nep-sea New Economics Papers
on South East Asia
Issue of 2015‒11‒15
twenty-two papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Governance from Islamic economic perspective: A Shari’ah governance framework By Uddin, Md Akther
  2. An Empirical Analysis of Japanese Industrial Agglomeration and Factors of Supply Chain Internationalization in East Asia: A case of Japanese food, electronics, and automobile firms (Japanese) By TOKUNAGA Suminori; AKUNE Yuko; IKEGAWA Maria; OKIYAMA Mitsuru
  3. Is plantation agriculture good for the poor? Evidence from Indonesia's palm oil expansion By Ryan Edwards
  4. Philippines 2011 National Transfer Accounts Estimates of Consumption and Labor Income Age Profiles: Discussions on the 1991-2011 Age Profile Change and Implications on Economic Gains from the First Demographic Dividend By Racelis, Rachel H.; Abrigo, Michael Ralph M.; Salas, J.M. Ian S.; Herrin, Alejandro N.
  5. Measuring progress towards universal health coverage: with an application to 24 developing countries By Wagstaff,Adam; Cotlear,Daniel; Eozenou,Patrick Hoang-Vu; Buisman,Leander Robert
  6. Cambodia’s Special Economic Zones By Peter Warr; Jayant Menon
  7. Intra- and Inter-village Conflict in Rural Coastal Communities in Indonesia: The case of the Kei Islands By Satoshi Yamazaki; Budy P. Resosudarmo; Wardis Girsang; Eriko Hoshino
  8. Options for Supporting Rice Farmers Under a Post-QR Regime: Review and Assessment By Briones, Roehlano M.; Tolin, Lovely Ann C.
  9. Do Early Warning Systems and Student Engagement Activities Reduce Dropout? Findings from the Four-Country SDPP Evaluation By Nancy Murray
  10. U.S. Action and Inaction in the Massacre of Communists and Alleged Communists in Indonesia By Kai M. Thaler
  11. Impacts of Emerging Asia on African and Latin American Trade: Projections to 2030 By Kym Anderson; Anna Strutt
  12. Good governance in context: Learning from anti-corruption policies of Finland and Singapore By Anttiroiko, Ari-Veikko
  13. Massive Open Online Courses: A Primer for Philippine State Universities and Colleges By Philippine Institute for Development Studies; Commission on Higher Education
  14. Heterogeneous Patterns of Financial Development:Implications for Asian Financial Integration By Singh, Nirvikar; Bun, Linh
  15. Two Decades of Declining Poverty Despite Rising Inequality in Laos By Peter Warr; Sitthiroth Rasphone; Jayant Menon
  16. Tradable Permits in Cost–Benefit Analysis By Johansson, Per-Olov
  17. New Evidence on Linear Regression and Treatment Effect Heterogeneity By Sloczynski, Tymon
  18. Private information, capital flows, and exchange rates By Jacob Gyntelberg; Mico Loretan; Tientip Subhanij
  19. Comparative Assessment of Various Proposals to Amend the Personal Income Tax By Manasan, Rosario G.
  20. Global Identification in DSGE Models Allowing for Indeterminacy By Zhongjun Qu; Denis Tkachenko
  21. Helping Cost, Assortative Matching and Production Cycles in the Dynamic Humean Farmer Game By Raul V. Fabella
  22. Early Maternal Employment and Non-cognitive Outcomes in Early Childhood and Adolescence: Evidence from British Birth Cohort Data By Warn N. Lekfuangfu; Nattavudh Powdthavee; Andrew E. Clark; George Ward

  1. By: Uddin, Md Akther
    Abstract: This paper attempts to give a brief overview of existing Shari’ah Governance framework in Malaysia, compare with AAOIFI and IFSB standards and guidelines, identify current issues, and recommend measures to improve existing practices. The study finds that a great number of research have been carried out to study Shari’ah Governance framework in Malaysia, Indonesia, GCC, MENA, UK, and other OIC member countries. It can be concluded that the plurality in Shari’ah Governance practice across regions and countries may ensure success and support innovation in the short run, but, in order to establish credibility and promote Islamic Finance as a comprehensive financial system in the long run uniformity is desirable. A sustainable and viable Shari’ah Governance framework, which will not only provide credibility to IFIs but also ensure transparency, trust, ethical behavior, underlying faith and belief and ethics and also help protecting the stakeholders right and fulfill the broader principle of Maqasid al-Shari’ah (foundational goals of the Shari’ah).
