nep-dem New Economics Papers
on Demographic Economics
Issue of 2020‒12‒07
three papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children By Willage, Barton; Willén, Alexander
  2. Keep Working and Spend Less? Collective Childcare and Parental Earnings in France By Pierre Pora
  3. Old age or dependence. Which social insurance? By Nishimura, Yukihiro; Pestieau, Pierre

  1. By: Willage, Barton (Dept. of Economics, Norwegian School of Economics and Business Administration); Willén, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: The first year after childbirth involves dramatic changes to parents’ lives and is crucial for children’s development. Using plausibly exogenous job loss from mass layoffs, we study the effect of labor shocks on mothers and children. Mothers displaced in the postpartum year experience significantly larger effects than mothers displaced in non-birth years. No such effects are present among fathers. Additionally, we find long-lasting harm to children’s educational outcomes. These effects do not extend to children who experience maternal job loss later in life nor to children who experience paternal job loss. Examining potential mechanisms suggest effects are driven by maternal stress.
    Keywords: Job Loss; Maternal Labor Supply; Education; Early Childhood; Fertility
    JEL: I20 I24 J13 J16 J24
    Date: 2020–11–19
  2. By: Pierre Pora
    Abstract: I leverage the staggered expansion of subsidized childcare facilities across municipalities in response to a succession of national plans to investigate the effect of collective childcare on parents' labor outcomes and childcare choices in France between 2007 and 2015. These plans did not lead to any substantial change in parents' labor outcomes or in paid parental leave take-up. Instead, these collective childcare expansions crowded out more costly formal childcare solutions, such as childminders or at-home childcare. These crowding-out effects highlight a downside of family policy strategies that foster the coexistence of multiple childcare arrangements.
    Keywords: Labor supply, childcare, event-study, parental leave
    JEL: J13 J16 J18 J22
    Date: 2020
  3. By: Nishimura, Yukihiro; Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: We consider a society where individuals differ according to their pro- ductivity and their risk of mortality and dependency. We show that ac- cording to the most reasonable estimates of correlations among these three characteristics, if one had to choose between a public pension system and a long-term care social insurance, the latter should be chosen by a utili- tarian social planner. With a Rawlsian planner, the balance between the two schemes does depend on the comparison between the ratio of the sur- vival probability to the dependence risk of the poor with its population average.
    Keywords: long term care, pension, mortality risk, optimal taxation, liquidity constraints
    JEL: H2 H5
    Date: 2020–10–06

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