Child care and employment turnover

This paper explores how the responsibilityof caring for children affects employment stability by studying the relationship betweenthe characteristics and stability of substitute caregivers and the risk of leaving of job. Thedata come from the 1990 National Child Care Survey (NCCS), a nationally representative surveyof households with children under age 13 conducted in late 1989 and early 1990, and AProfile of Child Care Settings (PCS), a nationally representative survey of center-based programsand licensed family day care homes in the U.S., conducted at the same time and in the same 144counties. The results show that the availability of care affects the job stability of all employedmothers. Other effects differ by maternal wage. The cost of care affects the employment exits ofmoderate-wage mothers (who earn $6 to $8 per hour), the stability of care affects the employmentexits of moderate- and high-wage mothers, and the flexibility of care affects the employmentexits of low-wage mothers. These results are discussed in the context of current public policies.     

Adieu Rabenmutter—culture,fertility, female labour supply,the gender wage gap and childcare

This paper studies the effect of cultural attitudes on childcare provision, fertility, female labour supply and the gender wage gap. Cross-country data show that fertility, female labour force participation and childcare provision are positively correlated with each other, while the gender wage gap seems to be negatively correlated with these variables. The paper presents a model with endogenous fertility, female labour supply and childcare choices driven by cultural attitudes which fits these facts. There may exist multiple equilibria: one with zero childcare provision, low fertility and female labour supply and high wage gap and one with high childcare provision, high fertility and female labour supply and low wage gap.     

A discrete choice model for labor supply and childcare

A discrete choice model for labor supply and childcare for mothers of preschoolers is presented. The mothers are assumed to make choices from a finite set of job possibilities and from a finite set of childcare options. Options in the markets for childcare are characterized by opening hours, fees and quality attributes. Similarly, jobs are characterized by a fixed wage rate, working hours and a number of variables related to job satisfaction. In the estimation of the model, we take into account that the number of options available might vary across work/care combinations and that some mothers are rationed in the market for care at day care centers. The model is employed to simulate the female labor supply effects of the Norwegian home care allowance reform.

Child care arrangements and fertility: An analysis of two-earner households

The determinants of child care arrangements and relations between child care and fertility are examined using data on two-earner households from the 1976 National Survey of Family Growth. We find that the probability of relying on market arrangements is higher among families in which the husband's income, the wife's wage, and the level of the wife's labor supply are high; these households are likely to benefit the most from subsidies to the market forms of care that are small relative to the total cost of care (e.g. the present system of tax credits). In addition, parental education, family size, child's age, race, religion, and place of residence have important influences on the choice of child care mode. When other factors are held constant, reliance on a relative for child care is positively associated with intentions to have further children among couples with infants and preschoolers.     

Compensation for Occupational Risk and Valuation of Statistical Life

This paper uses information on a sample of 430 blue collar workers from different manufacturing industries of Ahmedabad, India to examine the influence of worker’s compensation on their wage and mortality rates. This relation has a direct impact on the value of statistical life (VSL) estimates which is used to evaluate various health and safety policies. The compensation benefit plays a significant role in worker’s compensation package however it has not received much attention in previous Indian studies. Inclusion of the compensation variable not only raises the co-efficient of risk variables but also increases the value of statistical life and value of statistical injury (VSI) estimates. The result of this study indicates that trade-off between worker’s wage and compensation benefit exists for the workers in the sample. The estimated VSL that captures the effect of compensation benefit ranges between INR 30.27 million ($0.46 million) and INR 72.11 million ($1.10 million) while the estimated VSI ranges between INR 1.94 million ($0.029 million) and INR 2.82 million ($0.043 million). Besides, this paper goes further to study the rate of substitution between worker’s compensation benefit and their wage and finds that the benefit levels are sub-optimal.

