Savings–age profiles in the UK

We used UK Family Expenditure Surveys to analyse the relationship between savings and age structure. We address two key problems: the sample selection bias when data refer to households and not individuals, and the treatment of pension income when drawing inferences from individuals' savings–age profiles about the relationship between an economy's savings and age structure. Our principal findings are that household data exaggerate savings rates of young adults and the elderly whilst underestimating those of 45- to 60-year-olds, and individual saving rates follow more closely the ‘hump shape’ of the life-cycle model, although the savings rates of the elderly remain positive for some ages.

A longitudinal analysis of the impact of health shocks on the wealth of elders

We investigate the impact of health shocks on wealth, using all four waves of the Health and Retirement Study, and estimate not only the short-term effect but also the long-term effect of health shocks on wealth of the elderly. We find that new health events lower wealth in elders during the period in which such health shocks occur, but the impact tends to disappear over time. We also find that health shocks result in greater wealth depletion when they occur later in life. Together with existing health problems, the overall impact of health problems on wealth increases over time.

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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Does parents’ valuation of children’s health mimic their valuation of own health?

A single latent variable model of health status and therapeutic health care utilization is estimated for parents and own children of 6,557 US households. The equation system that identifies latent health status simultaneously determines a number of indicators of general health, including presence of morbidity symptoms, mobility limitations, medication needs, and utilization of therapeutic health care services. The main goal of the paper was to obtain an unbiased estimate of parents’ marginal substitution rate between own and child health. Results indicate that parents’ valuation of their children’s health exceeds their valuation of own health by almost twofold on average.

Gender, Social Change, and Living Arrangements Among Older Egyptians During the 1990s

We compare older Egyptian women’s and men’s propensities to live with unmarried children only, any ever-married children, and alone, and we assess “kin-keeping” versus “modernization” hypotheses about the effects of social change on living arrangements during 1988–2000. Socioeconomic differences among women and men accounted for much of their crude differences in living arrangements during the period. Propensities to live with any ever-married children declined, and propensities to live alone or with unmarried children only rose. Compared to men, women continued to live more often with any ever-married children and less often with unmarried children only, and the 1988 gender gap in solitary residence disappeared by 2000. Increasing coresidential demands from unmarried dependent children, less frequent coresidential support from ever-married children, and rapidly increasing rates of solitary living especially among older men suggest emerging needs for non-coresidential instrumental support, especially among older Egyptians who are economically disadvantaged.

Colourism and African–american wealth: evidence from the nineteenth-century south

Black is not always black. Subtle distinctions in skin tone translate into significant differences in outcomes. Data on more than 15,000 households interviewed during the 1860 US federal census exhibit sharp differences in wealth holdings between white, mulatto, and black households in the urban South. We document these differences, investigate relationships between wealth and recorded household characteristics, and decompose the wealth gaps to examine the returns to racial characteristics. The analysis reveals a distinct racial hierarchy. Black wealth was only 20% of white wealth, but mulattoes held nearly 50% of whites’ wealth. This advantage is consistent with colourism, the favouritism shown to those of lighter complexion.

Labor Migration,Remittances and Economic Well-being of Households in the Philippines

Labor Migration has long been viewed as a strategy adopted by the household unit to allocate family resources rationally to increase the flows of income and to raise family standard of living. The research reported here examines the extent to which remittances sent by Filipino overseas workers increase the income and standard of living of households in the Philippines. Data for the analysis were obtained from a representative sample of 2,388 households drawn in 1999–2000 from four major “labor sending” areas in the Philippines. The analysis compares households with and without overseas workers to estimate the contribution of remittances to household income and to household standard of living (measured once by an ‘objective’ indicator and once by a ‘subjective’ assessment). The data reveal that due to remittances the income of households with overseas labor migrants is considerably higher than the income of households without overseas workers. The data also reveal that remittances are used mostly for consumption purposes (e.g. purchase of food, clothing, education, and goods) and that most of the difference in standard of living (whether measured on the ‘objective’ or the ‘subjective’ scale) between households with and without overseas workers are attributed to remittances. The implications of labor migration and the policy that encourages and supports labor migration for the Filipino society are evaluated and discussed.

The retirement consumption puzzle in Japan

In this paper, I examine, using Japanese cross-section data, whether “the retirement consumption puzzle” exists, and if so, why. My results show that both the anticipated consumption during retirement of working households and the actual consumption during retirement of retired households are much lower than the actual consumption before retirement of working households. I find that the anticipated decline in consumption after retirement is due primarily to the anticipated decline in family size after retirement, but that it might also be due partly to other factors. These results suggest that consumption does indeed decline after retirement, but that this decline is largely due to factors that are consistent with the life cycle hypothesis.

A collective model for female labour supply with non-participation and taxation

This paper presents a collective discrete-choice model for female labour supply. Preferences of females and the intra-household allocation process are both econometrically identified. The model incorporates non-participation and non-linear taxation. It is applied to Belgian micro-data and is used to evaluate two revenue-neutral versions of the 2001 Tax Reform Act. We find small positive behavioural responses to the reforms. The reforms are not unambiguously welfare-improving. Generally, the first revenue-neutral reform (the actual reform and a household lump-sum tax) is more beneficial to females in couples than the second (the actual reform and a proportional decrease of household disposable incomes).

