Local labor markets,children and labor force participation of wives

Most research on married women’s labor force participation relates characteristics of individual women to their probability of labor force participation. Some studies relate characteristics of geographic areas to average labor force participation rates in those areas, although these aggregate level analyses are usually gross tests of ideas about individuallevel processes. Here we take a quintessentially sociological perspective and seek to understand how characteristics of geographic areas structure the relationship between properties of individual women and their probabilities oflabor force participation. Our analysis has two steps. In step one, we fit individual-level probit models of married women’s probability of labor force participation. A separate model is fitted in each of 409 areas using 1970 Census data, and the relationship between individual characteristics and labor force participation is found to vary substantially across areas. In step two, we attempt to explain areal variation in the effects of women’s children on their labor force participation. We hypothesize that the effect of children on their mothers’ labor force participation is a function ofthe cost and availability of childcare, and of the “convenience” of jobs for working mothers in the places where the mothers live. Measures of childcare cost, childcare availability and job convenience are developed. Weighted least squares analyses of probit coefficients from the first stage are, in general, very consistent with our findings, and suggest that the approach taken in this paper is likely to be a fruitful one for future studies.     

The effects of financial markets and social security on saving and fertility behaviour in Italy

The paper aims to ascertain the extent to which saving and fertility decisions are affected by the availability and attractiveness of market-based or state-provided alternatives to the family as a source of old-age support. Subordinately, the paper aims to bring evidence to bear on the assumption that fertility is endogenous and jointly determined with saving, and to test two alternative hypotheses about individual motivations. The saving and fertility implications of two alternative models of family choice — based one on the assumption of pure self-interest, the other on that of intergenerational altruism — are first derived theoretically. Saving and fertility equations are then estimated from Italian time-series data, using as explanatory variables the market rate of interest, the social security deficit, various measures of capital market accessibility and social security coverage, and a number of income and wage variables. Particularly worthy of note is the result that a fully-funded increase in social security coverage raises saving, while an increase in the social security deficit has the opposite effect. The empirical findings appear to support the assumption that fertility is endogenous and jointly determined with saving, and to favour the hypothesis that individual decisions are motivated by self-interest rather than intergenerational altruism. Some of the policy implications are briefly discussed in the concluding section.While retaining responsibility for any errors, the authors wish to thank Carlo Casarosa, Wolfram Richter, Ed Wolff and three anonymous referees for helpful comments. Financial support from MURST 40%, under national project Capitale, Capitale Umano, Sicurezza Sociale e Dinamiche Demografische Endogene, is gratefully acknowledged.     

Uncertain lifetime, fertility and social security

Investigating the effects of population aging on fertility and economic growth, we show that an increase in life expectancy lowers the fertility rate and raises life-cycle savings, and that a pay-as-you-go social security does not reverse the effect on fertility. Received: 10 March 2000/Accepted: 28 April 2000     

Imperfect goods and labor markets, and the union wage gap

Existing theoretical literature fails to explain satisfactorily the differences between the pay of workers who are covered by collective agreements and others who are not. This study aims at providing a model framework that is amenable to an analysis of this issue. Our general-equilibrium approach integrates a dual labor market and a two-sector product market. The results suggest that the so-called “union wage gap” is largely determined by the degree of centralization of the bargains and, to a somewhat lesser extent, by the expenditure share of the unionized sector's goods.

Aging, fertility, social security and political equilibrium

We analyze the effect of population aging on the political choice of the size of a pay-as-you-go (PAYG) social security system, incorporating the heterogeneity of individuals in their preference for having children, and hence the endogenous fertility choices of individuals, into a simple overlapping generations model. We show that population aging may result in an increase in the contribution rate, increasing the share of the retired population who prefer a higher contribution rate; and that, if the system involves redistribution between retirees with different contributions, the increased contribution rate raises the number of individuals who have children, i.e., future contributors.     

Internal labor markets and the effects of structural change: Job mobility in Korean labor markets between 1998 and 2000

This study examines job mobility in Korean labor markets since the 1997 economic crisis. The rising job mobility in Korea is analyzed by focusing on structural change in labor markets. Using the Korean Labor and Income Panel Study and discrete-time event history analysis, I estimate the job-stabilizing effects of internal labor markets and the effects of structural change on job mobility. The major findings are as follows: First, I found that internal labor markets were weakening between 1998 and 2000. Second, the job-stabilizing effects of internal labor markets on job mobility diminished between 1998 and 2000. Finally, the magnitude of the effects of internal labor markets on job mobility was contingent on the level of structural change. The effect of internal labor markets on job mobility was stronger in turbulent or contracting industries. This effect, however, also became weaker over time. The implications for Korean labor markets are discussed.     

