nep-dem New Economics Papers
on Demographic Economics
Issue of 2019‒11‒11
four papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Child Penalties and Financial Incentives: Exploiting Variation along the Wage distribution By Pierre PORA; Lionel WILNER
  2. Marriage, Children, and Labor Supply: Beliefs and Outcomes By Yifan Gong; Todd Stinebrickner; Ralph Stinebrickner
  3. The Effect of Grandchildren on Grandparental Labour Supply: Evidence from Europe By Andreas Backhaus; Mikkel Barslund
  4. The Well-Being of Nations: Estimating Welfare from International Migration By Lee, Sanghoon; Lee, Seung Hoon; Lin, Jeffrey

  1. By: Pierre PORA (Insee-Crest.); Lionel WILNER (Insee-Crest.)
    Abstract: We relate women's labor earnings losses due to motherhood to their prechildbirth rank in the distribution of hourly wages. Using French administrative data, we show that these \child penalties" decrease steeply along the distribution; by contrast, the related hourly wage losses are fairly homogeneous. Low-wage mothers opt out of the labor market or reduce their working hours more frequently; the magnitude of such responses is consistently monotonic along the distribution. This empirical evidence highlights the relevance of financial incentives and suggests that child penalties arise from decisions based on specialization gains rather than on gender differences in preferences or on gender norms.
    Keywords: Gender pay gap, child penalties, labor supply, difference-in-difference, wage distribution.
    JEL: J13 J16 J22 J31
    Date: 2019–09–27
  2. By: Yifan Gong; Todd Stinebrickner; Ralph Stinebrickner
    Abstract: While a large literature is interested in the relationship between family and labor supply outcomes, little is known about the expectations of these objects at earlier stages. We examine these expectations, taking advantage of unique data from the Berea Panel Study. In addition to characterizing expectations, starting during college, the data details outcomes for ten years after graduation. Methodological contributions come from an approach to address measurement error in survey questions and the recognition that expectations data, along with longitudinal data, can potentially help address endogeneity issues arising in the estimation of the causal effect of family on labor supply.
    Keywords: gender differences, Labor Supply, children, Marriage, expectations
    JEL: J13 J22
    Date: 2019–10
  3. By: Andreas Backhaus; Mikkel Barslund
    Abstract: Grandparents at working-age spend a considerable amount of time taking care of their grandchildren. These time transfers might imply economic trade-offs regarding the participation in the labour market. Using an instrumental variable strategy and multiple waves of the Survey of Health, Ageing and Retirement in Europe (SHARE), we estimate the causal effect of grandparenthood on the labour supply of working-age grandparents in ten European countries. In our preferred specification, we find a large negative impact of grandparenthood on the labour supply of women aged 55 to 64. This effect is particularly pronounced following the arrival of the first grandchild and for grandmothers who live in close distance to their offspring. It further operates at the extensive margin of labour supply, resulting in grandmothers leaving the labour market entirely. By contrast, male labour supply does not significantly adjust in response to grandparenthood. Our results imply a relevant trade-off between labour supply and grandchild care for European women of later working age.
    Date: 2019
  4. By: Lee, Sanghoon (University of British Columbia); Lee, Seung Hoon (Georgia Institute of Technology); Lin, Jeffrey (Federal Reserve Bank of Philadelphia)
    Abstract: The limitations of GDP as a measure of welfare are well known. We propose a new method of estimating the well-being of nations. Using gross bilateral international migration flows and a discrete choice model in which everyone in the world chooses a country in which to live, we estimate each country’s overall quality of life. Our estimates, by relying on revealed preference, complement previous estimates of economic well-being that consider only income or a small number of factors, or rely on structural assumptions about how these factors contribute to wellbeing.
    Keywords: International migration; quality of life; GDP
    JEL: D63 F22 I31 J61
    Date: 2019–08–27

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