     

Purchased child care,optimal family size and mother's employment Theory and econometric analysis

The paper develops a model of family size decisions in which couples choose explicitly a combination of mother's time and purchased childcare (e.g. childminders, nannies) for the care and rearing of children. The theoretical model implies that the impact of the mother's wage on her completed fertility varies with the market price of childcare, and that this effect increases (becoming less negative or more positive) with the level of her wage. Econometric analysis of British micro-data confirms the main predictions of the model.I am grateful to Robert E. Wright for research assistance, and to the Economic and Social Research Council for supporting this research as part of the research programme Income Inequality, Gender and Demographic Differentials. Financial support from the Nuffield Foundation grant no. PT/9, Family Formation and Employment Activity is also gratefully acknowledged.     

The Value of an Employment-Based Green Card

The need for and role of highly skilled immigrant workers in the U.S. economy is fiercely debated. Proponents and opponents agree that temporary foreign workers are paid a lower wage than are natives. This lower wage partly originates from the restricted mobility of workers while on a temporary visa. In this article, we estimate the wage gain to employment-based immigrants from acquiring permanent U.S. residency. We use data from the New Immigrant Survey (2003) and implement a difference-in-difference propensity score matching estimator. We find that for employer-sponsored immigrants, the acquisition of a green card leads to an annual wage gain of about $11,860.     

Time? money? both? the allocation of resources to older Parents

We provide estimates of a reduced-form model of the allocation of household time and money resources. We consider four demands for these resources: time spent working, time spent providing care for noncoresident elderly parents, time spent performing housework, and monetary transfers to noncoresident elderly parents. We focus on the effects of wage rates and parental characteristics on the allocation decisions of adult children and their households concerning these four demands. We find that households with individuals earning high wages rely relatively more on cash transfers and relatively less on time transfers than do lower-wage households. We also find evidence consistent with an unmeasured tendency of some families to provide multiple sources of support.     

中国城市居民劳动供给行为特征

经过40多年的改革开放和计划生育政策实施,我国城市居民家庭规模、家庭财富、受教育程度等影响劳动供给行为的因素均发生了巨大变化。这种变化对就业政策的制定和相关福利政策的实施都有较大影响。运用来自29个省市6675个城市家庭、8771个居民的调查数据对我国城市居民劳动供给行为进行了研究。结果表明:我国城市居民劳动供给曲线整体上呈现向右上方倾斜的特征,随着工资上涨,劳动者工作时间随之增长,但是工资弹性仅有0.52,处于缺乏弹性的区间;分类型看,女性、户主、受教育程度较低者工资弹性较大,对工资变动更加敏感;女性、户主、受教育程度较高者收入弹性更大,对收入变动更加敏感;分年龄阶段看,18—30岁的新生代劳动力工作时间受工资和非工资收入影响均不显著,31—45岁的劳动力比45岁以上劳动力工资弹性和收入弹性更高,对工资和非工资收入更加敏感。本文的研究结果对细化实施就业政策和制定相关福利政策具有一定启示作用。     

Employment trends ofyoung mothers and the opportunity cost of babies in the United States

The central concept of microeconomic theories of fertility is opportunity cost--the product of wife's employment lost due to childbearing and the value of her employment. This paper presents a model for analyzing opportunity cost using panel data. The average loss of employment attributable to a second- or higher-order birth, calculated at around age 2, is over 400 hours per year. This time cost represents an income loss of about $1050 in 1969 dollars. Time cost is independent of such demographic factors as birth order and age of oldest sibling. Neither does time cost depend on husband's wage rate or wife's education or potential wage rate. This indicates that many microeconomic models of fertility have been seriously misspecified. The paper also compares results from static and dynamic models, explores possible problems due to simultaneity bias, investigates the relationship between changes in employment (including time cost) and initial employment level, and identifies the difficulties of theorizing about opportunity cost.     

