The impact of children on household saving: Age effects versus family size

Summary This paper extends a recent article by Allen Kelley, 'Population Growth, the Dependency Rate, and the Pace of Economic Development', published in Population Studies, 27, 3. Its objectives are threefold: (1) to point out that Kelley's earlier assessment of the effect of family size on household savings rates turns on somewhat arbitrary methods of computation and is altered when more conventional procedures are used, (2) to argue that in modern American society the savings behaviour of families may be tied more to the ages of the children than to their number, and (3) to provide some comparative evidence which tends to substantiate Kelley's conjecture that the way and extent to which children influence household savings patterns depends upon the underlying level of economic development.     

The impact of children on household saving: Age effects versus family size

This paper extends a recent article by Allen Kelley, ‘Population Growth, the Dependency Rate, and the Pace of Economic Development’, published in Population Studies, 27, 3. Its objectives are threefold: (1) to point out that Kelley's earlier assessment of the effect of family size on household savings rates turns on somewhat arbitrary methods of computation and is altered when more conventional procedures are used, (2) to argue that in modern American society the savings behaviour of families may be tied more to the ages of the children than to their number, and (3) to provide some comparative evidence which tends to substantiate Kelley's conjecture that the way and extent to which children influence household savings patterns depends upon the underlying level of economic development.     

Family boundary ambiguity and the measurement of family structure: the significance of cohabitation

We used data from the first wave of the National Longitudinal Study of Adolescent Health to examine family boundary ambiguity in adolescent and mother reports of family structure and found that the greater the family complexity, the more likely adolescent and mother reports of family structure were discrepant. This boundary ambiguity in reporting was most pronounced for cohabiting stepfamilies. Among mothers who reported living with a cohabiting partner, only one-third of their teenage children also reported residing in a cohabiting stepfamily. Conversely, for those adolescents who reported their family structure as a cohabiting stepfamily, just two-thirds of their mothers agreed. Levels of agreement between adolescents and mothers about residing in a two-biological-parent family, single-mother family, or married stepfamily were considerably higher. Estimates of the distribution of adolescents across family structures vary according to whether adolescent, mother, or combined reports are used. Moreover, the relationship between family structure and family processes differed depending on whose reports of family structure were used, and boundary ambiguity was associated with several key family processes. Family boundary ambiguity presents an important measurement challenge for family scholars.     

Risk, uncertainty and family formation: The social context of poverty groups

Abstract Despite the assumptions of many demographers that the net returns from children for non-elite groups in underdeveloped areas are likely to be negative, high fertility persists in most of these societies. Both cultural and institutional explanations have been proposed to account for this. We attempt to provide some mediation between these competing models, by introducing the elements of risk and uncertainty as factors likely to induce poverty and lead works to opt for the 'high fertility, low quality' pattern of investment of time and money in family formation. Drawing upon the work of Wharton in subsistence agriculture practices, several alternative decision-making models are proposed to account for both the persistence of high fertility, and the declines that have been registered in selected areas, such as Taiwan and perhaps China. The empirical work of Mueller on Taiwanese expectations of returns on children and the concomitant variation in family-size preferences is consistent with the models proposed. Some implications for uncertainty and risk-reduction strategies in family planning and other social welfare programmes are drawn.     

The long-term effect of childhood poverty

This paper uses variation among siblings to identify the consequences of childhood poverty on both labour and marriage market outcomes. In the labour market, individuals who experienced childhood poverty are found to have lower earnings and lower labour market attachment and to have worse jobs both vertically in terms of low-paying industries and horizontally in terms of job positions. In the marriage market, childhood poverty is found to have negative consequences for the probability of marriage, cohabitation, and having children around the age of 30. The effect sizes are found to exhibit an inverse u-shape in the age of the child, peaking during adolescence. Results on educational choices suggest that the mechanisms behind these results can be that childhood poverty affects the skill formation, networks, and decision making of the child.     

