Skill premium effects on fertility and female labor force supply

In the last twenty years the United States has seen a positive relationship between female labor supply and total fertility rates, which differs from the pattern observed over the preceding years. We construct a general equilibrium overlapping generations model capable of generating this changing relationship between fertility and female labor supply. We argue that skilled biased technological change in recent decades has increased the skill premium and has therefore decreased the relative cost of (unskilled) child care services. The positive effect of the increase in female mean wages on fertility rates, and the inducement for labor force participation provided by the reduction in the relative cost of child care services, generated the positive relationship between fertility rates and female labor force participation in the last two decades.All correspondence to Amaia Iza. This paper has benefited particularly from comments by Juan Carlos Conesa, Pedro Mira and Sara de la Rica. We also acknowledge countless conversations with María Paz Espinosa and useful comments from Jaime Alonso, Jose María Da-Rocha, Tim Kehoe, José Victor Rios-Rull, when the paper was presented at the IV Workshop of Dynamic Macroeconomics held in Vigo (Spain, July 1999) and in Universidade de Vigo (October, 2000). We also thank an anonymous referee whose comments enabled us to improve the paper considerably. Financial support from Universidad del País Vasco 9UPV 00035.321-13511/2001, Ministerio de Educación y Ciencia PB097-0620, MCYT BEC2000/1394 and Instituto de la mujer (Ministerio de Trabajo y Asuntos Sociales) MTAS 33/00 is gratefully acknowledged. Any remaining errors are the authors responsibility. Responsible editor: Junsen Zhang.     

Fertility and endogenous gender bargaining power

We develop an intra-household bargaining model to examine the feedback effect of household fertility decisions on gender bargaining power. In our model, the household balance of power is endogenously determined reflecting social interactions, i.e., the fertility choices by the other couples in society. We show the presence of multiple equilibria in fertility outcome: one equilibrium characterized by patriarchal society with a high fertility rate, and another in which women are sufficiently empowered and the fertility rate is low. In other circumstances, this study also demonstrates a positive relationship between female wage rates and the fertility outcomes. Finally, we discuss its policy implications, comparing the effects of two family policies: the child allowance and the subsidies for market childcare.     

From low to high fertility in Sulawesi (Indonesia) during the colonial period: explaining the 'first fertility transition'

This paper examines the past transition from low to high fertility which, in Indonesia as elsewhere, preceded the return to lower birth rates. Data from two parts of the island of Sulawesi where fertility rose during the colonial period are used to explain both why it rose, and why it was originally low. Economic conditions, it is argued, were the most important factors, affecting fertility via the supply of income and the demand for labour. Two schematic models of the 'first fertility transition' are proposed. In areas with low population densities and area-extensive forms of agriculture responsive to commercial stimuli, birth rates rose as the growth of commerce raised levels of prosperity, facilitated marriage, and undermined institutions such as debt-slavery which had previously acted to restrict marital fertility. In densely populated areas with labour-intensive agriculture and heavy state taxation in labour, fertility rose in response to demands for women's (and possibly child) labour that did not necessarily lead to gains in income.     

Demographic change and the needs-based planning of government services: projecting small area populations using spatial microsimulation

Changing patterns of longevity, fertility and migration in Australia have driven substantial changes in population age structure and household size and composition. Of the various dimensions of population change, population ageing is expected to present major challenges to the financing and sustainability of welfare state programs in industrialized countries. One key issue for many of these countries will be assessing where particular services will be required in the future. This paper outlines the application of new forecasting techniques that age a spatial microdataset to 2027. Two illustrative examples are provided to highlight the potential capacities of the new modelling approach for government service delivery planners. For many older people, ageing in place is important, but is more difficult when the person is single: and so the first illustrative application focuses on where aged single people will be living in 2027. The second application examines where future childcare places will be required given the projected growth in the number of children aged 3–4 years living in families where all parents are working. This information will be important for Government planners in deciding the best location for childcare places. The creation of synthetic small-area household microdata for future years offers great potential for a number of purposes, such as analysis of the likely future sociodemographic characteristics of individuals and families at the local level and assessment of the future geographic effect of alternative scenarios such as changes in labour force participation or fertility rates.     

