On the political economy of social security and public education

This paper analyzes simultaneous voting on the wage tax rate and investment in public education with three overlapping generations and ability differences inside each cohort. Wage tax revenue finances public education and social security benefits. The presence of ability differences introduces a time-consistency problem with repeated voting. This can be solved by trigger strategies, which do not punish upward deviations in the wage tax rate. If there are multiple equilibria, then higher tax rates are associated with more education. Surprisingly, the median voter may be a young citizen, even when cohorts are of the same size.

A constitutional theory of the family

The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identifies the circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The behavioural and policy implications are illustrated by showing the effects of public pensions and credit rationing. These implications are not much affected by whether altruism is assumed or not, but contrast sharply with those of more conventional models.

Fertility, child care outside the home, and pay-as-you-go social security

We examine the long-run effects of the pay-as-you-go (PAYG) social security scheme on fertility and welfare of individuals in an overlapping generations model, assuming that child-care services are available in the market. We show that the impact of a tax increase on fertility depends on the relative magnitudes of the standard intergenerational redistribution effect through the social security system, the (implicit) subsidy effect through tax-exemption of child rearing at home, and the price effect through changes in the relative price of market child care, and that if parental child-rearing time is inelastic, a tax cut could bring about a Pareto-improving allocation.

International migration and economic growth: a source country perspective

This study analyzes the impact of international migration on economic growth of a source country in a stochastic setting. The model accounts for endogenous fertility decisions and distinguishes between public and private schooling systems. We find that economic growth crucially depends on the international migration since the migration possibility will affect fertility decisions and school expenditures. Relaxation of restrictions on the emigration of high-skilled workers will damage the economic growth of a source country in the long run, although a ‘brain gain’ may happen in the short run. Furthermore, the growth rate of a source country under a private education regime will be more sensitive to the probability of migration than a country under a public education regime.

Population aging and legal retirement age

This paper analyzes the effects of population aging on the preferred legal retirement age. What is revealed is the crucial role that the indirect ‘macro’ effects resulting from a change in the legal retirement age play in the optimal decision. Two social security systems are studied. Under a defined contribution scheme, aging lowers the preferred legal retirement age. However, under a defined pension scheme, the retirement age is delayed. This result shows the relevance of correctly choosing the parameter affected by the dependency ratio in the design of the social security programme.

An Empirical Analysis of the Interrelationship between Components of the Social Quality Theoretical Construct

Social quality has been presented as a theory that can explain economic and social progress of the daily lives of a population. The components of social quality include: socio-economic security, social inclusion, social cohesion and social empowerment. The social quality perspective views people as interacting within collective identities that provide the contexts of self-realisation. The paper tests the social quality theory by focusing on the relationship between social inclusion and social cohesion, the notion of social relations, to socio-economic security using the context of the family as a facilitator of self-realisation. Using data from the Israel Social Survey 2003, six indicators of socio-economic security were analysed. There was a small but positive and significant relationship between social inclusion and socio-economic security. We found no relationship between socio-economic security and social cohesion. These findings tend to undermine those aspects of social quality theory which posit close connections between these elements on a conceptual level.

The new economics of education: methods,evidence and policy

In this paper (my keynote talk from the 2006 ESPE conference), I discuss the recent upsurge in research on the economics of education that has occurred, especially in Europe. I discuss the reasons for the increased interest and present some examples from my recent research in the area. The paper concludes that the increased research interest seems likely to be sustained for some time to come.

An exploration of attitudes toward female genital cutting in Nigeria

Female genital cutting (FGC) continues to be widespread particularly in sub-Saharan African countries. We use data from the 1999 Nigeria Demographic and Health Survey to consider factors that influence attitudes toward this procedure held by Nigerian women aged 15–49. We test four models: model 1 explores whether attitudes are consistent with a view of FGC as a social convention associated with marriageability of women. Model 2 examines the impact of modernization factors such as education and urbanization. In model 3, the influence of media and community activities are considered. Model 4 includes all of the factors in the three previous models. We find strong support for considering FGC a social convention. Modernization has minimal impact on attitudes about FGC mainly through its influence on the social convention.

Growing old and staying young: population policy in an ageing closed economy

This paper analyses the relation between public pensions, fertility and child care in a closed-economy overlapping generations model with endogenous fertility. It is shown that raising a child involves two social externalities and that it is optimal to introduce child allowances if the government redistributes income from the young to the old. The optimal child allowance rises when longevity increases. If the costs of raising children depend positively on the wage, a third externality arises and the returns to savings should be taxed.

Household skills and low wages

Household skills provide job skills when tasks in jobs and household production are similar and jobs produce substitutes for home-made services. Opportunity costs of higher education are foregone earnings during schooling and foregone household production while studying and later in life. I show that individuals in jobs requiring household skills accept lower wage rates than traditional human capital theory predicts, and that individuals with low household skills tend to enter higher education. According to these results, declining household skills may have contributed to the observed increasing demand for higher education by women.

