We study the impact of capital and labor taxation in an economy where couples bargain over the intrahousehold allocation under limited commitment. In this framework more wealth improves commitment and gives rise to insurance gains within the household. Our theory motivates these gains by the empirical observation that wealth, in contrast to labor income, is a commonly held resource within households. Based on this observation we study whether eliminating capital taxes from the economy, and raising labor taxes to balance the government’s budget, may generate welfare gains to married households. We illustrate that the quantitative effects from this reform are rather small. We attribute the small effects to the life cycle pattern of wealth accumulation and to the impact of labor income taxes on household risk sharing: In particular, we show that higher labor taxes may make the limited commitment friction more severe, even though they may make the distribution of labor income more equitable within the household.

In this paper, I address the U-shaped dynamics (a decrease followed by an increase) in the age at first marriage during the twentieth century. First, I show that the U-shaped dynamics have been steeper in Western that in other countries. Second, I find that these dynamics in the West are strongly related to the post-World War II (WWII) economic growth. By contrast, in the nineteenth and the first half of the twentieth centuries age of marriage was much less correlated across Western countries. I propose a simple model where age of marriage is a function of search frictions and married women's labor force participation. Both factors put together generate U-shaped dynamics as a result of an industrial boom that mimics the post-WWII Western economic development.

This paper contributes to the migration literature studying the time devoted to educational activities. It uses US time-diary surveys to study the allocation of time to informal as well as formal learning and educational activities by immigrants and natives. We develop a simple theoretical framework, which highlights the different constraints/opportunity costs faced by immigrants as compared with natives. Consistently with our theoretical model, the estimates show that immigrants are more likely to engage in informal and formal education and conditional on participation, they allocate more time to these activities. We find that the main drivers are economic incentives, mostly in the early phase of working life, and that the differences between natives and immigrants persist across generations. We also find that differences between immigrants and natives are generally larger in informal education than in formal education. The investment in informal and formal learning and educational activities is likely to boost immigrants' human and social capital and contribute to their socio-economic integration.

The configurational studies of this special issue trace complex patterns of interdependencies existing among family members and beyond households. They focus on the functional connections among spouses, children, siblings, and other relatives living in a variety of households. The main goal of this special issue is to reveal how some key decisions and exchanges occurring in family dyads, such as the marital and parent–child dyads, are embedded within a larger set of family and interpersonal exchanges that constitute configurations of their own in a variety of contexts.

In the coming decades, the countries of the South will be facing the aging of the population faster than the countries of the North. This will have long-term economic consequences for the South but also for the North through the changing of international capital flows. To study the latter, we build a simple two-region two-period overlapping generations (OLG) model, assuming fully integrated financial markets. This allows us to determine the analytical expression of the world interest rate dynamics at general equilibrium and the resulting capital flows accruing to each of the two regions (the North and the South). From there, we analyze how a reduction in either fertility or mortality alters the magnitude of the international capital flows. Contradictory effects are evidenced. To clear-up any ambiguity and to study the South's demographic transition, which involves a succession of shocks, we propose numerical simulations. Even if the results stress that the institutional context and technological catching-up may matter, they suggest in a rather general way that the declines in both fertility and mortality tend to reduce the relative capital needs of the Southern economies and consequently their capital inflows. This, in turn, would be beneficial to the North's productive capacity, which should then hold more capital.

Over the next 35 years, the total population of sub-Saharan Africa is projected to increase by 118%, with a greater rise of of 156% of people in the prime working ages. To cope with population growth and exploit the slowly unfolding, favorable change in age structure, countries face a triple challenge. Agricultural productivity has to improve. Prospects are good, though climate change remains a threat. Manufacturing jobs need to be created on a far larger scale than hitherto. Success is uncertain because much depends on foreign investors and the actions of competing low-wage countries in Asia. The third challenge concerns the non-agricultural informal sector, which, even under optimistic assumptions about manufacturing, will continue to provide livelihoods for a large segment of the population. Entrepreneurship needs to be encouraged so that an increasing proportion of family enterprises evolve into larger businesses. There is no blueprint to achieve this evolution and much will depend on the hard work and ingenuity of individuals.

While previous studies have confirmed the negative effects of son preference on the prenatal care received by girls, few have examined its effect on birth outcomes. This study contributes to the literature on son preference by examining this relationship. The degree of son preference is measured by the sex ratio at birth, and the data were obtained from the birth registry of South Korea, which has a long history of strong son preference. We find that girls are more likely to be born with low birth weight when son preference is stronger. In addition, when son preference is stronger, girls are more likely to be born outside hospitals, which implies that mothers conceiving girls make fewer prenatal visits to the hospital when their son preference is stronger.

Labor market conditions in Greece have severely deteriorated during the crisis, affecting youths the most. Using the Greek crisis as a case-study, this paper examines the role of the family as a social safety net for its young members. Specifically, we test the relationship between youth labor outcomes and parental co-residence, whether this relationship has become stronger during the crisis, and the degree to which the relationship is causal. Our results confirm that the parental home is a refuge both for jobless youth and for those in poorly paid, insecure jobs, and this role has intensified during the crisis. We find no reverse causality between co-residence and employment status for young men, and significant reverse causality for women. This finding implies that all youths live in the parental home when they are in need themselves, but it is young women not men who live with parents when parents are in need or for cultural reasons.

