Cohort Differences in Parental Financial Help to Adult Children

In this article, we examine birth cohort differences in parents’ provision of monetary help to adult children with particular focus on the extent to which cohort differences in family structure and the transition to adulthood influence these changes. Using data from the Health and Retirement Study from 1994 to 2010, we compare financial help to children of three respondent cohorts as the parents in these birth cohorts from ages 53–58 to 57–62. We find that transfers to children have increased among more recent cohorts. Two trends—declining family size and children’s delay in marriage—account for part of the increase across cohorts. However, other trends, such as the increase in the number of stepchildren and increasing child’s income level, tend to decrease the observed cohort trend.     

Altruism Within the Family: A Comparison of Father and Mother Using Life Happiness and Life Satisfaction

Studies on intra-household allocation of resources show that exogenous increase in mothers’ income has larger effect on children’s outcomes than the same increase in fathers’ income, suggesting gender differences may exist in parents’ altruism towards their children. Using self-reported life happiness and life satisfaction, we investigate the differences by gender in mutual altruism between father and child as well as mother and child dyads in Singapore. We found that mutual altruism exists between mother and child, but not between father and child. These findings are robust to the measure of self-reported well-being. Further, we find that gender difference in altruism of fathers and mothers is not driven by the difference in the extent of future old age support desired by fathers and mothers from their children.     

Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis

This paper presents a micro-economic model to analyze intergenerational exchange in which the utility maximizing decisions of “selfish” children on family services, labor market activities, and leisure are determined endogenously. We show that altruistic parents’ financial transfers have a disincentive effect on the labor supply of their children and that the children’s equilibrium income is positively correlated with parental income. Based on the theoretical model, we find that redistributing US$1 from children to their parents increases parental transfers by less than US$1, implying that intergenerational public transfers are Ricardian non-neutral. However, the non-neutral redistributive transfers may enhance intergenerational family bonds because the equilibrium levels of services rendered by children to their parents increase.     

Child mortality and fertility: public vs private education

How does the effect of child mortality reductions on fertility and education vary across educational systems? To answer this question, we develop an overlapping-generations model where altruistic parents care about both the number and human capital of their surviving children. We find that, under a private education system, if income is low initially, the economy converges to a Malthusian stagnation steady state. For a high level of initial income, the economy reaches a growth path in which children’s education rises and fertility decreases with income. In the growth regime under private education, exogenous shocks that lower child mortality are detrimental for growth: fertility increases and education declines. In contrast, under a public education system, the stagnation steady state does not exist, and health improvement shocks are no longer detrimental for growth. We therefore offer a new rationale for the introduction of public education.     

When Does Time Matter? Maternal Employment,Children’s Time With Parents,and Child Development

This study tests the two assumptions underlying popularly held notions that maternal employment negatively affects children because it reduces time spent with parents: (1) that maternal employment reduces children’s time with parents, and (2) that time with parents affects child outcomes. We analyze children’s time-diary data from the Child Development Supplement of the Panel Study of Income Dynamics and use child fixed-effects and IV estimations to account for unobserved heterogeneity. We find that working mothers trade quantity of time for better “quality” of time. On average, maternal work has no effect on time in activities that positively influence children’s development, but it reduces time in types of activities that may be detrimental to children’s development. Stratification by mothers’ education reveals that although all children, regardless of mother’s education, benefit from spending educational and structured time with their mothers, mothers who are high school graduates have the greatest difficulty balancing work and childcare. We find some evidence that fathers compensate for maternal employment by increasing types of activities that can foster child development as well as types of activities that may be detrimental. Overall, we find that the effects of maternal employment are ambiguous because (1) employment does not necessarily reduce children’s time with parents, and (2) not all types of parental time benefit child development.     

