Welfare Attitudes and Social Expenditure: Do Regimes Shape Public Opinion?

This article examines the link between regime types, social expenditure, and welfare attitudes. By employing data on 19 countries taken from the World Values Survey, the main aim is to see to what degree the institutions of a country affect the attitudes of its citizens. According to Esping-Andersen (The three worlds of welfare capitalism. Polity Press, Cambridge, 1990) welfare regimes can be classified into Liberal, Conservative, and Social Democratic categories. With this as my point of departure, I put forward two research questions: the first concerns the direct influence of regime type on people’s attitudes; the second seeks to trace the contours of the regime types by arguing that both social expenditure and welfare attitudes are products of a country’s institutional arrangements. These questions are answered through regression modelling and by examining the interplay between welfare attitudes, social expenditure, and welfare regimes. First, we see that there are significant differences in aggregated attitudes between countries belonging to the Liberal and the Conservative regimes, with the former’s citizens holding more rightist views than those of the latter. This is explained by the history and organization of welfare benefits of the two variations of Esping-Andersen’s classification. Second, by graphing welfare attitudes against social expenditure the outline of the three regime types mentioned above may be seen. Similar correspondence is not found with regards to an Eastern European category. All in all, this study renders some support for the regime argument.     

Pay-as-you-go social security in a changing environment

In this paper, we examine the optimal pay-as-you-go social security scheme which reallocates resources across generations in a changing environment, that is, with fluctuations in population growth rates and in productivity levels. We use an overlapping generations model along with a social welfare function consisting of the sum of generational utilities either unweighted or weighted by population size and a discount factor. We show how intergenerational resource sharing can be used to improve social welfare even though the extent of intergenerational redistribution is hampered by payroll tax deadweight losses in the spirit of the optimal taxation literature. Also it appears that resource sharing is much more restricted in a closed economy that in an open economy, which is not subject to a national resource constraint at each period of time. This paper was presented at the 1990 ISPE-Conference on the Fiscal Implications of an Ageing Population, Vaalsbroek Castle, Netherlands. The authors wish to thank the participants and particularly B. van Praag and W. Peters for their comments. They also thank the two referees and Philippe Michel for very helpful comments and discussions. The financial support of CIM during his sabbatical year is greatly acknowledged by the second author.     

Does time preference change with age?

This study looks at compensating differentials in the National Longitudinal Survey of Youth (NLSY) to derive estimates of the levels of time preference for labor force participants in each of 15 waves of data from 1979 to 1994. With these estimates the evolution of time preference over the life course is described. Future utility among labor force participants appears to be valued more highly by subjects who are older, more schooled, white, or male. Controlling for schooling level, a higher IQ is associated with a preference for more immediate rewards.If social rates of time preference are correlated with individual rates of time preference then population aging could create intergenerational asymmetries in the social rate of time preference.This phenomenon could make the optimal investments of young populations appear selfish to future generations that are older.Support from Hopkins Population Center (R24) is gratefully acknowledged. I am thankful for helpful comments received from Jim Burgess, Mike Grossman, Bruce Hamilton, Fritz Laux, Athanasios Orphanides, Katie Roche, and Eric Slade. All errors are my own. Responsible editor: Alessandro Cigno.     

Increasing Inequality in Social Exclusion Occurrence: The Case of Sweden During 1979–2003

In this paper, we examine the risk of social exclusion among the Swedish population from a longitudinal perspective. In the empirical analysis, a person is considered socially excluded if he or she suffers from at least two of the following six welfare problems: chronic unemployment, economic problems, health problems, experiences of threat or violence, crowded housing and lack of interpersonal relationships. Our three main findings are as follows: There is no evidence that immigrants have been better integrated into Swedish society over time from the perspective of social exclusion risk. Instead, there are weak signs that their situation has become worse. Further, even though men are worse off than women as regards the odds for social exclusion, there are weak signs that their relative situation has improved over time. Finally, compared to couples without children, there is clear evidence that the odds for social exclusion for singles with children have increased over time and that the odds for social exclusion for couples with children have decreased over time. We can, therefore, conclude that among these groups, the inequality has increased over time. To be able to make these conclusions, we have fitted several specifications of a logistic regression model with random effects for panel data to our data set.     

