A reply to Walker’s note: A comment on Taşiran’s ‘Wage and income effects on the timing and spacing of births in Sweden and in the United States’

Walker (1997) criticizes one of the conclusions in my book Tas?\iran (1995), that Heckman and Walker’s very high negative wage rate and positive income effects on Swedish fertility are very sensitive. In this paper, I explain, first, that my results are not only based on the series Walker mentions, but also on other series in both SFS and HUS data sets. Second, the combined aggregate and micro wage series he criticizes is mainly derived with Heckman and Walker. Third, by discussing the points he raises for the combination strategy, I show that his revised results are also supporting my conclusion. Received: 7 June 1996/Accepted: 16 July 1997 I am grateful to Anders Klevmarken, Lennart Hjalmarsson, Bj?rn Gustafsson and Ann Veiderpass for their valuable suggestions and discussions on an earlier version of this paper. Thanks also to two anonymous referees for their comments and to the responsible editor of this journal Klaus F. Zimmermann, for his encouragement and many helpful comments. Any remaining errors are my own. Responsible editor: Klaus F. Zimmermann.     

Comparing migrants to non-migrants: The case of Dutch migration to New Zealand

We analyse post-war Dutch migration to New Zealand. We document that history, reflect on analytical and econometric modelling and then combine a sample of Dutch migrants in New Zealand with a representative sample of Dutch in The Netherlands to estimate wage equations and the determinants of the migration decision. We use the results for ex post evaluation of the migration decision.Joop Hartog is Fellow of IZA (Bonn), CESifo (München), AIAS and Tinbergen Institute (Amsterdam). Work on this project was begun when Hartog was Erskine Visitor at the University of Canterbury, Christchurch New Zealand. Rainer Winkelmann is Fellow of CEPR and IZA (Bonn). This paper is produced as part of a CEPR research programme on European Migration from Economic Analysis to Policy Response, supported by a grant from the Commission of the European Communities under its Human Capital and Mobility Programme (no. ERBCHRXCT940515).It was presented at the European Society for Population Economics meetings in Bonn, June 2000. We gratefully acknowledge comments by Justin Lee Tobias, Jacques Poot, Ed Vytlacil, an anonymous referee and Paul Schultz. Responsible editor: T. Paul Schultz.     

A Comment on Ali Tas˛ıran's `Wage and income effects on the timing and spacing of births in Sweden and in the United States'

This note reviews and evaluates Taşıran's (1995) claim that estimated female wage effects on Swedish fertility dynamics reported by Heckman and Walker (1990) are not robust to the use of microwage data. The results reported here indicate that once individual wage measures have been purged of measurement error, estimated female wage effects are not sensitive to the introduction of microwages. The results reported by Heckman and Walker (1990) persist even with the use of microwage data. Received: 8 March 1996/Accepted: 4 December 2001 I thank Tom MaCurdy, Eric French and two anonymous referees for useful comments. This research was supported by NICHD grants HD-19226 and HD-28685. The usual disclaimer applies. Responsible editor: Klaus F. Zimmermann.     

Timing,togetherness and time windfalls

With appropriate data the analysis of time use, labor supply and leisure can move beyond the standard questions of wage and income elasticities of hours supplied. I present four examples: 1) American data from 1973 through 1997 show that the amount of evening and night work in the U.S. has decreased. 2) The same data demonstrate that workers whose relative earnings increase experience a relative diminution of the burden of work at unpleasant times. 3) U.S. data for the 1970s and 1990s demonstrate that spouses' work schedules are more synchronized than would occur randomly; synchrony among working spouses diminished after the 1970s; and the full-income elasticity of demand for it was higher among wives than among husbands in the 1970s but equal in the 1990s. 4) Dutch time-budget data for 1990 show that the overwhelming majority of the windfall hour that occurred when standard time resumed was used for extra sleep. Received: 6 July 2000/Accepted: 20 January 2001 Daniel S. Hamermesh is Edward Everett Hale Centennial Professor, University of Texas at Austin; research associate, National Bureau of Economic Research, and Forschungsinstitut zur Zukunft der Arbeit. I thank the National Science Foundation for support under Grants SBR-9422429 and SES-9904699, and two anonymous referees, Gerard Pfann, the late Lee Lillard, Gerald Oettinger, Steve Trejo and participants at the ESPE Conference and at seminars at the University of Bristol and Warwick University for helpful comments. Responsible editor: Klaus F. Zimmermann.     

