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----------------- JOURNAL OF POPULATION ECONOMICS

----------------- Newsletter 2/2008

* Edited at IZA, Bonn, Germany (address see below)
* Editor-in-chief: Klaus F. Zimmermann
* For correspondence, please use: popecon@iza.org

------------------------------------------------------------

Contents: 1) Free Paper Download
2) Abstracts of Volume 21, Number 2, 2008
3) Content of Volume 21, 2008
4) About the Journal of Population Economics
5) Editorial Board

For additional information (e.g. instructions for
authors,information about last issues) please visit our
homepage at: http://www.popecon.org

------------------------------------------------------------


---------------------------
1) Free Paper Download
---------------------------

"Unemployment and consumption near and far away from the
Mediterranean"

BENTOLILA, Samuel
ICHINO, Andrea

J Popul Econ (2008) 21:255-280

Download from:
http://www.popecon.org/download/bentolila_ichino_02212008.pd
f


---------------------------
2) Abstracts of Volume 21, Number 2, 2008
---------------------------


--- INTRA-HOUSEHOLD ALLOCATIONS

"Unemployment and consumption near and far away from the
Mediterranean"

BENTOLILA, Samuel
Centro de Estudios Monetarios y Financieros (CEMFI), Spain
e-mail: bentolila@cemfi.es

ICHINO, Andrea
University of Bologna, Bologna, Italy
e-mail: andrea.ichino@unibo.it


Abstract. We study the insurance mechanisms employed by
households to absorb unemployment shocks using comparable
data for four countries: Italy, Spain, Great Britain, and
the US. Results on family transfers when the male household
head becomes unemployed suggest that family networks are the
weakest in Britain, while unemployment benefits there are
instead the most generous across the four countries. Despite
these differences, food consumption losses induced by
unemployment of the male household head are similar across
countries. These findings are consistent with the view that
family support and the Welfare State substitute each other
in mitigating the consequences of unemployment shocks.


"The wage gap and the leisure gap for double-earner couples"

BEBLO, Miriam
FHW Berlin School of Economics, Berlin, Germany
e-mail: beblo@fhw-berlin.de

ROBLEDO, Julio R.
Department of Economics, University of Vienna, Vienna,
Austria
e-mail: julio.robledo@univie.ac.at

Abstract. Empirical research has consistently shown that,
on average, men are paid higher wages than women. Moreover,
men enjoy more leisure time than women. We develop a
noncooperative model of the private provision of family
public goods to analyze whether the wage gap and the leisure
gap are related. Simultaneous and sequential decision-making
structures within a couple lead to different empirical
hypotheses. Our estimates based on the German Socio-Economic
Panel data show that husbands enjoy, other things equal,
more leisure time than their wives. This advantage can be
explained if the husband is the Stackelberg leader in a
sequential private provision game.


"Gender discrimination and efficiency in marriage: the
bargaining family under scrutiny"

RAINER, Helmut
School of Economics and Finance, St Salvator’s College,
University of St Andrews, UK
e-mail: hr11@st-andrews.ac.uk

Abstract. We consider a repeated family bargaining model
that links the topics of employment and households. A key
aspect of the model is that marital bargaining power is
determined endogenously. We show that: (1) the efficiency of
household decisions is sometimes inversely related to the
prevailing degree of gender discrimination in labor markets;
(2) women who are discriminated against have difficulty
enforcing cooperative household outcomes because they may be
extremely limited to credibly punish opportunistic behavior
by their male partners; (3) the likelihood that sharing
rules such as 'equal sharing' are maintained throughout a
marriage relationship is highest when men and women face
equal opportunities in labor markets.


"Social security and conflict within the family"

GLAZER, Amihai
Department of Economics, University of California, Irvine,
USA
e-mail:aglazer@uci.edu

Abstract. A husband and wife, though benefitting from
marriage, may yet misappropriate some of the spouse's assets
rather than let all be saved. In a Nash equilibrium, family
savings may therefore be lower than what each spouse would
prefer. Social Security, which is a form of forced, secure
saving, can therefore increase welfare.


"Normative evaluation of tax policies: from households to
individuals"

BARGAIN, Olivier
IZA, Bonn, Germany
e-mail: bargain@iza.org

Abstract. We simulate a hypothetical family tax credit on a
sample of French couples, using jointly a collective model
of labor supply and a tax-benefit calculator. Work behaviors
represent here a general concept of 'effort,' and hence,
individual productivities cannot be assimilated with wage
rates. They are retrieved by inversion of the optimal
household program under simple assumptions on household
preferences and bargaining rules. The calibrated model is
used to predict incentive effects of the reform and
distributive impacts on individuals and households. The
desirability of the reform depends on which of these two
welfare units is used for normative evaluation.


