Welfare analysis of a tax reform for Germany: a comparison of the unitary and collective models of household labour supply

We compare results of a tax reform analysis obtained with the collective and unitary models of household behaviour. We simulate real world micro-data by means of a collective approach, using a compound procedure of estimation and calibration based on the 1998 wave of the German socio-economic panel. We estimate a unitary model on this ‘collective’ data set. Investigating a move from joint to individual taxation on the basis of both models, we obtain important discrepancies between predicted adjustments to labour supply and distortions in the welfare analysis of the reform on the basis of unitary estimates.      

Household production in a collective model: some new results

Household models estimated on labour supplies alone generally assume non-market time to be pure leisure. Previous work on collective household decision-making is extended here by taking domestic work into account in the Chiappori et al. (J Polit Econ 110(1):37–72, 2002) model. Derivatives of the household “sharing rule” can then be estimated in a similar way. Using the 1998 French Time-Use Survey, we compare estimates of labour supply functions assuming first that non-market time is pure leisure and then taking household production into account. The results are similar but more robust when household production is included. Collective rationality is rejected when domestic work is omitted.     

The cost of children: May the collective approach to household behavior help?

The collective approach to household consumption behavior tries to infer from variables supposed to affect the general bargaining position of household members information on the allocation of consumptions goods and tasks among them. This paper investigates the extension of previous work to the case where children may be considered as a public consumption good by the two adult members of a household. The main question being asked is whether it is possible to retrieve from the aggregate consumption behaviour of the household and the relative earnings of the parents information on the allocation of goods between them and children. This alternative approach to the estimation of the ‘cost of children’ is contrasted with the conventional approach based on a ‘unitary’ representation of and demographic separability assumptions on household consumption behaviour. Received: 29 August 1997/Accepted: 26 November 1998     

Integrating Census Data to Support a Motion for Change of Venue

This applied demography case study illustrates the practical application of demographic concepts and methods to an issue facing the court. We show how census data can be used to support a legal motion for a change of venue. “Change of venue,” the legal term for moving a trial to a new location, usually is sought to avoid prejudice against one of the parties to a lawsuit. The case study will interest demographic practitioners, and it can be used as an instructional case in teaching applied demography: students can replicate it using data for any particular pair of populous metropolitan communities. By doing so, students would gain proficiency working with Public Use Microdata Sample (PUMS) household records—and the person records within household records—to identify and categorize family and nonfamily relationships among household members, and practical experience translating legal issues into questions that can be answered empirically using American Community Survey (ACS) data.     

Time Poverty Thresholds and Rates for the US Population

Time constraints, like money constraints, affect Americans’ well-being. This paper defines what it means to be time poor based on the concepts of necessary and committed time and presents time poverty thresholds and rates for the US population and certain subgroups. Multivariate regression techniques are used to identify the key variables associated with discretionary time and time poverty. The data confirm the idea that individuals in households with children have less discretionary time and are thus more likely to be time poor than those in households without children. Controlling for other household characteristics, an additional child reduces a household adult’s daily discretionary time by 35 min. Surprisingly, while one might expect the necessary and committed activities required of an individual to be less in a two-adult household with children than in a one-adult household with children because child care can be shared, the data show that the presence of such a second adult only marginally reduces the necessary and committed time burden of an individual household member. Perhaps even more surprisingly, household income is not a statistically significant correlate of discretionary time or time poverty.     

Labor Migration,Remittances and Economic Well-being of Households in the Philippines

Labor Migration has long been viewed as a strategy adopted by the household unit to allocate family resources rationally to increase the flows of income and to raise family standard of living. The research reported here examines the extent to which remittances sent by Filipino overseas workers increase the income and standard of living of households in the Philippines. Data for the analysis were obtained from a representative sample of 2,388 households drawn in 1999–2000 from four major “labor sending” areas in the Philippines. The analysis compares households with and without overseas workers to estimate the contribution of remittances to household income and to household standard of living (measured once by an ‘objective’ indicator and once by a ‘subjective’ assessment). The data reveal that due to remittances the income of households with overseas labor migrants is considerably higher than the income of households without overseas workers. The data also reveal that remittances are used mostly for consumption purposes (e.g. purchase of food, clothing, education, and goods) and that most of the difference in standard of living (whether measured on the ‘objective’ or the ‘subjective’ scale) between households with and without overseas workers are attributed to remittances. The implications of labor migration and the policy that encourages and supports labor migration for the Filipino society are evaluated and discussed.