Brain drain or brain gain: A revisit

Recent literature has turned to the brain gain effect, instead of the brain drain effect, that emigration may bring to a source country. This paper, however, suggests brain drain remains a likely outcome. Suppose that foreign language skill affects an individual productivity when working abroad. A brain drain may occur when the (exogenously or endogenously determined) probability of immigration is large. We also consider the case that the probability of immigration is determined by a signal, and provide a condition under which the individual will under-invest in education, which results in a brain drain for the source country.All correspondence to Donald Lien. The authors acknowledge three anonymous referees for helpful comments and suggestions. Responsible editor: Klaus F. Zimmermann     

Unemployment benefits, risk aversion, and migration incentives

With reference to the EU enlargement, a framework is derived which allows the study of the effect of unemployment benefits on the migration decision. While benefits simply increase the expected gain for risk neutral individuals, they work as an insurance device for risk averse migrants; the results for the two groups might differ. Thus, the migration decision is reformulated as monetary lottery. Unsurprisingly, the paper finds that risk averse individuals are less likely to engage in migration. Yet, introducing unemployment benefits also makes them select a different set of countries. The implications of selection and sorting, however, depend crucially on the link between risk aversion and economically important personal characteristics. It is also shown that unemployment benefits give rise to intertemporal trade-offs in migration returns.The author is grateful for helpful comments by Hartmut Lehmann, Christoph M. Schmidt and three anonymous referees. I also like to thank my colleagues at CERT and participants of the R.O.S.E.S. Enlargement Conference 2003 in Paris. This work has been conducted before the author joint DWP and does not reflect the opinion of the department. Responsible editor: Klaus F. Zimmermann.     

The effect of immigration on wages in three european countries

We analyse the impact of immigrants on natives wages from reduced form wage equations for The Netherlands, United Kingdom and Norway. We find very small effects on natives wages and no dominant robust patterns of substitution and complementarity. Effects on earlier immigrants own wages are larger but less reliable. Further work should focus on these own effectsData on the Netherlands have been made available by CEREM, Statistics Netherlands(LSO 1997) and SEO (GPD). The British QLFS have been made available by the Office for National Statistics through the Data Archive, University of Essex. Norwegian KIRUT data have been made available by NSD, Bergen. We are grateful to these organisations. None of these organisations bear any responsibility for the analyses or interpretations of data sets used in this paper.Two anonymous referees and the editor-in-chief, Klaus Zimmermann, provided very valuable inputs for a substantial revision of an earlier draft. Responsible editor: Klaus F. Zimmermann.     

Cohort effects in the educational attainment of second generation immigrants in Germany: An analysis of census data

Even though second generation immigrants make up ever increasing population shares in industrialized countries we know little about their social integration and wellbeing. This study focuses on the educational attainment of German born children of immigrants. Their schooling success still lags behind that of natives. This paper investigates school attendance and completed degrees of second generation immigrants and finds that even after controlling for characteristics the educational gap remains large and significant. The available evidence suggests that this group as a whole does not assimilate to native educational standards and instead increasingly falls behind.This research was completed while the author was guest at the Institute for the Study of Labor (IZA) in Bonn, Germany. I am grateful for IZAs hospitality and particularly for the help of Thomas K. Bauer. I thank the anonymous referees and the editors for very helpful comments. Responsible editors: David Card and Christoph M. Schmidt.     

Immigration, integration and fiscal sustainability

Economic theory points out that immigration of even low-skilled immigrants may improve public finances in Western welfare states, and it is sometimes suggested that fiscal sustainability problems in Western countries caused by ageing populations could be solved by increasing immigration. We examine consequences of various immigration scenarios using the large-scale computable general equilibrium model Danish rational economic agents model describing the Danish economy. It turns out that increased immigration will generally worsen the Danish fiscal sustainability problem. Improved economic integration of immigrants and their descendants, however, may alleviate the problems of the public sector considerably. Responsible editor: Klaus F. Zimmermann     

Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States

The correlation in economic status among siblings is a useful “omnibus measure” of the overall impact of family and community factors on adult economic status. In this study we compare brother correlations in long-run (permanent) earnings between the United States, on one hand, and the Nordic countries (Denmark, Finland, Norway and Sweden) on the other. Our base case results, based on very similar sample criteria and definitions for all countries, show that this correlation is above 0.40 in the United States and in the range 0.14–0.26 in the Nordic countries. Even though these results turn out to be somewhat sensitive to some assumptions that have to be made, we conclude that the family and community factors are more important determinants of long-run earnings in the United States than in the Nordic countries. Received: 27 July 2000/Accepted: 7 March 2001 All correspondence to: Anders Bj?rklund. Comments from two referees, conference participants at ESPE2000 and the Canadian Employment Research Forum, seminar participants in Aarhus, Uppsala, Bonn, and Stockholm are gratefully acknowledged. We thank NOS-S for financial support. The Swedish data collection was also supported by HSFR and SFR. The Finnish data were obtained with support from the Yrj? Jahnsson Foundation. We thank Tom Erik Aab? for preparing the Norwegian data, and Esben Agerbo for computational assistance with the Danish data. Responsible editor: John F. Ermisch.     

Should I stay or should I go? Educational choices and earnings: An empirical study for Portugal

We analyse educational choices and earnings of individuals at two different levels in the Portuguese educational system. At each exit we consider two decisions: the decision to continue studying and the employment decision. We find empirical support for the existence of selectivity bias as the errors of the earnings functions are in general correlated with the disturbances of the decision functions. The obtained rates of return to education vary between 2.4 and 9.4 percent, depending on whether or not selectivity and quantity effects are excluded from the computations. Note that selectivity represents three quarters of this difference. Received: 5 March 2001/Accepted: 10 October 2001 I am grateful for the comments of the editor and two anonymous referees. Responsible editor: John F. Ermisch.     

Employment after childbearing and women's subsequent labour force participation: evidence from the British 1958 birth cohort

Data on women from the British 1958 Cohort Study is used as evidence on the determinants of their labour force participation at age 33. A conventional cross-sectional model of full or part-time employment makes use of some longitudinal material not normally included in such models. Whether the woman made the hitherto customary break from. employment at the time of the first maternity is included in recognition that this cohort was among the first generation to be offered Statutory Maternity Leave. Results suggest that the presence of children (still) inhibits full-time employment and raises the probability of part-time employment; that income effects on participation have continued to weaken while wage elasticity for full-time employment is high. Continuity of employment straight after childbearing raises the chances of subsequent full-time employment, but by no means guarantees it. Gains from maternity leave and other family friendly employment policies have been far from uniform.All correspondence to Heather Joshi. Our research was supported by the ESRC Grant R000234600. Helpful comments by John F. Ermisch, Siv Gustafsson and two anonymous referees are gratefully acknowledged. Responsible editors: Siv S. Gustafsson, John F. Ermisch.     

Assimilation of immigrants: Implications for human capital accumulation of the second generation

Immigrants assimilate in various dimensions at different rates. Moreover, in each of these dimensions they assimilate at rates that may differ from those of their children. The purpose of this paper is to examine how the pace of assimilation of immigrants in various dimensions affects the rate of human capital accumulation of immigrant children. It is argued that rapid assimilation in certain dimensions serves to increase the rate of human capital accumulation of the second generation, while in other dimensions it may have the opposite effect.I thank Christoph Schmidt, Peter Schaeffer, and two anonymous referees for helpful comments. Responsible editor: Christoph M. Schmidt.     

Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets

This paper analyses the effects of expected earnings and local markets conditions on the behaviour of young adults with high school diplomas. Decisions to either remain in the parental home or form a new household are modelled jointly with those of either gaining work experience or investing in a university education. Expected lifetime earnings are found to play a crucial role in determining the choice of studying and residing with parents. Poor labour market opportunities discourage young people from working and induce them to study. The cost of housing greatly influences the choice of working and leaving the parental home. Received: 23 March 2001/Accepted: 26 November 2001 All correspondence to Gianna Claudia Giannelli. Helpful comments by two anonymous referees are gratefully acknowledged. Responsible editor: John F. Ermisch.     

Bequests as a heir "disciple device."

