Understanding changes in Māori incomes and income inequality 1997–2003

This paper examines recent changes in weekly income levels and dispersion for Māori, New Zealand’s indigenous ethnic group. Changes in the Māori income distribution between 1997 and 2003 reflect rapid increases in economic growth and employment rate. A reduced proportion of people had zero or benefit-level incomes and a higher proportion had high incomes. Income inequality declined for working-aged Māori and was stable for employed Māori. The average income gap between Māori and Europeans declined. The increased Māori employment rate during this period was the single most important driver of changes in the Māori income distribution.

An Empirical Test of a Neo-Malthusian Theory of Fertility Change

Some neo-Malthusians regard fertility as being kept in check by scarcities and constraints and, conversely, as being raised by economic prosperity. Since out-migration to developed countries and the receipt of food aid from developed countries relax the constraints imposed by a country’s carrying capacity, both will have a positive effect on fertility rates in developing countries. Moreover, better economic prospects will also raise fertility, all other things equal. This article provides an empirical test of these hypotheses derived from a neo-Malthusian theory of fertility change. The results fail to confirm the theory and often contradict it.

Sibling size and investment in children’s education: an asian instrument

This study estimates the trade-off between child quantity and quality by exploiting exogenous variation in fertility under son preferences. Under son preferences, both sibling size and fertility timing are determined depending on the first child’s gender, which is random as long as parents do not abort girls at their first childbearing. For the sample South Korean households, I find strong evidence of unobserved heterogeneity in preferences for child quantity and quality across households. The trade-off is not as strong as observed cross-sectional relationships would suggest. However, even after controlling for unobserved heterogeneity, a greater number of siblings have adverse effects on per-child investment in education, in particular, when fertility is high.

The influence of wages on parents’ allocations of time to child care and market work in the United Kingdom

We use time-diary data on couples with children from the 2000 United Kingdom Time Use Survey to examine the impacts of own and partner’s wages on parents’ provision of child care and market work on weekdays and on weekends and holidays. We find that increases in partners’ wages increase women’s primary care on all days and decrease their market work on weekdays, while increases in women’s own wages increase their market work on weekdays. There is little evidence that men’s time use responds to changes in their own wages. However, an increase in men’s partners’ wages increases men’s passive child-care time on weekends and reduces their market-work time on weekends.

The transition to lower fertility in the West Bank and Gaza Strip: evidence from recent surveys

Using recent data from three national-level surveys conducted in 1995, 2000, and 2004, we provide evidence that Palestinian fertility rates in the West Bank and Gaza Strip, historically among the highest in the world, began to slow especially in the West Bank, but stalled in Gaza during the recent Intifada. The TFR in the early 2000s was 4.6 per woman, down from 6.2 a decade earlier. However, most of the decline in Gaza’s fertility appears to have taken place during the early 1990s, before the onset of the second Intifada. In Gaza, the TFR decreased from 7.4 to 5.7 during the 1990s, but changed only slightly to 5.6 during the second Intifada period. Surprisingly, contraceptive prevalence has not changed during these years, and the transition to lower fertility was mainly due to changes in nuptiality. Demand for children remains high, although there is evidence of unmet need for contraception. The continuing conflict and worsening economic situation provide clues to the persistence of high fertility among Palestinian women.

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.

On voters’ attitudes towards unemployment insurance subsidies across regions: a Canadian simulation

The Canadian unemployment insurance program is designed to reflect the varying risk of joblessness across regions. Regions that are considered low-risk areas subsidize higher-risk ones. A region’s risk is typically proxied by its relative unemployment rate. We use a dynamic, heterogeneous-agent model calibrated to Canada to analyze voters’ preferences between a uniformly generous unemployment insurance and the current system with asymmetric generosity. We find that Canada’s unusual unemployment insurance system is surprisingly close to what voters would choose in spite of the possibilities of shirking and self-insurance through asset buildup.

Child support and non-resident fathers’ contact with their children

The paper presents a model of a non-resident father’s child support and contact with his child, which combines the public good treatment of “child quality” with “trade” in father–child contact time in a setting of non-cooperative interaction. It predicts that father’s income and mother’s non-labour income should have exactly the same effect on the frequency of father–child contact if he chooses to make lump sum payments to the mother. If he does not or there is a binding child support payment order, they have effects opposite in direction. A higher binding support order reduces father–child contact but may well raise “child quality”.

Does parents’ valuation of children’s health mimic their valuation of own health?

A single latent variable model of health status and therapeutic health care utilization is estimated for parents and own children of 6,557 US households. The equation system that identifies latent health status simultaneously determines a number of indicators of general health, including presence of morbidity symptoms, mobility limitations, medication needs, and utilization of therapeutic health care services. The main goal of the paper was to obtain an unbiased estimate of parents’ marginal substitution rate between own and child health. Results indicate that parents’ valuation of their children’s health exceeds their valuation of own health by almost twofold on average.

