Explaining the Gender Wealth Gap

To assess and explain the United States’ gender wealth gap, we use the Wisconsin Longitudinal Study to examine wealth accumulated by a single cohort over 50 years by gender, by marital status, and limited to the respondents who are their family’s best financial reporters. We find large gender wealth gaps between currently married men and women, and between never-married men and women. The never-married accumulate less wealth than the currently married, and there is a marital disruption cost to wealth accumulation. The status-attainment model shows the most power in explaining gender wealth gaps between these groups explaining about one-third to one-half of the gap, followed by the human-capital explanation. In other words, a lifetime of lower earnings for women translates into greatly reduced wealth accumulation. After controlling for the full model, we find that a gender wealth gap remains between married men and women that we speculate may be related to gender differences in investment strategies and selection effects.     

Parental Resources, Schooling Achievements, and Gender Schooling Gaps: Evidence of Change over 25 years in Rural Guatemala

We use village census data and linear regression models to examine changes between 1975 and 2002 in the associations of parental resources with boys’ and girls’ schooling in four rural Guatemalan villages. Levels of schooling in 1975 were universally low for children 7–17 years. Large increases in schooling achievements occurred between 1975 and 2002. By 2002, schooling levels were comparable for younger boys and girls (7–12 years, N = 3,525) and favored older boys compared to older girls (13–17 years, N = 2,440) by about 0.5 grades. The associations of household standard of living and maternal schooling with schooling among girls diminished over time and became more comparable with these associations among boys, and the associations of household standard of living with schooling among older boys declined and became more comparable with these associations among girls. Thus, as increased social investments reduce the costs of schooling or increase the supply and quality of schooling to families, the magnitudes of the associations between parental resources and children’s schooling decline and become more gender equitable at all ages. However, our results show that older boys may benefit more than older girls from social investments in schooling. These changes suggest potential needs to monitor gender gaps in schooling retention among older children, to insure gender equitable access to social investments in schooling, and to encourage parents to invest in schooling as joint measures to achieve greater schooling achievements of girls and boys.     

Changes in wealth in the United States, 1962–1983

A simulation model is developed to account for observed changes in mean household wealth both overall and by age cohort over the 1962–1983 period in the United States. There are three major findings. First, capital gains are the major factor explaining overall wealth changes and account for 77% of the simulated growth in wealth over the entire period. Second, for cohorts under age 40, inheritance and inter vivos transfers dominate observed changes in wealth. Indeed, the oldest age groups appear to have transferred sizable amounts of their wealth to younger generations inter vivos, raising the wealth of these younger groups substantially above what it would be based on saving. Third, while differences in portfolio composition favored the younger cohorts over this period, such differences do not explain a large portion of the great variation in real wealth changes by cohort over the two decade period.The authors wish to thank Kevin Camerlo, Maury Gittleman and Kim Hiskey for research and programming assistance.     

Women’s Political Empowerment and Investments in Primary Schooling in India

Using a national district-level dataset of India composed of information on investments in primary schooling [data from the District Information Survey for Education (DISE, 2007/8)] and information on demographic characteristics of elected officials [data from the Election Commission of India (ECI, 2000/04)], we examined the relationship between women’s representation in State Legislative Assembly (SLA) seats and district-level investments in primary schooling. We used OLS regressions adjusting for confounders and spatial autocorrelation, and estimated separate models for North and South India. Women’s representation in general SLA seats typically was negatively associated with investments in primary-school amenities and teachers; women’s representation in SLA seats reserved for under-represented minorities, i.e., scheduled castes and scheduled tribes, typically was positively associated with investments in primary schooling, especially in areas addressing the basic needs of poor children. Women legislators’ gender and caste identities may shape their decisions about redistributive educational policies.     

Growing Up Together: Cohort Composition and Child Investment

In sub-Saharan Africa, 60 % of child deaths are preventable by investments in child health as simple as immunizations, bed nets, or water purification. This article investigates how a household’s decisions regarding such investments are affected by the size and gender composition of a child’s cohort. I focus on a previously overlooked type of investment: nonrival, child-specific goods (club goods). I empirically estimate the response of immunization status to cohort characteristics. I carefully address the problem of endogenous fertility, which is common in cohort studies. Because most rural Senegalese households are composed of multiple nuclear families, a child’s cohort is composed of both siblings and nonsibling children. Estimating within households, I instrument cohort characteristics with those of the nonsibling (exogenous) portion. I find that children with larger (or more predominantly male) cohorts of vaccine-eligible age are significantly more likely to receive immunization. These findings suggest that children with larger cohorts may be better off in terms of club investments; this is a significant finding for child health given that many illness prevention methods are of a club good nature.     

