Accumulation of Welfare Problems in a Longitudinal Perspective

In this article we study the bias caused by the conventional retrospective measurement of parental high cultural activities in the effects of parental high cultural activities and educational attainment on son’s or daughter’s high cultural activities. Multi-informant data show that there is both random measurement error and correlated error in the respondent’s report of parental high cultural activities. Correlated measurement error is the consequence of the fact that adult children who have higher rates of high cultural activities, report higher levels of parental cultural activities than the parents themselves do. When controls for both types of measurement error are included in structural models, the total intergenerational effect of parental high cultural activities appears to be larger than in a model without controls for measurement error, but the direct intergenerational effect is not biased if educational attainment is controlled for. The effect of educational attainment on high cultural activities is larger in models that correct for measurement error. In addition, the effect of educational attainment is stronger than the effect of parental high cultural activities, both with and without correction for measurement error.

Who benefits from paid family leave? Impact of expansions in Canadian paid family leave on maternal employment and transfer income

This paper estimates the impact of a recent expansion in Canadian paid family leave from 25 to 50 weeks on maternal employment and transfer income. It finds the expansion coincided with increases in transfers to mothers of children age zero to one relative to mothers of children age three to four, and with decreases in returns to work in the year after birth. These changes were concentrated among economically advantaged groups of women, defined by marital status, education, and non-wage income. Despite these changes, there was no evidence of a decrease in returns to work or relative employment for mothers of children age one.

Parental Cohabitation Experiences and Adolescent Behavioral Outcomes

Children are increasingly spending time in cohabiting parent families. Most studies that examine the implications of parental cohabitation focus on parental living arrangements at a single point in time. Using data from the National Survey of Family Growth (NSFG), we assess whether and how parental cohabitation during childhood influences adolescent girls’ well-being. This work moves beyond prior studies by specifically considering the effects of the exposure to, transitions, and age at which children lived in cohabiting parent families. The results indicate living in cohabiting parent families is consequential for earlier sexual initiation, likelihood of having a teen birth, and high school graduation. Prior work suggests that the explanation for the negative effect of parental cohabitation is family instability. Yet, our empirical work shows that family instability does not explain the relationship between cohabitation and negative child outcomes. We conclude that the best way to understand the implications of parental cohabitation is to adopt a dynamic family experience model.

Understanding sibling differences in child labor

This study considers sibling differences in child labor in Nepal. The data are consistent with a model where parents care equally for all children but siblings differ in comparative advantage in household production, although parental preferences and credit constraints could also be important. Girls, especially older girls, tend to work more than their brothers. This extra work increases with the number of younger siblings and the spacing between siblings. The extra work performed by girls is such that, at modal birth spacing, the younger girl actually spends significantly more time working than her older brother.

Strategic altruistic transfers and rent seeking within the family

This paper examines the rent-seeking behavior of “selfish” children in competing for parental transfers. The paper extends Chang and Weisman (South Econ J 71:821–836, 2005), that focuses on compensated transfers, to allow for non-compensated transfers à la Buchanan (J Law Econ 26:71–85, 1983) and derives results for the case in which children’s time contributions as perceived by their parents are a merit good (e.g., service), pure waste (e.g., bugging), or a mix of both. For an increase in the proportion of time contributions that are pure waste, parents find it optimal to reduce the size of an overall transfer, thereby lowering the levels of wasteful rent-seeking activities by their children within the family.

An examination of some mechanisms underlying externality benefits of girls' schooling

Evidence on the extent of low enrolment and late entry for a sample of rural households in Ethiopia is provided, and two potential sources of education externality benefits for school-age children, parental and neighbourhood education, are examined. The education of parents, most significantly mothers, is found to contribute to children's schooling, as does the education of neighbourhood women. The mechanisms by which such externalities may operate are considered by examining the effects of cognitive and non-cognitive outputs of schooling upon current school enrolment of children. Findings illustrate both the importance of girls' schooling and some challenges for education policy.

A constitutional theory of the family

The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identifies the circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The behavioural and policy implications are illustrated by showing the effects of public pensions and credit rationing. These implications are not much affected by whether altruism is assumed or not, but contrast sharply with those of more conventional models.

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.

Fathers–participation in the domestic activities of everyday life

In this paper, the data from the multi-purpose survey on household “Time Use” conducted by Istat (the Italian National Statistical Institute) in 2002–2003 and the data from this same survey conducted in 1988–1989 will be analysed with the purpose of describing the fathers’ daily participation in the domestic activities and of highlighting the changes that have taken place during the 14 years elapsed between the two survey editions. The analysis will be carried out using standard time-use data analysis’ tool, time budget tables and by applying a multi-variate regression model with the objective of separating the relative contribution of the behavioural and structural factors to explain the variation observed.

