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.

Sibling size and investment in children’s education: an asian instrument

This study estimates the trade-off between child quantity and quality by exploiting exogenous variation in fertility under son preferences. Under son preferences, both sibling size and fertility timing are determined depending on the first child’s gender, which is random as long as parents do not abort girls at their first childbearing. For the sample South Korean households, I find strong evidence of unobserved heterogeneity in preferences for child quantity and quality across households. The trade-off is not as strong as observed cross-sectional relationships would suggest. However, even after controlling for unobserved heterogeneity, a greater number of siblings have adverse effects on per-child investment in education, in particular, when fertility is high.

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.

Child mortality, fertility, and human capital accumulation

This article analyzes the impact of decline in child mortality on fertility and economic growth. The study shows that the timing of mortality relative to education is crucial to implications of mortality decline. If child mortality is realized before education starts, an exogenous decline in child mortality leads to a decline in education—a finding that is opposite to those of studies that considered a decline in mortality after the cost of education has been incurred. The work also demonstrates the role of parental human capital in reducing child mortality and the causal link between rising education and declining child mortality.

Which factors explain the decline in infant and child mortality in Matlab,Bangladesh?

Infant and child mortality rates have decreased substantially in Matlab, Bangladesh, as they have in many developing areas. We use data from the Matlab Demographic Surveillance System on nearly 94,000 singleton live births that occurred between 1987 and 2002 to investigate the extent to which the change in mortality over this period can be explained by changes in reproductive patterns and socio-economic characteristics. We estimate Cox proportional hazards models for four subperiods of infancy and childhood. Changes over time in reproductive patterns (maternal age, parity, and pregnancy spacing) and in the socio-economic characteristics we consider (e.g. maternal education, SES) explain between 10 and 40% of the decline in mortality rates. Changes in maternal education explain the largest portion of the reduction in infant and child mortality over time that we are able to explain, followed by reductions in the incidence of short interpregnancy intervals. In the other direction, decreases in fertility over time led to increases in the proportion of births that were first births, putting upward pressure on mortality.

The determinants and consequences of child care subsidies for single mothers in the USA

This paper provides an analysis of child care subsidies under welfare reform in the USA. We used data from the 1999 National Survey of America's Families to analyze the determinants of receipt of a child care subsidy and the effects of subsidy receipt on employment, school attendance, unemployment, and welfare participation. Ordinary least-squares estimates that treat subsidy receipt as exogenous show an effect of subsidy receipt on employment of about 13 percentage points. Two-stage least-squares estimates that treat subsidy receipt as endogenous and use county dummies as identifying instruments show an effect of 33 percentage points on employment, 20 percentage points on unemployment, and no effects on schooling and welfare receipt.

Extracting the causal component from the intergenerational correlation in unemployment

This paper examines the intergenerational correlation in unemployment in Norway and discusses and estimates two approaches for extracting the causal component: sibling differences and the use of parental unemployment occurring after the child’s outcome as control for the unobserved family heterogeneity. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Almost half of this is due to observed family heterogeneity. The causal effect is found to be statistically insignificant by both identification strategies, but while the estimated effect is negative on the sample made for the sibling-difference approach, this finding is not replicated on a less selective sample.

The effect of longevity on schooling and fertility: evidence from the Brazilian Demographic and Health Survey

This paper presents microevidence on the effect of adult longevity on schooling and fertility. Higher longevity is systematically associated with higher schooling and lower fertility. The paper looks at the 1996 Brazilian Demographic and Health Survey and constructs an adult longevity variable based on the mortality history of the respondent's family. Families with histories of high adult mortality in previous generations have systematically higher fertility and lower schooling. These effects are not associated with omitted variables and remain unchanged after a large array of factors is accounted for (demographic characteristics, family-specific child mortality, regional development, socioeconomic status, etc.).

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.

Sibling similarities and economic inequality in the US

I use a new methodological approach and larger US samples than previous studies and estimate that the sibling correlation across a range of economic outcomes is around 0.5. This suggests that half of economic inequality in the US can be attributed to family and community influences. A comparison with noneconomic outcomes suggests that individual choices rather than a simple mechanical relationship governs the intergenerational transmission of income. A decomposition of the sibling correlation suggests that the acquisition of human capital is an important channel through which family background affects future success but that noncognitive factors also play a role.

