Fertility rates and skill distribution in Razin and Sadka’s migration-pension model: A note

Razin and Sadka (1999) show that unskilled immigration is beneficial to all income and all age groups in society, even if immigrants are net beneficiaries of the welfare system. Among other things, this result rests on the assumptions that immigrants have the same reproduction rate as the native population and that the immigrants offspring has the same distribution of skills as the natives offspring. By relaxing these assumptions, we show that the Razin and Sadka result is no longer unambiguous.Helpful comments and suggestions from two anonymous referees are gratefully acknowledged. Responsible editor: Alessandro Cigno.     

Three Centuries of Global Population Growth: A Spatial Referenced Population (Density) Database for 1700–2000

The Earths surface has changed considerably over the past centuries. Since the start of the Industrial Revolution in the early 1700s, humans from the Old World started to colonize the New World. The colonization processes lead to major changes in global land use and land cover. Large parts of the original land cover have been altered (e.g., deforestation), leading to extra emissions of GHGs to the atmosphere and enhancing global climate change. The spatial and temporal aspects are still not very well known. More and more global integrated environmental assessments concerning global sustainability require long time series of global change indicators, of which population is an important one. This study presents an update of the geo-referenced historical population maps for the period 1700–2000, part of the History Database of the Global Environment (HYDE), which can be used in integrated models of global change and/or global sustainability.     

From stagnation to growth: Revisiting three historical regimes

This paper explores the role of mortality in the long transition from Malthusian stagnation to sustained economic growth. An endogenous child mortality rate that varies inversely with parents standard of living is added to the framework in Galor and Weil (AER 2000). In our version of the model, the transition from stagnation to growth, triggered by an exogenous shock to technology, comprises a mortality revolution succeeded by a demographic transition.This paper has benefitted from discussions with and suggestions made by KarlGunnar Persson, Christian Schultz, and, particularly, Christian Groth at the University of Copenhagen. I gratefully acknowledge the insightful criticisms of two anonymous referees, and I thank Paula Madsen for English proof-reading. Responsible editor: Alessandro Cigno.     

Premium differentiation in the Unemployment Insurance system and the demand for labor

We simulate the effect of the introduction of premium differentiation (experience rating) in the Dutch Unemployment Insurance system on the demand for labor for a variety of sectors in the Dutch economy. For the simulations we use the Bentolila and Bertola (1990) framework as a point of departure. In the simulations, the introduction of experience rating is modeled as expenditure neutral: in the absence of premium differentiation the cost of financing UI is modeled as a wage tax (independent of the number of workers fired by the firm), whereas in the presence of experience rating this cost is attributed to firing cost (affected by the firing action). Thus, the introduction of experience rating results in a shift from wage cost to firing cost. Following the political debate on the issue in the Netherlands, we assume that the introduction of experience rating does neither lead to a change in tax rates paid by workers nor to a change in eligibility rules or replacement rates of benefit claimants. Specific attention is paid to the distinction between young and old workers . In the model, labor adjustment costs (hiring and firing costs) are linear. The model allows for uncertainty in the business cycle.All correspondence to Hans Bloemen. Responsible editor: Alessandro Cigno     

Have the relative employment prospects for the low-skilled deteriorated after all?

Has the relative unemployment propensity for the low-skilled increased during the 1990s? We address this question empirically, based on two notions of low skills; i) low education, and ii) low ability, conditioned on education and work experience. Ability is identified by previous earnings. Evaluated by the education-based measure, we find that unemployment propensity has not developed unfavourably for the low-skilled. Evaluated by the ability-based measure, it has. We uncover a steady deterioration of employment prospects for persons with low ability relative to others with similar formal qualifications. The adverse employment effects of being low-skilled are stronger the higher is formal education.All correspondence to Knut Røed. The paper is part of the project Sorting, exposed groups and labour market programs financed by the Research Council of Norway. We wish to thank Rolf Aaberge, Paul Gertler, Harald Goldstein, Karl Ove Moene, Jon Strand, Steinar Strøm, Asbjrn Rødseth and an anonymous referee for helpful comments. Responsible editor: John F. Ermisch.     

