nep-dem New Economics Papers
on Demographic Economics
Issue of 2013‒12‒06
twelve papers chosen by
Michele Battisti
University of Munich

  1. Killing me softly: work and mortality among French seniors By Blake, Hélène; Garrouste, Clémentine
  2. Is caring for elderly parents detrimental to women’s mental health? The influence of the European North-South gradient By Elenka Brenna; Cinzia Di Novi
  3. Investing in the youngest: the optimal child care policy By Francesca Carta
  4. Child health and use of health care services in France: Evidence on the role of family income By Bénédicte H. Apouey; Pierre-Yves Geoffard
  5. Demography and its vocabulary over the centuries: a digital exploration By François Héran
  6. Correlation of Brothers Earnings and Intergenerational Transmission By Paul Bingley; Lorenzo Cappellari
  7. Endogeneity in the Relation between Poverty, Wealth and Life Satisfaction By André Hajek
  8. The Effect of Social Security, Health, Demography and Technology on Retirement By Ferreiray, Pedro Cavalcanti; Santos, Marcelo Rodrigues
  9. After-School Care and Parents' Labor Supply By Felfe, Christina; Lechner, Michael; Thiemann, Petra
  10. The impact of family-friendly policies on the labor market: Evidence from Spain and Austria By Sara de la Rica; Lucía Gorjón García
  11. Remittances and Migration Intentions of the Left-Behind By Piracha, Matloob; Saraogi, Amrita
  12. Participation in the Supplemental Nutrition Assistance Program (SNAP) and Unemployment Insurance How Tight Are the Strands of the Recessionary Safety Net? By Prell, Mark; Finifter, David

  1. By: Blake, Hélène; Garrouste, Clémentine
    Abstract: This paper investigates the impact of the retirement age and working life on mortality over 64 years old. In 1993, the French government gradually increased incentives to work for seniors. This exogenous shock on labor supply is an instrument for retirement choices of French pensioners. We use this exogenous shock to measure how work impacts male mortality. We work on the Echantillon Interrégime des Retraités, an administrative panel data set which provides information on past contribution to the pension system and mortality at two points of time. We find that delaying the retirement age by one year increases the chances of dying within four years by 2.45 percentage points which is equivalent to a decrease of life expectancy at age 64 by around 2.6 months. However, this effect is far from homogeneous if we split our sample by income groups.
    Keywords: Retirement; mortality; pension reform;
    JEL: J12 J26 H55
    Date: 2013–08
  2. By: Elenka Brenna (Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Cinzia Di Novi (Università Ca’ Foscari, Dipartimento di Economia, Venezia)
    Abstract: In the last decades, both the lengthening of life expectancy and an accentuated decline in birth rates have reduced the consistency of the younger generational cohorts. Due to an ageing population, the burden of care giving is expected to intensify in the next quarter of the century in Europe, especially for mature women. This paper investigates the impact of the provision of constant care for elderly parents on the mental health of adult daughters, between the ages of 50 and 65, living in different European countries. Data is collected from the Survey of Health, Ageing and Retirement in Europe (SHARE). Information on mental health status is provided by Euro-D depression scale, a standardized measure of depression employed across European countries. We focus on differences in the effects according to a North–South gradient: we test whether the relationship between informal caregiving and mental health differs across European macro- regions. Our results reveal the presence of a North-South gradient in the effect of caring on women’s mental health.
    Keywords: caregiver burden, depression, parent care, LTC systems, mature women
    JEL: I10 I12 D10
    Date: 2013–11
  3. By: Francesca Carta (Toulouse School of Economics)
    Abstract: The aim of the paper is to characterize the optimal child care policies (subsidies and state provision), assuming that child care provision affects the child’s future abilities. Public intervention is needed since two sources of economic inefficiency are contemporaneously influential: parents do not properly account for the impact of child care on future generations (human capital externalities) and income tax is distortive, hence labour supply is suboptimal. In an optimal income tax model, altruistic parents provide child care either by providing care at home or by paying for it on the market. If the government is able to observe the amount of domestic care provided by parents, it is optimal to subsidize provision of paid child care if only to correct the human capital externality. If, conversely, it is not possible to observe the amount of domestic care, market-provided child care is subsidized, including for redistributive reasons. In fact, an efficiency case for higher child care subsidies to lower income earners arises. State provision of child care may be desirable when market care purchases cannot be observed at the household level.