Personality traits and gender-specific income expectations in Dutch higher education

In this article we examine gender differences in income expectations of students in higher education. We found quite large gender differences. Men and women differ significantly in the income they expect to earn at the top of their career. We examined how much personality traits contribute to explain gender differences in income expectations, and to what extent personality typologies can add to insights about earnings potential derived from human capital theory. The research shows that personality does affect expected income, that impact goes beyond personality’s indirect effects, which are conveyed largely through gender differences and students’ choice of study subject.

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.

Birth order matters: the effect of family size and birth order on educational attainment

Using the British Household Panel Survey, we investigate if family size and birth order affect children’s subsequent educational attainment. Theory suggests a trade-off between child quantity and “quality” and that siblings are unlikely to receive equal shares of parental resources devoted to children’s education. We construct a new birth order index that effectively purges family size from birth order and use this to test if siblings are assigned equal shares in the family’s educational resources. We find that the shares are decreasing with birth order. Ceteris paribus, children from larger families have less education, and the family size effect does not vanish when we control for birth order. These findings are robust to numerous specification checks.

The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism

This paper tests the impact of various determinants of the preference for two key elements of the European social models: redistribution and trade unions, using individual data from the first round of the European Social Survey. The basic hypothesis is that the main determinant of an individual’s support for these elements of the European models is the social position of the individual in terms of income, status and risks attached to their labour market insertion. The paper also considers the relative importance of less ‘materialist’ influences such as religion or other cultural determinants. The estimations show that ‘materialist’ determinants are by far the most important influences on individual preferences, contrary to what most social theories of modernisation contend.

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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.

Extremism within the family

This paper considers an economic analysis of intergenerational transition of ethnic and social trait. We consider the level of social traits chosen by parents and its effect on their children’s choice of ethnic and social traits when reaching adulthood. We develop a theory that suggests that parents will chose extreme ethnic and social traits to increase the cost that their children will pay if they wish to deviate from their parents’ “ideal.” The extreme choice of the ethnic social traits of parents has an effect on the segregation of minorities and migrants.

Labor market institutions and demographic employment patterns

We study collective bargaining’s effect on relative employment for youth, women, and older individuals. Our model of collective wage setting predicts that unionization reduces employment more for groups with relatively elastic labor supply: youth, older individuals, and women. We test this implication using data from 17 Organization for Economic Cooperation and Development (OECD) countries over the 1960–1996 period. We find that time-varying indicators of unionization decrease the employment–population ratio of young and older individuals relative to the prime-aged, and of prime-aged women relative to prime-aged men, and unionization raises the unemployment rate of prime-aged women and, possibly, young men compared to prime-aged men.

Are Father’s or Mother’s Socioeconomic Characteristics More Important Influences on Student Performance? Recent International Evidence

Since the early 1970s the importance of mothers’ socioeconomic characteristics on their children’s educational and occupational attainment has been acknowledged. However, it is not clear if fathers’ characteristics have a stronger influence because men usually have stronger attachments to the labour market, or alternatively mothers’ characteristics are more important because of their greater role in children’s socialization. This study addresses this question by comparing the influence of father’s and mother’s education and occupation on student performance in literacy and numeracy using data from 30 countries. The impact of mother’s education is usually greater or comparable to that of father’s education. In contrast, substantially stronger effects for mother’s occupational status compared to father’s were rare. In most countries the impact of mother’s socioeconomic characteristics (education plus occupation) on student performance is comparable to that for father’s. Of the four indicators of socioeconomic background, father’s occupational status and mother’s educational attainment tend to have stronger effects, although many countries do not conform to this pattern. There are indications that the relative importance of mother’s characteristics have increased over time.

Dropping out of post-compulsory education in the UK: an analysis of determinants and outcomes

We analyse the decision to drop out of post-compulsory education over the period 1985–1994 using data from the Youth Cohort Surveys. We show that the dropout rate declined between 1985 and 1994, in spite of the rising participation rate in education, but is still substantial. Dropping out is more or less constant over the period of study, though the risk of dropout does vary with young people’s prior attainment, ethnicity, family background and the state of the labour market. The course of study has a substantial effect on the risk of dropout.

The effect of longevity on schooling and fertility: evidence from the Brazilian Demographic and Health Survey

This paper presents microevidence on the effect of adult longevity on schooling and fertility. Higher longevity is systematically associated with higher schooling and lower fertility. The paper looks at the 1996 Brazilian Demographic and Health Survey and constructs an adult longevity variable based on the mortality history of the respondent's family. Families with histories of high adult mortality in previous generations have systematically higher fertility and lower schooling. These effects are not associated with omitted variables and remain unchanged after a large array of factors is accounted for (demographic characteristics, family-specific child mortality, regional development, socioeconomic status, etc.).

Population Density is a Key Factor in Declining Human Fertility

In studying the complex determinants of human fertility, social scientists have given little attention to population density, although reproduction has been shown to be density-dependent for a wide variety of other species. Using fixed effects models on the time series of 145 countries and controlling for key social and economic variables, we find a consistent and significant negative relationship between human fertility and population density. Moreover, we find that individual fertility preferences also decline with population density. These findings suggest that population density should be included as a variable in future studies of fertility determinants.