Healthier, Wealthier, and Wiser: A Demonstration of Compositional Changes in Aging Cohorts Due to Selective Mortality

The gradual changes in cohort composition that occur as a result of selective mortality processes are of interest to all aging research. We present the first illustration of changes in the distribution of specific cohort characteristics that arise purely as a result of selective mortality. We use data on health, wealth, education, and other covariates from two cohorts (the AHEAD cohort, born 1900–1923 and the HRS cohort, born 1931–1941) included in the Health and Retirement Survey, a nationally representative panel study of older Americans spanning nearly two decades (N = 14,466). We calculate sample statistics for the surviving cohort at each wave. Repeatedly using only baseline information for these calculations so that there are no changes at the individual level (what changes is the set of surviving respondents at each specific wave), we obtain a demonstration of the impact of mortality selection on the cohort characteristics. We find substantial changes in the distribution of all examined characteristics across the nine survey waves. For instance, the median wealth increases from about $90,000 to $130,000 and the number of chronic conditions declines from 1.5 to 1 in the AHEAD cohort. We discuss factors that influence the rate of change in various characteristics. The mortality selection process changes the composition of older cohorts considerably, such that researchers focusing on the oldest old need to be aware of the highly select groups they are observing, and interpret their conclusions accordingly.     

The Educational Consequences of Teen Childbearing

A huge literature shows that teen mothers face a variety of detriments across the life course, including truncated educational attainment. To what extent is this association causal? The estimated effects of teen motherhood on schooling vary widely, ranging from no discernible difference to 2.6 fewer years among teen mothers. The magnitude of educational consequences is therefore uncertain, despite voluminous policy and prevention efforts that rest on the assumption of a negative and presumably causal effect. This study adjudicates between two potential sources of inconsistency in the literature—methodological differences or cohort differences—by using a single, high-quality data source: namely, The National Longitudinal Study of Adolescent Health. We replicate analyses across four different statistical strategies: ordinary least squares regression; propensity score matching; and parametric and semiparametric maximum likelihood estimation. Results demonstrate educational consequences of teen childbearing, with estimated effects between 0.7 and 1.9 fewer years of schooling among teen mothers. We select our preferred estimate (0.7), derived from semiparametric maximum likelihood estimation, on the basis of weighing the strengths and limitations of each approach. Based on the range of estimated effects observed in our study, we speculate that variable statistical methods are the likely source of inconsistency in the past. We conclude by discussing implications for future research and policy, and recommend that future studies employ a similar multimethod approach to evaluate findings.     

Family size and children’s education in Vietnam

Data from the nationally representative 1994 Inter-Censal Demographic Survey are used to examine the association between family size and children s schooling in Vietnam. The data provide information on several education measures for all children over age 10, including children no longer residing in the household. Although a clear inverse bivariate association between family size and children s school attendance and educational attainment is evident, multivariate analysis controlling for urban/rural residence, region, parents’ education, household wealth, and child’s age, reveals that much of this association, especially that predicting educational attainment, is attributable to these other influences. Moreover, much of the effect that remains after statistical adjustment for the other influences is seen mainly at the largest family sizes. We consider the implications of these findings for current population policy in Vietnam and the possible features of the Vietnamese context that might account for the modest association.     

Schooling,marriage, and age at first birth in Madagascar

The low school attainment, early marriage, and low age at first birth of females are major policy concerns in less developed countries. This study jointly estimated the determinants of educational attainment, marriage age, and age at first birth among females aged 12–25 in Madagascar, explicitly accounting for the endogeneities that arose from modelling these related outcomes simultaneously. An additional year of schooling results in a delay to marriage of 1.5?years and marrying 1?year later delays age at first birth by 0.5?years. Parents’ education and wealth also have important effects on schooling, marriage, and age at first birth, with a woman's first birth being delayed by 0.75?years if her mother had 4 additional years of schooling. Overall, our results provide rigorous evidence for the critical role of education—both individual women's own and that of their parents—in delaying the marriage and fertility of young women.     