"Household structure and consumption insurance of the
elderly"

ULKER, Aydogan
Economics Program, Research School of Social Sciences,
Australian National University, Australia
e-mail: aulker@coombs.anu.edu.au

Abstract. 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.


--- DIVORCE

"Do children stabilize relationships in Denmark?"

SVARER, Michael
Department of Economics, University of Aarhus, Denmark
e-mail: msvarer@econ.au.dk

VERNER, Mette
Aarhus School of Business, Department of Economics, Denmark
e-mail: mve@asb.dk

Abstract. In this paper, we study the relationship between
fertility behavior and the process of relationship duration.
The potential endogeneity of fertility on dissolution risk
is taken into account by modeling fertility and dissolution
jointly. We apply the timing-of-event method (Abbring and
van den Berg, Econometrica 71(5):1491-1517, 2003) to
identify the causal effect of births on the dissolution
hazard. We show that couples who are less prone to split up
are more prone to invest in children, and therefore, one
might (mistakenly) conclude that children stabilize
relationships. However, when correcting for the selectivity
bias arising from the fertility decision, we conclude that
children themselves have a negative effect on relationship
duration.


"Public transfers and marital dissolution"

TJOTTA, Sigve
Department of Economics, University of Bergen, Bergen,
Norway
e-mail: sigve.tjotta@econ.uib.no

VAAGE, Kjell
Department of Economics, University of Bergen, Bergen,
Norway
e-mail: Kjell.Vaage@econ.uib.no

Abstract. In this paper, we analyze determinants of marital
dissolution, focusing on the alleged influences from public
transfers, child allowance, and child support awards. We use
a Norwegian panel of 2,806 couples with information on
public and private transfers in cases of divorce. The sample
was observed over a 5-year period, with the purpose of
registering marital dissolution. We find that the level of
transfers has a significantly positive effect on divorce
probability and that the distribution of transfers in favor
of the wife increases this probability. Our findings are
consistent with noncooperative family models allowing for
inefficient outcomes.


"Income effects of divorce in families with dependent
children"

BRATBERG, Espen
Department of Economics, University of Bergen, Bergen,
Norway
e-mail: espen.bratberg@econ.uib.no

TJOTTA, Sigve
Department of Economics, University of Bergen, Bergen,
Norway
e-mail: sigve.tjotta@econ.uib.no

Abstract. The Norwegian post-divorce transfer scheme for
families with children guarantees minimum maintenance
payments from the non-custodial to the custodial parent. We
studied the economic effects of divorce in such families.
When the mother has custody, she falls behind before
maintenance payments. After adding these, the outcomes at
the median are very similar for both parents, contrasting
studies from other countries, but the risk of a drop in
equivalized income is large.


"Age at marriage and marital instability: revisiting the
Becker-Landes-Michael hypothesis"

LEHRER, Evelyn L.
Economics Department (m/c 144), University of Illinois at
Chicago, USA
e-mail: elehrer@uic.edu

Abstract. An early age at first marriage is known to be
associated with a high risk of divorce. Yet, it has been
suggested that beyond a certain point, the relationship
between age at marriage and marital instability may become
positive because as unmarried women begin to hear their
biological clock tick, they may settle for matches far from
the optimal. Analyses based on cycles 5 and 6 of the
National Surveys of Family Growth show that the relationship
between age at marriage and marital instability is strongly
negative up to the late 20s, with a flattening of the curve
thereafter.


"Divorce law and family formation"

DREWIANKA, Scott
Department of Economics, University of Wisconsin-Milwaukee,
USA
e-mail: sdrewian@uwm.edu

Abstract. Several studies have investigated whether
unilateral divorce laws raised divorce rates, with mixed
results. This paper asks whether unilateral, and no-fault,
divorce laws influenced family formation. Besides their
interest to policy makers, such effects may help theorists
understand the mechanisms through which laws affect
behavior. The results suggest that no-fault laws slightly
reduced fertility, and unilateral divorce modestly increased
divorce and legitimacy. However, the pattern of effects is
not consistent with any of the hypotheses reviewed, and the
estimated magnitudes suggest that changes in divorce law
were not a major cause of changing family structure.



---------------------------
3) Content of Volume 21, 2008
---------------------------

----------------- Issue 1, 2008 ---------------------


"The new economics of education: methods, evidence and
policy"
MACHIN, Stephen

"The changing nature of wage inequality"
LEMIEUX, Thomas


--- FERTILITY

"Social aspirations and choice of fertility: why can status
motive reduce per-capita growth?"
TOURNEMAINE, Frederic

"Planned fertility and family background: a quantile
regression for counts analysis"
MIRANDA, Alfonso

"The impact of the labour market on the timing of marriage
and births in Spain"
GUTIERREZ-DOMENECH, Maria

"Blacks and the family cap: pregnancy, abortion, and
spillovers"
SABIA, Joseph J.

