nep-dem New Economics Papers
on Demographic Economics
Issue of 2015‒03‒27
six papers chosen by
Michele Battisti
ifo Institut

  1. Crowding (out) the retirees? RDD application to raising effective retirement age in Poland By Paweł Strzelecki; Joanna Tyrowicz
  2. The many dimensions of child poverty: Evidence from the UK Millennium Cohort Study By Andrew Dickerson; Gurleen Popli
  3. Benefit on the accessibility of the internet to educated women in Malaysia By Suhaida Mohd Amin; Nurulhuda Mohd Satar; Su Fei Yap; Mohd Faizal P.Rameli
  4. Correlating Social Mobility and Economic Outcomes By Güell, Maia; Pellizzari, Michele; Pica, Giovanni; Rodríguez Mora, José Vicente
  5. The joint decision of labour supply and childcare in Italy under costs and availability constraints By Francesco Figari; Edlira Narazani
  6. Bargaining or efficiency within the household? The case of Italy By AINA, Carmen; MAZZOTTA, Fernanda; PARISI, Lavinia

  1. By: Paweł Strzelecki (Warsaw School of Economics; National Bank of Poland); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)
    Abstract: As of 2007 increased labor force participation of the elderly has been observed in Poland. In 2009 a reform in the eligibility criteria narrowed the scope of early retirement opportunities for majority of the occupations. While labor force participation in the directly affected cohorts continued to grow, but an increase already prior to the reform hints that other factors may have been at play as well. The objective of this paper is to isolate and evaluate the causal ef-fect of the changes in eligibility criteria on labor force participation and exit to retirement of the affected cohorts. We rely on Polish Labor Force Survey and employ regression disconti-nuity design to evaluate the change in participation subsequent to the eligibility reform among the treated cohorts. We find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters. Yet, the pure treatment effects are insignificant in vast majority of the specification. Our con-clusions are thus as follows: the changes in the eligibility criteria were not instrumental in fostering the participation rates among the affected cohort, i.e. the immediate contribution to increased labor force participation of these cohorts is not economically large.
    Keywords: retirement age, early retirement, regression discontinuity, Poland
    JEL: J14 J26
    Date: 2015
  2. By: Andrew Dickerson (Department of Economics, University of Sheffield); Gurleen Popli (Department of Economics, University of Sheffield)
    Abstract: In this paper we use a multidimensional framework to characterise child poverty in the UK. We examine the interdependencies amongst the different dimensions of multidimensional poverty, and the relationship of multidimensional poverty with income poverty. We also explore the links between multidimensional poverty, income poverty, and children's cognitive and non-cognitive development. Our findings suggest that multidimensional poverty identifies many but not all of the same children classified using standard income poverty measures, although multidimensional poverty is rather more persistent over time than income poverty. Multidimensional poverty also has a detrimental impact on children's development over and above the negative impact of income poverty.
    Keywords: child poverty; multidimensional poverty; income poverty; child development
    JEL: I32 J13 J62
    Date: 2015–03
  3. By: Suhaida Mohd Amin (Faculty of Economics & Administration, University of Malaya (UM)); Nurulhuda Mohd Satar (Faculty of Economics & Administration, University of Malaya (UM)); Su Fei Yap (Faculty of Economics & Administration, University of Malaya (UM)); Mohd Faizal P.Rameli (Faculty of Economic and Muamalat, Universiti Sains Islam Malaysia (USIM))
    Abstract: Low rate of labor force participation among women has always been a focus issue in the development agenda of many countries due to the “absent women†will represent a loss of skills and brain drain from the workforce. This is especially true given the fact that there is a greater number of women enrolled in tertiary education. Low participation rate among highly educated women thus will affect the return on education especially among developing countries. In Malaysia, female participation rate in the labor force remained around 44 to 48 percent within 30 years and employed women is dominated by those with secondary educational attainment while those with tertiary education contributes only 32% to total women participated in the labor market. The main reason for educated women dropping out from labor force is difficulty to balance between career and family lives. When they need to make a choice, women will often prioritize family rather than their career. The emergence of the internet is deemed as a partial solution to this problem. High accessibility to the internet would be able to help manage and balance between family and work. With high accessibility to ICT, women can also work from home or any other location than the office or project site. Therefore, time can be saved and could be manage according to their own time preferences, costs and stress of commuting for employees will be reduced if they could do their job anywhere, including at home. Like many other countries in the world, Malaysians received rapid