This paper investigates whether the availability of breastfeeding facilities at the workplace helps to reconcile breastfeeding and work commitments, and whether it has beneficial effects for the health of the child. Using data from the UK Infant Feeding Survey, we find that the availability of breastfeeding facilities at work is associated with longer breastfeeding durations for all women and shorter maternity leave spells for higher educated women. We also find that children born to mothers whose employer offers breastfeeding facilities experience significantly fewer sickness in the first 6 months of life.

This paper argues that the expectation of having to provide care for aging parents in the future may be a major factor contributing to the current low fertility rate in Japan. Using data from the 1998 and 2008 National Family Research of Japan (NFRJ) surveys and a Poisson-logit hurdle model, this paper examines whether the expectation of having to look after parents in the future affects a couple's current family planning. The first-stage model of a couple's family planning decision is a logit model which examines the decision of whether or not to have any children, and then in the second stage a Poisson model is applied to explain the number of children a couple has conditional on the couple having at least one child. The empirical evidence presented suggests that there are strong generational effects, and that for the post-war cohort, an increase in the probability of having to look after a parent increases the probability of a couple being childless.

A potential solution to low fertility is the employment of foreign domestic workers (FDWs), who substitute child-rearing and housework duties, thus reducing child-rearing costs. Recent studies argue that the flow of low-skilled foreign workers into the childcare sector influences fertility choice. However, these studies mainly use the availability of FDWs in the local area as the causal inference and focus on Western countries, making it difficult to identify individual direct effects or generalize the findings to other countries. To bridge this research gap and examine the impacts, this study uses household data from the Hong Kong census. Employing ordinary least squares, the inverse probability weighted regression adjustment, and the instrumental variable approach, we find that households that employ live-in FDWs give birth to more children. Moreover, the heterogeneous analysis reveals that women's greater proportional contribution to household income has a positive impact on households' fertility response after employing the FDWs.

US women, on average, had approximately two children in both the 1930s and in the 1970s, yet the fertility distribution in the 1930s was less concentrated. This implies change in reproductive behavior, which cannot be captured by models focusing on average fertility. To explain these changes, I have developed a model that makes a distinction between sons and daughters. In this model, the female labor force participation rate is the probability of each girl becoming an employed woman. This endogenizes the empirically observed difference in the propensity for an all-girl household to have another child compared to an all-boy household, generating large fertility differentials at low participation rates. Higher participation rates raise the expected return from an additional child, as well as the expected return from existing daughters. The first effect tends to increase fertility, while the second effect, for relatively concave utility functions, tends to decrease it, so that the distribution of completed fertilities becomes more concentrated.

Using household data from Northern Ghana, this study examines how cognitive skills affect the allocation of schooling across the children of a household. The analysis reveals that relative to the rest of the siblings in the household, an increase of one standard deviation in the score of cognitive tests increases by 0.123–0.237 the number of years of schooling attended in the following four years, depending on the cognitive test used. These results are consistent with the main prediction of the theoretical model for intra-household allocation of resources developed in the seminal paper Becker (1981): parents reinforce cognitive differences between siblings through allocating more human capital resources to the more able siblings. We find larger effects for boys than for girls while they do not differ significantly among poorer and less poorer households.

On average, childless women observed by the Panel Study of Income Dynamics report that they intend to have more children than they actually have. A collection of intentions that record only whether respondents intend to have another child can more accurately predict the number of children they have. Errors in the formation of intentions are not required to explain this finding. Rather, if intentions record a survey respondent's most likely predicted number of children, then the average of these intentions does not necessarily equal average actual fertility, even if intentions are formed using rational expectations.

Mortality shocks such as the one induced by the COVID-19 pandemic have substantial impact on mortality models. We describe how to deal with them in the period effect of the Lee–Carter model. The main idea is to not rely on the usual normal distribution assumption as it is not always justified. We consider a mixture distribution model based on the peaks-over-threshold method, a jump model, and a regime switching model and introduce a modified calibration procedure to account for the fact that varying amounts of data are necessary for calibrating different parts of these models. We perform an extensive empirical study for nine European countries, comparing the models with respect to their parameters, quality of fit, and forecasting performance. Moreover, we define five exemplary scenarios regarding the future development of pandemic-related mortality. As a result of our evaluations, we recommend the peaks-over-threshold approach for applications with a possibility of extreme mortality events.

Three important features of Indian labor markets enduringly coexist: rent-seeking, occupational immobility, and caste. These facts are puzzling, given theories that predict static, equilibrium social inequality without conflict. Our model explains these facts as an equilibrium outcome. Some people switch caste-associated occupations for an easier source of rents, rather than for productivity. This undermines trust between castes and shuts down occupational mobility, which further encourages rent-seeking due to an inability of workers to sort into occupations. We motivate our contribution with novel stylized facts exploiting a unique survey question on casteism in India, which we show is associated with rent-seeking.