nep-dem New Economics Papers
on Demographic Economics
Issue of 2019‒04‒22
four papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Grandparents, Mothers, or Fathers? Why Children of Teen Mothers do Worse in Life By Anna Aizer; Paul J. Devereux; Kjell G. Salvanes
  2. Dynastic Human Capital, Inequality and Intergenerational Mobility By Adermon, Adrian; Lindahl, Mikael; Palme, Mårten
  3. Optimal time allocation in active retirement By Sanchez-Romero, Miguel; Fürnkranz-Prskawetz, Alexia
  4. The population question in a neoclassical growth model: A brief theory of production per capita By Lüger, Tim

  1. By: Anna Aizer; Paul J. Devereux; Kjell G. Salvanes
    Abstract: Women who give birth as teens have worse subsequent educational and labor market outcomes than women who have first births at older ages. However, previous research has attributed much of these effects to selection rather than a causal effect of teen childbearing. Despite this, there are still reasons to believe that children of teen mothers may do worse as their mothers may be less mature, have fewer financial resources when the child is young, and may partner with fathers of lower quality. Using Norwegian register data, we compare outcomes of children of sisters who have first births at different ages. Our evidence suggests that the causal effect of being a child of a teen mother is much smaller than that implied by the cross-sectional differences but that there are still significant long-term, adverse consequences, especially for children born to the youngest teen mothers. Unlike previous research, we have information on fathers and find that negative selection of fathers of children born to teen mothers plays an important role in producing inferior child outcomes. These effects are particularly large for mothers from higher socio-economic groups.
    Keywords: Teen pregnancy; Intergenerational mobility; Family fixed effects
    JEL: J12 J13 I31 I32
    Date: 2019–03
  2. By: Adermon, Adrian (Institute for Evaluation of Labor Market and Education Policy (IFAU), UCLS and UCFS); Lindahl, Mikael (Department of Economics, School of Business, Economics and Law, Göteborg University); Palme, Mårten (Department of Economics, Stockholm University and IZA)
    Abstract: We study the importance of the extended family – the dynasty – for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents’ siblings and cousins, their spouses, and the spouses’ siblings. Using various human capital measures, we show that traditional parent-child estimates of intergenerational persistence miss almost one-third of the persistence found at the dynasty level. To assess the importance of genetic links, we use a sample of adoptees. We then find that the importance of the extended family relative to the parents increases.
    Keywords: Intergenerational mobility; extended family; dynasty; human capital
    JEL: I24 J24
    Date: 2019–04
  3. By: Sanchez-Romero, Miguel; Fürnkranz-Prskawetz, Alexia
    Abstract: We set up a lifecycle model of a retired scholar who chooses optimally the time devoted to different activities including physical activity, continued work and social engagement. While time spent in physical activity increases life expectancy, continued scientific publications increases the knowledge stock. We show the optimal trade off between these activities in retirement and its sensitivity with respect to alternative settings of the preference parameters.
    Keywords: Time allocation,Active retirement,Longevity,Scientific production
    JEL: C60 D91 J22 J26 I12
    Date: 2019
  4. By: Lüger, Tim
    Abstract: This work seeks to answer the "population question," i.e. the effect of population growth on production per capita. This question has lingered in economic thought for centuries and to this day two general lines of thought can be identified, which might be marked as the "optimist" and the "pessimist" view. While the optimists claim that an increase in population will - chiefly owed to concomitant specialization and technological progress - raise average production per capita, the pessimists maintain that the latter would decline as a result of resources becoming relatively more scarce. Integrating both approaches and using a neoclassical framework, this work intends to show that sustainably increasing productivity is predominantly the result of reducing too high fertility toward a lower level such that diminishing returns are outweighed by the benefits from labor division. The paper argues that the historical reduction of fertility can almost completely explain long-run development.
    Keywords: Population Question,Division of Labor,Diminishing Returns,Demographic Transition,Economic Development,Classical Growth Theory,Neoclassical Growth Theory,Unified Growth Theory,History of Economic Thought
    JEL: B12 B22 J1 O47 N01 N3
    Date: 2019

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