Social time preference revisited

The article reconsiders the implications of the choice of pure social time preference for intergenerational equity in the presence of a time-consistent utilitarian social welfare criterion. The analytic framework is a setting with overlapping generations, lifetime uncertainty, population growth and technical progress. The analysis identifies upper and lower bounds for the feasible range of social discount rates and draws a corresponding distinction between “gerontocratic” and “Stalinist” optimal plans. The paper corrects a number of inaccurate propositions in a related earlier contribution by Marini and Scaramozzino (2000) to this journal.

Intergenerational Coresidence in Developing Countries

Newly available census microdata from IPUMS‐International are used to assess trends in intergenerational coresidence in 15 developing countries. Contrary to expectations, we find no general decline in intergenerational coresidence over the past several decades. There have been, however, significant changes in the configuration of intergenerational coresidence. Families in which a member of the older generation is household head—a configuration consistent with traditional patriarchal forms in which the older generation retains authority—are becoming more common in most of the countries. Intergenerational families headed by a member of the younger generation—the configuration one would expect if intergenerational coresidence were motivated by a need for old‐age support—are on the decline in most of the countries. Multivariate analysis reveals that intergenerational families headed by the older generation are positively associated with measures of economic development. These findings are at variance with widely accepted social theory. We hypothesize that housing shortages, economic stress in the younger generation, and old‐age pensions may contribute to the change. More broadly, in some developing countries rising incomes may have allowed more people to achieve their preferred family structure of intergenerational coresidence following traditional family forms.     

Lessons on aging: Hopes and concerns of Japanese women at midlife

ABSTRACT

Japan is leading the global trend of decreasing birth rates and the graying of society. In this study we examine women’s changing gender and intergenerational relationships and how these affect their concerns and hopes for their futures. Many of the 121 midlife women (aged 45–55) interviewed viewed themselves as sandwiched between their mothers-in-law and actual or potential daughters-in-law, at the nadir of intergenerational status within their families, in large part due to changing social patterns in marriage and birth rates. Doubts about the marriageability of their sons arising from role expectations for brides to care for parents-in-law cause concern for many and highlight the gendered and intergenerational nature of aging concerns. Yet, midlife in the 21st century, with changing gender and intergenerational roles, appears to create opportunities for many Japanese women to reflect on the meaning of the next stage of their lives. Changing gender and intergenerational relationships may contribute to their hopes to live a life of self-actualization and to be true to one’s self (jibun rashiku ikiru).     

Social security policy with public debt in an aging economy

This paper analyzes a social security policy with public debt in an overlapping generations growth model. In particular, the paper considers a situation in which population aging causes a heavy burden of social security payments where public debt is issued by the government to finance the payment. In the model presented below, an economy with an aging population may achieve two dynamically inefficient equilibria. Under certain conditions, the effects of pension reform and population aging on capital accumulation are entirely different between the two equilibria. Received: 23 July 2001/Accepted: 22 August 2002 I am deeply grateful to an anonymous referee and Professor A. Cigno, the Editor of this journal, for their valuable comments and suggestions. I am also grateful to Kazuyo Tanimoto and Kiheiji Nishida for their research assistance. Any remaining errors are my own. The research reported here was conducted as part of a larger study, the “Project on Intergenerational Equity” at the Institute of Economic Research, Hitotsubashi University. Financial support from Kani Hoken Bunka Zaidan is also gratefully acknowledged. Responsible editor: Alessandro Cigno.     

Population growth with variable family size

The Sharpe‐Lotka continuous time deterministic model of population growth is developed to take account of some possible forms of mother‐daughter fertility association, characterised here by a bivariable measure, A. This leads to a linear double integral equation for which, subject to certain conditions, a finite time solution can be found by Laplace transform methods and thus also model specific results relating the intergenerational fertility effect to the long term population growth rate and magnitude are established. The quantitative implications of the theory are illustrated by a consideration of a general bilinear form of A and in this context numerical results illustrating the finite time growth and also the long term distribution of fertility levels in the stable female population are obtained. In particular, it is shown that different fertility specific subpopulations can coexist indefinitely.     

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.