A collective model for female labour supply with non-participation and taxation

This paper presents a collective discrete-choice model for female labour supply. Preferences of females and the intra-household allocation process are both econometrically identified. The model incorporates non-participation and non-linear taxation. It is applied to Belgian micro-data and is used to evaluate two revenue-neutral versions of the 2001 Tax Reform Act. We find small positive behavioural responses to the reforms. The reforms are not unambiguously welfare-improving. Generally, the first revenue-neutral reform (the actual reform and a household lump-sum tax) is more beneficial to females in couples than the second (the actual reform and a proportional decrease of household disposable incomes).

Gender discrimination and efficiency in marriage: the bargaining family under scrutiny

We consider a repeated family bargaining model that links the topics of employment and households. A key aspect of the model is that marital bargaining power is determined endogenously. We show that: (1) the efficiency of household decisions is sometimes inversely related to the prevailing degree of gender discrimination in labor markets; (2) women who are discriminated against have difficulty enforcing cooperative household outcomes because they may be extremely limited to credibly punish opportunistic behavior by their male partners; (3) the likelihood that sharing rules such as “equal sharing” are maintained throughout a marriage relationship is highest when men and women face equal opportunities in labor markets. Responsible editor: Deborah Cobb-Clark     

The decisions of Spanish youth: A cross-section study

This paper presents a simultaneous model for the joint decisions of working, studying and leaving the parental household by young people in Spain. Using cross-section data from the 1990–1991 Encuesta de Presupuestos Familiares, the model is estimated by a two stage estimation method. Endogeneity of the three decisions proves to be important in order to understand the dynamics of household formation. Our results also confirm a number of plausible intuitions about the effect of individual characteristics and economic variables on these decisions, and provide some new insights into the reasons for young people in Spain remaining in large numbers in the parental home. Most of the results are gender independent. Received: 18 September 1998/Accepted: 24 October 2000     

Running hard and falling behind: a welfare analysis of two-earner families

This paper investigates the commonly asserted proposition that long term economic changes have put the family in a financial bind. Structural parameters of a family utility model are obtained by estimating simultaneous labor supply functions for a two-earner household. We find evidence indicating that the average 1990‘s two-earner family would prefer to receive the 1980‘s real wage package (were it available) instead of the real wage package it actually faces. The degree to which the 1990‘s family is worse off (in terms of the changes in the real wage package) is roughly equivalent to an hour of leisure per week. Received September 25, 1995 / Accepted February 5, 1997     

Types and Forms of Non-daily Commuting in Italian Population

The changes concerning the household’s structure have contributed to the coming out of new households’ forms: in particular the “mobile” household is a type very interesting, because of dimensions that the family commuting is achieving in Italy. The Multipurpose survey on “Households, Social subjects and Childhood condition” carried out in June 1998, has allowed for the first time to collect useful information to describe not only the forms that this phenomenon has in Italy but also those subjects being more frequently involved by it.     

关于一元户籍制度改革的农民态度调查研究——以荆门市掇刀区为例

荆门市掇刀区是湖北省户籍制度改革的试点区之一。本文对荆门市掇刀区一元户籍改革中的农民态度及影响因素进行调查与分析,得出三个方面的结论:其一,农村居民普遍支持户籍制度改革;其二,影响农民态度的因素主要有政策因素、保障因素、经济因素和城市吸引因素;其三,农民最关心的是政策因素的影响,改革不是一蹴而就的,需要一个渐进式的发展过程。本文提出相关政策建议,以期深化一元户籍改革,推动城乡一体化建设。     

Changes in household formation and composition in China since the mid-twentieth century