Bayesian estimation of hispanic fertility hazards from survey and population data*

Previous studies have demonstrated both large gains in efficiency and reductions in bias by incorporating population information in regression estimation with sample survey data. These studies, however, assumed that the population values are exact. This assumption is relaxed here through a Bayesian extension of constrained maximum likelihood estimation applied to U.S. Hispanic fertility. The Bayesian approach allows for the use of both auxiliary survey data and expert judgment in making adjustments to published Hispanic Population fertility rates, and for the estimation of uncertainty about these adjustments. Compared with estimation from sample survey data only, the Bayesian constrained estimator results in much greater precision in the age pattern of the baseline fertility hazard and therefore of the predicted values for any given combination of socioeconomic variables. The use of population data in combination with survey data may therefore be highly advantageous even when the population data are known to have significant levels of nonsampling error.     

Fertility-related pensions and cyclical instability

In this paper, we study a general equilibrium model with overlapping generations, endogenous fertility and public pensions. By assuming Cobb–Douglas technology and logarithmic preferences, we show that the introduction of a fertility-related component in the pay-as-you-go pension scheme may destabilise the long-term equilibrium and cause endogenous fluctuations when individuals have static expectations. The possibility of cyclical instability increases (resp. reduces) when both the subjective discount factor and relative weight of individual fertility in pay-as-you-go pensions (resp. the parents’ taste for children) increase(s). Interestingly, when public pensions are contingent on the individual number of children, the financing of small-sized benefits may cause the occurrence of a flip bifurcation, two-period cycles and cycles of a higher order. In addition, we show through numerical simulations that these results hold in a more general setting with a constant inter-temporal elasticity of substitution utility function and a constant elasticity of substitution production function. Our findings identify a possible novel factor responsible for persistent deterministic fluctuations in a context of overlapping generations, while also representing a policy warning regarding the destabilising effects of fertility-related pension reforms, which are currently high in both the theoretical debate and the political agendas of several developed countries.     

Reducing the excess burden of subsidizing the stork: joint taxation, individual taxation, and family tax splitting

Analyzing a homogenous household setting with endogenous fertility and endogenous labor supply, we demonstrate that moving from joint taxation to individual taxation and adapting child benefits so as to keep fertility constant entails a Pareto improvement. The change is associated with an increase in labor supply and consumption and a reduction of the marginal income tax, while the child benefit may move in either direction. Similarly, a move from joint taxation to some scheme of family tax splitting increases labor supply and welfare.     

Income taxation of couples and the tax unit choice

We study the optimal income taxation of couples. We determine the resulting intra-family labor supply allocation and its implication for the choice of the tax unit (individual versus joint taxation). We provide a general condition for full joint taxation to arise. We also study how the spouses’ respective labor supply decisions are distorted when the condition does not hold. In particular, we show that, depending on the pattern of mating, the celebrated result according to which the spouse with the more elastic labor supply faces the lower marginal tax rates may or may not hold in our setting.     

Fertility decline in the modern world and in the original demographic transition: Testing three theories with cross-national data

This study uses aggregate data on a large number of the world's societies to test three theories of fertility decline in the modern world and in the original demographic transition. One prominent theory relates fertility decline to the changing economic value of children. With industrialization and overall modernization the economic value of children's labor shifts from positive to negative. This interpretation has been challenged by those who claim that the flow of wealth in preindustrial societies is always from parent to child rather than from child to parent. An alternative interpretation is that fertility levels reflect people's efforts to promote their reproductive success, and that this requires the careful tracking of infant and child mortality. Fertility rates are adjusted to the rate of infant and child survival, and will be high when survival rates are low and low when survival rates are high. A third theory emphasizes female empowerment. Fertility will be high when women are highly subordinated to men, but as women gain more autonomy and control over their own lives they reduce their fertility levels because, among other possibilities, higher levels of fertility present them with serious burdens. We tested all three theories through multiple regression analyses performed on two samples of societies, the first a large sample of the world's nation-states during the period between 1960 and 1990, and the second a sample of now-developed societies between 1880 and 1940. Our findings showed that infant mortality was an excellent predictor of fertility, and that female empowerment was a good predictor. However, there was only weak support for the argument that the economic value of children's labor plays an important role in fertility decisions. The findings were discussed in the context of a broader interpretation of fertility behavior in societies with high levels of industrialization and modernization.     