This paper develops a model ofinter vivos gifts and bequests in a setting of moral hazard and adverse selection. Altruistic parents do not perfectly know how much effort their children make to earn their living, nor do they know their true level of ability.Inter vivos gifts take place prior to the realization of the children's earnings whereas at the moment of bequests, parents do observe them. We show that an optimal transfer policy generally uses a mix ofinter vivos gifts — deemed as more efficient — and bequests — deemed as more redistributive.We are thankful to Allessandro Cigno, Jacques Cremer, Claude d Aspremont and anonymous referees for their comments.Responsible editor: Alessandro Cigno     

The performance of immigrants in the Norwegian labor market

This paper tests the assimilation hypothesis with Norwegian data. Using both cross-section and cohort analyses, the results show that the 1970–1979 immigrant cohort experienced an earnings growth of about 11% between 1980 and 1990, when their earnings profile was compared to that of natives. This is lower than the 19% assimilation rate predicted by the cross-section method. On the contrary, the results reveal a rapid earnings divergence across cohorts, and between the 1960–1969 cohort and natives. It is also shown that the „quality” of successive immigrant waves has declined over time, thus biasing the cross-section estimates of assimilation. Received: 8 August 1995 / Accepted: 7 January 1997     

Health-related disabilities and matching of spouses: Analysis of Swedish population data

Recent research concerning the incidence of reported work-limiting disabilities in the married population indicates a degree of interdependence between spouses' disabilities. This pattern is consistent with several hypotheses. Spouses tend to share many lifestyle traits that might lead to common health outcomes. Alternatively, their joint reports might reflect a shared preference for income benefits or workplace accommodations available to disabled individuals. Another possibility is that disabled individuals tend to be matched in the process of marital formation. This paper investigates the latter hypothesis. Taking advantage of a unique data set from the Swedish population, we select a sample of recently married couples and trace them back in time to their single years. Our analysis indicates nonrandom matching on the basis of disability status. After controlling for observed traits such as age and education, we find a residual correlation between future spouses that is positive and strongly significant. The magnitude of the correlation is within the range of residual correlations obtained from other studies that address marital matching in the contexts of education and earnings. The authors wish to thank anonymous referees and the editors of this journal for helpful comments and prompt reviews. Responsible editor: Christian Dustmann.     

Emigration and living standards in Ireland since the Famine

Ireland experienced dramatic levels of emigration in the century following the Famine of 1845–1849. The paper surveys the recent cliometric literature on post-Famine emigration and its effects on Irish living standards. The conclusions are that the Famine played a significant role in unleashing the subsequent emigration; and that emigration was crucial for the impressive increase in Irish living standards which took place during the next 100 years.Revised version of a paper read at the ESF Research Conference on Migration and Development, Aghia Pelaghia, Crete, Greece, October 7–12, 1994. I am grateful to Cormac Ó Gráda, Jeffrey Williamson and Klaus F. Zimmermann for comments and suggestions, and especially to three anonymous referees, as well as Tim Hatton and Alan Taylor who suggested the quantitative exercise to be found towards the end of Sect. 3.     

SHORT REVIEWS

Books reviewed in this article: Majid Ezzati , Alan D. Lopez , Anthony Rodgers, and Christopher J. L. Murray (eds. ) Comparative Quantification of Health Risks: Global and Regional Burden of Disease Attributable to Selected Major Risk Factors Terence H. Hull (ed. ) People, Population, and Policy in Indonesia Gavin W. Jones and Mehtab S. Karim (eds .) Islam, the State and Population Policy Sarah Michael Undermining Development: The Absence of Power among Local NGOs in Africa Lisa Smyth Abortion and Nation: The Politics of Reproduction in Contemporary Ireland United Nations Economic Commission for Europe and United Nations Population Fund The New Demographic Regime: Population Challenges and Policy Responses Klaus F. Zimmermann (ed .) European Migration: What Do We Know?     

Natives and migrants in the London labour market, 1929–1931

Migrants are sometimes regarded as marginal workers in metropolitan labour markets. London has long been a major destination for migrants from elsewhere in Britain and abroad. In this paper we examine the earnings and unemployment experience in 1929–1931 of male workers who migrated to London, or within London. We use data from the New Survey of London Life and Labour, a large survey of working class households, the records from which have recently been computerised. Our findings indicate that migrants were not marginal, in fact they enjoyed slightly higher earnings and lower unemployment incidence than native Londoners. Much of the advantage can be explained by differences in average skill levels and personal characteristics. Received: 2 November 1999/Accepted: 3 August 2000