The measurement of household cost functions: revealed preference versus subjective measures

Since the work of Pollak and Wales (1979), it is well-known that demand data are insufficient to identify a household cost function. Hence additional information is required. For that purpose I propose to employ direct measurement of feelings of well-being, elicited in surveys.In the paper I formally establish the connection between subjective measures and the cost function underlying the AID system. The subjective measures fully identify cost functions and the expenditure data do this partly. This makes it possible to test the null hypothesis that both types of data are consistent with one another, i.e. that they measure the same thing. I use two separate data sets to set up a test of this equivalence. The outcomes are somewhat mixed and indicate the need for further specification search. Finally, I discuss some implications of the outcomes.Presidential address delivered at the seventh annual meeting of the European Society for Population Economics, June 2–5, Budapest, Hungary. A first version was presented at the meetings of the Allied Social Sciences Associations, Anaheim, California, January 5–7, 1993. The author thanks Rob Alessie for help with the data, and the Netherlands Central Bureau of Statistics for their permission to use the data. Both Rob Alessie and an anonymous referee made very helpful comments on an earlier version.     

Comparing measures of poverty and relative deprivation: an example for Belgium

This paper presents three different poverty standards. A first approach takes the disposable income as an indicator of poverty. A second approach uses the Leyden approach. Finally an aggregate index of deprivation, based on the observation of consumption events, is constructed through a particular econometric procedure proposed by Desai and Shah (1988). These alternative measures are then compared on a sample composed of 6380 Belgian households. Such an analysis can be expected to provide some further insight into the problem of measuring poverty, which has been the subject of a recent controversial debate.We thank the participants of the Second Annual Meeting of the European Society for Population Economics, June 23–25, 1988, Mannheim (FRG), L. Gevers, J. Lindsey, P. Pestieau, B. Sak, K. Van den Bosch and two anonymous referees for their comments and suggestions.     

The pill and partnerships: the impact of the birth control pill on cohabitation

This paper investigates the impact on cohabitation behavior of the introduction and dispersion of the birth control pill in the USA during the 1960s and early 1970s. A theoretical model generates several predictions that are tested using the first wave of the National Survey of Families and Households. Empirically, the causal effect is identified by exploiting plausibly exogenous variation in state laws granting access to the pill to unmarried women under age 21. The evidence shows that the pill was a catalyst that increased cohabitation??s role in selecting marriage partners, but did little in the short run to promote cohabitation as a substitute for marriage.     

The pill and partnerships: the impact of the birth control pill on cohabitation

This paper investigates the impact on cohabitation behavior of the introduction and dispersion of the birth control pill in the USA during the 1960s and early 1970s. A theoretical model generates several predictions that are tested using the first wave of the National Survey of Families and Households. Empirically, the causal effect is identified by exploiting plausibly exogenous variation in state laws granting access to the pill to unmarried women under age 21. The evidence shows that the pill was a catalyst that increased cohabitation’s role in selecting marriage partners, but did little in the short run to promote cohabitation as a substitute for marriage.     

The changing character of stepfamilies: implications of cohabitation and nonmarital childbearing

Divorce, nonmarital childbearing, and cohabitation are reshaping family experience in the United States. Because of these changes, our traditional definitions of families decreasingly capture the social units of interest. We have noted how a significant proportion of officially defined single-parent families actually are two-parent unmarried families. The present paper expands on this perspective with respect to stepfamilies. We must broaden our definition of stepfamilies to include cohabitations involving a child of only one partner, and must recognize the large role of nonmarital childbearing in the creation of stepfamilies. We find that cohabitation and nonmarital childbearing have been important aspects of stepfamily experience for at least two decades, and that this is increasingly so. To define stepfamilies only in terms of marriage clearly underestimates both the level and the trend in stepfamily experience: when cohabitation is taken into account, about two-fifths of all women and 30% of all children are likely to spend some time in a stepfamily.     

The relationship between cohabitation and divorce: Selectivity or causal influence?

Recent evidence linking premarital cohabitation to high rates of divorce poses a complex theoretical and empirical puzzle. We develop hypotheses predicting that premarital cohabitation is selective of those who are prone to divorce as well as hypotheses predicting that the experience of premarital cohabitation produces attitudes and values which increase the probability of divorce. Using multiwave panel data from a recent cohort of young men and women in the United States, we specify and test models of these predictions. The results are consistent with hypotheses suggesting that cohabitation is selective of men and women who are less committed to marriage and more approving of divorce. The results also are consistent with the conclusion that cohabiting experiences significantly increase young people's acceptance of divorce.     