China has experienced great changes in household formation and composition since the mid-twentieth century, and its mean size of households has fallen from 54 persons in 1947 to 3.1 in 2005. Many of these changes, especially those taking place in the early years of the People’s Republic, have not been systematically investigated. This paper examines the impact of China’s major political, social, demographic and economic changes on household formation and composition. The study shows that changes in Chinese households have not followed a simple linear trajectory, but shown, considerable fluctuations. A drastic increase in the number of households and a sharp reduction in the mean size of households were recorded after the land reform in the early 1950s. In the next twenty years, high fertility was promoted by a generally pronatalist environment, and the mean size of households increased. Since the early 1970s, the nationwide family planning campaign has led to a rapid fertility decline and great chanes in kinship structure. The recent rise in rural-urban migration has also resulted in many unprecedented changes, and they have become major forces affecting household formation and family life in contemporary China.     

Poverty Is Low Consumption and Low Wealth,Not Just Low Income

The purpose of this paper is to suggest an improved measure of financial poverty, based on household consumption and wealth as well as income. Data come from the Household, Income and Labour Dynamics Australia (HILDA) Survey, which appears to be the first national socio-economic panel survey to provide longitudinal data on all three measures of household economic well-being. National measures of poverty in Australia and other Western countries are usually based only on low income. But this is conceptually incorrect; the measures lack validity. To be poor is to have a low material standard of living—involuntarily. So measures of poverty should also take account of household consumption and wealth. If a household has an adequate current level of consumption, it should not be classified as poor right now, even if its current income is low. Similarly, if it has substantial wealth (net worth), it should not be viewed as poor because it could draw down on wealth to boost current consumption. The invalidity of income-based measures has long been recognised in principle (Ringen 1987, The possibility of politics. Oxford: Clarendon Press). In practical terms, the problem is to combine measures of wealth and income, and especially consumption, in the same survey. In the 2005 HILDA Survey a battery of household expenditure items was included which, benchmarked against the Australian Bureau of Statistics’ Household Expenditure Survey for 2003–04, appeared to provide valid measurement of 53.4% of total household expenditure. These well measured items correlated 0.76 with total expenditure and, in combination with standard demographic variables, accounted for 78.3% of the variance in the total. This paper uses 2005–06 HILDA data to construct revised measures of financial poverty. The value of these measures for public policy and research purposes is illustrated. In particular, the new measures give much lower estimates of poverty than income-based measures. They can also be used to predict which households are at risk of future poverty.

Temporal and Spatial Evolution Models in Local Reform in Household Registration System and Their Implications

In the process of reform on China’s household registration system after 1978, local governments have gradually taken the role of the central government, becoming the main driving forces of the reform. They have shaped the new trend of the reform by adopting different policies for different households. Examining local reform practices is, therefore, important for further relevant reforms. By sorting a large amount of laws and regulations issued by local governments about the reform on household registration system, and highlighting four polices (namely, temporary residence certificate system, blue seal household register, reform on household registration system of towns, and talents residential certificate system), this paper analyzes the temporal and spatial evolutive trajectory and rules , from the perspective of diffusion, explores the proliferation laws, and provides policy implications.     

An Evaluation of Persons per Household (PPH) Estimates Generated by the American Community Survey: A Demographic Perspective

