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on Demographic Economics |
| By: | Gould, Eric D. (Hebrew University, Jerusalem); Lichtinger, Guy (Harvard University) |
| Abstract: | This paper analyzes how the "child penalty" associated with career interruptions for women after becoming a mother is influenced by preferences absorbed during childhood, and how the child penalty, in turn, is related to the quantity and quality (education) of her own children. Using linked administrative data on Israeli parents and children, the analysis shows that mothers who grew up in larger and more traditional families marry men from larger families, and together they have more children. Growing up with more siblings is also associated with a larger child penalty for a mother in earnings and employment, as well as in terms of commuting less and moving to "mother friendly" firms at the expense of higher wage firms. The results also indicate that the child penalty produces two opposing effects on child human capital – a negative impact due to the loss of parental income, and a positive influence of increased maternal time away from work. Overall, the evidence suggests that the family preferences and norms absorbed during childhood significantly influence a woman's choices of spouse, fertility, and child penalty later in life – but with little overall impact on her children's high school achievements. |
| Keywords: | child penalties, child outcomes, family culture |
| JEL: | J12 J13 J16 J22 J24 J31 J62 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17455 |
| By: | Gromadzki, Jan (Vienna University of Economics and Business) |
| Abstract: | I study fertility adjustments after the introduction of a large universal child benefit in Poland. The program caused a six percent increase in the number of births. Patterns of selection into parenthood changed significantly and persistently, with a weakening of positive selection based on education and a strengthening of negative selection based on income. The share of births in the bottom half of the income distribution increased from 51 percent to 58 percent. Using a microsimulation approach, I combine changes in the births structure with existing estimates of the transfer's effect on labor supply to study the impact of these adjustments on poverty reduction. These impacts are very small due to the exceptional generosity of the transfer, but they become more pronounced in the middle of the income distribution. |
| Keywords: | fertility, child benefit, unconditional cash transfer, poverty |
| JEL: | J13 H31 I38 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17456 |
| By: | Banda, Mutisunge Allan |
| Abstract: | Just as human age is a key determinant of individual economic productivity, a population’s age structure is a significant causal factor of economic productivity and growth. This paper attempts to update the traditional theories of economic growth by incorporating demographic transition theory and intergenerational transfers into long run economic growth. Whereas contemporary theory interprets the demographic dividend as a transitory and uncertain exogenous stimulant to economic growth, this paper will attempt to demonstrate that age structure is instead a persistent and endogenous determinant of economic productivity. In addition, the paper will argue that a significant portion of modern and ancient economic divergence can be explained by variations in age structure. These findings will have important implications for policymakers and researchers interested economic development. |
| Keywords: | Demographic Economics; Economic Growth; Economic Theory; Macroeconomics; Quantitative Methods |
| JEL: | E0 J1 O47 |
| Date: | 2024–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122725 |
| By: | Rainer Kotschy; David E. Bloom; Andrew J. Scott |
| Abstract: | Analysis of population aging is typically framed in terms of chronological age. However, chronological age itself is not necessarily deeply informative about the aging process. This paper reviews literature and conducts empirical analyses aimed at investigating whether chronological age is a reliable proxy for physiological functioning when used in models of economic behavior and outcomes. We show that chronological age is an unreliable proxy for physiological functioning due to appreciable differences in how aging unfolds across people, health domains, and over time. We further demonstrate that chronological age either fails to predict economic variables when used in lieu of physiological functioning, or that it predicts additional effects on economic behavior and outcomes that are largely unrelated to physiological aging. Continued reliance on chronological age as a proxy for physiological functioning might impede the ability of societies to fully harness the benefits of increasing longevity. |
| JEL: | I10 I30 J10 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33124 |