Tempo and the TFR

Tempo effects in period fertility indicators are widely regarded as a source of bias or distortion. But is this always the case? Whether tempo change results in bias depends, in the view advanced here, on the measure used, the meaning of bias/distortion, and the objective of analysis. Two ways of construing bias in period measures are suggested, and their relevance is discussed in the context of five broad purposes for measuring period fertility: describing and explaining fertility time trends, anticipating future prospects, providing input parameters for formal models, and communicating with nonspecialist audiences. Genuine timing effects are not biasing when period fertility is the explanandum but are distorting when the aim is to estimate cohort fertility. Alternatives to tempo adjustment are available that are a more defensible solution to the issue of timing change. Tempo adjustment could be more fruitfully considered a form of modeling rather than empirical measurement. The measurement of period fertility could be improved by relying more on a statistical approach and less on indicators based on stable assumptions. Future progress will depend on integrating research on measurement with substantive investigation.     

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.     

儿童照料与二孩生育意愿——来自上海的证据

本文围绕一项针对上海市育龄女性的生育意愿调查,分别使用二分和有序Logit方法分析儿童照顾对上海市育龄女性的二孩生育意愿的影响。研究发现当育龄女性能够从家庭内和社会中获得更多孩子照料的时间支持时,她们有更高的二孩生育意愿,也会伴有更明确的二孩生育规划;双独家庭能够从父辈获得更多的经济、时间上的帮助,因此他们要比单独家庭和双非家庭更愿意再生一个孩子;居住于上海市城区的女性从某种程度上更易获得孩子的照料资源,有更多的优质教育资源可供选择,因此她们的二孩生育意愿高于居住于郊区的女性。此外,本文通过是否采用了避孕措施对二孩生育的意愿程度做了进一步区分,结果发现当第一个孩子主要是由孩子父母承担照料工作的时候,女性存在二孩生育意愿的程度是最低的,祖辈照料对二孩生育意愿程度的积极影响也明显低于社会性照料,此现象在上海市户籍的女性中体现尤为明显。最后为纠正自选择偏差问题,本文使用倾向值匹配方法(PSM)进一步验证了与首孩性别相比,首孩的抚养成本与接受照料情况显然对二孩生育意愿的影响程度更大。因此,本文认为加大公共托育服务的供给、为育龄女性提供高质量的0-3岁婴幼儿社会照料支持是提高二孩生育意愿的最有效...     

Aiming at a moving target: Period fertility and changing reproductive goals

Summary Common sense suggests that changes over time in aggregate period fertility rates should be closely, related to changes in desired completed fertility after controlling for contraceptive failure, and desired spacing and timing; the nature of the relationship is, however, far from clear. This paper shows that when desired completed fertility undergoes swings, like those in the United States in recent decades, the turning points in period fertility will precede those in desired completed fertility by as much as five years and the amplitude of the swings in period fertility will be more than twice as great. Cumulated fertility, on the other hand, will lag behind reproductive goals. Period fertility rates will exceed desired completed fertility when desires are increasing and fall below it when desires are decreasing. These theoretical results help to explain some salient features of the American baby boom and bust. It is also shown that during a demographic transition, period fertility will fall more rapidly than desired completed fertility, and that towards the end of the transition, period fertility will increase.     

Business cycles and fertility dynamics in the United States

Using recent developments in time-series econometrics, this paper investigates the behavior of fertility over the business cycle. The sex-specific unemployment rates, the divorce rate and the fertility rate are shown to be governed by stochastic trends. Furthermore, fertility is determined to be cointegrated with the divorce rate.In the bivariate vector-autoregressions between fertility and unemployment, an increase in the female or male unemployment rates generate a decrease in fertility, which is consistent with the findings of previous time-series research concerning the procyclical behavior of fertility. However, when the models include the divorce rate and the proportion of young marriages as additional regressors, shocks to the unemployment rates bring about an increase in fertility, implying the countercyclicality of fertility. This outcome holds for the time period 1948–1982, as well as 1972–1982.I would like to thank Clive Granger, Michael Grossman, Theodore Joyce, Salih Neftei, Jeffrey Zax and two anonymous referees for helpful comments. Any errors reflect my shortcomings only. This paper is the revised version of the National Bureau of Economic Research Working Paper No. 3177. It has not undergone the review accorded official NBER publications; in particular, it has not been submitted for approval by the Board of Directors.     