"Technological progress, income inequality, and fertility"
SATO, Yasuhiro
TABATA, Ken
YAMAMOTO, Kazuhiro


"'Backslanted X' fertility dynamics and macroeconomics"
MAOZ, Yishay D.

"Biodiversity decline and population externalities"
CHU, C.Y. Cyrus


--- POVERTY

"On the contribution of sectoral natural population growth
to the aggregate poverty change"
CHATTI, Rim
EL LAGHA, AbdelRahman

"Measuring the extent, depth, and severity of food
insecurity: an application to American Indians in the USA"
GUNDERSEN, Craig


--- HEALTH

"A longitudinal analysis of the impact of health shocks on
the wealth of elders"
LEE, Jinkook
KIM, Hyungsoo

"Does parents’ valuation of children’s health mimic their
valuation of own health?"
AGEE, Mark D.
CROCKER, Thomas D.


----------------- Issue 2, 2008 ---------------------

see above

----------------- Issue 3, 2008 ---------------------

NOT YET PUBLISHED


----------------- Issue 4, 2008 ---------------------

NOT YET PUBLISHED


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4) About the JOURNAL OF POPULATION ECONOMICS
---------------------------

The Journal of Population Economics is an international
quarterly that publishes original theoretical and applied
research and survey articles on topics dealing with broadly
defined relationships between economic and demographic
problems. Both extensive surveys of wider areas and shorter
reviews of important new developments are considered. For
more information please see: http://www.popecon.org


---------------------------
5) Editorial Board
---------------------------

Editor-in-chief:

KLAUS F.ZIMMERMANN, IZA, Bonn
Fax: +49-228-3894210 / E-mail: zimmermann@iza.org

Editors:

JAMES ALBRECHT, Georgetown University, USA
Fax: +1-202-6876102 / E-mail: albrecht@georgetown.edu

ALESSANDRO CIGNO, University of Florence, Italy
Fax: +39-055-472102 / E-mail: cigno@unifi.it

DEBORAH COBB-CLARK, Australian National University,
Australia
Fax: +61-2-61250187 / Email: dcclark@coombs.anu.edu.au

CHRISTIAN DUSTMANN, University College London, UK
Fax: +44-20-79162775 / Email: c.dustmann@ucl.ac.uk

JUNSEN ZHANG, Chinese University of Hong Kong, Hong Kong
Fax: +852-26035805 / E-mail: jszhang@cuhk.edu.hk

Associate Editors:

PATRICIA APPS, University of Sydney, Australia
ORLEY ASHENFELTER, Princeton University, USA
KAUSHIK BASU, Cornell University, USA
GERARD J. VAN DEN BERG, Vrije Universiteit Amsterdam, The
Netherlands
FRANCOIS BOURGUIGNON, World Bank, Washington, USA
DAVID CARD, University of California, Berkeley, USA
BARRY R. CHISWICK, University of Illinois at Chicago, USA
HELMUT CREMER, GREMAQ and IDEI, Universitè de Toulouse,
France
GIL S. EPSTEIN, Bar-Ilan University, Israel
JOHN F. ERMISCH, ISER, University of Essex, UK
DENIS FOUGÈRE, CREST/INSEE, Paris, France
ODED GALOR, Brown University, USA
IRA N. GANG, Rutgers University, New Brunswick, USA
DANIEL S. HAMERMESH, University of Texas at Austin, USA
JAMES J. HECKMAN, University of Chicago, USA
ARIE KAPTEYN, RAND, Santa Monica, USA
KAI A. KONRAD, Science Center Berlin, Germany
PETER KOOREMAN, Tilburg University, The Netherlands
FRANCIS KRAMARZ, CREST/INSEE, France
RONALD D. LEE, University of California, Berkeley, USA
SHELLY LUNDBERG, University of Washington Seattle, USA
LISA LYNCH, Tufts University, USA
DAVID RIBAR, University of North Carolina at Greensboro, USA
CHRISTOPH M. SCHMIDT, RWI Essen, Germany
T. PAUL SCHULTZ, Yale University, New Haven, USA


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JOURNAL OF POPULATION ECONOMICS

Office: Michael Vogler

Journal of Population Economics
c/o IZA
Schaumburg-Lippe-Str. 5-9
D-53113 Bonn
Germany

Fax: +49-228-3894 510
email: popecon@iza.org
homepage: http://www.popecon.org
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