half of a year of learning on average. Additionally, it is found that this effect is likely due to the interference of work with the time kids can devote to school and school work.
    Keywords: child labor, learning, proficiency, education
    JEL: J13 I21
    Date: 2013–08
  14. By: Patrizio Piraino (Department of Economics, University of Cape Town); Sean Muller (Department of Economics, University of Cape Town); Jeanne Cilliers (Department of Economics, University of Stellenbosch); Johan Fourie (Department of Economics, University of Stellenbosch)
    Abstract: The literature on parent-child correlations in socioeconomic status provides little evidence on long-term multigenerational dynamics. This is because most studies of intergenerational status persistence are based on two (at most three) successive generations. Our analysis adds to the intergenerational mobility literature by studying the correlation in longevity across multiple generations of a historical population. By using information on birth and death dates of eighteenth and nineteenth century settlers in South Africa’s Cape Colony, we are able to estimate the intergenerational transmission of longevity, which is found to be positive and significant. Our analysis confirms one of the most consistent findings in the social sciences: the correlation between the status of parents and that of their offspring is positive and significant.
    Keywords: intergenerational mobility, persistence, social mobility, inequality, genealogical, Cape Colony
    JEL: J62 N37
    Date: 2013
  15. By: Ferdi Botha and Frikkie Booysen
    Abstract: Families form an integral part of society and in fostering individual well-being. Despite the acknowledged importance of family, the association between family functioning and individual well-being outcomes have remained unexplored in the current body of knowledge. This paper explores the association between family functioning and reported levels of life satisfaction and happiness in South Africa. The paper employs the Family Attachment and Changeability Index (FACI8) to measure family functioning, using data from the 2011 South African Social Attitudes Survey (SASAS 2011). Four measures of family functioning are utilised, namely the aggregate FACI8 scale, the attachment and changeability subscales, and family type. Improvements in the level of family functioning as well as in the levels of attachment and changeability are positively associated with life satisfaction and happiness. In addition, individuals living in midrange or balanced family types aremore satisfied with life and happier compared to persons living in extremely or moderately dysfunctional families. The findings highlight the importance of supportive intra-family dynamics in fostering greater individual well-being. This in turn places emphasis on the investigation of likely correlates of family functioning and impact evaluations of family-focused social work interventions’ impact on family functioning as areas for future research.
    Keywords: Family functioning, family, subjective well-being, South Africa
    JEL: D10 Z13
    Date: 2013
  16. By: Huynh, Phu; Kapsos, Steven
    Abstract: Presents trends and estimates of the poor, near poor and middle class working population in developing Asia and the Pacific.
    Keywords: employment, unemployment, employment opportunity, labour force participation, age group, sex, social class, data collecting, methodology, trend, projection, Asia, Pacific, emploi, chômage, possibilités d'emploi, taux d'activité, groupe d'âge, sexe, classe sociale, collecte des données, méthodologie, tendance, projection, Asie, Pacifique, empleo, desempleo, oportunidades de empleo, tasa de actividad de mano de obra, grupo de edad, sexo, clase social, recopilación de datos, metodología, tendencia, proyección, Asia, Pacífico
    Date: 2013
  17. By: Gong, Xiaodong (NATSEM, University of Canberra); Breunig, Robert (Australian National University)
    Abstract: In this paper, we investigate the response of female lone parents to two reforms to the welfare system in Australia. We look at changes to both hours and participation and focus on the channels of adjustment, in particular the role of job changes for adjustment in hours. We highlight the relationship between policy design and heterogeneous outcomes. Workers/non-workers and mothers with high/low education respond differently to different policies. We find evidence of within job rigidities as the adjustment of working hours happens primarily through changing jobs. Our findings also provide support for the importance of accounting for fixed costs of working.
    Keywords: channel of labour supply adjustment, lone mothers, job changes, difference-in-differences
    JEL: C23 H31 I38 J13 J22
    Date: 2013–08
  18. By: Alesina, Alberto (Harvard University); Harnoss, Johann (Harvard University); Rapoport, Hillel (Bar-Ilan University)
    Abstract: We use recent immigration data from 195 countries and propose an index of population diversity based on people's birthplaces. This new index is then decomposed into a size (share of foreign born) and a variety (diversity of immigrants) component and is available for 1990 and 2000 disaggregated by skill level. We show that birthplace diversity is largely uncorrelated with ethnic, linguistic or genetic diversity. Our main result is that the diversity of skilled immigration relates positively to economic development (as measured by income and TFP per capita and patent intensity) even after controlling for ethno-linguistic and genetic fractionalization, geography, trade, education, institutions, and origin-effects capturing income/productivity levels in the immigrants home countries. We make progress towards addressing endogeneity by specifying a gravity model to predict the share and diversity of immigration based on exogenous bilateral variables. The results are robust across various OLS and 2SLS specifications and suggestive of skill complementarities between native workers and immigrants, especially when the latter come from richer countries at intermediate levels of cultural proximity.