Constructing a Quality of Life Scale for Older Chinese People in Hong Kong (HKQoLOCP)

This paper reports a multi-stagestudy carried out between 1999 and 2001 whichaimed to develop an instrument to address theneed for a culturally relevant measure ofquality of life for Chinese older persons inHong Kong and similar communities. The firststage of the research involved a focus groupstudy conducted in August 1999 which it washoped would reflect how quality of life maybe interpreted by older persons themselves. Thenext stage, a content analysis of the focusgroups, enabled the construction of aquestionnaire containing over 100 items onvarious aspects of quality of life (QoL). Thequestionnaire was reviewed by a panel ofexperts and the items were refined and reducedto 86 to which were added a further 25 itemsfor socio-demographic background. This formedthe initial instrument. The final stage was avalidation study based on a representativecommunity survey, with a sample of 3,000respondents drawn for the research team by theCensus and Statistics Department of the HongKong Special Administrative Region (HKSAR)Government. The survey yielded 1,616 successfulinterviews with older persons aged 60 or above.The careful stratification of the sampleenabled us to say that subjects in all thestages of the survey had broadly similarcharacteristics to the general Hong Kongelderly population in sex and age distribution.After a rigorous process of validation, theresearch team recommended the adoption of bothan index and six domains for measuring HongKong older persons QoL. The new scale containsa total of 21 items which can be grouped intovarious domains: subjective well-being, with 4items; health with 5 items; interpersonalrelationships with 6 items; achievement-recognition with 4 items, finance and livingconditions (1 item each). The overall QoL scalehas a Cronbachs alpha of 0.72 with its domainsranging from 0.65 to 0.77 which indicates ahigh degree of statistical reliabilities. Thename recommended for the scale was Hong KongQuality of Life for Older Persons Scale-abbreviated as HKQoLOCP.     

Is There a Trade-Off Between Economic Efficiency and a Generous Welfare State? A Comparison of Best Cases of `The Three Worlds of Welfare Capitalism’

A crucial debate in policy-making as well as academiccircles is whether there is a trade-off betweeneconomic efficiency and the size/generosity of thewelfare state. One way to contribute to this debate isto compare the performance of best cases ofdifferent types of state. Arguably, in the decade198594, the US, West Germany and the Netherlands were best cases best economic performers in whatEsping-Andersen (1990) calls the three worlds ofwelfare capitalism. The US is a liberalwelfare-capitalist state, West Germany a corporatiststate, and the Netherlands is social democratic in itstax-transfer system, although not its labor marketpolicies. These three countries had rates of economicgrowth per capita as high or higher than other richcountries of their `type, and the lowest rates ofunemployment.At a normative or ideological level the three types ofstate have the same goals but prioritise themdifferently. The liberal state prioritises economicgrowth and efficiency, avoids work disincentives, andtargets welfare benefits only to those in greatestneed. The corporatist state aims to give priority tosocial stability, especially household incomestability, and social integration. The socialdemocratic welfare state claims high priority forminimising poverty, inequality and unemployment.Using ten years of panel data for each country, weassess indicators of their short (one year), medium(five year) and longer term (ten year) performance inachieving economic and welfare goals. Overall, in thistime period, the Netherlands achieved the bestperformance on the welfare goals to which it gavepriority, and equalled the other two states on most ofthe goals to which they gave priority. This resultsupports the view that there is no necessary trade-offbetween economic efficiency and a generous welfarestate.The three panel studies are the American Panel Studyof Income Dynamics (PSID), the German Socio-EconomicPanel (GSOEP) and the Dutch Socio-Economic Panel(SEP). They all have samples of over 15,000 and arethe only national panels to have run for tenconsecutive years or more, so making it possible toassess the longer term performance ofwelfare-capitalist states.     

Fertility Policy and Employment: Implications from the Former Soviet Union

Using individual-level survey data that were collected in Russia in 1993, we analyze the fertility-employment relationship for a sample of urban women who bore children during the Soviet era. Although some Russian policy makers advocate policies that reduce female employment to stimulate fertility, we find little empirical support to ensure success of these policies. Specifically, we find no connection between employment and fertility for our sample of Russian females, perhaps because of their historic, mandated commitment to the labor market. Instead, we find that demographics and attitudes influence fertility decision making. These results, in combination with the findings that our sample of Russian women hold more traditional attitudes toward family and egalitarian attitudes toward work than similar American women, suggest that policies to stimulate fertility by reducing employment may not be effective for women raised during the Soviet era unless a dramatic shift in attitudes away from a strong work commitment also occurs.     

Welfare participation and welfare dependence among the unemployed

We regard individual unemployment duration as an important determinant of individuals welfare dependence. Welfare receipt is modelled for a unique data set of 4,655 Finnish unemployed individuals. A two-stage binomial hurdle model is applied, and estimations are made by both ML and GMM. Disregarding the full interrelation between unemployment and welfare clearly underestimates the importance of the former. Unemployment has a clear impact on both the probability of welfare participation and on welfare dependence among recipients. Using a finite mixture model we find that there is a small minority of unemployed welfare recipients who are locked-in in welfare dependence.All correspondence to Maria Melkersson. We thank participants at the ESPE 2001 conference, João Santos Silva and two anonymous referees for valuable comments. Financial support from Rektor för Åbo Akademi is gratefully acknowledged (Saarela). Responsible editor: Junsen Zhang.     