The gradient in sub-saharan Africa: Socioeconomic status and HIV/AIDS

Using data from the Demographic and Health Surveys (DHS) for Burkina Faso (2003), Cameroon (2004), Ghana (2003), Kenya (2003), and Tanzania (2003), I investigate the cross-sectional relationship between HIV status and socioeconomic status. I find evidence of a robust positive education gradient in HIV infection, showing that, up to very high levels of education, better-educated respondents are more likely to be HIV-positive. Adults with six years of schooling are as much as three percentage points more likely to be infected with HIV than adults with no schooling. This gradient is not an artifact of age, sector of residence, or region of residence. With controls for sex, age, sector of residence, and region of residence, adults with six years of schooling are as much as 50% more likely to be infected with HIV than those with no schooling. Education is positively related to certain risk factors for HIV including the likelihood of having premarital sex. Estimates of the wealth gradient in HIV, by contrast, vary substantially across countries and are sensitive to the choice of measure of wealth.     

The Effect of Fertility Reduction on Economic Growth

We assess quantitatively the effect of exogenous reductions in fertility on output per capita. Our simulation model allows for effects that run through schooling, the size and age structure of the population, capital accumulation, parental time input into childrearing, and crowding of fixed natural resources. The model is parameterized using a combination of microeconomic estimates and standard components of quantitative macroeconomic theory. We apply the model to examine the effect of a change in fertility from the UN medium‐variant to the UN low‐variant projection in Nigeria. For a base case set of parameters, we find that such a change would raise output per capita by 5.6 percent at a horizon of 20 years and by 11.9 percent at a horizon of 50 years. We conclude with a discussion of the quantitative significance of these results.     

Child schooling in Peru: Evidence from a sequential analysis of school progression

Primary enrolment rates are very high in Peru, but so are the failure and drop-out rates. Thus an understanding of the nature of child schooling should consider school progression from primary to secondary and higher levels, taking account of the conditional sequence with the previous level and self-selection into the next higher level of schooling. Using a unique correlated sequential probit model with unobserved heterogeneity the present paper does so and obtains richer results, argued to be better than the standard static estimates. It is shown that the same set of individual/parental/household characteristics may affect different levels of schooling differently.The author is much grateful to the Managing Editor and also the Journal referees for their helpful and constructive comments. She also wishes to thank Cardiff Business School for the research grant and Gerry Makepeace for comments on an earlier draft of the paper. The usual disclaimer applies. Responsible editor: Junsen Zhang.     

Socioeconomic Classification of the Working-Age Brazilian Population: A Joint Latent Class Analysis Using Social Class and Asset-Based Perspectives

This paper presents and applies a methodology of socioeconomic classification that integrates asset- and social class approaches. We employ data from the 2013 Brazilian National Household Survey and use latent class analysis to identify clusters and classify the working population. With regard to social class the Brazilian occupations are classified based on the European Socioeconomic Classification (ESeC) schema and an indicator of employment status. As for household wealth, we use the items related to household condition, ownership of durable goods and access to public services with the highest discriminatory power. We also make use of variables that account for the Brazilian spatial and socio-demographic heterogeneity. We found four clusters which we term latent socioeconomic stratum (LSeS). When compared we found an ordered pattern from the best-off LSeS (1) to the worst-off (4) with respect to household wealth and ESeC classes. Nevertheless, although the class composition of each LSeS reveals a distinct concentration of specific ESeC classes, all classes are present in each LSeS. Controlling for social class, differences in household wealth are more marked between LSeS than between social classes within the same LSeS. Hence, the methodology unveils the latent socioeconomic strata, reveals a class schema for each stratum and points out potential stratum fractions within them. The results were validated using variables external to the model, namely household food security status and years of schooling. The external validation revealed the same ordered pattern and the presence of stratum fractions.     

Post-migration investments in education and job search: a family perspective

This paper examines post-migration investments in schooling and job search of immigrant families using new longitudinal data for Australia. Higher education levels at the time of arrival are associated with a greater probability of enrolling in school after migration. In households where the visa category would suggest that post-migration investments might be important, we find higher rates of school enrolment and job search. Traditional gender roles appear to dictate which partner makes the investments in formal schooling. However, labour market advantage, captured by principal applicant status, appears to dictate which partner makes greater investments in job search.

