nep-dem New Economics Papers
on Demographic Economics
Issue of 2018‒12‒10
seven papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Globalization, Gender, and the Family By Wolfgang Keller; Hâle Utar
  2. Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence By Donni, Olivier; Molina, José Alberto
  3. Immigration and Social Mobility By Hoen, Maria F.; Markussen, Simen; Røed, Knut
  4. Generational Conflict and Education Politics: Implications for Growth and Welfare By Yuki Uchida; Tetsuo Ono
  5. Social Security Programs and Employment at Older Ages in the Netherlands By Klaas de Vos; Arie Kapteyn; Adriaan Kalwij
  6. Population-adjusted egalitarianism By Stéphane Zuber
  7. Rank-discounting as a resolution to a dilemma in population ethics By Geir B. Asheim; Stéphane Zuber

  1. By: Wolfgang Keller; Hâle Utar
    Abstract: This paper shows that globalization has far-reaching implications for the economy’s fertility rate and family structure because they influence work-life balance. Employing population register data on new births, marriages, and divorces together with employer-employee linked data for Denmark, we show that lower labor market opportunities due to Chinese import competition lead to a shift towards family, with more parental leave taking and higher fertility as well as more marriages and fewer divorces. This pro-family, pro-child shift is driven largely by women, not men. Correspondingly, the negative earnings implications of the rising import competition are concentrated on women, and gender earnings inequality increases. We show that the choice of market versus family is a major determinant of worker adjustment costs to labor market shocks. While older workers respond to the shock rather similarly whether female or not, for young workers the fertility response takes away the adjustment advantage they typically have–if the worker is a woman. We find that the female biological clock–women have difficulties to conceive beyond their early forties–is central for the gender differential, rather than the composition of jobs and workplaces, as well as other potential causes.
    JEL: F16 J12 J13 J16
    Date: 2018–11
  2. By: Donni, Olivier (University of Cergy-Pontoise); Molina, José Alberto (University of Zaragoza)
    Abstract: Household collective models celebrate their thirtieth birthday. The collective approach constitutes, perhaps, the microeconomics topic that has produced the largest number of papers (both published and in working paper/mimeo formats) during the last three decades, beginning with the seminal paper published by P.A. Chiappori in Econometrica (Chiappori, 1988). To add to some excellent surveys of household collective models (Strauss et al., 2000; Vermeulen, 2002; Donni and Chiappori, 2011; Chiappori and Mazzocco, 2017), we here perform a bibliographic review of the literature, which includes theoretical contributions, as well as the international empirical evidence related to the collective approach. With respect to the theoretical papers, the collective framework has been used to provide theoretical results for a number of household issues; for example, labour supply, consumption and savings, household production, and intra-household allocation. As for the empirical papers, the international evidence covers the majority of developed and developing countries from all continents.
    Keywords: household, collective models, Pareto efficiency, sharing rule, labor supply, consumption
    JEL: D10 J22 Y10
    Date: 2018–10
  3. By: Hoen, Maria F. (Ragnar Frisch Centre for Economic Research); Markussen, Simen (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research)
    Abstract: Using Norwegian administrative data, we examine how exposure to immigration over the past decades has affected natives' relative prime age labor market outcomes by social class background. Social class is established on the basis of parents' earnings rank. By exploiting variation in immigration patterns over time across commuting zones, we find that immigration from low‐income countries has reduced social mobility and thus steepened the social gradient in natives' labor market outcomes, whereas immigration from high‐income countries has leveled it. Given the large inflow of immigrants from low-income countries to Norway since the early 1990s, this can explain a considerable part of the relative decline in economic performance among natives with lower class background, and also rationalize the apparent polarization of sentiments toward immigration.
    Keywords: immigration, intergenerational mobilty
    JEL: J62 J15 J24
    Date: 2018–10
  4. By: Yuki Uchida (Faculty of Economics, Seikei University); Tetsuo Ono (Graduate School of Economics, Osaka University)
    Abstract: This study considers the politics of public education and its impact on economic growth and welfare across generations. We employ probabilistic voting to demon- strate the generational con ict regarding taxes and spending, and show that aging results in a tax burden shift from the retired to the working generation, a reduction in public education spending, and ultimately in slowing down economic growth. We subsequently consider a legal constraint that aims to boost education spending: a spending oor for education. This constraint stimulates economic growth, but cre- ates a trade-off between current and future generations in terms of welfare. Finally, the quantitative implications of our results are explored by calibrating the model to the Japanese economy.
    Keywords: Public education, Economic growth, Capital income tax, Proba- bilistic voting
    JEL: D70 E24 H52
    Date: 2018–02
  5. By: Klaas de Vos; Arie Kapteyn; Adriaan Kalwij
    Abstract: There have been a vast number of social security reforms aimed at increasing employment at older ages over the last two decades in the Netherlands. These reforms mainly lead to more stringent eligibility criteria for, and reduced generosity of, social security programs. Our empirical evidence suggests that these reforms are likely to have contributed to individuals working longer, but it is difficult to pinpoint which reforms have been most effective. Furthermore, we show that the recent increase in the state pension eligibility age is likely to further increase employment at older ages.
    JEL: H55 J08 J26
    Date: 2018–11
  6. By: Stéphane Zuber (Paris School of Economics - Centre d'Economie de la Sorbonne)
    Abstract: Egalitarianism focuses on the well-being of the worst-off person. It has attracted a lot of attention in economic theory, for instance when dealing with the sustainable intertemporal allocation of resources. Economic theory has formalized egalitarianism through the Maximin and Leximin criteria, but it is not clear how they should be applied when population size may vary. In this paper, I present possible justifications of egalitarian-ism when considering populations with variable sizes. I then propose new versions of egalitarianism that encompass many views on how to trade-off population size and well-being. I discuss some implications of egalitarianism for optimal population size. I first describe how population ethical views affects population growth. In a model with natural resources, I then shows that utilitarianism always recommend a larger population for low levels of resources, but that this conclusion may not hold true for larger levels
    Date: 2018–11
  7. By: Geir B. Asheim (Department of Economics, University of Oslo, Norway); Stéphane Zuber (Paris School of Economics - Centre d'Economie de la Sorbonne)
    Abstract: When evaluating well-being distributions in an anonymous (and replication invariant) manner, one faces a dilemma between (i) assigning dictatorship to a single worst-off person, thus succumbing to a tyranny of non-aggregation and (ii) assigning dictatorship to (unboundedly) many better-off persons, thus succumbing to a tyranny of aggregation. We show this corresponds to a population-ethical dilemma in the variable population setting between, on the one hand, a reversed repugnant conclusion (preferring a very small population with high well-being) and, on the other hand, a repugnant conclusion (preferring a sufficiently large population with lives barely worth living to a population with good lives) or very sadistic conclusion (not preferring a large population with lives worth living to a population with terrible lives). The dilemma can be resolved by relaxing replication invariance and thus allowing that evaluation in the fixed population setting might change with population size even though the relative distributions of well-being remain unchanged. Rank-dependent criteria are evaluation criteria that resolve this dilemma but fails replication invariance. We provide conditions under which rank-dependent criteria are the only way out of the dilemma. Furthermore, we discuss the following consequence of relaxing replication invariance: It becomes essential to take into account the existence and utility of non-affected people when evaluating population policies with limited scope
    Date: 2017–07

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