A simple endogenous growth model with endogenous fertility: indeterminacy and uniqueness

This paper studies the equilibrium dynamics and indeterminacy of equilibria in an endogenous growth model with endogenous fertility choice. We characterize the conditions that give rise to an unique equilibrium as well as multiple equilibria. Whenever there exists a unique equilibrium, it will be globally determinate; when multiple equilibria arise, indeterminacy occurs. In particular, we find that two equilibria occur – one is associated with high fertility and low growth, while the other is associated with low fertility and high growth. A parameterized example is given to assess the empirical feasibility of our results. The validity of the neo-Malthusian relation between fertility and growth is then re-examined. Finally, we study the relation between growth and welfare and compare different balanced growth equilibria in terms of their lifetime-attained utility. JEL classifications: O41, J13 Received December 11, 1995 / Accepted October 20, 1996     

生育激励与个人所得税 ——理论逻辑与经验论据

中共十九大报告提出要进一步“促进生育政策和相关经济社会政策配套衔接”。在厘清税收激励生育的理论逻辑基础上,运用工资税模型,获取OECD国家对此的经验论据。结果显示,许多国家运用税收政策向有子女家庭提供正向激励,且更注重中低收入家庭。进一步分析发现,通常为符合资格条件的儿童设计相同的或递增的定额税收优惠,甚至为大规模家庭赋予额外优惠;将儿童税收宽免转化为抵免,引进收入限制和可退抵免制;单亲家庭可享受额外优惠,而已婚家庭还通过个人申报纳税、婚姻优惠、家庭申报纳税等多种举措受益。应汲取和借鉴OECD国家的成功经验,逐步构建我国“生育友好型”的税收制度。     

Fertility decline and gender bias in

Although it is widely acknowledged that the preference for sons is a barrier to a decline in fertility, considerable disagreement exists as to what actually happens to this preference when fertility declines in a region of low female autonomy. By analyzing the data from the National Family Health Survey (NFHS), we present evidence from northern India to show that the preference for sons is reduced when the ideal family size becomes small, even though it does not completely disappear. This finding appears to contradict trends in the juvenile sex ratio and the incidence of female feticide that suggest the intensification of gender bias. We argue that the anomaly is the result of a diffusion of prenatal sex-diagnostic techniques in regions where there is a large unmet demand for such methods. Using the NFHS data, we estimate that in northern India, girls currently constitute about 60% of the unwanted births and that the elimination of unwanted fertility has the potential to raise the sex ratio at birth to 130 boys per 100 girls.     

Personal income taxation under mobility, exogenous and endogenous welfare weights, and asymmetric information

This paper analyses how governments should tax labour income accruing to a group of highly skilled and geographically mobile individuals who divide their time or career between several jurisdictions. The analysis differs from previous models on migration and taxation by addressing optimal regulation when agents work for several principals. Optimal taxation is developed for social welfare functions with exogenous and endogenous welfare weights. Marginal income taxes are applied for screening purposes, and the rates are lower with endogenous than with exogenous welfare weights. Received: 22 January 1998/Accepted: 3 July 1999)     

Understanding the link between the economy and teenage sexual behavior and fertility outcomes

We use individual-level data from the 1997 National Longitudinal Survey of Youth and state unemployment rates to examine how the economy affects fertility and its proximate determinants for several groups based on gender, age (15–17 and 18–20 groups), and race/ethnicity. We find that, for 15- to 17-year-old females, several behaviors leading to pregnancies and pregnancies themselves are higher when the unemployment rate is higher, which is consistent with the counter-cyclical fertility patterns for this group. For 18- to 20-year-old males, the results suggested counter-cyclical patterns of fertility behaviors/outcomes for whites, but pro-cyclical patterns for blacks. This research was funded by grant R03HD47407 from the National Institute on Child and Health Development.     

Do children stabilize relationships in Denmark?

In this paper, we study the relationship between fertility behavior and the process of relationship duration. The potential endogeneity of fertility on dissolution risk is taken into account by modeling fertility and dissolution jointly. We apply the timing-of-event method (Abbring and van den Berg, Econometrica 71(5):1491–1517, 2003) to identify the causal effect of births on the dissolution hazard. We show that couples who are less prone to split up are more prone to invest in children, and therefore, one might (mistakenly) conclude that children stabilize relationships. However, when correcting for the selectivity bias arising from the fertility decision, we conclude that children themselves have a negative effect on relationship duration.