technological advancement from day to day. In year 2012, 65.8 percent of individuals have access to the internet as compared to 21.4 per cent in year 2000. Thus, to examine benefits that could be obtained by educated women with internet access, a total of 943 women with tertiary education answered the online questionnaire. This study will explore how educated women benefit from internet access at their homes. For those who work, this study will determine how access to the internet could help to balance their responsibilities of career and family life. For those who do not work, the research tries to find out the extent of their confidence in term of how high access to the internet can help them return to work without leaving the care of the household. The findings from this study help us to understand the willingness of women to work and be in the labor market with high internet accessibility.
    Keywords: accessibility, internet, educated women, Malaysia, labor force
    JEL: J22 J21 J24
    Date: 2014–05
  4. By: Güell, Maia; Pellizzari, Michele; Pica, Giovanni; Rodríguez Mora, José Vicente
    Abstract: We apply a novel measure of intergenerational mobility (IM) developed by Güell, Rodríguez Mora, and Telmer (2014) to a rich combination of Italian data allowing us to produce comparable measures of IM of income for 103 Italian provinces. We then exploit the large heterogeneity across Italian provinces in terms of economic and social outcomes to explore how IM correlates with a variety of outcomes. We find that (i) higher IM is positively associated with a variety of “good” economic outcomes, such as higher value added per capita, higher employment, lower unemployment, higher schooling and higher openness and (ii) that also within Italy the “the Great Gatsby Curve” exists: in provinces in which mobility is lower cross-sectional income inequality is larger. We finally explore the correlation between IM and several socio-political outcomes, such as crime and life expectancy, but we do not find any clear systematic relationship on this respect.
    Keywords: cross-sectional data analysis; intergenerational mobility; Surnames
    JEL: C31 E24 R10
    Date: 2015–03
  5. By: Francesco Figari; Edlira Narazani
    Abstract: It is widely recognized that childcare has important pedagogical, economic and social effects on both children and parents. This paper is the first attempt to estimate a joint structural model of labour supply and childcare decision applied to Italy. Such an approach is particularly informative given that it allows one to estimate the changes in family choices under different policy simulation scenarios, evaluating the effects on labour supply and childcare usage and the potential consequences for household income.We analyse how maternal labour supply and childcare usage can be affected by relaxing the existing constraints in terms of childcare availability and costs by considering public, private and informal childcare, with related imputed availability and costs and their interaction with the whole tax-benefit system.Due to the regional differences, costs and effects are highly differentiated among different areas of the country. Results suggest that Italian households might alter their childcare and labour supply decisions substantially if the coverage rate of formal childcare increases, in particular if the increase would correspond to the increase needed to reach the European target in the Southern regions. Overall, increasing child care coverage is estimated to be more effective in enhancing labour incentives than decreasing existing child care costs, at the same budgetary cost. However, the potential effects on the disposable income are larger in the latter scenario because decreasing the childcare costs is beneficial also for women who do not change their labour supply behaviour.
    Keywords: childcare, female labour market participation, labour supply, Italy
    JEL: H53 J13 J22 I38
    Date: 2015–03
  6. By: AINA, Carmen (Università degli Studi del Piemonte Orientale); MAZZOTTA, Fernanda (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); PARISI, Lavinia (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)
    Abstract: Two aspects play a role in the household decision-making, the efficiency and the bargaining power’s argument. The crucial difference between the two approaches is the expected influence of personal and partners’ wage. To investigate which of the two models hold, in the Italian context, we estimate an ordered probit model for five aspects of household decision-making. We use the Italian questionnaire of Statistics on Income and Living Conditions (It-Silc) 2010 as it provides a module on intra-household sharing of resources. Results show that in strategic control decisions, where the power argument should dominate the efficiency approach (i.e. decisions on durable goods, savings and other important decisions) the spouse/partner with higher wage is the household decision maker. For decision regarding executive management (i.e. decision on everyday shopping), the efficiency argument holds.
    Keywords: Financial management; Intra-household bargaining; Household production; Gender differences; Intra-household decision power; Family economics
    JEL: D13 E21 G11 J12
    Date: 2014–12–30

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