An analysis of the size of the family household and family structure in China]

Since 1949, great social and economic changes have taken place in China. The entire economic structure and social relations are no longer the way they used to be. These changes have also had a strong impact on the size of family households and family structure. Major changes are summarized as follows: (1) The size of the present family household has been greatly reduced from its earlier size. The main reason for this reduction in size is the change of the social system. Under the new social system, the natural population growth rate and family structure have shown the greatest change from the past. (2) The major change in family structure is that small families have replaced the traditional large families. Under the large family system, several generations may stay together as one household, and brothers do not divide the large family even after they are married. Under the small family system, a household is normally limited to the parents and their children. With the gradual disappearance of large families, small families are increasing rapidly. Some households with three generations living together are still in existence, and the young and the old may support each other in their daily life. Both in cities and in rural areas, the traditional custom of respecting one's old parents still exists. There must be a value and necessity for the existence of this particular kind of family structure.     

Cleaning up their act: The effects of marriage and cohabitation on licit and illicit drug use

We use data from the National Longitudinal Survey of Youth to estimate changes in binge drinking, marijuana use, and cigarette smoking surrounding young adults' first experiences of cohabitation and marriage. Both marriage and cohabitation are accompanied by decreases in some risk behaviors, but reductions surrounding marriage are larger and most consistent, particularly for men. Binge drinking and marijuana use respond to these events, especially marriage, but smoking does not.     

Marital dissolution among the 1958 British birth cohort: The role of cohabitation

This paper investigates the effect of previous cohabitation on marital stability among the 1958 British birth cohort. Prospective data from the National Child Development Study are used to investigate the way in which family background factors and early lifecourse experiences, including cohabitation, affect the risk of first marriage dissolution by age 33. Discrete time logistic regression hazards models are used to analyse the risk of separation in the first eight years of marriage. Many socio-economic and family background factors are found to act through more intermediate determinants, such as age at marriage and the timing of childbearing, to affect the risk of separation. Previous cohabitation with another partner and premarital cohabitation are both associated with higher rates of marital breakdown. The effect of premarital cohabitation is attenuated but remains significant once the characteristics of cohabitors are controlled, and cannot be explained by the longer time spent in a partnership.     

Research on sexual orientation: definitions and methods

An extensive survey of the research literature on sexual orientation was undertaken for the purpose of determining how sexual orientation had been conceptually and operationally defined and how research subjects had been identified and selected. Two hundred-twenty-eight articles from 47 different journals were analyzed. Sexual orientation, it was found, was conceptually defined in 28 studies and operationally defined in 168. In 196 studies respondents were identified on the basis of the settings in which they were found. Because of the great variation in both conceptual and operational definitions, it was almost impossible to determine with certainty the theoretical frameworks used in the studies. The wide divergency in the definitions of sexual orientation, the investigators conclude, is symptomatic of an underlying conceptual confusion.     

Simulating the effect of demographic events on the household composition

The aim of this paper is to measure the effects on household composition of changes in demographic events, e.g. mortality, fertility, marriage, divorce. British household data are taken from the General Household Survey and aged by simulation to 2001 using a ‘Most Likely’ model. Subsequently different assumptions of each demographic event are taken from 1991 so that the effects of perturbations within each event can be studied. Special features of the simulation model are the differentiations between cohabitation and marriage and separation and divorce, and the detailed breakdowns of household types such as lone parents into single and previously married women and men with children aged 0–4, 5–15 and 16 and over.     

Older women, their children, and grandchildren: a feminist perspective on family relationships

Using gerontological and feminist frameworks, we explored the relationships older women have with their children and grandchildren. In-depth, qualitative interviews were conducted with 34 women, ranging in age from 55 to 88. From our analyses of the women's perceptions of their family relationships, two themes were prevalent: the centrality of children and the peripherality of grandchildren in their everyday lives. The women had varying degrees of involvement with their children and grandchildren, and these relationships contributed to their sense of self and family. Their relationships were not stagnant, but were continually reshaped as both the women and their family members proceeded through the life course.     

A comparison of poverty in seven European countries and regions using subjective and relative measures

This paper presents comparative results on poverty in seven countries and regions of the European Community: Belgium, The Netherlands, Luxembourg, Lorraine, Ireland, Catalonia and Greece. The data are obtained from comparable socio-economic surveys in each country. Subjective as well as relative poverty lines are used. The results indicate that the subjective poverty lines are plausible in a comparative context, although the levels of the subjective standards are rather generous. The estimated equivalence scales are much flatter than the one recommended by the OECD. The extent of poverty is much greater in the peripheral EC-countries than in the central ones. Though similar factors are found to be associated with poverty in all countries, there are also important differences in the characteristics of the poor across countries. The impact of social security transfers on poverty appears to be much smaller in the southern countries Greece and Catalonia, than in the Benelux and Lorraine.