Optimal age of retirement and population growth

The purpose of this paper is to study intergenerational optimal resources sharing when the social planer can choose the retirement age in addition to consumptions and investment. We use the extension of the Diamond analysis by Hu [1979] that incorporates endogenous retirement age. We found that the optimal retirement age is an increasing function of the population growth rate if the elasticity of substitution of old agents' labor for young agents' labor is lower than one. In the millian case, when the size of a population does not matter, and when the elasticity of substitution of old agents' labor for young agents' labor is strictly higher than one, the optimal retirement age is a decreasing function of the population growth rate. In the benthamite case, the change in the optimal retirement age is indeterminate. Received: 19 February 1999/Accepted: 27 February 2001 All correspondence to Bertrand Crettez. We would like to thank Jean-Pierre Vidal for very helpful comments on an earlier draft. An anonymous referee provided insightful comments on a previous version of this paper. Responsible editor: Alessandro Cigno.     

The estimation of small town aboriginal population change

In forecasting the effects of large-scale development projects on small town communities there is a need to consider the Aboriginal component of the population separately, not least to ensure the success of government policies regarding social welfare and Aboriginal advancement. This paper outlines some of the methodological and conceptual issues associated with the estimation of Aboriginal population change in the rapidly growing town of Katherine, in the Northern Territory, and reports on selected social and economic impacts of recent in-migration. Attention is drawn to the inappropriateness ofde facto population figures as a basis for planning and the need to estimate service requirements in the context of high population mobility.     

Beyond Transmission: Intergenerational Patterns of Family Formation Among Middle-Class American Families

Research about parental effects on family behavior focuses on intergenerational transmission: that is, whether children show the same family behavior as their parents. This focus potentially overemphasizes similarity and obscures heterogeneity in parental effects on family behavior. In this study, we make two contributions. First, instead of focusing on isolated focal events, we conceptualize parents’ and their children’s family formation holistically as the process of union formation and childbearing between ages 15 and 40. We then discuss mechanisms likely to shape these intergenerational patterns. Second, beyond estimating average transmission effects, we innovatively apply multichannel sequence analysis to dyadic sequence data on middle-class American families from the Longitudinal Study of Generations (LSOG; N = 461 parent-child dyads). The results show three salient intergenerational family formation patterns among this population: a strong transmission, a moderated transmission, and an intergenerational contrast pattern. We examine what determines parents’ and children’s likelihood to sort into a specific intergenerational pattern. For middle-class American families, educational upward mobility is a strong predictor of moderated intergenerational transmission, whereas close emotional bonds between parents and children foster strong intergenerational transmission. We conclude that intergenerational patterns of family formation are generated at the intersection of macro-structural change and family internal psychological dynamics.     

Thinking about several problems of the research of our family planning strategy]

On the basis of 1982 census data, it is estimated that from 1987-1997 13 million women will enter the age of marriage and child-bearing each year. The tasks of keeping the population size around 1.2 billion by the year 2000 is arduous. Great efforts have to be made to continue encouraging one child/couple, and to pursue the current plans and policies and maintain strict control over fertility. Keeping population growth in pace with economic growth, environment, ecological balance, availability of per capita resources, education programs, employment capability, health services, maternal and child care, social welfare and social security should be a component of the long term development strategy of the country. Family planning is a comprehensive program which involves long cycles and complicated factors, viewpoints of expediency in guiding policy and program formulation for short term benefits are inappropriate. The emphasis of family planning program strategy should be placed on the rural areas where the majority of population reside. Specifically, the major aspects of strategic thrusts should be the linkage between policy implementation and reception, between family planning publicity and changes of ideation on fertility; the integrated urban and rural program management relating to migration and differentiation of policy towards minority population and areas in different economic development stages. In order to achieve the above strategies, several measures are proposed. (1) strengthening family planning program and organization structure; (2) providing information on population and contraception; (3) establishing family planning program network for infiltration effects; (4) using government financing, taxation, loan, social welfare and penalty to regulate fertility motivations; (5) improving the system of target allocation and data reporting to facilitate program implementation; (6) strengthening population projection and policy research; (7) and strengthening training of family planning personnel to improve program efficiency.     