Growing old and staying young: population policy in an ageing closed economy

This paper analyses the relation between public pensions, fertility and child care in a closed-economy overlapping generations model with endogenous fertility. It is shown that raising a child involves two social externalities and that it is optimal to introduce child allowances if the government redistributes income from the young to the old. The optimal child allowance rises when longevity increases. If the costs of raising children depend positively on the wage, a third externality arises and the returns to savings should be taxed.

Child Mortality and Environment in Developing Countries

This paper studies child mortality and fertility in 61 developing countries including the Central Asian Republics (CARs). To control for simultaneity, an estimated value of fertility was used in the mortality equation and a final specification included only exogenous socio-economic, health and environmental variables. We confirm the importance of female literacy in explaining both fertility and mortality, and also find a measure of consumption for the poorest share of the population to be significant, while controlling for nutrition, health expenditure, and income distribution. Incidence of tuberculosis and female agricultural population proxy for environmental impacts, but in spite of these controls, approximately 41% additional mortality was estimated due to living in the CARs. The results fill gaps in the literature: we use a wider range of socio-economic and environmental health variables than previously in an encompassing analysis of mortality and fertility, and find evidence of excessive mortality in the CARs most likely linked to environmental degradation in the region.

Public transfers and marital dissolution

In this paper, we analyze determinants of marital dissolution, focusing on the alleged influences from public transfers, child allowance, and child support awards. We use a Norwegian panel of 2,806 couples with information on public and private transfers in cases of divorce. The sample was observed over a 5-year period, with the purpose of registering marital dissolution. We find that the level of transfers has a significantly positive effect on divorce probability and that the distribution of transfers in favor of the wife increases this probability. Our findings are consistent with noncooperative family models allowing for inefficient outcomes.

Capping Kids: The Family Cap and Nonmarital Childbearing

An explicit goal of policymakers in drafting welfare reform policies was to reduce incentives for nonmarital childbearing. This paper estimates the extent to which state welfare reforms have lowered age and race-specific nonmarital fertility. Using state-level data from 1984 to 1999—a time period that includes the passage and implementation of national welfare reform—we estimate fixed effects models corrected for heteroscedasticity and autocorrelation. We find evidence that the family cap, a policy that decreases or eliminates the incremental increase in benefits for mothers who have an additional child while on welfare, is associated with a decline in nonmarital birth ratios. However, we also find that the family cap is associated with higher marital birth rates. Taken together with other research, our findings suggest evidence of policy endogeneity.

The influence of market wages and parental history on child labour and schooling in Egypt

This paper examines the influence of adult market wages and having parents who were child labourers on child labour, when this decision is jointly determined with child schooling, using data from Egypt. The empirical results suggest that low adult market wages are key determinants of child labour; a 10% increase in the illiterate male market wage decreases the probability of child labour by 22% for boys and 13% for girls. The findings also indicate the importance of social norms in the intergenerational persistence of child labour: parents who were child labourers themselves are on average 10% more likely to send their children to work. In addition, higher local regional income inequality increases the likelihood of child labour.

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.

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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Forecasting German mortality using panel data procedures

Reliable forecasts of life expectancies are of importance for the financial stability of social security systems and the life insurance industry. A discrete-time stochastic process and a continuous-time stochastic process are proposed to model the dynamics of German mortality rates from which life expectancies are calculated. More precisely, a panel data model is utilized, which distinguishes between a common time effect and a common age effect. The model is easy to fit, yields interpretable parameters, and allows for a simple analysis of the forecast error. The main applications of the model are the forecast of mortality rates—and the resulting life expectancies—and the pricing of mortality derivatives.

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.

Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care

This paper tests adverse selection in the market for child care. A unique data set containing quality measures of various characteristics of child care provided by 746 rooms in 400 centers, as well as the evaluation of the same attributes by 3,490 affiliated consumers (parents) in the U.S., is employed. Comparisons of consumer evaluations of quality to actual quality show that after adjusting for scale effects, parents are weakly rational. The hypothesis of strong rationality is rejected, indicating that parents do not utilize all available information in forming their assessment of quality. The results demonstrate the existence of information asymmetry and adverse selection in the market, which provide an explanation for low average quality in the U.S. child care market.