nep-dem New Economics Papers
on Demographic Economics
Issue of 2024‒03‒11
six papers chosen by
Héctor Pifarré i Arolas, University of Wisconsin

  1. Has Intergenerational Progress Stalled? Income Growth Over Five Generations of Americans By Kevin C. Corinth; Jeff Larrimore
  2. Intra-Household Insurance and the Intergenerational Transmission of Income Risk By Francesco Agostinelli; Domenico Ferraro; Xincheng Qiu; Giuseppe Sorrenti
  3. Intimate partner violence and children's health outcomes By Jofre-Bonet, Mireia; Rossello-Roig, Melcior; Serra-Sastre, Victoria
  4. Protective Behavior and Life Insurance By Abigail Hurwitz; Olivia S. Mitchell; Orly Sade
  5. Can Public Policies Break the Gender Mold? Evidence from Paternity Leave Reforms in Six Countries By Sébastien Fontenay; Libertad González Luna
  6. Long-run integration of refugees: RCT evidence from a Swedish early intervention program By Dahlberg, Matz; Egebark, Johan; Vikman, Ulrika

  1. By: Kevin C. Corinth; Jeff Larrimore
    Abstract: We find that each of the past four generations of Americans was better off than the previous one, using a post-tax, post-transfer income measure constructed annually from 1963-2022 based on the Current Population Survey Annual Social and Economic Supplement. At age 36–40, Millennials had a real median household income that was 18 percent higher than that of the previous generation at the same age. This rate of intergenerational progress was slower than that experienced by the Silent Generation (34 percent) and Baby Boomers (27 percent), but similar to that experienced by Generation X (16 percent). Slower progress for Generation X and Millennials is due to their stalled growth in work hours—holding work hours constant, they experienced a greater intergenerational increase in real market income than Baby Boomers. Intergenerational progress for Millennials under age 30 has remained robust as well, although their income growth largely results from higher reliance on their parents. We also find that the higher educational costs incurred by younger generations is far outweighed by their lifetime income gains.
    Keywords: Full income; Growth; Generations; Mobility; Millennials
    JEL: D31 E24 H24 J30 J62
    Date: 2024–02–02
  2. By: Francesco Agostinelli; Domenico Ferraro; Xincheng Qiu; Giuseppe Sorrenti
    Abstract: This paper studies the mechanisms and the extent to which parental wage risk passes through to children’s skill development. Through a quantitative dynamic labor supply model in which two parents choose whether to work short or long hours or not work at all, time spent with children, and child-related expenditures, we find that income risk impacts skill accumulation, permanently lowering children’s skill levels. To the extent that making up for cognitive skill losses during childhood is hard—as available evidence suggests—uninsurable income risk can negatively impact the labor market prospects of future generations.
    Keywords: wage risk, household labor supply, child development, social insurance
    JEL: D10 J13 J22
    Date: 2024
  3. By: Jofre-Bonet, Mireia; Rossello-Roig, Melcior; Serra-Sastre, Victoria
    Abstract: A growing body of literature has established that childhood health is a crucial determinant of human capital formation. Shocks experienced in utero and during early life may have far-reaching consequences that extend well into adulthood. Nevertheless, there is relatively little evidence regarding the effects of parental behaviour on child health. This paper contributes to the literature by examining the impact of intimate partner violence (IPV) on the child's health production function. Using data from the UK's Millennium Cohort Study and leveraging information on both child health and IPV, our analysis reveals that exposure to IPV is negatively associated to child's health. Children witnessing IPV in their household see their probability of being in excellent health reduced by 7 percentage points. Our results also suggest that children exposed to IPV are subject to increased morbidity, manifested in elevated risks of hearing and respiratory problems, as well as long-term health conditions and are less likely to get fully immunised.
    Keywords: intimate partner violence; child health; coefficient stability; propensity score matching
    JEL: I10 J21
    Date: 2024–03–01
  4. By: Abigail Hurwitz; Olivia S. Mitchell; Orly Sade
    Abstract: We study life insurance market responses to Covid-19 using unique national administrative data from Israel on purchases and cancellations of life insurance policies, and an internet survey of Americans’ life insurance choices, risk attitudes, Covid-19 perceptions, and vaccination behavior. We see no evidence that life insurance purchases or cancellations were consistent with adverse selection during the pandemic, while we do find advantageous selection. Moreover, life insurance policyholders were more likely to get vaccinated, thus taking ex-post preventive action reducing their pandemic risk. Such positive reactive behavior has not been previously reported in the life insurance setting.
    JEL: D14 E21 G51 G52
    Date: 2024–02
  5. By: Sébastien Fontenay; Libertad González Luna
    Abstract: We investigate the impact of paternity leave policies on gender role attitudes in the next generation. We measure gender-stereotypical attitudes using an Implicit Association Test with 3, 000 online respondents in six countries. Using an RD design, we observe a significant reduction (-0.20 SD) in gender-stereotypical attitudes among men born post-paternity leave implementation. This shift influences career choices, as men whose fathers were affected by the reform are more inclined to pursue counter-stereotypical jobs, particularly in high-skilled occupations like healthcare and education. Our findings highlight how paternity leave fosters egalitarian gender norms and affects the occupational choices of the next generation.
    Keywords: gender norms, paternity leave, female-dominated occupations, regression discontinuity
    JEL: J08 J13 J16 J18
    Date: 2024–01
  6. By: Dahlberg, Matz (Uppsala University); Egebark, Johan (Arbetsförmedlingen); Vikman, Ulrika (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: This study uses a randomized control trial (RCT) to evaluate a new program for increased labor market integration of refugees. The program has immediate and substantial short-run effects on employment, corresponding to around 15 percentage points. The effect lasts for three years but eventually fades out, as the control group catches up and reaches the long-run employment level of about 50 percent. We show that the program boosts language skills in the short run, and that this channel explains an increasing share of the effect on employment. Using survey data, we finally measure if the program affects integration in other dimensions, such as psychological, social, political, and navigational integration. Our findings suggest that faster labor market integration in the short run does not lead to increased general integration in the long run.
    Keywords: Refugee immigration; Multidimensional integration; Randomized control trial; Field experiment; Labor market program; Employment;
    JEL: C93 J08 J15
    Date: 2023–12–13

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