Rawlsian optimal population size

In this paper, I examine the implications of the Rawlsian maximin criterion for optimal population size and intergenerational allocation of resource when fertility is endogenous. I show that whenever children are better-off than their parents in laissez-faire, then the size of the population and parental bequests are also optimal according to the Rawlsian criterion. Otherwise, laissez-faire leads to overpopulation and suboptimal bequests. I then show that by using proper price-based corrective policies, society can achieve a Rawlsian optimal allocation. These policies involve either a combination of a subsidy to aggregate future consumption and a per-capita tax on children, or a subsidy to average future consumption.For their comments, I thank two anonymous referees. I also thank Assaf Razin and Efraim Sadka for their comments on an earlier draft.     

Farm Dependence and Population Change in China

The existing literature has documented a negative association between farm dependence and population change in Western countries. Theories have also been proposed to explain such a negative association. Whether prior findings based on the western social context can be generalized to less developed countries, such as China, has largely eluded researchers. Using five waves of Chinese Census data and data from China’s Statistical Yearbooks, I investigate the dynamics between farm dependence and population change, particularly, in counties of Chinese provinces that are highly dependent on farms. I find that after controlling for mechanization, nonfarm industries and the human ecological factors that are rooted in the theoretical explanations of rural population change, high farm dependence does not necessarily lead to a lower population growth. The results imply that the existing theories on farm dependence and population change may need to be modified when being applied to less developed regions. The regional variation approach is proposed to understand population change in high-farm-dependent areas of China.     

Durable consumption,saving and retirement

Durables yield services through life but are also a store of value and both features may have important implications for savings and retirement decisions. Durables also affect bequests and thus induce intergenerational transfers. We show that allowing explicitly for durables has important implications for retirement decisions and responses to various changes in the environment. An improvement in the possibility of freeing housing capital makes the old retire earlier (income effect) while the young plan to retire later since they increase housing demand and reduce financial savings. Considering welfare in stationary equilibrium, we find that a reduction in wealth locking-in in durables is not necessarily welfare improving due to the effects on bequests. From a social welfare perspective, individuals tend to choose too much financial savings, too little durable acquisition and too early retirement.     

Bringing the state in: A commentary on welfare states and social inequality

A long and extensive line of welfare state research reveals that the state is both a cause and consequence of social stratification. However, the findings of this research have largely been ignored in the literature on social stratification and mobility. Similarly, welfare state scholars largely work without reference to the research on social stratification and mobility. The papers presented in the volume are an important first step towards integrating the literatures these complementary literatures. In this commentary, I push these articles further by revealing linkages between the papers that are not fully developed in papers themselves. In particular, I highlight two ways in which the papers in this issue can be productively linked to raise new questions or provide new insight into old problems. I then discuss the reasons why and productive ways in which these two large and stand-alone literatures can be integrated. I end the commentary with a section describing productive avenues for future research that integrates both literatures.     

On the distribution of completed parities when fertility is heritable

Over the last one hundred years, there has been, in many developed countries, a demographic convergence towards the two child family. The possible implications for population growth of such a tendency are considered in this paper in terms of both family limitation and also the intergenerational transmission of fertility. These two effects interact so that as the proportion of two‐child families increases, the possible influence of mother‐daughter fertility associations on population growth decreases, though even now it could override otherwise significant changes in either or both of the birth and death intensities. In particular, it is shown that according as to how fertility is transmitted through generations, it is still possible to have zero growth rates consistently with a widely dispersed stable distribution of family size as well as a typical mortality regime.     

How Durable Are Ethnoracial Segregation and Spatial Disadvantage? Intergenerational Contextual Mobility in France

Building on emerging research into intergenerational contextual mobility, I use longitudinal data from France (1990–2008) to investigate the extent to which second-generation immigrants and the French majority continue to live in similar neighborhood environments during childhood and adulthood. To explore the persistence of ethnoracial segregation and spatial disadvantage, I draw on two measures of neighborhood composition: the immigrant share and the unemployment rate. The analysis explores the individual and contextual factors underpinning intergenerational contextual mobility and variation across immigrant-origin groups. The results document a strong stability of neighborhood environments from childhood to adulthood, especially with regard to the ethnoracial composition of the neighborhood. Individual-level factors are quite weak in accounting for these patterns compared with the characteristics of the city of origin. Moreover, the degree of contextual mobility between childhood and adulthood varies across groups. I find that neighborhood environments are more stable over time for non-European second-generation immigrants. The findings offer important new empirical contributions to the French literature on the residential segregation of immigrants and will more broadly be of interest to scholars of intergenerational spatial and social mobility.