    Keywords: Governance, Shari’ah Governance, Corporate Governance, Islamic Banks
    JEL: A1 P0
    Date: 2015–05–29
  2. By: TOKUNAGA Suminori; AKUNE Yuko; IKEGAWA Maria; OKIYAMA Mitsuru
    Abstract: In the first part of this paper, we found positive but weak agglomeration economies resulting from agglomeration and coagglomeration in Japan's manufacturing industry during 1995-2010 using panel data of two-digit and four-digit Standard Industrial Classification of Census of Manufactures and Ellison and Glaeser's (1997) agglomeration index with the same industry and coagglomeration index with different industry groups. On the other hand, in the latter part of this paper, based on the new economic geography (NEG) model, we examined location decision, particularly market potential which appropriate way to take into account the spatial distribution of demand in location choice, supplier access, and agglomeration effects. Especially, we used a Krugman's type market potential using the data of bilateral trade from 1995-2009 in East Asia. After calculating this Krugman market potential and supplier access data, we conducted the logit estimation of country choice of Japanese food, electronics, and automobile firms in 11 East Asia countries including China (mainland), Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam, and analyzed the determinants of the location choice for Japanese electronics firms. From the estimated results, we found wage, infra, Krugman market potential as market demand and supplier access as market supply, and vertical agglomerations such as Japanese final goods and intermediate goods affiliates agglomeration which show agglomeration economies have affected Japanese industry investment in East Asia.
    Date: 2015–11
  3. By: Ryan Edwards
    Abstract: I study the poverty impacts of plantation-based agricultural growth, focusing on Indonesian palm oil. Using rich new administrative panel data, I exploit exogenous variation arising from Indonesia's unique institutions and the data's longitudinal features to identify causal effects. Increasing the palm oil share of land in a district by ten percentage points corresponds to a ten percent reduction in its poverty rate, and a narrowing of the poverty gap. Effects are similar across regions and at the province level. Oil palm expansion tends to be followed by a sustained boost to the value of agricultural output, manufacturing output, and district GDP.
    Keywords: palm oil, cash crop, plantation, agriculture, poverty, Indonesia
    JEL: C23 C26 I32 Q15 Q18
    Date: 2015
  4. By: Racelis, Rachel H.; Abrigo, Michael Ralph M.; Salas, J.M. Ian S.; Herrin, Alejandro N.
    Abstract: This paper has two parts. The first part presents and discusses the 2011 Philippine National Transfer Accounts (NTA) estimates for selected flow accounts components, the most recent estimates available for the country, and compares the 2011 to the 1991 and 1999 estimates. The second part, also covering the years 1991, 1999, and 2011, examines change in Philippine population age structure, discusses economic gains from population change and the implications of economic lifecycle change on the economic gain. In the first part, more recent information about the economic lifecycle of Filipinos is provided from the 2011 NTA: age profiles of consumption and labor income (and their components) for the year 2011, and which population age groups incurred lifecycle deficit and the sizes of the aggregate deficits. The 2011 Philippine NTA national level estimates for per capita consumption and labor income age profiles are also compared to corresponding components of the 1991 and 1999 NTA estimates to determine the general directions and relative sizes of change over time. In the second part of the paper, findings about the per capita age profiles from the first part are used. The changes in the age structure of the Philippine population over the three years are also examined in the second part. There is potential for economic gain resulting from population change, more specifically from an increasing proportion of the population in the working ages--the phenomenon often referred to as the first demographic dividend. The effects of change in the population age structure and change in the economic lifecycle on economic gain are examined in the second part of the paper in two ways: using aggregate flows estimates of the NTA for the three years and using economic support ratios as defined in the NTA also computed for the three years.
    Keywords: Philippines, National Transfer Accounts, economic lifecycle, lifecycle deficit, consumption age profile, labor income age profile, demographic dividend
    Date: 2015
  5. By: Wagstaff,Adam; Cotlear,Daniel; Eozenou,Patrick Hoang-Vu; Buisman,Leander Robert
    Abstract: The last few years have seen a growing commitment worldwide to universal health coverage (UHC). Yet there is a lack of clarity on how to measure progress towards UHC. This paper proposes a ?mashup? index that captures both aspects of UHC: that everyone?irrespective of their ability-to-pay?gets the health services they need; and that nobody suffers undue financial hardship as a result of receiving care. Service coverage is broken down into prevention and treatment, and financial protection into impoverishment and catastrophic spending; nationally representative household survey data are used to adjust population averages to capture inequalities between the poor and better off; nonlinear tradeoffs are allowed between and within the two dimensions of the UHC index; and all indicators are expressed such that scores run from 0 to 100, and higher scores are better. In a sample of 24 countries for which there are detailed information on UHC-inspired reforms, a cluster of high-performing countries emerges with UHC scores of between 79 and 84 (Brazil, Colombia, Costa Rica, Mexico and South Africa) and a cluster of low-performing countries emerges with UHC scores in the range 35?57 (Ethiopia, Guatemala, India, Indonesia and Vietnam). Countries have mostly improved their UHC scores between the earliest and latest years for which there are data?by about 5 points on average; however, the improvement has come from increases in receipt of key health interventions, not from reductions in the incidence of out-of-pocket payments on welfare.