The impact of family policy expenditure on fertility in western Europe

This article analyzes the impact on fertility of changes in national expenditure for family allowances, maternity- and parental-leave benefits, and childcare subsidies. To do so, I estimate a model for the timing of births using individual-level data from 16 western European countries, supplemented with data on national social expenditure for different family policy programs. The latter allow approximation of the subsidies that households with children receive from such programs. The results show that increased expenditure on family policy programs that help women to combine family and employment-and thus reduce the opportunity cost of children—generates positive fertility responses.     

Grandparental availability for child care and maternal labor force participation: pension reform evidence from Italy

In this paper, we exploit pension reform-induced changes in retirement eligibility requirements to assess the role of grandparental childcare availability in the labor force participation of women with children under 15. Our analysis shows that, among the women studied, those whose own mothers are retirement eligible have a 11% higher probability of being in the labor force than those whose mothers are ineligible. The pension eligibility of maternal grandfathers and paternal grandparents, however, has no significant effect on the women’s labor force participation. We also demonstrate that the eligibility of maternal grandmothers mainly captures the effect of their availability for childcare. Hence, pension reforms, by potentially robbing households of an important source of flexible, low-cost childcare, could have unintended negative consequences for the employment rates of women with young children.     

Family Contexts and Schooling Disruption among Orphans in Post-Genocide Rwanda

This study examines the relationship between orphan status and schooling disruption in post-genocide Rwanda. The results indicate that while non-orphans have more favorable schooling outcomes in two-parent than in single-parent families, the reverse is true among Rwandan orphans. In single-mother households, paternal orphans, i.e. orphans with only a living mother, have better outcomes than their orphan and non-orphan counterparts. In contrast, paternal orphans have worse outcomes than other children in two-parent households, especially in households headed by males. Maternal orphans are more likely to experience schooling disruptions than non-orphans regardless of family structure. The maternal-orphan disadvantage is nevertheless greater in female-headed than in male-headed households. As expected, non-related orphans are more disadvantaged than orphans related to their household heads. However, non-related orphans have a greater disadvantage in two-parent than in single-parent households. The results also suggest that within households, the provision of childcare to children below schooling age is an impediment to orphan’s schooling. These impediments are, however, greater for double-orphans than paternal or maternal orphans.     

State and local fiscal impacts of US immigrants: Evidence from New Jersey

This paper uses a household-level estimation strategy to develop new evidence on the state and local fiscal impacts of US immigration. The methodology is applied to 1980 census microdata for New Jersey, a state that now ranks fifth in the nation in the size of its foreign-born population. All New Jersey households combined in 1980 imposed a net fiscal burden on state government of more than US$2.1 billion, and a net burden on the aggregate of all local governments totaling nearly $ 690 million. Both native- and immigrant-headed households received government benefits worth more than they paid in taxes. The typical immigrant-headed household imposed an average fiscal burden of $ 350 on local governments throughout New Jersey, versus roughly $ 225 for each native-headed household. At the state level, however, net fiscal impacts of immigrants and natives were similar: an average annual deficit of $ 841 for immigrants compared with $ 846 for native households. There are larger disparities among the foreign-born population than between native-headed and immigrant-headed households. Latin American households have the most unfavorable fiscal implications of any immigrant subgroup. Taken together, our findings illustrate the overriding importance of household income and number of school-age children as determinants of taxes paid, benefits received and, ultimately, of net fiscal impacts.     

Fertility and endogenous gender bargaining power

We develop an intra-household bargaining model to examine the feedback effect of household fertility decisions on gender bargaining power. In our model, the household balance of power is endogenously determined reflecting social interactions, i.e., the fertility choices by the other couples in society. We show the presence of multiple equilibria in fertility outcome: one equilibrium characterized by patriarchal society with a high fertility rate, and another in which women are sufficiently empowered and the fertility rate is low. In other circumstances, this study also demonstrates a positive relationship between female wage rates and the fertility outcomes. Finally, we discuss its policy implications, comparing the effects of two family policies: the child allowance and the subsidies for market childcare.     

