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on Demographic Economics |
| By: | Ginja, Rita (University of Bergen, Department of Economics); Jans, Jenny (Department of Statistics, Uppsala University); Karimi, Arizo (Department of Economics, Uppsala University) |
| Abstract: | We study how parental resources early in life affect children’s health and education exploiting the so-called speed premium (SP) in the Swedish parental leave system. The SP grants mothers higher parental leave benefits for the subsequent child without re-establishing eligibility through pre-birth market work if the two births occur within a pre-specified interval. This allow us to use a Regression Discontinuity framework. We find that the SP improves the educational outcomes of the first-born child, but not of the second-born. Impacts are driven by a combination of a positive income shock, and substitution from informal care to maternal time. |
| Keywords: | Parental leave; earnings; time investments; child outcomes |
| JEL: | J13 J18 J22 |
| Date: | 2017–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bergec:2017_017&r=dem |
| By: | Manuel Guerra; João Pereira; Miguel St. Aubyn |
| Abstract: | The negative effect of population aging on the economy can be mitigated by a behavioral effect of people as a reaction to a higher life expectancy. We analyze the optimal life-cycle of individuals that allocate time at the intensive margin between leisure, human capital accumulation, and labor supply while facing an age-dependent mortality. This allows to enhance effects of changes in life expectancy on labor supply and human capital accumulation and to uncover trade-offs between time allocations at different stages of the life-cycle. Our life-cycles are characterized by on the job training throughout all the working life with a possibility of a temporary exit from the labor market. We simulate the model numerically and nd that with a higher life expectancy, labor supply increases at the intensive margin and the individual invests more in human capital. We also nd a willingness to increase labor supply at the extensive margin. |
| Keywords: | Life-Cycle; Age-Dependent Mortality; Aging; Time Allocation |
| JEL: | J22 J24 H55 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp0562018&r=dem |