Trends in the Motherhood Wage Penalty and Fatherhood Wage Premium for Low,Middle, and High Earners

Many studies have shown that women pay a wage penalty for motherhood, whereas men earn a wage premium for fatherhood. A few recent studies have used quantile regression to explore differences in the penalties across the wage distribution. The current study builds on this research and explores trends in the parenthood penalties and premiums from 1980 to 2014 for those at the bottom, middle, and top of the wage distribution. Analyses of data from the Current Population Survey show that the motherhood wage penalty decreased, whereas the fatherhood wage premium increased. Unconditional quantile regression models reveal that low-, middle-, and high-earning women paid similar motherhood wage penalties in the 1980s. The motherhood wage penalty began to decrease in the 1990s, but more so for high-earning women than for low-earning women. By the early 2010s, the motherhood wage penalty for high-earning women was eliminated, whereas low-earning women continued to pay a penalty. The fatherhood wage premium began to increase in the late 1990s, although again, more so for high-earning men than for low-earning men. By the early 2010s, high-earning men received a much larger fatherhood wage premium than low- or middle-earning men.     

From Privilege to Prevalence: Contextual Effects of Women’s Schooling on African Marital Timing

In Africa and elsewhere, educated women tend to marry later than their less-educated peers. Beyond being an attribute of individual women, education is also an aggregate phenomenon: the social meaning of a woman’s educational attainment depends on the educational attainments of her age-mates. Using data from 30 countries and 246 birth cohorts across sub-Saharan Africa, we investigate the impact of educational context (the percentage of women in a country cohort who ever attended school) on the relationship between a woman’s educational attainment and her marital timing. In contexts where access to education is prevalent, the marital timing of uneducated and highly educated women is more similar than in contexts where attending school is limited to a privileged minority. This across-country convergence is driven by uneducated women marrying later in high-education contexts, especially through lower rates of very early marriages. However, within countries over time, the marital ages of women from different educational groups tend to diverge as educational access expands. This within-country divergence is most often driven by later marriage among highly educated women, although divergence in some countries is driven by earlier marriage among women who never attended school.     

The Role of Family Behaviors in Determining Income Distribution: The Case of South Korea

In this article, we examined what has contributed to the worsening income inequality and poverty between 1996 and 2011 in South Korea. We used a rank-preserving exchange method and a conditional reweighting method to assess the roles of family behaviors—including female labor force participation and family structure—characteristics of household heads, and men’s earnings. The results showed that the change in men’s earnings was a dominant factor in accounting for the increasing income inequality and poverty. The change in age and education among household heads also contributed significantly to the worsening income distribution. The change in family structure mainly affected the income disparity among lower-income families and increased poverty. The rise in women’s labor force participation improved the income distribution but not considerably. The distributional roles of family have not worked to prevent or reverse the worsening income distribution in the past few decades in South Korea.     

Growing Wealth Gaps in Education

Prior research on trends in educational inequality has focused chiefly on changing gaps in educational attainment by family income or parental occupation. In contrast, this contribution provides the first assessment of trends in educational attainment by family wealth and suggests that we should be at least as concerned about growing wealth gaps in education. Despite overall growth in educational attainment and some signs of decreasing wealth gaps in high school attainment and college access, I find a large and rapidly increasing wealth gap in college attainment between cohorts born in the 1970s and 1980s, respectively. This growing wealth gap in higher educational attainment co-occurred with a rise in inequality in children’s wealth backgrounds, although the analyses also suggest that the latter does not fully account for the former. Nevertheless, the results reported here raise concerns about the distribution of educational opportunity among today’s children who grow up in a context of particularly extreme wealth inequality.     

Cohort Differences in Parental Financial Help to Adult Children

In this article, we examine birth cohort differences in parents’ provision of monetary help to adult children with particular focus on the extent to which cohort differences in family structure and the transition to adulthood influence these changes. Using data from the Health and Retirement Study from 1994 to 2010, we compare financial help to children of three respondent cohorts as the parents in these birth cohorts from ages 53–58 to 57–62. We find that transfers to children have increased among more recent cohorts. Two trends—declining family size and children’s delay in marriage—account for part of the increase across cohorts. However, other trends, such as the increase in the number of stepchildren and increasing child’s income level, tend to decrease the observed cohort trend.     