    Keywords: Health Systems Development&Reform,Housing&Human Habitats,Health Monitoring&Evaluation,Health Economics&Finance,Health Law
    Date: 2015–11–03
  6. By: Peter Warr; Jayant Menon
    Abstract: This study examines the role of Special Economic Zones (SEZs) within the trade policy of Cambodia. It asks whether Cambodia’s establishment of SEZs since late 2005 has been successful, based on the evidence to date, and analyzes the appropriate role and management of SEZs over the next decade or more. The study finds that the SEZs have attracted significant levels of foreign investment into Cambodia that would not have been present otherwise, creating around 68,000 jobs, with equal or better pay and better prospects than the alternatives that would otherwise have existed, raising the economic welfare of the workers concerned. A feature of the Cambodian experience is that the government has left the establishment and management of the zones to private sector developers, avoiding the large and sometimes wasteful public sector set-up costs associated with SEZ establishment in many other countries.
    Keywords: Special economic zones; trade reform; Cambodia
    JEL: F14 O24 O14
    Date: 2015
  7. By: Satoshi Yamazaki; Budy P. Resosudarmo; Wardis Girsang; Eriko Hoshino
    Abstract: Using the data collected by a survey of small-scale fishing households from rural coastal communities in Indonesia, we examine the underlying factors that are potentially associated with the incidence of conflicts among local marine resource users. Intra-village and inter-village conflicts are examined separately. We find that social relationships and individual perceptions of changes in fishery conditions are significantly associated with the incidence of both intra- and inter-village conflicts. The findings confirm that declining fish stocks is positively associated with inter-village conflicts but not with intra-village conflicts; while increasing catch is positively associated with intra-village conflicts but not with intra-village conflicts.
    Keywords: Indonesia, small-scale fishery, local conflict, marine resources, rural coastal community
    JEL: D74 D62 Q56 O13
    Date: 2015
  8. By: Briones, Roehlano M.; Tolin, Lovely Ann C.
    Abstract: Under the World Trade Organization, the Philippines has maintained special treatment for rice, which expires on July 2017. Tariffication will involve greater competition from imports and the decline of domestic paddy prices, thereby reducing income of rice farmers. This study evaluates various payment schemes to serve as safety nets for rice farmers after tariffication. Evaluation considers international experience with such schemes based on cost, efficiency, and coverage of farmers. A decoupled payment scheme linked to above-baseline imports emerges as the most favorable option. Financial viability of the payment scheme is further subjected to scenario analysis using a supply-demand model. Results suggest that significant financial support can be provided to the average rice farmer, with cost below the projected revenues from the rice tariff.
    Keywords: Philippines, tariffication, subsidy, direct payments, deficiency payments, decoupled support, welfare impact, fiscal viability
    Date: 2015
  9. By: Nancy Murray
    Abstract: Mathematica designed, implemented, and rigorously evaluated evidence-based school dropout prevention pilot interventions in four Asian countries—India, Tajikistan, Cambodia, and Timor-Leste.
    Keywords: Education, international, USAID, reading, CIPRE, School Dropout Prevention
    JEL: F Z
    Date: 2015–09–10
  10. By: Kai M. Thaler
  11. By: Kym Anderson; Anna Strutt
    Abstract: Rapid growth in Asia’s emerging economies has boosted export earnings of resource-rich economies over the past decade. Whether or not those high growth rates continue, how will structural changes in Asia alter the relative importance of their imports of primary products? This paper projects production and trade patterns of Africa and Latin America to 2030 under various growth and policy scenarios in Asia, using the GTAP model of the global economy. We compare a projection assuming relatively conservative economic growth in China and India with a projection in which those economies continue to grow rapidly (albeit slower than in the previous decade). We then compare our conservative growth baseline with two alternative scenarios: one assuming Africa and Latin America choose to invest more in public agricultural R&D to take advantage of Asian import growth; the other assuming China and India dampen that import growth by restricting their imports of key foodgrains (following the historical pattern of economies such as Japan and Korea). The final section summarizes the results and draws out policy implications for Latin America and Africa.