    Keywords: economic development, cultural diversity, genetic diversity, ethnic diversity, birthplace diversity, productivity, immigration
    JEL: O1 O4 F22 F43
    Date: 2013–08
  19. By: Alexander Klein; Tim Leunig
    Abstract: This paper examines Gibrat’s law in England and Wales between 1801 and 1911 using a unique data set covering the entire settlement size distribution. We find that Gibrat’s law broadly holds even in the face of population doubling every fifty years, an industrial and transport trevolution, and the absence of zoning laws to constrain growth. The result is strongest for the later period, and in counties most affected by the industrial revolution. The exception were villages in areas bypassed by the industrial revolution. We argue that agglomeration externalities balanced urban disamenities such as commuting costs and poor living conditions to ensure steady growth of many places, rather than exceptional growth of few.
    Keywords: Gibrat’s law; city-size distribution; industrial revolution
    JEL: N93 R12
    Date: 2013–08
  20. By: Tiwari, Sailesh; Skoufias, Emmanuel; Sherpa, Maya
    Abstract: Using nationally representative household survey data from five countries -- three from South Asia (Bangladesh, Pakistan, and Nepal) and two from Sub-Saharan Africa (Tanzania and Uganda) -- this paper conducts a systematic assessment of the correlation between various measures of household food security and nutritional outcomes of children. The analysis, following the universally accepted and applied definition of food security, is based on some of the most commonly used indicators of food security. The results show that the various measures of household food security do appear to carry significant signals about the nutritional status of children that reside within the household. This result holds even after the analysis controls for a wide array of other socio-economic characteristics of the households that are generally also thought to be associated with the quality of child nutrition. If using these food security indicators as proxy measures for the underlying nutritional status of children is of some interest, then the results show that simple, cost-effective, and easy-to-collect measures, such as the food consumption score or the dietary diversity score, may carry at least as much information as other measures, such as per capita expenditure or the starchy staple ratio, which require longer and costlier surveys with detailed food consumption modules. Across five different countries in South Asia and Africa, the results suggest that the food consumption score, in particular, performs extremely well in comparison with all other measures from the perspective of nutritional targeting as well as for monitoring nutritional outcomes.
    Keywords: Food&Beverage Industry,Food Security,Regional Economic Development,Rural Poverty Reduction,Nutrition
    Date: 2013–08–01
  21. By: Farré, Lídia (IAE Barcelona (CSIC)); Rodríguez-Planas, Núria (IZA and IAE-CSIC)
    Abstract: Most EaP migrants in Spain come from Ukraine, followed by, to a much lesser extent, Moldavia, Armenia, and Georgia. Relative to other migrants, they are those who most recently arrived to Spain. Despite being considerably more educated than natives and other migrants, they are less likely to work than natives and other migrants upon arrival to Spain. Using data from Spanish Labor Force Survey (LFS) from the years 2000 to 2011, this paper analyzes how their employment situation evolves with time in Spain, the type of sectors they work in, and their welfare use, including unemployment insurance receipt.
    Keywords: immigrants' employment and welfare assimilation
    JEL: J15 J24 J61 J62
    Date: 2013–08
  22. By: Ekaterina Selezneva (IOS Regensburg); Philippe Van Kerm
    Abstract: This paper exploits data from the German Socio-Economic Panel (SOEP) to re-examine the gender wage gap in Germany on the basis of inequality-adjusted measures of wage differentials which fully account for gender differences in pay distributions. The inequality-adjusted gender pay gap measures are significantly larger than suggested by standard indicators, especially in East Germany. Women appear penalized twice, with both lower mean wages and greater wage inequality. A hypothetical risky investment question collected in 2004 in the SOEP is used to estimate individual risk aversion parameters and benchmark the ranges of inequality-adjusted wage differentials measures.