Financially Overextended: College Attendance as a Contributor to Foreclosures During the Great Recession

Although subprime mortgage lending and unemployment were largely responsible for the wave of foreclosures during the Great Recession, additional sources of financial risk may have exacerbated the crisis. We hypothesize that many parents sending children to college were financially overextended and vulnerable to foreclosure as the economy contracted. With commuting zone panel data from 2006 to 2011, we show that increasing rates of college attendance across the income distribution in one year predict a foreclosure rate increase in subsequent years, net of fixed characteristics and changes in employment, refinance debt, house prices, and 19-year-old population size. We find similar evidence of college-related foreclosure risk using longitudinal household data from the Panel Study of Income Dynamics. Our findings uncover a previously overlooked dimension of the foreclosure crisis, and highlight mortgage insecurity as an inadvertent consequence of parental investment in higher education.     

Insights from the Evaluation of Past Local Area Population Forecasts

Local area population forecasts have a wide variety of uses in the public and private sectors. But not enough is known about the errors of such forecasts, particularly over the longer term (20 years or more). Understanding past errors is valuable for both forecast producers and users. This paper (i) evaluates the forecast accuracy of past local area population forecasts published by Australian State and Territory Governments over the last 30 years and (ii) illustrates the ways in which past error distributions can be employed to quantify the uncertainty of current forecasts. Population forecasts from the past 30 years were sourced from State and Territory Governments. Estimated resident populations to which the projections were compared were created for the geographical regions of the past projections. The key features of past forecast error patterns are described. Forecast errors mostly confirm earlier findings with regard to the relationship between error and length of projection horizon and population size. The paper then introduces the concept of a forecast ‘shelf life’, which indicates how far into the future a forecast is likely to remain reliable. It also illustrates how past error distributions can be used to create empirical prediction intervals for current forecasts. These two complementary measures provide a simple way of communicating the likely magnitude of error that can be expected with current local area population forecasts.     

Stochastic Forecasting of Labor Supply and Population: An Integrated Model

This paper presents a stochastic model to forecast the German population and labor supply until 2060. Within a cohort-component approach, our population forecast applies principal components analysis to birth, mortality, emigration, and immigration rates, which allows for the reduction of dimensionality and accounts for correlation of the rates. Labor force participation rates are estimated by means of an econometric time series approach. All time series are forecast by stochastic simulation using the bootstrap method. As our model also distinguishes between German and foreign nationals, different developments in fertility, migration, and labor participation could be predicted. The results show that even rising birth rates and high levels of immigration cannot break the basic demographic trend in the long run. An important finding from an endogenous modeling of emigration rates is that high net migration in the long run will be difficult to achieve. Our stochastic perspective suggests therefore a high probability of substantially decreasing the labor supply in Germany.     

Long-Term Earnings Differentials Between African American and White Men by Educational Level

This paper investigates long-term earnings differentials between African American and white men using data that match respondents in the Survey of Income and Program Participation to 30 years of their longitudinal earnings as recorded by the Social Security Administration. Given changing labor market conditions over three decades, we focus on how racial differentials vary by educational level because the latter has important and persistent effects on labor market outcomes over the course of an entire work career. The results show that the long-term earnings of African American men are more disadvantaged at lower levels of educational attainment. Controlling for demographic characteristics, work disability, and various indicators of educational achievement does not explain the lower long-term earnings of less-educated black men in comparison to less-educated white men. The interaction arises because black men without a high school degree have a larger number of years of zero earnings during their work careers. Other results show that this racial interaction by educational level is not apparent in cross-sectional data which do not provide information on the accumulation of zero earnings over the course of 30 years. We interpret these findings as indicating that compared to either less-educated white men or highly educated black men, the long-term earnings of less-educated African American men are likely to be more negatively affected by the consequences of residential and economic segregation, unemployment, being out of the labor force, activities in the informal economy, incarceration, and poorer health.