Parental retirement timing: the role of unanticipated events in the lives of adult children

Although anecdotal evidence of older parents postponing retirement to financially support their grown children is common, the empirical evidence is scarce. In this paper, we use data from the 1992 to 2010 waves of the Health and Retirement Study to identify a broad set of pivotal events in the lives of adult children. First, we determine whether these events affect subsequent financial transfers from parents to children over multiple years. Next, we determine whether those events that result in subsequent transfers also shift parental retirement expectations. Finally, we quantify the impact of the unexpected children’s events on retirement realizations, moving beyond the correlational analyses in prior literature. Our findings show that a child’s move out of a parental home decreases both expectations and realizations of working after age 65. The magnitude of this effect is similar to that of an own health shock experienced during pre-retirement years.     

The impact of child support on cognitive outcomes of young children

We use the National Longitudinal Survey of Youth-Child data to address three questions. First, does the receipt of child support have beneficial effects for children with absent fathers apart from increasing income? Second, do the effects of child support differ when child-support awards and payments are made cooperatively as opposed to being court ordered? Third, are any positive effects of child support solely a product of unmeasured differences among fathers and families? Controlling for the socioeconomic characteristics of the child and family, we find some evidence that receipt of child support has a positive impact on children’s cognitive test scores over and above its contribution to total income. However, the effects vary by test, by race, and by reason for Father’s absence. Our results also indicate that the distinction between cooperative and noncooperative awards is important. Finally, our instrumental variables estimates show that the effects of child support persist after we control for unobserved characteristics of fathers and families.     

Who gets custody?

Changes in the living arrangements of children have implications for social policy and children’s well-being. Understanding who gets custody on divorce—mother, father, or both sharing custody—can also inform our understanding of family organization and the merits of alternative theories of marriage and divorce. We examine physical-custody outcomes among recent Wisconsin divorces in an effort to understand the factors associated with shared custody as well as mother-sole custody and father-sole custody. Although mother-sole custody remains the dominant arrangement, shared custody has increased over a nine-year period. We find that the probability of shared custody increases with parent’s income. Prior marital history. parents’ ages, the age and gender of children, and the legal process also have an impact on the probability of shared custody. In contrast to shared custody, the probability of father-sole custody decreases with parent’s income, while the relationship with other significant factors is generally similar. The notable exception is that, unlike shared custody, we find no evidence for an increase over time in the probability of father-sole custody. We also find that when the father has a higher proportion of the Couple’s total income, both shared custody and father-sole custody are more likely.     

Time or Money: The Relationship Between Educational Attainment,Income Contribution,and Time with Children Among Korean Fathers

Korean parents’ enthusiasm for and financial investment in children’s education are well known. However, parental time with children, particularly fathers’ time, and how it differs by parental education and income are not fully explored. Using the 2009 Korean Time Use Survey data, this paper examines how much time Korean fathers spend with children, how it differs by their education and income contribution to household, and which aspect Korean fathers choose to prioritize: time or money. In order to investigate a cross-couple effect, this paper also considers mothers’ time with children and their level of education. The sample is limited to married couples with the youngest child aged between 0 and 12. The stepwise multivariate regression analysis indicates that fathers’ education consistently shows a positive relationship with childcare time. Although fathers’ income contribution to household income has a negative effect on childcare time, positive effects of fathers’ education remain. Both mother’s education and childcare time increase fathers’ time with children. Korean fathers seem to juggle dual demands for money and time contribution and highly educated fathers tend to prioritize time over money. Given that time has become an important resource, different time investment in children by parental socioeconomic status may exacerbate social inequality.     