Are young cohorts of women delaying first birth in Mexico?

In the last decades, female permanent sterilisation became the most used method of contraception in Mexico. During this time, the demand for pills, condoms and other short-term contraceptives fell consistently. The shift in the demand for contraceptives raises concerns among demographers that the timing of children may remain unchanged regardless of observed reductions in period fertility rates. This paper assesses such ideas in the context of the timing of a first child using duration models as the main analysis tool. Findings suggest that young cohorts of women are effectively delaying first birth relative to the experience of older generations.

Fertility, child care outside the home, and pay-as-you-go social security

We examine the long-run effects of the pay-as-you-go (PAYG) social security scheme on fertility and welfare of individuals in an overlapping generations model, assuming that child-care services are available in the market. We show that the impact of a tax increase on fertility depends on the relative magnitudes of the standard intergenerational redistribution effect through the social security system, the (implicit) subsidy effect through tax-exemption of child rearing at home, and the price effect through changes in the relative price of market child care, and that if parental child-rearing time is inelastic, a tax cut could bring about a Pareto-improving allocation.

Measuring Housework Participation: The Gap between “Stylised” Questionnaire Estimates and Diary-based Estimates

This article compares stylised (questionnaire-based) estimates and diary-based estimates of housework time collected from the same respondents. Data come from the Home On-line Study (1999–2001), a British national household survey that contains both types of estimates (sample size = 632 men and 666 women). It shows that the gap between the two types of estimate is generally smaller in the case of women. But the gap between the estimates in the case of women is associated with the amount of housework performed as secondary activities and the level of irregularity in housework hours. Presence of dependent children, on the other hand, inflates the gap for both men and women. Men holding traditional gender-role attitudes tend to report more housework time in surveys than in diaries, but the tendency is reversed when they undertake long hours of housework. The overall results suggest that there are systematic errors in stylised housework time estimates.

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.

Avowed Happiness in Confucian Asia: Ascertaining its Distribution,Patterns, and Sources

This study reviewed three philosophical accounts of happiness, and then tested those accounts with the Asiabarometer surveys conducted in six Confucian societies during the summer of 2006. Statistical analyses of these surveys reveal that East Asians tend to experience happiness to a greater extent when they experience enjoyment together with achievement and/or satisfaction. The preponderance of such multi-dimensional conceptions in all those societies poses a direct challenge to a single dimensional account of happiness in the West. The analyses also reveal that positive assessments of interpersonal relationships matter more than the amount of knowledge or wealth in living a happy life in Confucian societies.

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Stability of Marital and Cohabiting Unions Following a First Birth

In a recent paper, Manning et al. (Popul Res Policy Rev 23:135–139, 2004) examine the stability of marital and cohabiting unions from the perspective of children and find that children born to cohabiting parents are more likely to experience a parental separation than children born to married parents. They find, further, that subsequent marriage among cohabiting parents is associated with increases in the stability of these families, particularly among whites. We rely on the same data, the 1995 National Survey of Family Growth, to extend their findings. Our empirical results complement Manning et al.’s by modeling four distinct trajectories of cohabitation and marriage around the time of the first birth and by comparing the dissolution risks associated with each. We focus particular attention on the stability of cohabiting couples who marry before a first birth and those who marry after a first birth. For these couples, we find that the ordering of cohabitation, marriage, and childbirth is not associated with union stability, and we interpret this to suggest that many cohabiting couples jointly plan marriage and childbirth.

The within-household schooling decision: a study of children in rural Andhra Pradesh

Using microdata from a field survey of children in rural Andhra Pradesh, India, we estimate econometric models which aim to identify the key explanatory factors in the decision on schooling. The approach adopted is to focus on the effects of sibling competition within the household, by paying close attention to the number, age and gender of a child's siblings, while also taking account of the characteristics of the household and community. Our findings suggest that the schooling decision depends as much on the child's characteristics and position within the household, as on the circumstances in which the child lives.

“Backslanted X” fertility dynamics and macroeconomics

A large number of pairs of countries exhibit a dynamic pattern in which: (1) Fertility in both countries declines across time; (2) initially, one country has a higher fertility and a lower per-capita income than the other; and (3) in time, as per-capita incomes converge, fertility rates in the poorer country become lower than in the richer one. This article documents the prevalence of such dynamics and offers a theoretical model in which these dynamics emerge endogenously. Assuming differences in the degree of utility substitution between consumption and rearing children across countries generates all three components of these dynamics.

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.

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.

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.