Poverty and Headship in Post-apartheid South Africa, 1997–2006

In this paper, I investigate the characteristics and poverty status of female- and male-headed households in South Africa using nationally representative household survey data from the October Household Surveys (1997 and 1999) and the General Household Surveys (2004 and 2006). This decade (1997–2006) represents a period for which there is an extensive poverty literature documenting (particularly in the 2000 s) an overall decrease in the poverty headcount rate. At the same time, however, there is evidence to suggest that female-headed households have a far higher risk of poverty and that the poverty differential between female- and male-headed households widened over the period. The aim of this paper is to identify some of the main reasons that female-headed households are more vulnerable to poverty in post-apartheid South Africa and why poverty has decreased by more in male-headed households (relative to female-headed households). The study examines the key features which distinguish female- and male-headed households and whether these have changed over time. In order to link these characteristics with the poverty differential between female- and male-headed households, I then examine whether (and by how much) controlling for the observable differences between female- and male-headed households reduces the significantly greater risk of poverty in female-headed households.     

Dual-earner parents’ work-family time: the effects of atypical work patterns and non-parental childcare

Finding time to both earn money and raise children is demanding. Within the constraints and opportunities of their employment and social policies affecting work and family, parents seeking to manage their time may use a number of strategies. For example, they can outsource childcare or adopt atypical work patterns: non-standard work schedules, self employment, working from home. In this paper we compare the effects of these measures on the household time use and gender division of labour of dual-earner couples with children, using data from the Australian Bureau of Statistics Time Use Survey, 2006 (n?=?772 couples). We find that these strategies do help households manage their work and family time. However, this is almost exclusively a result of women changing their time use. Such measures generally enable mothers, not fathers, to adjust paid work around family commitments, and offer little amelioration of gendered divisions of labour. This reinforces normative gender-role expectations and is probably a result of institutional constraints, including sparse social policy and workplace support for mothers?? full-time employment and for fathers?? involvement in childcare.     

Demographics and the dynamics of earnings

This paper discusses how demographic changes, in particular changes in cohort size, female labor force participation and migration, influence the dynamics of wage rate profiles. A review of the literature suggests that there are demographic effects on wage rate profiles, although they are usually rather small. Future research should concentrate on second-order adjustments and long-term effects of demographic changes.Presidential address delivered at the sixth annual meeting of the European Society for Population Economics, June 10–13, 1992, Gemunden, Austria. The author acknowledges the constructive comments of Bjorn Gustafsson and two referees.     

Does care matter? Care capital and mothers’ time to paid employment

The aim of this study is to introduce the concept of care capital and provide an example of its application in the context of childcare and maternal employment using the currently most suitable American data. We define care capital as the nexus of available, accessible, and experienced resources for care. The American setting is an ideal context to investigate the linkages between child care capital and maternal employment as the patterns of child care use tend to be more diverse compared to other national contexts. In the presented application of care capital, we examine mothers’ entry to paid employment during the first 36 weeks following a birth, and its association with the experience of non-parental child care use before labour force entry. Using data from the Early Childhood Longitudinal Survey—Birth Cohort (N = 10,400 mothers), results from discrete-time hazard models show that use of non-parental child care prior to employment is independently and positively associated with entry into maternal employment. This finding applies both to first-time mothers (n = 3,800) and to mothers of multiple children (n = 6,600). Although data currently available for investigating child care capital are limited with regard to care availability and access, our results suggests that childcare availability, access, and use, understood as a form of capital alongside economic and human capital, should be considered in future studies of maternal employment.     

Economic determinants of family size in West Africa

The economic theory of fertility postulates that income and prices, broadly defined, are important determinants of family size. What follows is an attempt to test this theory against the behavior of 717 predominantly urban households in Sierra Leone. Husband's education is used as a proxy for income; the "price" of a child is accounted for by wife's education and wife's wage rate. Other important variables are wife's age, a measure of child "quality," wife's age at first birth, and child mortality. The findings of the study tend to lend support to the economic theory of fertility but contain certain peculiarities which indicate a need for further research.