Does patience matter in marriage stability? Some evidence from Italy

Time preferences can affect divorce probability by both affecting the quality of the match and affecting the spouses’ reactions to negative shocks. We analyse the relationship between time preferences and divorce decisions using data from the Italian Survey on Household Income and Wealth, which provides a measure of time preferences based on a hypothetical financial situation in which individuals have to decide how much money to give up in order to receive a certain amount of money immediately rather than in one year’s time. By controlling for a number of individual and family characteristics, we find that impatient individuals are more likely to experience divorce. The effect is robust to different specifications of our model and is not affected by reverse causality problems. We also find that the more risk averse individuals are, the less likely they are to experience divorce.     

Does the exchange motive influence intergenerational transfers? Evidence from Ireland

Review of Economics of the Household - This article examines the exchange motive in intergenerational monetary transfers. The exchange motive is in operation if parents make transfers to their...     

Does child care availability play a role in maternal employment and children’s development? Evidence from Italy

This paper investigates the effects of public child care availability in Italy in mothers’ working status and children’s scholastic achievements. We use a newly available dataset containing individual standardized test scores of pupils attending the second grade of primary school in 2009–2010 in conjunction with data on public child care availability. Our estimates indicate a positive and significant effects of child care availability on both mothers’ working status and children’s Language test scores. We find that a percentage change in public child care coverage increases mothers’ probability to work by 1.3 percentage points and children’s Language test scores by 0.85 percent of one standard deviation; we do not find any effect on Math test scores. Moreover, the impact of a percentage change in public child care on mothers’ employment and children’s Language test scores is greater in provinces where child care availability is more limited.     

Does perceived unfairness affect charitable giving? Evidence from the dictator game

We use a modified version of the dictator game to study whether perceived unfairness affects giving. To earn money, dictators first had to take a test. Our treatment group had participants taking tests of different difficulty levels while the control group had all participants taking a test of the same difficulty level. We found that participants who were in an environment where everyone faced the same challenge to earn money were less generous than participants in an environment where some people had an advantage while others had a disadvantage.     

Does caregiving increase poverty among women in later life? Evidence from the Health and Retirement survey

Given the rapid aging of the U.S. population and reductions in federal funding, elder care has become a major issue for many families. This paper focuses on a long-term consequence of elder care by asking how caring for elderly parents affects women's subsequent risks of living in poverty. Using longitudinal data from the Health and Retirement Study, we examine whether and how caregiving for parents in 1991 increases women's risks of living in households with incomes less than the poverty threshold, receiving public assistance, and receiving Medicaid in 1999. Our findings illustrate that caregiving in earlier life raises women's poverty risks in later life by intensifying the negative effects of stopping work and declining health on women's economic well-being.     

Does FDI Guarantee the Stability of International Capital Flows? Evidence from Malaysia

The conventional wisdom is that crises are largely due to swings in short‐term capital. Economies that finance their current account deficits mainly via foreign direct investment (FDI) are therefore seen as being less susceptible to a crisis. The analysis in this article, backed up by some empirical evidence drawn from Malaysia, challenges the casual presumption that the switch towards FDI alone will automatically imply that extreme capital instability will become a thing of the past.     

Does perceived incongruence in opinion climate influence the degree of outspokenness? Evidence from two national events in China

This study extends the spiral silence theory and investigates the influence of perceived incongruence in opinion climate on individuals' intentions to express their true thoughts. Three intervening variables were examined to explain the process by which perceived incongruence in opinion climate leads to self-censorship: ambivalence, perceived opinion support, and internet political efficacy. Using data collected in telephone interviews with a random sample of 1020 Chinese residents in Shanghai and Guangzhou, we found that individual perceptions of the opinion climate varied considerably, and they were based on different media outlets. The Chinese audience is able to tell the difference between traditional media and the internet in terms of the features of their content. Moreover, among the Guangzhou residents, we found that the perceived incongruence in opinion climate was negatively related to the individual's willingness to express his or her true thoughts. Perceived opinion support was found the most robust intervening variable among the three proposed mediators.     