Geographic compactness vs. race/ethnic compactness and other criteria in the delineation of legislative districts

Several criteria have evolved in law and tradition to constrain the delineation of Congressional and State and local legislative districts, such as population equality, geographic compactness, race/ethnic compactness, and integrity of political boundaries. Among the various criteria, I focus on compactness, and in particular, the legal and mensural aspects. Following the passage of the Voting Rights Act in 1965, racial compactness has been employed more and more frequently as a primary criterion, and with reduced restraint compared with other criteria, except perhaps for population equality. In Thornburg v. Gingles (1986), the Supreme Court recognized racial/ethnic compactness and polarization in voting practices as prerequisites for newly established majority-minority districts. In Shaw v. Reno (1993), the Court reaffirmed the principle of geographic compactness as against racial compactness by noting that the shape of Cong. Dist. 12 of North Carolina was bizarre and that it was drawn solely on racial grounds. With this decision, race/ethnic compactness and, by extension, the broad interpretation of the Voting Rights Act have been put in conflict with geographic compactness as criteria. More recently, in Miller v. Johnson (1995), use of race as a predominant factor in district delineation, apart from compactness, was rejected. These developments should renew interest in and support for formal statistical guidelines in evaluating geographic compactness in redistricting plans. Many formulas for measuring compactness have been proposed and tested. Here the commonly used perimeter/circle measure and the circumscribed area/circle measure are compared by an examination of some simple geometric figures and 1990-Census-based C.D.'s. Some problems with these measures are noted, and a new measure, the CV/radii measure (the complement of the coefficient of variation of the radii of the district), is proposed and illustratively applied.     

Social Development Trends in the Middle East, 1970–1997: the Search for Modernity

The nations of the Middle East have arrived at a historic crossroad.Anchored in centuries-old political and economic systems, bitterethnic rivalries, recurrent intra-regional warfare, and risingfundamentalism, the majority of the regions countries haveremained largely apart from the transformative processes that areshaping development in other world regions. Indeed, the impressionexists that no development miracles are occurring in theMiddle East and that, to a very great extent, the region isseeking to remain on the sidelines of modern history. And,yet, if the countries of the Middle East are to flourish in thenext century they, too, must restructure themselves for dealingwith the complex realities associated with increasing globalizationand internationalization. This paper reports on the socialdevelopment successes and failures of 22 Middle Eastern countriesbetween 1970 and 1997. Also identified are the regions SocialLeaders (SLs), Socially Least Developing Countries (SLDCs),and Middle Performing Countries (MPCs). The social, political,and economic factors most closely associated with each countrysdevelopment classification are identified.     

The stable population model,migration, and complementarity

The issue of declining population in many more-developed countries (MDCs) and continued rapid population growth in most less-developed countries (LDCs) is addressed in this paper. The authors expand the stable model theory beyond closed populations and apply it to situations where migration patterns are either in or out of a region. Through the use of the complementarity concept, the study illustrates what the impact of continued migration out of LDCs into MDCs would be on both regions.     

Tribal membership requirements and the demography of ‘old’ and ‘new’ Native Americans

This paper examines the twentieth-century population recovery of Native Americans with reference to urbanization, intermarriage, and differing definitions of the Native American population from census and tribal enrollment data. The recent increase in the Native American population reflected in regular US decennial censuses since 1960 is discussed in terms of changing self-identification of individuals as Native American. Also discussed are criteria for enrollment in Native American tribes, particularly blood quantum requirements. Census enumerations are compared with tribal enrollment data, and it is illustrated that a large proportion of those identifying as Native American in the census are not enrolled in Native American tribes. Special attention is given to how Native American tribal enrollment criteria might impact future population size.     

China's ‘later’ marriage policy and its demographic consequences

Using data from China's One-Per-Thousand Fertility Survey conducted in 1982, a cohort analysis is carried out to estimate the demographic consequences of the later marriage policy implemented in the People's Republic of China. The findings show that the later marriage policy had a strong positive effect on mean age at first marriage and first birth but a negative impact on the length of the first-birth interval, suggesting that the depressing effects on fertility of the administratively enforced postponement of marriage are more or less offset by adjustments over the first-birth interval by Chinese couples.     