The changing relationship between family size and educational attainment over the course of socioeconomic development: Evidence from Indonesia

Many studies from developed countries show a negative correlation between family size and children’s schooling, while results from developing countries show this association ranging from positive to neutral to negative, depending on the context. The body of evidence suggests that this relationship changes as a society develops, but this theory has been difficult to assess because the existing evidence requires comparisons across countries with different social structures and at different levels of development. The world’s fourth most populous nation in 2007, Indonesia has developed rapidly in recent decades. This context provides the opportunity to study these relationships within the same rapidly developing setting to see if and how these associations change. Results show that in urban areas, the association between family size and children’s schooling was positive for older cohorts but negative for more recent cohorts. Models using instrumental variables to address the potential endogeneity of fertility con rm these results. In contrast, rural areas show no significant association between family size and children’s schooling for any cohort. These findings show how the relationship between family size and children’s schooling can differ within the same country and change over time as contextual factors evolve with socioeconomic development.     

Determinants of off-farm work and temporary migration in China

Existing research inadequately explains the factors that drive temporary internal migration in China. Using data for 2005 drawn from 1,903 households in 43 rural villages, we calculate binomial and multinomial logit (BL, MNL) models of probabilities that an adult belongs to one of three categories of worker—on-farm, off-farm, or temporary migrant—as a function of individual and household characteristics. We control for village fixed effects, paying close attention to male/female differences. Nearly all coefficients—even for village dummies—vary significantly by sex. For two variables—age and schooling—the relationships are non-linear. There is an optimal age and amount of schooling that maximizes the probability that a worker will be employed away from the family farm. For schooling, this is low, suggesting that educated workers are underemployed. This might indicate that schooling beyond primary grades is poor quality, or at least inappropriate for the job market.     

Fertility and replacement: Some alternative stochastic models and results for Brazil

The observed joint distribution of births and child deaths for a cohort of women at a given point in time depends on the number of children that would have been born had the family experienced no deaths, the number of child deaths experienced, and the proportion of these deaths that are replaced by a subsequent birth. In this paper we estimate the parameters of the assumed distributions of these three events using a minimum distance estimation model and data from the 1970 Brazilian census. The parameter estimates are shown to be similar to those obtained previously using a maximum likelihood estimation model. When the data are subdivided according to women's years of schooling, estimates of probability of a child death and mean and variance of children born if no deaths decrease while estimates of probability of replacement of a dead child increase as years of schooling increase.     

Parental wealth and children's outcomes over the life-course in Brazil: A propensity score matching analysis

Parental wealth – as distinct from income, education and other parental socioeconomic resources – may play a large role in children's socioeconomic outcomes, particularly in developing countries, characterized by economic volatility, a weak social safety net and limited access to credit. Using a propensity score matching approach, we examine the influence of parental wealth on adult children's schooling, school quality, occupational status, consumption level, and wealth holdings in Brazil. Findings suggest a substantial effect of parental wealth on all these outcomes, with a positive effect of even modest levels of wealth. The effect of parental wealth on occupational status is largely mediated by parental investment in more and better education for children. In contrast, the effect on children's consumption and wealth is largely unmediated by labor market resources and rewards, a pattern that is more pronounced for sons than for daughters. This suggests direct parental financial assistance. Sensitivity analysis indicates that hidden bias emerging from unobserved confounders should have to be unlikely large to question inference of a causal influence of high levels of parental wealth, although the influence of low levels of wealth may be more susceptible to hidden bias.     

Children's education in the Phillipines: Does high fertility matter?

This paper examines the effects of family size and sibling position on children's current school enrollment status in the Philippines. The theoretical framework focuses on the determinants of children's participation in alternative activities, specifically schooling, market work, and home production. This approach allows for a greater understanding of the mechanisms through which fertility, as reflected by number of siblings and sibling composition, influences children's education than would examining the determinants of schooling alone. The model is estimated using the 1983 wave of the Bicol Multipurpose Survey. The results indicate the existence of negative effects of fertility on school enrollment, which, in part, operate through work status. In addition, these effects differ according to the sibling position of the child.     

Demographic Cycles,Cohort Size,and Earnings

This article examines whether position in the demographic cycle is an important factor in determining earnings and earnings growth. Earnings equations for white males are estimated by using March Current Population Survey data. Position in the demographic cycle is captured by including both measures of own cohort size and the size of surrounding cohorts in the estimated earnings equations. Position in the demographic cycle matters. Increases in own cohort size lead to flatter earnings profiles, whereas increases in the size of surrounding cohorts are associated with steeper earnings profiles. The net effect is that those who enter the labor market before or after the peak of the demographic cycle start out with lower earnings but experience faster earnings growth. This pattern is uniform across all schooling groups: high school dropouts, high school graduates, those with some college, and college graduates.