    Keywords: optimal taxation; household production; child care; intergenerational transfers; warm-glow altruism
    JEL: H21 H23 H53 J13 J22 J24
    Date: 2013–06
  4. By: Bénédicte H. Apouey (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Pierre-Yves Geoffard (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA))
    Abstract: Our paper investigates the relationship between family income and child health in France. We first examine whether there is a significant correlation between family income and child general health, and the evolution of this relationship across childhood years. We then study the role of specific health problems, the use of health care services, and supplemental health insurance coverage, in the income gradient in general health. We also quantify the role of income in child anthropometric measurements. Whenever possible, we compare our results for France with those obtained for other developed countries.
    Keywords: Socioeconomic factors ; Child ; Anthropometry ; Healthcare disparities
    Date: 2013–11–25
  5. By: François Héran (INED)
    Abstract: Our ideas about population have varied continuously over the centuries, as illustrated in the vocabulary changes detected by Ngram Viewer in the vast corpus of books digitized by Google. For example, the French word démographie, first coined in 1855, did not take off until after the Great War, in response to falling birth rates, as expressed by the term dénatalité. The 1960s were haunted by the threat of surpeuplement (over population). Assimilation des immigrés (immigrant assimilation) has never really been a central concept in France, unlike intégration des immigrés (immigrant integration), which gained popularity in the 1980s. Espérance de vie (life expectancy) is gaining ground and has overtaken taux de fécondité (fertility rate). Far from being certain and unchanging, our vision of population questions is marked by frequent discontinuities, the most recent dating from the 1980s.
    Date: 2013
  6. By: Paul Bingley (SFI, The Danish National Centre for Social Research); Lorenzo Cappellari (Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)
    Abstract: We model the correlations of brothers’ earnings isolating the effect of fathers’ earnings from additional residual influences shared between brothers. We separate the two effects by analysing sibling correlations and intergenerational correlations jointly within a unified framework. Our multi-person model of earnings dynamics distinguishes permanent from transitory shocks, allows for heterogeneous life cycle effects and nests previous models. Using data on the Danish population of father/first-son/second-son triplets, we corroborate the findings of studies that do not account for life cycle effects for those aged in their 30’s, but find correlations twice as large at 25. The impact of intergenerational effects also varies over age, but is everywhere higher than found in previous studies ?by on average a factor of thirteen? and accounts for most of the sibling correlation. We provide evidence that lack of both life cycle effects and heterogeneous intergenerational transmission across families in previous studies explain the difference. When allowing for differential intergenerational transmission within families, we find mild evidence of stronger transmission to second sons.
    Keywords: Sibling correlation, Intergenerational transmission, Life cycle earnings
    JEL: D31 J62
    Date: 2013–11
  7. By: André Hajek
    Abstract: This publication concentrates on the complex interplay between poverty, wealth and life satisfaction. Main areas of life are quantified in a multidimensional approach of poverty and wealth: Individual income, current health, occupational autonomy or employment status and also the mentioned life satisfaction. Data used in this publication were made available by the German Socio Economic Panel Study (SOEP) at the German Institute for Economic Research (DIW Berlin), Berlin. A period from 1998-2009 is examined. This study has two main goals: (1) To contribute to the interconnection between poverty, wealth and life satisfaction. (2) Besides, the endogeneity research regarding life satisfaction should be expanded. Reduced form vector-autoregressions (with first differences) were used to answer the questions. Therefore, granger-causality can be supposed. Major findings: An initial rise in life satisfaction can improve income and health, but not job autonomy. However, even the probability of returning from unemployment to employment can increase. Gender-specific differences are discussed.
