nep-dem New Economics Papers
on Demographic Economics
Issue of 2016‒02‒23
six papers chosen by
Michele Battisti
ifo Institut

  1. Ethnic Diversity and Well-Being By Akay, Alpaslan; Constant, Amelie F.; Giulietti, Corrado; Guzi, Martin
  2. Short and long-term effects of unemployment on fertility By Janet Currie; Hannes Schwandt
  3. Are Men Given Priority for Top Jobs? Investigating the Glass Ceiling in the Italian Academia By Maria De Paola; Michela Ponzo; Vincenzo Scoppa
  4. Earnings-related parental leave benefits and subjective well-being of young mothers: evidence from a German parental leave reform By Miriam Maeder
  5. Aging in Europe: Reforms, international diversification and behavioral reactions By Börsch-Supan, Axel; Härtl, Klaus; Ludwig, Alexander
  6. The Prodigal Son: Does the Younger Brother Always Care for His Parents in Old Age? By Komura, Mizuki; Ogawa, Hikaru

  1. By: Akay, Alpaslan (University of Gothenburg); Constant, Amelie F. (Temple University); Giulietti, Corrado (University of Southampton); Guzi, Martin (Masaryk University)
    Abstract: This paper investigates how ethnic diversity, measured by the immigrants' countries of origin, influences the well-being of the host country. Using panel data from Germany for the period 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German citizens. To corroborate the robustness of our results, we estimate several alternative specifications and investigate possible causality issues, including non-random selection of natives and immigrants into regions. Finally, we explore productivity and social capital as potential mechanisms behind our finding.
    Keywords: ethnic diversity, subjective well-being, assimilation, multiculturality
    JEL: C90 D63 J61
    Date: 2016–02
  2. By: Janet Currie; Hannes Schwandt
    Abstract: Scholars have been examining the relationship between fertility and unemployment for more than a century. Most studies find that fertility falls with unemployment in the short run, but it is not known whether these negative effects persist since women may simply postpone child bearing to better economics times. Using over 140 million U.S. birth records for the period 1975 to 2010, we analyze both the short and long-run effects of unemployment on fertility. We follow fixed cohorts of U.S. born women defined by their own state and year of birth, and relate their fertility to the unemployment rate experienced by each cohort at different ages. We focus on conceptions that result in a live birth. We find that women in their early 20s are most affected by high unemployment rates in the short-run and that the negative effects on fertility grow over time. A one percentage point increase in the unemployment rate experienced between the ages of 20 and 24 reduces the short-run fertility of women in this age range by 6 conceptions per 1,000 women. When we follow these women to age 40, we find that a one percentage point increase in the unemployment rate experienced at 20 to 24 leads to an overall loss of 14.2 conceptions. This long-run effect is driven largely by women who remain childless and thus do not have either first births or higher order births.
    Keywords: fertility; unemployment
    JEL: J11 J12 J13 J6
    Date: 2015–11
  3. By: Maria De Paola (Università della Calabria and IZA); Michela Ponzo (Università di Napoli and CSEF); Vincenzo Scoppa (Università della Calabria and IZA)
    Abstract: We aim to investigate if men receive preferential treatment in promotions using the Italian system for the access to associate and full professor positions that is organized in two stages: first, candidates participate in a national wide competition to obtain the National Scientific Qualification (NSQ), then successful candidates compete to obtain a position in University Departments opening a vacancy. We investigate the probability of success in the two stages in relation to the candidate’s gender, controlling for several measures of productivity and a number of individual, field and university characteristics. Whereas no gender differences emerge in the probability of obtaining the NSQ, females have a lower probability of promotion at the Department level. Gender gaps tend to be larger when the number of available positions shrink, consistent with a sort of social norm establishing that men are given priority over women when the number of positions is limited.
    Keywords: Gender Discrimination; Glass Ceiling; Academic Promotions; Natural Experiment.
    JEL: J71 M51 J45 J16 D72 D78
    Date: 2016–02–10
  4. By: Miriam Maeder
    Abstract: This study investigates the causal effect of earnings-related parental leave benefits (Elterngeld) on subjective well-being of young mothers. The new subsidy was introduced in 2007, and replaced a former means-tested benefit (Erziehungsgeld). The reform changed the total amount of benefits as well as the duration of pay. By construction of the reform, the change in benefits differs across population subgroups, depending on their eligibility for the former means-tested benefit. The reform also introduced incentives for paternal leave taking. Income effects, fathers’ involvement, and social norms constitute potential channels through which the reform affects well-being. Using a regression discontinuity design, I find remarkable heterogeneities in the response to the reform. While subjective well-being of West German mothers increases, East German mothers experience decreasing life satisfaction.
    Keywords: Elterngeld, paid parental leave, well-being, life satisfaction
    JEL: J13 J18 J28 I31
    Date: 2014–05
  5. By: Börsch-Supan, Axel; Härtl, Klaus; Ludwig, Alexander (Munich Center for the Economics of Aging (MEA))
    Abstract: The extent of demographic changes in Europe and Asia is much more drastic than in the US. This paper studies the effects of population aging on the interactions between economic growth and living standards in Europe with labor market and pension reform, behavioral adaptations, and international capital flows. Our analysis is based on an overlapping generations model with behavioral reactions to reform which is extended to the multi-country situation typical for Europe. While the negative effects of population aging on growth in Europe can in principle be compensated by reforms and economic adaptation mechanisms, they may be partially offset by behavioral reactions.
    JEL: J11 J21 D13 E27 H55 F16 F21
    Date: 2014–05–15
  6. By: Komura, Mizuki (Nagoya University); Ogawa, Hikaru (University of Tokyo)
    Abstract: Studies have shown that the older sibling often chooses to live away from his elderly parents intending to free ride on the care provided by the younger child. In the presented model, we incorporate income effects and depict a different pattern frequently observed in Eastern countries; that is, the older sibling lives near his or her parents and takes care of them in old age. By generalizing the existing model, we show three cases of elderly parents being looked after by (1) the older sibling, (2) the younger sibling, and (3) both siblings, depending on the relative magnitude of the income effect and the strategic incentive for one sibling to free ride on the other. Our study also investigates the effect of changes in relative income on the level of total care received by parents.
    Keywords: location choice, income effect, sibling, elderly care arrangement
    JEL: H41 J17
    Date: 2016–02

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