    Keywords: Global economy-wide model projections; Asian economic growth and structural change; booming sector economics; food security
    JEL: D58 F13 F15 F17 Q17
    Date: 2015
  12. By: Anttiroiko, Ari-Veikko
    Abstract: Good governance has become a prominent topic on the development agendas of national governments, regional institutions and international organisations. There is common understanding that it is an imperative for development. This article discusses two success stories, those of Finland and Singapore, and their road to good governance. The analysis shows that historical, cultural and structural contexts have a major effect on the success of anti-corruption policy. Finland is clearly an evolutionary case with a low-profile good governance policy, whereas Singapore is a revolutionary case with an array of institutionalised anticorruption measures. This implies that there is no universal recipe for success in curbing corruption, but rather processes which may vary considerably and yet be equally successful. The cases of Finland and Singapore may be an important source of inspiration and policy-relevant information, but anti-corruption policy and measures as such must be created taking due account of local history and culture.
    Keywords: good governance, clean government, transparency, accountability, corruption, anti-corruption policy, anti-corruption agency, ethics management, cultural context, Finland, Singapore
    JEL: D02 D73 D83 H11 Z18
    Date: 2014–09–29
  13. By: Philippine Institute for Development Studies; Commission on Higher Education
    Abstract: They have been called the MP3s of higher education, surpassing and improving on the technology of compact discs that is online learning, and the outdated cassette tape that is the traditional classroom. They are called Massive Open Online Courses and their advent and rising popularity have had a profound impact on the sphere of education. Whether they are seen as an opportunity or a potentially disruptive threat to current pedagogies, their promise of offering low-cost quality education to all has certainly captured the imagination of everyone, especially those in higher education institutions, causing them to rethink their policies. But do they represent a new revolution in the often-changing world of education or are they merely an evolution of the same old pedagogies, updated and upgraded to appease the technologically obsessed masses? Are they hype…or simply hope? For stakeholders in Philippine state universities and colleges, the question is simpler. Faced with shrinking budgets and rising costs, in a country where the price of quality education is high and access to it remains a serious concern, they ask: Does this new model present an opportunity to re-envision how they deliver instruction, giving greater accessibility to all students, or does it merely represent a fad, providing little or no assurance of improving student learning outcomes? This paper attempts to answer these questions by summarizing and analyzing the issues, challenges, threats, opportunities, and implications brought about by the phenomenon. It is intended to give these stakeholders a better understanding of the new paradigm that may guide them in formulating policies and specific strategies to address the continuing movement toward openness in education, and in so doing, they may ultimately fulfill the promise embodied in our Constitution—to provide affordable quality education accessible to all.
    Keywords: Philippines, state universities and colleges (SUCs), Massive Open Online Courses (MOOCs), open education, blended learning, flipped classroom
    Date: 2015
  14. By: Singh, Nirvikar; Bun, Linh
    Abstract: This paper analyzes detailed differences in patterns of financial development across the major Asian economies, including three of the region’s largest economies (China, Japan and South Korea), to understand how these differences might affect possibilities for greater regional financial integration. In particular, the paper argues that heterogeneous patterns of financial development, and not just differences in levels of financial development, may present an economic challenge to regional financial integration efforts, aside from possible political challenges. The paper provides background on the case for financial openness, Asian experiences with financial integration, and regional economic responses to external shocks. It also discusses policy options, including regulatory reform and coordination, and possible risk management policies and institutions, in the context of heterogeneous patterns of financial development.