    Keywords: gender gap, wage differentials, wage inequality, expected utility, risk aversion, East and West Germany, SOEP, Singh-Maddala distribution, copula-based selection model
    JEL: D63 J31 J70
    Date: 2013–08
  23. By: Cremer, Helmuth (Toulouse School of Economics); Roeder, Kerstin (University of Munich)
    Abstract: This paper studies the determination of informal long-term care (family aid) to dependent elderly in a worst case scenario concerning the "harmony" of family relations. Children are purely selfish, and neither side can make credible commitments (which rules out efficient bargaining). The model is based on Becker's "rotten kid" specification except that it explicitly accounts for the sequence of decisions. In Becker's world, with a single good, this setting yields efficiency. We show that when family aid (and long-term care services in general) are introduced, the outcome is likely to be inefficient. Still, the rotten kid mechanism is at work and ensures that a positive level of aid is provided as long as the bequest motive is operative. We identify the inefficiencies by comparing the laissez-faire (subgame perfect) equilibrium to the first-best allocation. We initially assume that families are identical ex ante. However, the case where dynasties differ in wealth is also considered. We study how the provision of long-term care (LTC) can be improved by public policies under various informational assumptions. Interestingly, crowding out of private aid by public LTC is not a problem in this setting. With an operative bequest motive, public LTC will have no impact on private aid. More amazingly still, when the bequest motive is (initially) not operative, public insurance may even enhance the provision of informal aid.
    Keywords: rotten kids, long-term care, family aid, optimal taxation
    JEL: D13 H21
    Date: 2013–08
  24. By: Andreassen, Leif; Dagsvik, John; Di Tommaso, Maria Laura (University of Turin)
    Abstract: Sen’s capability approach distinguishes between what people are free to do and to be (their ‘capabilities’) and what they do and who they are (their ‘functionings’). In the capability approach,individuals’ well-being is evaluated not only in terms of achieved functionings, but also in terms of the freedom to choose between different functionings. I t implies that individuals with the same observed functionings may have different well-being because their choice sets (i.e. capabilities) are different. The measurement of capabilities is difficult because they are not observed. In this paper, we measure the capability of Italian women to move freely even if we only observe the realized choices. In order to distinguish between the latent capabilities of movement and the observed functionings, we adopt a new methodology based on the theory of random scale models. The data set is selected from a domestic violence survey of 25,000 Italian women for year 20 06. We demonstrate that such models can offer a suitable framework for measuring well-being freedom and therefore capabilities. In particular, we find out that the percentage of women who are predicted to be restricted in their freedom of movement is about 25% . Moreover, if all women were unconstrained, 16.4 percent of them would choose to do more activities, i.e to have more freedom of movement.
    Date: 2013–07
  25. By: Henri Sterdyniak (OFCE)
    Abstract: François Hollande et le gouvernement Ayrault veulent de nouveau réformer les retraites en 2013, trois ans après la réforme de 2010. Dans son intervention du 28 mars, François Hollande a mis en avant le déficit prévu de 20 milliards en 2020 pour annoncer un nouvel allongement de la durée de cotisations tout en refusant la désindexation des petites retraites et des retraites du régime général. Jean-Marc Ayrault annonce que la « réforme traitera la pénibilité au travail, la complexité des régimes et résoudra les inégalités. Au final, nous paierons les retraites, nous préserverons les plus petites retraites et nous pérenniserons les régimes de retraite pour les générations à venir » (...).
    Date: 2013–04–24
  26. By: Sterdyniak, Henri (OFCE)
    Abstract: François Hollande et le gouvernement Ayrault veulent de nouveau réformer les retraites en 2013, trois ans après la réforme de 2010. Dans son intervention du 28 mars, François Hollande a mis en avant le déficit prévu de 20 milliards en 2020 pour annoncer un nouvel allongement de la durée de cotisations tout en refusant la désindexation des petites retraites et des retraites du régime général. Jean-Marc Ayrault annonce que la « réforme traitera la pénibilité au travail, la complexité des régimes et résoudra les inégalités. Au final, nous paierons les retraites, nous préserverons les plus petites retraites et nous pérenniserons les régimes de retraite pour les générations à venir » (...).
    Date: 2013–04–24
  27. By: Xing, Chunbing (Beijing Normal University); Zhang, Junfu (Clark University)
    Abstract: China has long aimed to restrict population growth in large cities but encourages growth in small and medium-sized cities. At the same time, various government policies favor large cities. We conjecture that larger cities in China have more urban amenities and a better quality of life. We thus predict that a typical rural-urban migrant is willing to give up some income in order to live in a larger city. We present a simple model in which rural-urban migrants choose destination cities to maximize utilities from consumption and urban amenities. Drawing data from a large-scale population survey conducted in 2005, we first estimate each migrant's expected earnings in each possible destination city using a semi-parametric method to correct for potential selection bias. We then estimate the typical migrant's preference for city population size, instrumenting population size with its lagged values to control for potential omitted-variables bias. From these estimation results, we calculate the typical migrant's willingness to pay to live in larger cities. Our results show that indeed rural-urban migrants strongly prefer cities with larger populations. We explore possible explanations for this preference and discuss the implications of these findings.
    Keywords: city size, urban amenities, rural-urban migration, hukou system, China
    JEL: O15 R12 R23
    Date: 2013–08

This nep-dem issue is ©2013 by Clarence Nkengne Tsimpo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.