From Casual Work to Economic Security; The Paradoxical Case of Self-Employment

The term “casual work” is not well defined in the literature and can include a diversity of types of employment. In this paper, we first present an introduction and definition of concepts related to job security and economic insecurity. Second, a view on the main labour market transformations, their causes and impacts, with more accent on self-employment. We will then reflect on policy issues and on how social policies can impact on job security, and this is where we will introduce the new Québec parental leave regime, which is a welcome effort to alleviate insecurity and economic difficulty for self-employed parents, taking gender into account. We will conclude by considerations on the importance of economic security and the policies which could support this, in a context where many stress the fact that “boundaryless” or “nomadic” careers are the way of the future and that workers should simply adapt to this new context.

The Quality of Life in Hong Kong

The AsiaBarometer of 1,000 respondents shows that Hong Kong people have a great desire for materialistic attainment, and such an emphasis on materialism bodes ill for their quality of life. Negative assessments of the public life sphere, which encompasses the natural environment, the social welfare system, and the democratic system, also detract from the experiences of happiness, enjoyment, and accomplishment in Hong Kong. Surprisingly, access to digital communication devices helps Hong Kong people to experience a greater quality of life.

Measuring Changes in Family Wellbeing in New Zealand 1981–2001

Since the mid-1980s, New Zealand has experienced extensive economic, social and political reforms. The economic impact of these changes has been closely monitored and much commented upon. However, the social impacts of the reforms on different family types are less well understood. This paper outlines a project designed to monitor how the reforms impacted upon specific family types via the use of indicators of family wellbeing constructed from census data. These indicators show that for a range of family types, the reforms of the 1980s and 1990s varied in their impact, with single-parent families faring worst.

Child mortality, fertility, and human capital accumulation

This article analyzes the impact of decline in child mortality on fertility and economic growth. The study shows that the timing of mortality relative to education is crucial to implications of mortality decline. If child mortality is realized before education starts, an exogenous decline in child mortality leads to a decline in education—a finding that is opposite to those of studies that considered a decline in mortality after the cost of education has been incurred. The work also demonstrates the role of parental human capital in reducing child mortality and the causal link between rising education and declining child mortality.

How important is homeland education for refugees’ economic position in The Netherlands?

We use data on refugees admitted to The Netherlands that include registration of education in their homeland by immigration officers. Such data are seldom available. We investigate the quality and reliability of the registrations and then use them to assess effects on refugees’ economic position during the first 5 years after arrival. The most remarkable finding is the absence of returns to higher education.

Determinants of recent immigrants’ location choices: quasi-experimental evidence

This paper exploits a Danish spatial dispersal policy on refugees, which can be regarded as a natural experiment to investigate the influence of regional factors on recent immigrants’ location choices. The main push factors are lack of co-nationals and immigrants. Additional push factors are lack of rental, including social, housing and lack of institutions for qualifying education, which explain why recent immigrants are attracted to large cities. Finally, placed refugees tend to leave locations with relatively high regional unemployment, and there is indirect evidence of welfare seeking.

Does child gender affect marital status? Evidence from Australia

Pooling microdata from five Australian censuses, I explore the relationship between child gender and parents’ marital status. By contrast with the USA, I find no evidence that the gender of the first child has a significant impact on the decision to marry or divorce. However, among two-child families, parents with two children of the same sex are 1.7 percentage points less likely to be married than parents with a boy and a girl. This finding is unlikely to be consistent with theories of preference for sons over daughters, differential costs, role models, or complementary costs but is consistent with a theory of mixed-gender preference.

Large,But Adaptable? A Successful Population Policy and Its Long Term Effects

A restrictive population policy led to almost doubling the number of newborns from one year to another in Romania in the 1960s. Twenty years later, this large generation (of women) enters a marriage market with few eligible older mates, in a society where marriage is a must. In this article, I analyze this social experiment within the broader frame of the marriage squeeze/two sex models. Using various data from censuses and surveys, I argue that the marriage market is flexible even when is confronted with disproportionately large cohorts. If the social pressure toward marriage is strong, the marriage rates do not necessarily fall, but the mating age patterns change.

Public Policies and Suicide Rates in the American States

We are interested in the relationship between public policies and outcomes measuring quality of life. There is no outcome more final than the ending of one’s own life. Accordingly, we test the relationship between public policy regimes and suicide rates in the American states. Controlling for other relevant factors (most notably a state’s stock of social capital), we find that states with higher per capita public assistance expenditures tend to have lower suicide rates. This relationship is of significant magnitude when translated into potential lives saved each year. We also find that general state policy liberalism and the governing ideologies of state governments are linked to suicide rates. In response to a growing literature on the importance of non-political factors such as social connectedness in determining quality of life, these findings demonstrate that government policies remain important determinates as well.

Planned fertility and family background: a quantile regression for counts analysis

This paper examines how education and family background affect the fertility plans of young individuals in Mexico. Quantile regression for count data is used for the analysis. Results indicate that education and family structure affect planned fertility only at the tails of the conditional distribution. Education reduces planned fertility only among women with relatively strong preferences towards children. An absent father reduces planned fertility mostly at the bottom of the conditional distribution.