    Keywords: life satisfaction, unemployment, SOEP, vector autoregressions, endogeneity, income, health, occupational autonomy
    JEL: I19 I31 I32 J64
    Date: 2013
  8. By: Ferreiray, Pedro Cavalcanti; Santos, Marcelo Rodrigues
    Date: 2012–10
  9. By: Felfe, Christina (University of St. Gallen); Lechner, Michael (University of St. Gallen); Thiemann, Petra (University of St. Gallen)
    Abstract: Does after-school care provision promote mothers' employment and balance the allocation of paid work among parents of schoolchildren? We address this question by exploiting variation in cantonal (state) regulations of after-school care provision in Switzerland. To establish exogeneity of cantonal regulations with respect to employment opportunities and preferences of the population, we restrict our analysis to confined regions along cantonal borders. Using semi-parametric instrumental variable methods, we find a positive impact of after-school care provision on mothers' full-time employment, but a negative impact on fathers' full-time employment. Thus, the supply of after-school care fosters a convergence of parental working hours.
    Keywords: childcare, parents' labor supply, semi-parametric estimation methods
    JEL: J13 J22 C14
    Date: 2013–11
  10. By: Sara de la Rica; Lucía Gorjón García
    Abstract: The policies under analysis are set out in Spanish Law 39/99 and Austrian Law Nr. 38/2004. In essence both policies were directed at allowing parents to work part-time if they had children under 7 years old, with an equivalent wage reduction. Furthermore, those workers who decided to use the law were protected against being laid off. Our results indicate that the law helped mothers to combine childcare and work because there was an increase in the probability of working PT for targeted mothers (direct effect). Furthermore, there is clear evidence that the law increased the probability of dismissal of non-eligible mothers – i.e. mothers with children over 10 years old. Finally, the law also increased the probability of potential mothers being hired under fixed-term contracts, presumably to avoid the possibility of their availing themselves of the reduced working hours and the protection against dismissal. Therefore, the law had some positive effects but also some negative ones which were largely unexpected.
    Date: 2013–11
  11. By: Piracha, Matloob (University of Kent); Saraogi, Amrita (Bunge Ltd)
    Abstract: Migration and the consequent flow of remittances are like a double-edged sword; while keeping many out of poverty, they can also result in further brain drain and demographic imbalance for the country. Using a large household survey data from Moldova and employing simultaneous equations model we show that there exists a dual causality between receipt of remittances by non-migrants and their migration intentions. Moreover, we add a novel element to the empirical literature by being the first to be able to specify the mechanism behind the link between remittances and migration. We find evidence that remittances not only relieve credit constraints in the home country but also act as a signalling device of success in the host country. These results provide a fresh outlook on the role of remittances in shaping migration flows in the migrant sending countries.
    Keywords: migration intentions, remittances, simultaneity, Moldova
    JEL: F22 F24 J1
    Date: 2013–11
  12. By: Prell, Mark; Finifter, David
    Abstract: This report provides nationally representative annual estimates for 2004-09 of households’ multi-program or “joint” participation patterns in both the Supplemental Nutrition Assistance Program (SNAP) and the Unemployment Insurance (UI) program, including breakouts of household types categorized by household income relative to poverty, race/ethnicity, and education level. SNAP and UI are two strands of the Nation’s recessionary safety net—the subset of safety-net programs for which participation is responsive to the business cycle. Using data from the Annual Social and Economic (ASEC) Supplement to the Current Population Survey, the study found that an estimated 14.4 percent of SNAP households also received UI at some time in 2009 (a recessionary year), an increase of 6.6 percentage points from 2005 (a full-employment year). Conversely, an estimated 13.4 percent of UI households also received SNAP in 2009, an increase of 2.3 percentage points from 2005. SNAP households with lower annual income relative to poverty or with householders who did not complete high school were relatively less likely to also have UI, indicating that these populations were relatively more likely to rely on SNAP benefits alone (without UI).
    Keywords: SNAP, Supplemental Nutrition Assistance Program, Unemployment Insurance, UI, multi-program participation, social safety net, recessionary safety net, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2013–11

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