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.

Household structure and consumption insurance of the elderly

This paper examines the role of household formation in providing consumption insurance to the elderly. Using data from the Consumer Expenditure Surveys, raw tabulations of per adult equivalent consumption indicate that the elderly who live alone have higher levels of well-being relative to those who live with others. This is misleading, however, because the decision to live alone is clearly endogenous. The empirical estimation accounts for this endogeneity using data from the Panel Study of Income Dynamics. The results provide evidence that household formation plays a significant role in maintaining consumption levels. Without the opportunity to live with others, the welfare gap measured by the difference between per adult equivalent consumption levels of dependent and independent livers would be even larger. These findings suggest that co-residing with others effectively supplements social security, pensions, and private savings and helps the elderly to smooth consumption in old age.

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 influence of financial, human and social capital on Japanese men’s and women’s health in single- and two-parent family structures

Large-scale demographic changes have been occurring in Japan over the last few decades. During this time, the proportion of two-parent (nuclear) and single-parent families have doubled. Despite this rapid increase, the health of individuals in these family structures have received limited attention, as the focus has been directed towards the health of Japan’s aging society and the health implications related to the decline in multigenerational households. However, researchers and policy planners cannot afford to overlook issues that influence the health of men and women in single- and two-parent family structures, not only because these families have become increasingly common throughout the nation, but also because the western literature has indicated that the health of families are largely influenced by the gender-by-family structure divide. Through logistic regression models, using the 1999 Nationwide Family Survey, this paper examines how financial, human and social capital influences the likelihood of good health among men and women in single- and two-parent families. As was expected, key determinants in predicting good health amongst these four sub-groups of parents were found. While parents in two-parent families were the least influenced by various measures of capital, these same measures were found to be significant in predicting good health amongst fathers, and more so mothers, in single-parent families.

Post-migration investments in education and job search: a family perspective

This paper examines post-migration investments in schooling and job search of immigrant families using new longitudinal data for Australia. Higher education levels at the time of arrival are associated with a greater probability of enrolling in school after migration. In households where the visa category would suggest that post-migration investments might be important, we find higher rates of school enrolment and job search. Traditional gender roles appear to dictate which partner makes the investments in formal schooling. However, labour market advantage, captured by principal applicant status, appears to dictate which partner makes greater investments in job search.

The Extent of Economic Vulnerability in the Canadian Labour Market and Federal Jurisdiction: Is There a Role for Labour Standards?

This paper characterizes vulnerable workers in Canada and the federal jurisdiction, based upon characteristics such as employment status, demographic characteristics, and job characteristics, and identifies areas in which labour standards may have a role. Based on this analysis, the paper evaluates the potential for labour standards to address economic vulnerability, focusing on labour standards policies aimed at wages and benefits, hours, and employment arrangements. In addition, the analysis considers the extent to which labour standards are likely to reach vulnerable workers. The results suggest several potential roles for labour standards and highlights policy implications.

Estimation of damage to human health due to forest burning in the Amazon

Forest burning stands as a highly used practice in the Brazilian Amazon Forest. Burning trees is the cheapest way to expand agricultural frontiers in the Amazon region. Nevertheless, the smoke generated in this process can produce undesirable negative effects, in particular health-induced problems by the polluted air. This study aims to investigate whether these effects on the health of the region’s population are statistically significant, using as variables mortality and morbidity rates associated with respiratory diseases. The estimated morbidity model was used to estimate the health damage to those people who became ill only by the fire.

Labor market transitions of immigrants with emphasis on marginalization and self-employment

In developed countries, immigrants are more likely to be nonemployed and self-employed compared to natives. Based on register data of male immigrants in Denmark, we performed a detailed investigation of the immigrant–native difference in transition patterns across labor market states. We find that a high proportion of immigrants from non-Western countries tend to be marginalized relative to natives, and they tend to use self-employment to escape marginalization.

Welfare effects of illegal immigration

This paper analyzes the welfare effect of illegal immigration on the host country within a dynamic general equilibrium framework and shows that it is positive for two reasons. First, immigrants are paid less than their marginal product, and second, after an increase in immigration, domestic households find it optimal to increase their holdings of capital. It is also shown that dynamic inefficiency may arise, despite the fact that the model is of the Ramsey type. Nevertheless, the introduction of a minimum wage, which leads to job competition between domestic unskilled workers and immigrants reverses all of the above results.

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.

Assessing the Measurement and Structure of Material Hardship in the United States

Previous attempts to measure material well-being or hardship have not made clear the relationship of individual items to the broader concept of hardship. The current study used the Survey of Income and Program Participation (SIPP), a large-scale U.S. survey with a large number of questions on the material circumstances of households to create a measurement model of hardship that takes this relationship into account. A higher-order model with five-first-order factors: consumer durables, resources available to meet needs, housing conditions, neighborhood problems and crime, and community services, and a single second-order factor hardship fit the data well, with the “Housing” and “Neighborhood” first-order factors most strongly related to the higher-order hardship construct. Despite our attempts to tie the hardship measures to objective conditions, subjective evaluations were strongly related to most of the factors.