    Keywords: Social and Behavioral Sciences, Financial development, financial integration, Asia Pacific, East Asia
    Date: 2015–10–31
  15. By: Peter Warr; Sitthiroth Rasphone; Jayant Menon
    Abstract: Over the last two decades the distribution of private household expenditures has become more unequal in Laos, with the Gini coefficient rising from 0.311 to 0.364, even though absolute poverty incidence has halved. The increase in inequality was statistically significant and reduced the average rate of poverty reduction per year by about 28 percent, meaning the actual rate compared with the counterfactual rate that would have occurred if the mean real expenditures had increased at their observed levels but inequality had not changed. When the data are decomposed into rural and urban areas of residence or by province, or by the ethnicity of the household head, the increase in inequality within groups dominates any changes between groups; inequality has increased throughout the country. In contrast, access to publicly provided services has become more equal; disparities in participation rates between richer and poorer groups have diminished
    Keywords: Expenditure inequality; poverty reduction; Gini coefficient; Laos
    JEL: D31 D39 I39
    Date: 2015
  16. By: Johansson, Per-Olov (Stockholm School of Economics & CERE)
    Abstract: There is no consensus with respect to handling of tradable permits in cost–benefit analysis. The leading (organizational/governmental) manuals in North America, Europe, Asia, and Australia handle permits in different ways or ignore them. This paper offers a brief discussion of the properties of cap-and-trade systems, and contrast these to the properties of emission charges. The paper then turns to cost–benefit rules for projects using fossil fuels in a cap-and-trade system. The focus is on small projects but the paper also briefly addresses the case where a project significantly affect prices. As a service to the reader the small project rules are contrasted to the much more familiar and standardized ways of handling emission charges in cost–benefit analysis. Finally, the consequences of market power in cap-and-trade markets are briefly addressed.
    Keywords: Cost–benefit analysis; greenhouse gases; tradable permits; emission charges; market power.
    JEL: H21 H23 H41 H43 I30 L13
    Date: 2015–11–07
  17. By: Sloczynski, Tymon (Warsaw School of Economics)
    Abstract: It is standard practice in applied work to rely on linear least squares regression to estimate the effect of a binary variable ("treatment") on some outcome of interest. In this paper I study the interpretation of the regression estimand when treatment effects are in fact heterogeneous. I show that the coefficient on treatment is identical to the outcome of the following three-step procedure: first, calculate the linear projection of treatment on the vector of other covariates ("propensity score"); second, calculate average partial effects for both groups of interest ("treated" and "controls") from a regression of outcome on treatment, the propensity score, and their interaction; third, calculate a weighted average of these two effects, with weights being inversely related to the unconditional probability that a unit belongs to a given group. Each of these steps is potentially problematic, but this last property – the reliance on implicit weights which are inversely related to the proportion of each group – can have particularly severe consequences for applied work. To illustrate the importance of this result, I perform Monte Carlo simulations as well as replicate two applied papers: Berger, Easterly, Nunn and Satyanath (2013) on the effects of successful CIA interventions during the Cold War on imports from the US; and Martinez-Bravo (2014) on the effects of appointed officials on village-level electoral results in Indonesia. In both cases some of the conclusions change dramatically after allowing for heterogeneity in effects.
    Keywords: heterogeneity, linear regression, ordinary least squares, propensity score, treatment effects
    JEL: C21 C52 D72 F14 O17
    Date: 2015–11
  18. By: Jacob Gyntelberg; Mico Loretan; Tientip Subhanij
    Abstract: We demonstrate empirically that not all international capital flows influence exchange rates equally. Capital flows induced by foreign investors' transactions in local stock markets have an impact on exchange rates that is both economically significant and permanent, whereas capital flows induced by foreign investors' transactions in the local government bond market do not. We relate the differences in the price impacts of capital flows to differences in the amounts of private information conveyed by these flows. Our empirical findings are based on novel, daily-frequency datasets on prices and quantities of all transactions undertaken by foreign investors in the stock, bond, and onshore FX markets of Thailand.
    Keywords: Order flow, private information, exchange rate models, market microstructure, emerging markets
    JEL: C22 E58 F31 F37 G14
    Date: 2015
  19. By: Manasan, Rosario G.
    Abstract: Proposals to reform the personal income tax has gained prominence in recent months. To date, personal income tax reform is part and parcel of the platform of a number of the candidates in the 2016 presidential elections. This paper aims to evaluate the various proposals in both houses of Congress to amend the existing personal income legislation. Proposals to amend the personal income tax schedule appear to be well-justified from the perspective of (i) the need to eliminate the bracket creep and (ii) easing the tax burden on Filipino personal income taxpayers relative to their ASEAN neighbors. In terms of the progressivity of the personal income tax, all of the proposals to amend the personal income tax are progressive. However, two of the proposals, SB 2149 and HB 4829, are less progressive than the existing rate structure. In terms of revenue yield, all of the proposals are estimated to have a negative impact on government revenue. The projected revenue loss from proposals to restructure the personal income tax is best seen in the context of the government`s overall revenue and tax effort. Fiscal prudence dictates that new revenue measures be found to compensate for the projected revenue loss that will arise as a result of the implementation of any one of the various proposals to restructure the personal income tax. Thus, the questions that beg to be asked is: What new revenue measure or combination of measures will allow government to recover the revenue loss from the new personal income tax structure? Possibilities include increasing the VAT rate, excise tax on petroleum products, and road user`s tax.