Marriage markets and nonmarital fertility in the United States

We merge census microdata with vital statistics data to examine the effect of women's marriage opportunities on nonmarital fertility rates and ratios across 75 U.S. metropolitan areas. Measures of the quantity and "quality" of marriageable men simultaneously specific for women's age, race, education, and place of residence reveal especially poor marriage prospects for highly educated black women. The effect of mate availability on nonmarital fertility is generally modest. Among white women, marriage opportunities are associated inversely with the nonmarital fertility rate, perhaps reflecting an increased likelihood that a premarital conception will be legitimated. Marriage opportunities also reduce nonmarital fertility ratios for young black and white women. The nonmarital fertility rate is lower among women whose marriage pool includes a large percentage of nonemployed males. Only a small proportion of the racial difference in nonmarital fertility appears attributable to differences in the marriage markets of black and of white women.     

Urban labor markets and individual transitions out of poverty

Using data from the Panel Study of Income Dynamics and the U.S. census, I examine the effect of four structural characteristics on individual poverty exits: (1) economic restructuring, (2) skills mismatches, (3) racial residential segregation, and (4) welfare benefit levels. Results show that these factors play a role in explaining African Americans’ economic disadvantages, but they have a weaker and often contrary impact on whites’ poverty exits. Overall, the differing impact of the contextual characteristics on African Americans and whites exacerbates social stratification and illustrates racial divisions that continue to pervade the labor market.     

Gender equity, social institutions and the future of fertility

Sustained very low levels of fertility in advanced countries can be explained by incoherence between the levels of gender equity applying in different social institutions. In countries with very low levels of fertility, high levels of gender equity are postulated in institutions that deal with people as individuals, while low levels of gender equity apply in institutions that deal with people as members of families.     

Endogenous fertility,altruistic behavior across generations,and social security systems

The present paper explores the impact of an intergenerational externality on private fertility decisions, under a pay-as-you-go social security system. The analysis is performed in the framework of a steady state growth model, with overlapping generations. To explain why households have children, altruism between parents and children is assumed. Surprisingly, the effects of altruism are not symmetric. The private fertility decisions are optimal only if children love their parents, because children then make private transfers at exactly the right level.Comments of participants of a seminar on economic theory of Prof. K. Jaeger at Free University of Berlin at July 20, 1989, are gratefully acknowledged. I am indebted to Alessandro Cigno, Frank Klanberg and Elmar Wolfstetter for many helpful suggestions.     

Another look at fertility and social mobility

This is a response to Basil Zimmer's contention that the classical hypothesis connecting social mobility with fertility was rejected in the Princeton Fertility Study because of a faulty mode of analysis. Arguing from the findings of a strong association in a sample of Aberdeen women, Zimmer asserts that if social origin and destination were taken into account, the same relationship would have emerged in the U.S. data. The evidence from the Princeton Study is reviewed and new evidence presented which confirms the original findings of no relationship.     

Female status and fertility behaviour in a Metropolitan Urban area of Bangladesh

The paper examines hypotheses that certain aspects of status of married women such as (i) decision-making power; (ii) employment status and (iii) educational status, are positively associated with use of contraception and inversely related to fertility performance. The study is based on 1,130 women of reproductive age (15-49) who are currently married and living with their husbands and reported to be fecund. The data are drawn from a cross-section of working and non-working women of Dacca City. The hypothesis that each of the above status variables is related to fertility behaviour (measured as current use of contraception and number of children ever-born) is confirmed, with the sole exception of the relationship between female employment status and fertility behaviour. Female participation in the labour force has little or no effect on use of contraception, particularly among those who belong to higher education and income groups. However, in the lower education and income groups, fertility and use of contraception vary with work experience. The findings clearly point out the need to improve the status of women in order to achieve a breakthrough in the use of contraception and a reduction in fertility.     

