nep-dem New Economics Papers
on Demographic Economics
Issue of 2020‒02‒24
six papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Does the Added Worker Effect Matter? By Guner, Nezih; Kulikova, Yuliya; Valladares-Esteban, Arnau
  2. The gender gap in wages over the life course: evidence from a British cohort born in 1958. By Heather Joshi; Alex Bryson; David Wilkinson; Kelly Ward
  3. Cash Transfers and Fertility: How the Introduction and Cancellation of a Child Benefit Affected Births and Abortions By Libertad González; Sofia Trommlerová
  4. Is Immigration Enforcement Shaping Immigrant Marriage Patterns? By Amuedo-Dorantes, Catalina; Arenas-Arroyo, Esther; Wang, Chunbei
  5. Economic Incentives Surrounding Fertility: Evidence from Alaska's Permanent Fund Dividend By Nishant Yonzan; Laxman Timilsina; Inas Rashad Kelly
  6. Reducing mommy penalties with daddy quotas By Dunatchik, Allison; Özcan, Berkay

  1. By: Guner, Nezih (CEMFI, Madrid); Kulikova, Yuliya (Banco de España); Valladares-Esteban, Arnau (University of St. Gallen)
    Abstract: The added worker effect (AWE) measures the entry of individuals into the labor force due to their partners' job loss. We propose a new method to calculate the AWE, which allows us to estimate its effect on any labor market outcome. We show that the AWE reduces the fraction of households with two non-employed members. The AWE also accounts for why women's employment is less cyclical and more symmetric compared to men. In recessions, while some women lose their employment, others enter the labor market and find jobs. This keeps the female employment relatively stable.
    Keywords: household labor supply, intra-household insurance, female employment, cyclicality, skewness
    JEL: D1 E32 J21 J22
    Date: 2020–01
  2. By: Heather Joshi (University College London); Alex Bryson (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor); David Wilkinson (University College London); Kelly Ward (University College London)
    Abstract: Using data tracking all those born in a single week in Great Britain in 1958 through to their mid-50s we observe an inverse U-shaped gender wage gap (GWG) over their life-course: an initial gap in early adulthood widened substantially during childrearing years, affecting earnings in full-time and part-time jobs. In our descriptive approach, education related differences are minor. Gender differences in work experience are the biggest contributor to that part of the gender wage gap we can explain in our models. Family formation primarily affects the GWG through its impact on work experience. Family composition is similar for male and female workers but attracts opposite wage premia. Not all of the GWG however is linked to family formation. There was a sizeable GWG on labour market entry and there are some otherwise unexplained gaps between the pay of men and women who do not become parents.
    Keywords: family formation, gender wage gap; work experience; life course; NCDS birth cohort
    JEL: J16 J31
    Date: 2019–10–01
  3. By: Libertad González; Sofia Trommlerová
    Abstract: We study the effects of a universal child benefit on fertility, identifying separately the effects driven by conceptions and abortions. We focus on a generous lump-sum maternity allowance that was introduced in Spain in 2007 and cancelled in 2010. Using administrative, population-level data, we create a panel data set of the 50 Spanish provinces, with monthly data on birth and abortion rates between 2000 and 2017. Our identification is based on the timing of the introduction and cancellation of the policy (both its announcement and implementation), from which we infer when the effects on abortions and births can be expected. We find that the introduction of the policy led to a 3% increase in birth rates, due to both a decrease in abortions and an increase in conceptions. The announcement of the cancellation of the policy led to a transitory increase in birth rates of 4% just before the cancellation was implemented, driven by a short-term drop in abortions. The cancellation then led to a 6% drop in birth rates. Heterogeneity analysis suggests that the positive fertility effect of the benefit introduction was driven by high-skilled parents, while the negative impact of the cancellation was larger among low-skilled and out-of-labor-force parents, and in lower income, higher unemployment regions. We also find suggestive evidence that the child benefit had both a timing effect (“tempo”), so that some women had children earlier, and a level effect (“quantum”), where some women had more children than they would have had otherwise.
    Keywords: fertility, abortions, birth rates, Policy evaluation, Child benefit
    JEL: J13 J18
    Date: 2020–02
  4. By: Amuedo-Dorantes, Catalina (University of California, Merced); Arenas-Arroyo, Esther (Vienna University of Economics and Business); Wang, Chunbei (University of Oklahoma)
    Abstract: This paper identifies intermarriage (between non-citizens and citizens) as an important response mechanism to intensified immigration enforcement, particularly among Mexican non-citizens. Exploiting the temporal and geographic variation in the implementation of interior immigration enforcement from 2005 to 2017, we find that a one standard deviation increase in enforcement raises Mexican non-citizens' likelihood of marrying a U.S. citizen by 3 to 6 percent. Our results show that this effect is driven by a change in spousal preference. Both police-based and employment-based enforcement contribute to this impact. The analysis adds to a growing literature examining how immigrants respond to tightened enforcement and, importantly, sheds light on the recent growth of intermarriage among Mexican immigrants.
    Keywords: immigration enforcement, undocumented immigrants, family structure, intermarriage, United States
    JEL: J12 J15 K37
    Date: 2019–12
  5. By: Nishant Yonzan; Laxman Timilsina; Inas Rashad Kelly
    Abstract: Starting in 1982, the Alaska Permanent Fund Dividend allows each full-time resident in Alaska, including infants born in the qualifying year, to receive a sizable dividend. This dividend, which represents a form of a Universal Basic Income on a small scale, could alter incentives surrounding fertility. Using synthetic control and difference-in-differences models to account for confounding factors and unobserved heterogeneity, we model the effect of income on fertility by exploiting this income shock around 1982 using Natality files from Vital Statistics and abortion data from the Centers for Disease Control, merged with data from the Census on various state characteristics. Primary results suggest that the dividend increased fertility and reduced the spacing between births, particularly for females in the 20-44 year age group. Our results suggest that policies aimed at increasing income should consider fertility consequences and their implications for economic growth.
    JEL: H7 I1
    Date: 2020–01
  6. By: Dunatchik, Allison; Özcan, Berkay
    Abstract: This paper investigates whether daddy quotas - non-transferable paternity leave policies - mitigate motherhood penalties women face in the labor market. Using the introduction of a daddy quota in Quebec, Canada as a natural experiment, the authors employ labor force survey data to conduct a difference-in-difference estimation of the policy’s impact on a range of mothers’ career outcomes. The results suggest Quebec mothers exposed to the policy are 5 percentage points more likely to participate in the labor force and to work full-time, 5 percentage points less likely to work part-time, and 4 percentage points less likely to be unemployed. These results are robust to an alternative semiparametric difference-in-difference methodology and to a battery of placebo and sensitivity tests. However, the authors find that the policy’s effects are largest two to three years post-reform, reducing in size and significance thereafter, raising questions about the durability of such effects.
    Keywords: family policy; maternal employment; work-family balance; families and work; labor force participation
    JEL: J16 J18
    Date: 2019–05–22

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