The American Community Survey (ACS) is a U.S. Census Bureau product designed to provide accurate and timely demographic and economic indicators on an annual basis for both large and small geographic areas within the United States. Operational plans call for ACS to serve not only as a substitute for the decennial census long-form, but as a means of providing annual data at the national, state, county, and subcounty levels. In addition to being highly ambitious, this approach represents a major change in how data are collected and interpreted. Two of the major questions facing the ACS are its functionality and usability. This paper explores the latter of these two questions by examining “persons per household (PPH),” a variable of high interest to demographers and others preparing regular post-censal population estimates. The data used in this exploration are taken from 18 of the counties that formed the set of 1999 ACS test sites. The examination proceeds by first comparing 1-year ACS PPH estimates to Census 2010 PPH values along with extrapolated estimates generated using a geometric model based on PPH change between the 1990 and 2000 census counts. Both sets of estimates are then compared to annual 2001–2009 PPH interpolated estimates generated by a geometric model based on PPH from the 2000 census to the 2010 census. The ACS PPH estimates represent what could be called the “statistical perspective” because variations in the estimates of specific variables over time and space are viewed largely by statisticians with an eye toward sample error. The model-based PPH estimates represent a “demographic perspective” because PPH estimates are largely viewed by demographers as varying systematically and changing relatively slowly over time, an orientation stemming from theory and empirical evidence that PPH estimates respond to demographic and related determinants. The comparisons suggest that the ACS PPH estimates exhibit too much “noisy” variation for a given area over time to be usable by demographers and others preparing post-censal population estimates. These findings should be confirmed through further analysis and suggestions are provided for the directions this research could take. We conclude by noting that the statistical and demographic perspectives are not incompatible and that one of the aims of our paper is to encourage the U.S. Census Bureau to consider ways to improve the usability of the 1-year ACS PPH estimates.     

Housing Adjustment Among Immigrants in Israel: Application of Complementary Non-Metric and Metric Techniques

This study applies two different complementary statistical techniques to examine the structure and determinants of homeownership and consumption of household goods among immigrants in Israel. Findings from partial-order analysis (POSAC) reveal significant differences between immigrant groups by type, rather than level, of household characteristics. Suppliers of entertainment (television) and of information-communication (computer) are the items that most strongly distinguish between immigrants. The joint direction of the partially ordered space corresponds with home and car ownership. Immigrant groups are dispersed in different parts of the household typology; with increased duration of residence in Israel immigrants move, albeit in varied rhythms, toward improved housing conditions. A complementary logistic regression analysis, which controls for socio-demographic variation and detailed tenure in Israel, show a likelihood of convergence of immigrants from all origin countries with the core native-born group in owning a home. For other household goods, the findings largely coincide with the typology derived from POSAC. The findings are discussed in reference to three conceptual expectations of “cultural norms”, “adjustment”, and “structural-environmental considerations”.

农民工入户意愿及其影响因素研究——基于2009年广东省农民工调查数据分析

本文运用logit统计模型,在广东省农民工入户政策的改革背景下,分析上层农民工群体的入户意愿及其影响因素。研究发现,入户意愿是农民工个体权利的合理化表达,其背后隐藏的是经济诉求、生活保障、权益表达等劳动力再生产的综合需求。是否拥有责任田、在本城市工作年限、是否有亲戚在工作地、对城市的归属感和生活的安定感是影响上层农民工入户意愿的主要因素,而受教育年限、收入和工作级别等因素对他们入户意愿的影响并不显著。     

Personal Wellbeing Index in a National Cohort of 87,134 Thai Adults

Satisfaction with life correlates with other measures of subjective wellbeing and correlates predictably with individual characteristics and overall health. Social indicators and subjective wellbeing measures are necessary to evaluate a society and can be used to produce national indicators of happiness. This study therefore aims to help close the gap in wellbeing data for Thailand. The specific aims are to: (1) calculate the Thai PWI and domain scores using a large scale sample; (2) examine the level of life satisfaction of Thais when compared to international standards; (3) examine the Thai PWI and domains in relation to demographic, socioeconomic, and geographic characteristics. Our report derives from the findings on the Personal Wellbeing Index (PWI) in a large national cohort of Sukhothai Thammathirat Open University adult students living all over Thailand (n = 87,134). This Thai cohort had an overall PWI of 70.0 on a scale from 0 to 100 which is consistent with Western populations. The ‘spirituality and religion’ domain had the highest average score. ‘Standard of living’, ‘future security’ and ‘achievement in life’ made the largest contribution to overall ‘satisfaction in life as a whole’. These domains also show a positive trend with increasing age, being married, higher income, more education, more household assets, and rural residence. The PWI will be an important tool for policymakers to understand the subjective wellbeing of population groups especially as Thailand is undergoing a political and economic transition.