nep-dem New Economics Papers
on Demographic Economics
Issue of 2021‒11‒22
three papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Racial Difference in Child Penalty By Li, Jiaqi
  2. TRAP'd Teens: Impacts of Abortion Provider Regulations on Fertility & Education By Jones, Kelly M.; Pineda-Torres, Mayra
  3. Population Growth and Firm Dynamics By Michael Peters; Conor Walsh

  1. By: Li, Jiaqi (Department of Economics, The University of Warwick)
    Abstract: This paper documents large racial differences in the child penalty. Following first childbirth, Black women experience a significantly smaller reduction in labour supply, compared to white women. Most of the racial differences cannot be explained by economic and demographic variables, except household non-labour income. Furthermore, such racial difference widens when controlling for maternal years of schooling, occupation and industries. Finally, it shows that racial difference in child penalty is not correlated with the racial difference in gender norms.
    Keywords: Race ; Child Penalty ; Gender Norm ; Non-labour Income JEL Classification: J13 ; J15 ; J16 ; J22
    Date: 2021
  2. By: Jones, Kelly M. (American University); Pineda-Torres, Mayra (Texas A&M University)
    Abstract: Targeted regulations of abortion providers (TRAP laws) are the fastest growing abortion restriction in the U.S. These often result in clinic closures, limiting abortion access. We study how women's exposure to these laws in adolescence affects their fertility and educational attainment. For this study, we codify the legal history of all TRAP laws ever implemented. We explore the impacts of TRAP laws on teen births using an event-study analysis and stacked differences-in-differences methodology to avoid issues of negative weighting inherent in two-way fixed effects approaches. Consistent with other evidence on abortion access, we find that impacts on births are large and robust for Black women. Black teen births in states that implemented TRAP laws increased by 3 percent relative to changes in states without these restrictions. We offer evidence that these impacts are driven by reductions in abortion access, abortion use, and contraception use among Black teens. We further document that adolescent exposure to TRAP laws has downstream impacts on education. We find that Black women first exposed to TRAP laws before age 18 are 1 to 3 percentage points less likely to initiate and complete college. This study documents the important role that abortion access plays in reducing the harmful economic impacts of unintended teen motherhood. The findings suggest that modern abortion restrictions are harming women's efforts at economic advancement and are perpetuating racial inequality.
    Keywords: fertility, education, abortion, adolescence, race
    JEL: J13 I24 I14 J15 J16
    Date: 2021–11
  3. By: Michael Peters; Conor Walsh
    Abstract: Population growth has declined markedly in almost all major economies since the 1970s. We argue this trend has important consequences for the process of firm dynamics and aggregate growth. We study a rich semi-endogenous growth model of firm dynamics, and show analytically that a decline in population growth reduces creative destruction, increases average firm size and concentration, raises market power and misallocation, and lowers aggregate growth in the long-run. We also show lower population growth has positive effects on the level of productivity, making the short-run welfare impacts ambiguous. In a quantitative application to the U.S, we find that the slowdown in population growth since the 1980s and the projected continuation of this trend accounts for a substantial share of the fall in the entry and exit rates and the increase in firm size. By contrast, the impact on markups is modest. The effect on aggregate growth is positive for around two decades, before turning negative thereafter.
    JEL: J11 L11 O3 O4 O44
    Date: 2021–10

This nep-dem issue is ©2021 by Héctor Pifarré i Arolas. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.