Skill premium effects on fertility and female labor force supply

In the last twenty years the United States has seen a positive relationship between female labor supply and total fertility rates, which differs from the pattern observed over the preceding years. We construct a general equilibrium overlapping generations model capable of generating this changing relationship between fertility and female labor supply. We argue that skilled biased technological change in recent decades has increased the skill premium and has therefore decreased the relative cost of (unskilled) child care services. The positive effect of the increase in female mean wages on fertility rates, and the inducement for labor force participation provided by the reduction in the relative cost of child care services, generated the positive relationship between fertility rates and female labor force participation in the last two decades.All correspondence to Amaia Iza. This paper has benefited particularly from comments by Juan Carlos Conesa, Pedro Mira and Sara de la Rica. We also acknowledge countless conversations with María Paz Espinosa and useful comments from Jaime Alonso, Jose María Da-Rocha, Tim Kehoe, José Victor Rios-Rull, when the paper was presented at the IV Workshop of Dynamic Macroeconomics held in Vigo (Spain, July 1999) and in Universidade de Vigo (October, 2000). We also thank an anonymous referee whose comments enabled us to improve the paper considerably. Financial support from Universidad del País Vasco 9UPV 00035.321-13511/2001, Ministerio de Educación y Ciencia PB097-0620, MCYT BEC2000/1394 and Instituto de la mujer (Ministerio de Trabajo y Asuntos Sociales) MTAS 33/00 is gratefully acknowledged. Any remaining errors are the authors responsibility. Responsible editor: Junsen Zhang.     

Time series analysis of fertility and female labor market behavior

Cointegration methods are employed to investigate relations among total fertility, female wages, labor force participation, educational attainment, and male relative cohort size. Two long run relations among the series are found, and these are identified as a fertility and a labor supply equation. All covariates enter into these relations with significant coefficients and theoretically plausible signs. Innovation analysis shows that both fertility and female labor force participation respond to changes in relative cohort size in directions consistent with the Easterlin hypothesis. Female labor force participation responds significantly to fertility shocks, but reverse effects are insignificant.All correspondence to Robert McNown. The authors wish to thank Cristobal Ridao-Cano, Kenneth Land, Alessandro Cigno, and an anonymous referee for comments on an earlier draft of this paper. Responsible editor: Alessandro Cigno.     

Effects of public education and social security on fertility

Introducing a fertility decision and child care cost into an overlapping generations model with public education and social security, we examine the effects of these public policies on fertility. We show that an increase in income tax, which finances social security benefits and public investment in education, increases fertility. On the other hand, with a constant tax rate, a change in the allocation from social security benefits to public investment in education decreases fertility and, with a constant social security tax, the effect of education tax on fertility is neutral.      

Make way for the wealthy? Autonomous vehicles,markets in mobility,and social justice

ABSTRACT

The development of a ‘mobility as a service’ model for accessing urban transport via autonomous vehicles may be expected to have far-reaching implications for the economics of road transport. In particular, it would offer a new opportunity to price access to the roads in accordance with the principles of the free market. Once people are paying for mobility on the roads on a ‘per trip’ basis, it will be possible to offer different levels of access – and service – at different prices. According to hegemonic ideas in the transport planning and economics literature the introduction of such a ‘market in mobility’ would be an economically efficient way of allocating access to the scarce good of space on the roads. In this paper we draw attention to a number of ethical and political challenges to the appropriateness of the use of such a pricing mechanism in the context of urban mobility.     

Family structure and socio-economic differentials in fertility

Abstract The long standing research on the relation of socio-economic status and fertility has recently given way to a focus on those factors which account for class differentials. Although class differences in fertility seem to be diminishing, the basic relationship remains inverse.(2) In an attempt to explain class differentials in fertility, researchers have begun to look at such variables as age at marriage(3), value orientations(4), and non-fiunilial activity.(5) Bumpass demonstrated that age at marriage is an interaction variable which greatly attenuates the relationship between social class and fertility. He found that the relationship was inverse among women marrying before age 19, but direct among women who were 23 years or older at first marriage. Clifford examined value orientations as an intervening variable in the socio-economic status-fertility relationship. Modern and traditional value orientations did aid in interpreting the relationship, but other factors were also operative. Kupinsky found that the non-familial activity of women decidedly influenced socio-economic differentials infertility. Thelabour force participation of women had a greater effect on reducing fertility among upper-status women than among those of lower status. This relationship was also influenced by the rural-urban background of the women.