Compensation or Reinforcement? The Stratification of Parental Responses to Children’s Early Ability

Theory and empirical evidence suggest that parents allocate their investments unequally among their children, thus inducing within-family inequality. We investigate whether parents reinforce or compensate for initial ability differences between their children as well as whether these parental responses vary by family socioeconomic status (SES). Using the Early Childhood Longitudinal Study, Birth Cohort (ECLS-B) and a twin fixed-effects approach to address unobserved heterogeneity, we find that parental responses to early ability differences between their children do vary by family SES. Contrary to prior findings, we find that advantaged parents provide more cognitive stimulation to higher-ability children, and lower-class parents do not respond to ability differences. No analogous stratification in parental responses to birth weight is found, suggesting that parents’ responses vary across domains of child endowments. The reinforcing responses to early ability by high-SES parents do not, however, led to increases in ability differences among children because parental responses have little effect on children’s later cognitive performance in this twin sample.     

Changes in the Relationship Between Child Support Payments and Educational Attainment of Offspring, 1979–1988

We examine changes over the 1980s in the effect of child support payments on the educational attainment of children age 16 to 19 in the United States, and why child support has a stronger impact than other sources of income. We use 1979 and 1988 Current Population Survey data, covering a period when improvements in enforcement should have increased the proportion of reluctant fathers paying support. We hypothesize and find that the positive effect of child support on education diminished somewhat over this period, both absolutely and in relation to other income.     

Children’s Development and Parental Input: Evidence From the UK Millennium Cohort Study

In this study, we use the UK Millennium Cohort Study to estimate a dynamic factor model of child development. Our model follows the children from birth until 7 years of age and allows for both cognitive and noncognitive abilities in children. We find a significant self-productivity effect in both cognitive and noncognitive development, as well as some evidence of dynamic dependence across different abilities. The activities that parents carry out with children at home (parental investment) have a significant effect on children’s development; we find substantial evidence of two distinct latent parental investment variables with differential effects across the two abilities.     

Testing the Economic Independence Hypothesis: The Effect of an Exogenous Increase in Child Support on Subsequent Marriage and Cohabitation

We examine the effects of an increase in income on the cohabitation and marriage of single mothers. Using data from an experiment that resulted in randomly assigned differences in child support receipt for welfare-receiving single mothers, we find that exogenous income increases (as a result of receiving all child support that was paid) are associated with significantly lower cohabitation rates between mothers and men who are not the fathers of their child(ren). Overall, these results support the hypothesis that additional income increases disadvantaged women’s economic independence by reducing the need to be in the least stable type of partnerships. Our results also show the potential importance of distinguishing between biological and social fathers.     

Nature’s Experiment? Handedness and Early Childhood Development

In recent years, a large body of research has investigated the various factors affecting child development and the consequent impact of child development on future educational and labor market outcomes. In this article, we contribute to this literature by investigating the effect of handedness on child development. This is an important issue given that around 10% of the world’s population is left-handed and given recent research demonstrating that child development strongly affects adult outcomes. Using a large, nationally representative sample of young children, we find that the probability of a child being left-handed is not significantly related to child health at birth, family composition, parental employment, or household income. We also find robust evidence that left-handed (and mixed-handed) children perform significantly worse in nearly all measures of development than right-handed children, with the relative disadvantage being larger for boys than girls. Importantly, these differentials cannot be explained by different socioeconomic characteristics of the household, parental attitudes, or investments in learning resources.     

子女外出对农村留守父母健康的影响

老龄化背景下,成年子女的异地流动增加了中老年人的健康负担,本文使用中国健康与养老追踪调查数据和倾向分值匹配法,实证考察了农村地区成年子女跨省外出对留守父母健康的影响。估计结果显示,有子女外出的家庭,中老年父母的主观健康如自评健康、认知状况和抑郁程度较差;客观健康也受到不利影响,患关节炎、胃病和肺病的可能性更大。基于收入考量的子女外出确实增加了对父母的经济支持力度,但同时也增加了父母从事隔代照料的可能性。隔代照料负担的增加可能是子女外出对父母健康有不利影响的原因。     

Parental transfers and the labor supply of children

To finance their personal consumption, children may rely on transfers in the form of pocket money made by their parents and on personal resources earned from labor market activities. In this paper that focuses on the interaction between these two sources of income, we consider a model of parental transfer where the child can choose his own income through labor supply. The parent commits to a transfer amount that the child takes as given. For our empirical analysis, we use a cross-sectional French survey that includes detailed information about pocket money from parents to schoolchildren. Using a maximum-likelihood method, we estimate a simultaneous-equations model and find that parental transfers do not significantly influence the child's labor supply.     