Does Economic Crisis Always Harm International Migrants? Longitudinal Evidence from Ecuadorians in Barcelona

Current research on the impacts of the 2007 global economic crisis on international migration takes two different positions. Some studies emphasize the negative impacts while others are more positive. This article argues that these two positions offer simplistic interpretations which fail to take account of the complex micro‐level realities that determine migrant experiences. The article discusses how a small group of migrants from Guayaquil, Ecuador, accumulate and consolidate a complex portfolio of assets both before and during the economic crisis in Spain. Conceptualized in terms of an asset accumulation framework, and based on micro‐level longitudinal trend data, rather than the more generally used macro‐level snapshots or anecdotal evidence, the study highlights the fact that the formalization of legal status or citizenship is a crucial pre‐condition, which sets in motion a ‘virtuous’ cycle of consolidation of an interrelated portfolio of assets, regardless of the wider macro‐economic environment. Even if this turns into a ‘vicious’ cycle, for those losing jobs, to date Spanish welfare benefits have acted as a social protection mechanism.     

What explains the gender gap in wealth? Evidence from administrative data

Review of Economics of the Household - This paper studies the gender gap in net wealth. We use administrative data on wealth that are linked to the Estonian Household Finance and Consumption...     

Does consensus bargaining control labor costs in Japan? Evidence from the “bubble economy” and its aftermath

Japan’s system of labor negotiations provides an opportunity to see whether consensus bargaining restrains labor costs. The recent volatility of the Japanese economy affords a unique chance to observe how consensus-based labor settlements adjusted to sudden, sharp changes in market conditions. It is also possible to evaluate the role of bonus payments in amending labor settlements. With observations for 1986–1995,1 use measures of productivity gains to calculate the capacity for increasing worker pay and then analyze whether pay increases exceeded that capacity. I report the extent to which changes in labor earnings were scheduled or resulted from adjustments in bonus pay. During the boom years of the late 1980s, employers inflated bonuses so that workers’ pay increased more than had been scheduled, but not enough to exceed the capacity for growth. But during the sluggish years of the early 1990s, pay agreements were excessive. Employers cut workers’ bonuses to keep earnings growth in check. Thus, bonus pay provided a “degree of freedom” allowing employers to adjust labor costs following sudden upswings and downturns in the economy. I am grateful to Professor Hideo Kawada and Mr. Kenichi Matsuki, both of Senshu University, for their assistance in gathering the earnings data for this study. Thanks are also due to Craig MacPhee, Roger Riefler, and Hendrik Van den Berg for thoughtful comments and suggestions. I am responsible for any remaining shortcomings.     

Who bears the burden of bribery? Evidence from public service delivery in Kenya

This article empirically examines how an individual's economic, social and political capital affects their propensity to make bribe payments in exchange for public services. Using an individual‐level survey on bribes, the econometric results suggest that the burden of bribery is borne by the poor, but substantially decreases when institutions that constrain bureaucratic corruption are strong and effective. The results also show that the incidence of bribery decreases when social capital is high but increases when political networks are prevalent. These findings support the need to combine anti‐corruption reforms with poverty reduction strategies and social policies in order to foster equity in public services provision in Kenya.     

Correction: What explains the gender gap in wealth? Evidence from administrative data

Review of Economics of the Household -     

Does Country Context Matter? Sub‐Saharan and North African Immigrants’ Labour Market Outcomes in France and Spain

European debates on immigrant integration focus on employment because of its implications for assimilation. Although studies show that Sub‐Saharan African immigrants are most disadvantaged across Europe, cross‐national analyses do not examine labour force participation (LFP) or control for selection into the labour force before estimating employment, calling these results into question. Furthermore, studies rarely discuss visible minority status or gender making it unclear whether (1) country‐context matters for African LFP and employment and (2) visible minority status matters differently by gender. I use French and Spanish census data to determine whether Sub‐Saharan Africans are most disadvantaged in new and traditional receiving countries. My results indicate that country‐context matters, but previous employment findings likely reflect variation in LFP. Despite smaller penalties to migration characteristics in Spain, Sub‐Saharan African men are the only group significantly less likely to be employed in Spain, indicating that they experience unique barriers to job access.     