Optimally Scaled Quality-of-Life Indicators

When studying quality of life, researchers have to rely on the subjective evaluations, which are typically categorized, collected in surveys. When statistical analysis are applied to these data, they used to apply the simplistic approach including (i) direct quantification, which assigns discrete numerical values to ordinal response scale, and (ii) complete-case analysis, which discards all observations selecting any of the off-scales choices like Dont Know No Answer from the analysis. The present paper examines the disadvantages of this approach and introduces the optimal scaling method as a remedy. The new scheme attempts to restore the continuity property of the measurements as well as provide estimates for most of the missing responses. Application of the new scheme to the Hong Kong QOL data illustrates how the scheme works, demonstrates its advantages and shows how the QOL indicators, the global QOL indicator as well as its inherited indicators, can be constructed from series of principal component analyses. Factor analysis of the 20 life domain indicators verifies Wan's opinion (1992) that the global sense of well-being can best be captured by two dimensions, namely the personal well-being and the societal well-being. Although previous QOL studies had seldom included perceptions towards various societal conditions to identify life satisfaction in general, our data analysis shows that satisfaction on these conditions do constitute an important component of the global QOL.     

On opulence driven poverty traps

Endogenous population growth, i.e., making the rate of population growth dependent on society's opulence, causes parametric changes to have a larger impact and can cause multiplicity of steady states in a dynamic intertemporal optimization framework. This provides a simple explanation for the possibility of differing growth paths between countries (using a standard production function) or another explanation of the poverty trap. We give two examples (opulence sensitivity and production sensitivity) that both give rise to three steady states in which poor (rich) countries will evolve over time to the low (high) income steady state. In both examples there are middle income countries that will choose the low (high) income steady state if they are impatient (patient), where patience is measured through the rate of time preference o. Foreign aid in the form of a large transfer of capital from abroad enables poor and impatient middle income countries to move to the high income steady state.We would like to thank Nico Heering, Martijn Herrmann, Theo Junius, Ngo van Long, Ad Pikkemaat, John Pitchford, Lakshmi Raut, Casper de Vries, an anonymous referee, participants of workshops at the University of Groningen and the University of Amsterdam and especially Harry van Dalen for valuable comments. The article was presented at the fifth annual conference of the European Society of Population Economics, Pisa 1991. The views expressed in the article are those of the authors and not necessarily those of the World Bank.     

The impact of cash-benefit reform on parents’ labour force participation

This paper evaluates the impact of a recent Norwegian family-policy reform. The reform provides benefits of up to NOK 3,000 (approximately € 400) per month to families with one- to three-year-old children, who do not utilize state-subsidized day-care centres. We investigate the reforms effect on parents labour force participation. We find that, on average, the reform reduced womens labour force participation and increased the specialization of work between couples. We find that the effect of the reform depends on womens schooling. Specifically, the labour force participation of highly educated mothers fell by more than that of mothers with less education.I am grateful to Associate Professor Espen Bratberg and Professor Alf Erling for their valuable comments. My special thanks to Kjell Vaage, Arild Aakvik and Afsane Bjorvatn for helpful suggestions. This paper was presented in a seminar at the Department of Economics, University of Bergen, Norway. I am thankful to the participants of the seminar for their positive feedback. The paper has also benefited from the reports given by three anonymous referees. I am also thankful to Professor Heather Joshi for helpful remarks on the paper. Responsible editor: Christoph M. Schmidt.     

The educational attainment of second-generation immigrants in The Netherland

Since the mid-1960s the Netherlands has had a positive net immigration, mainly because of man power recruitment from Turkey and Morocco and immigration from the former Dutch colony of Surinam. Immigrants havea weak labor market position, which is related to their educational leveland language skills. Children and grandchildren of immigrants are expected to have a better chance of integration into Dutch society. In this paper we investigate whether this is true with respect to the educational attainment of second-generation immigrants from Turkey, Morocco, Surinam and the Dutch Antilles.The authors thank an anonymous referee and both editors for helpful comments. Responsible editors: David Card and Christoph M. Schmidt.     

Assessing the Impact of Proposed Bank Mergers on Rural Communities: A Case Study of Bbritish Columbia

The restructuring of financial markets and financial institutions through bank mergers has been accompanied in many countries by concerns about the resulting `geography of finance. In Canada, two proposed mergers involving four of the largest banks have raised concerns about the possibleimpacts of the proposed mergers on the access to financial institutions in rural Canada. This paper assesses the potential impact of the proposed mergers on the geography of finance in rural communities in British Columbia. The methodological choices which must be made to frame such an anlysis are discussed and include choices related to the definitions of `accessibility, the `industry, a `competitive industry, a `bank branch and a `community. A new Index is devised to measure the vulnerability of rural communities to post-merger bank branch closures. It is concluded that the bank mergers will, if approved, have significant negative impacts for the accessibility of the banking system in rural British Columbia. It is also suggested that Canada needs to examine establishing a wider regulatory framework which addresses the issue of accessibility on a longer term basis.