Family Structure Experiences and Child Socioemotional Development During the First Nine Years of Life: Examining Heterogeneity by Family Structure at Birth

A vast amount of literature has documented negative associations between family instability and child development, with the largest associations being in the socioemotional (behavioral) domain. Yet, prior work has paid limited attention to differentiating the role of the number, types, and sequencing of family transitions that children experience, as well as to understanding potential heterogeneity in these associations by family structure at birth. We use data from the Fragile Families and Child Wellbeing Study and hierarchical linear models to examine associations of family structure states and transitions with children’s socioemotional development during the first nine years of life. We pay close attention to the type and number of family structure transitions experienced and examine whether associations differ depending on family structure at birth. For children born to cohabiting or noncoresident parents, we find little evidence that subsequent family structure experiences are associated with socioemotional development. For children born to married parents, we find associations between family instability and poorer socioemotional development. However, this largely reflects the influence of parental breakup; we find little evidence that socioemotional trajectories differ for children with various family structure experiences subsequent to their parents’ breakup.     

Impacts of Homeownership and Residential Stability on Children’s Academic Performance in Hong Kong

While purchasing a home is usually made by the parents, the impact of homeownership on children, especially younger children who spend much more time in the home environment than other members of the family, should not be overlooked. In this paper, we assess the impact of both homeownership and residential stability by measuring how these factors affect children’s academic performance at school. Based on a three-stage six-model analytical framework, the analysis shows that homeownership has a positive impact on school performance of children. More interestingly, frequent moving is detrimental to school performance while parents’ higher educational background may compensate for the lack of homeownership in renter families. This paper presents a number of issues for consideration of long term land and housing policies including the importance of promoting homeownership through steady supply of residential land, as well as targeting public housing welfare to different household groups with different measures.     

Happiness: Before and After the Kids

Understanding how having children influences parents’ subjective well-being (“happiness”) has great potential to explain fertility behavior. We study parental happiness trajectories before and after the birth of a child, using large British and German longitudinal data sets. We account for unobserved parental characteristics using fixed-effects models and study how sociodemographic factors modify the parental happiness trajectories. Consistent with existing work, we find that happiness increases in the years around the birth of a first child and then decreases to before-child levels. Moreover, happiness increases before birth, suggesting that the trajectories may capture not only the effect of the birth but also the broader process of childbearing, which may include partnership formation and quality. Sociodemographic factors strongly modify this pattern. Those who have children at older ages or who have more education have a particularly positive happiness response to a first birth; and although having the first two children increases happiness, having a third child does not. The results, which are similar in Britain and Germany, suggest that having up to two children increases happiness, and mostly for those who have postponed childbearing. This pattern is consistent with the fertility behavior that emerged during the second demographic transition and provides new insights into low and late fertility.     

Parent–Child Proximity: Automatic Cognitions Matter

Individuals’ moving behavior (e.g., residential mobility) is an emerging topic in many scientific disciplines. One specific aspect is the distance between parents and their children (i.e., parent–child proximity). Although determinants and moderators of parent–child proximity can be manifold, we concentrated on the psychological concepts self-esteem and affect by assessing explicit (i.e., conscious) and implicit (i.e., automatic) aspects. Besides well-known correlates of moving behavior (e.g., education), we found that participants (N = 1,765; cross-sectional design) with high positive explicit affect and low negative implicit affect moved further away from their parents’ homes. Therefore, parent–child proximity may not be only based on fundamental sociocultural and socioeconomic needs (e.g., income, family bonds), but also on automatic psychological aspects, such as implicit affect.