    Keywords: Philippines, personal income tax, tax reform, value added tax (VAT), excise tax
    Date: 2015
  20. By: Zhongjun Qu (Boston University); Denis Tkachenko (National University of Singapore)
    Abstract: This paper presents a framework for analyzing global identification in log linearized DSGE models that encompasses both determinacy and indeterminacy. First, it considers a frequency domain expression for the Kullback-Leibler distance between two DSGE models, and shows that global identification fails if and only if the minimized distance equals zero. This result has three features. (1) It can be applied across DSGE models with different structures. (2) It permits checking whether a subset of frequencies can deliver identification. (3) It delivers parameter values that yield observational equivalence if there is identification failure. Next, the paper proposes a measure for the empirical closeness between two DSGE models for a further understanding of the strength of identification. The measure gauges the feasibility of distinguishing one model from another based on a finite number of observations generated by the two models. It is shown to be equal to the highest possible power in a Gaussian model under a local asymptotic framework. The above theory is illustrated using two small scale and one medium scale DSGE models. The results document that certain parameters can be identified under indeterminacy but not determinacy, that different monetary policy rules can be (nearly) observationally equivalent, and that identification properties can differ substantially between small and medium scale models. For implementation, two procedures are developed and made available, both of which can be used to obtain and thus to cross validate the findings reported in the empirical applications. Although the paper focuses on DSGE models, the results are also applicable to other vector linear processes with well defined spectra, such as the (factor augmented) vector autoregression.
    Keywords: Dynamic stochastic general equilibrium models, frequency domain, global identification, multiple equilibria, spectral density
    JEL: C10 C30 C52 E1 E3
    Date: 2015–08
  21. By: Raul V. Fabella (School of Economics, University of the Philippines Diliman)
    Abstract: We reformulate the Humean farmer game on the basis of random assignment of advantage and the cost e of helping in another’s harvest. The result is a game that is a coordination game if e < ½ or a dominant strategy Prisoner’s Dilemma Game if e > ½ which allows a joint treatment of the two interpretations of the Humean farmer game. We employ two behavioral types initially: the conditionally cooperative (H-type) and the free riding (NH-type). We employ replication dynamics with assortative matching and multiple production cycles to investigate which evolutionarily stable (EE) monomorphic population it engenders. We show that the ceiling for effort cost e to support an EE monomorphic H-type population in the Stag-Hunt game rises to (1 + b)/2 from 1/2 in pure random matching case. As the assortative index b rises, the basin of attraction of the EE H-type solution rises. When the assortative matching is perfect (b = 1), in the Stag-Hunt game version (0 < e < ½), the monomorphic NH-type population (s* = 0) is no longer EE while the monomorphic H-type solution (s** = 1) is EE; in the Dominant Strategy game version (e > ½), s* = 0 is EE iff e > (3/4) while s** = 1 is EE.
    Keywords: Humean farmer game, helping cost, assortative matching, production cycles, emergence of cooperation
    JEL: B0 B15 B31 C73
    Date: 2015–11
  22. By: Warn N. Lekfuangfu (LSE - London School of Economics, Chulalongkorn University (THAILAND) - Chulalongkorn University (THAILAND), CEPR - Center for Economic Policy Research - CEPR); Nattavudh Powdthavee (Melbourne Institute of Applied Economic and Social Research - Melbourne Institute of Applied Economic and Social Research, CEPR - Center for Economic Policy Research - CEPR, LSE - London School of Economics); Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), CEPR - Center for Economic Policy Research - CEPR); George Ward (LSE - London School of Economics, CEPR - Center for Economic Policy Research - CEPR)
    Abstract: We analyse the relationship between early maternal employment and child emotional and behavioural outcomes in early childhood and adolescence. Using rich data from a cohort of children born in the UK in the early 1990s, we find little evidence of a strong statistical relationship between early maternal employment and any of the emotional outcomes. However, there is some evidence that children whose mother is in full-time employment at the 18th month have worse behavioural outcomes at ages 4, 7, and 12. We suggest that these largely insignificant results may in part be explained by mothers who return to full-time work earlier being able to compensate their children: we highlight the role of fathers’ time investment and alternative childcare arrangements in this respect.
    Keywords: Child outcomes,Maternal employment,Well-being,Conduct,ALSPAC
    Date: 2015–11

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