Is diversity bad for economic growth?: Evidence from state-level data in the US

The paper examines the macroeconomic effects of social diversity in the United States. Employing a cross-sectional dataset for 48 states, we find mixed empirical evidence for the impact of diversity on Gross State Product (GSP) per capita growth: racial diversity reduces GSP growth, while linguistic diversity raises GSP growth. Our findings suggest that because English is used frequently by non-native speakers barriers to communications based on race are more pronounced and enduring than those based on linguistic differences. The results provide a justification for establishing ‘weak ties’ across diverse racial groups as a means to enhance economic performance.     

Does the positive relationship between health and marriage reflect protection or selection? Evidence from middle-aged and elderly Japanese

This study investigates the marriage protection and selection effects among middle-aged and elderly Japanese. Using 9 years of a longitudinal data set from a nationally representative survey in Japan from 2005 to 2013, we extract 15,242 respondents aged 50–59 years in the baseline year. We utilize positive self-rated health to present subjective health status and lifestyle diseases to present objective health status. Using dynamic panel data approach to control for endogeneity issue, we find that being married does protect respondents’ subjective health, in terms of a higher probability of self-ratings of “very good” or “good” health statuses. Nonetheless, we find that marriage deteriorated their objective health in terms of a higher probability of having lifestyle diseases. Regarding the selection effect, better subjective health is found to select middle-aged and elderly Japanese into marriage, but such influence is fairly modest. Although objective health status also selects respondents into marriage, it positively affects women but adversely affects men. The findings provide a more comprehensive understanding of the relationship between marriage and health, which may have substantial implications for health-related public policies for middle-aged and elderly people in Japan.     

Is it the family or the neighborhood? Evidence from sibling and neighbor correlations in youth education and health

In this paper, we present sibling and neighbor correlations in school grades and cognitive skills, as well as indicators of physical and mental health, for a sample of German adolescents. In a first step, we estimate sibling correlations and find a substantial influence of shared family and community background on all outcomes. To further disentangle the influence of family background and neighborhood, we estimate neighbor correlations. Our results show that for all outcomes, the estimated neighbor correlations are clearly lower than the estimated sibling correlations. However, especially for cognitive skills and mental health, neighbor correlations are still substantial in relation to sibling correlations. Thus, compared to existing results from other countries, the influence of the neighborhood on these outcomes is not negligible in Germany.     

What Explains the Decline in First Marriage in the United States? Evidence from the Panel Study of Income Dynamics, 1969 to 2013

Rates of entry into first marriage have declined sharply in the United States during the past half century, and there is evidence of broad gaps in marriage entry by race and education. Although a large literature explores the influences on marriage for single cohorts, there is little research that tests explanations for this decline across multiple cohorts. The authors use individual and contextual measures of employment and incarceration to predict transitions to first marriage in the Panel Study of Income Dynamics (1969–2013). They test two prominent theories of why marriage rates have declined: the decreased availability of “marriageable” men and the increased economic standing of women. They find that men's reduced economic prospects and increased risk of incarceration contributed to the decline in first marriage rates during the past 45 years in the United States, although these basic measures of economic and carceral conditions cannot explain the entire decline.     

Do terrorist attacks affect ethnic discrimination in the labour market? Evidence from two randomized field experiments

Terrorist attacks are known to influence public opinion. But do they also change behaviour? We address this question by comparing the results of two identical randomized field experiments on ethnic discrimination in hiring that we conducted in Oslo. The first experiment was conducted before the 2011 terrorist attacks in Norway; the second experiment was conducted after the attacks. In both experiments, applicants with a typical Pakistani name were significantly less likely to get a job interview compared to those with a typical Norwegian name. But the ethnic gap in call‐back rates were very similar in the two experiments. Thus, Pakistanis in Norway still experienced the same level of discrimination, despite claims that Norwegians have become more positive about migrants after the far‐right, anti‐migrant terrorist attacks of 2011.     

Does It Cost Less to Live in Rural Areas? Evidence from New Data on Food Security and Hunger*

Abstract Rural‐urban differences in the association of food insecurity and hunger with income suggest that the cost of living is substantially lower in rural than in urban areas. This implies that the official poverty rate overstates rural economic hardship compared with that in urban areas. Geographic differences in cost of living implied by the association between food insecurity and income provide some validation of the cost of housing adjustment proposed by the National Academy of Sciences (NAS) panel on improving the measurement of poverty, but suggest that the NAS adjustment generally overcorrects for cost of living and would be seriously problematic in some regions.