Alexia Prskawetz

Fertility and women´s employment reconsidered: A macro-level time-series analysis for developed countries, 1960-2000

This paper examines causality and parameter instability in the long-run relationship between fertility and womens employment. This is done by a cross-national comparison of macro-level time-series data from 1960 to 2000 for France, West Germany, Italy, Sweden, the UK, and the USA. By applying vector error correction models (a combination of Granger-causality tests with recent econometric time-series techniques) we find causality in both directions. This finding is consistent with simultaneous movements of both variables brought about by common exogenous factors such as social norms, social institutions, financial incentives, and the availability and acceptability of contraception. We find a negative and significant correlation until about the mid-1970s and an insignificant or weaker negative correlation afterwards. This result is consistent with a recent hypothesis in the demographic literature according to which changes in the institutional context, such as changes in childcare availability and attitudes towards working mothers, might have reduced the incompatibility between child-rearing and the employment of women.

Agricultural Productivity Growth and Escape from the Malthusian Trap

Industrialization allowed the industrialized world of today to escape from the Malthusian regime characterized by low economic and population growth and to enter the post-Malthusian regime of high economic and population growth. To explain the transition between these regimes, we construct a growth model with two consumption goods (an agricultural and a manufacturing good), endogenous fertility, and endogenous technological progress in the manufacturing sector. We show that with an exogenous increase in the growth of agricultural productivity our model is able to replicate stylized facts of the British industrial revolution. The paper concludes by illustrating that our proposed model framework can be extended to include the demographic transition, i.e., a regime in which economic growth is associated with falling fertility.

Autonomy or conservative adjustment? The effect of public policies and educational attainment on third births in Austria

The standardized rate of third births declined by over 50 percent in Austria between the late 1970s and the mid-1990s. The third birth was also postponed gradually over the years until 1991-92, after which the tempo of childbearing suddenly increased in response to a change in the parental-leave policy. This new policy inadvertently favoured women who had their second or subsequent child shortly after their previous one. We cannot find any indication that the general decline in third births can be seen as a consequence of womens increasing independence from their husbands at the stage in life we study. Furthermore, it still seems to be more difficult to combine motherhood and labour-force participation in Austria than in Sweden, which is a leader in reducing this incompatibility. These developments reflect the tension between advancing gender equality and the dominance of traditional norms in Austria.

Birth Month, School Graduation, and the Timing of Births and Marriages

We investigated the timing of fertility and marriage in Sweden using exogenous variation in the age at school graduation that results from differences in birth month. Our analysis found that the difference of 11 months in the age at leaving school between women who were born in two consecutive months, December and January, implies a delay in the age at first birth of 4.9 months. This effect of delayed graduation also persists for the timing of second births and first marriages, but it does not affect completed fertility or the overall probability of marriage before age 45. These results suggest the existence of a relatively rigid sequencing of demographic events in early adulthood, and the age at graduation from school emerges as an important factor in determining the timing—but not the quantum—of family formation. In addition, these effects point to a potentially important influence of social age, defined by an individual’s school cohort, instead of biological age. The relevance of social age is likely due to social interactions and peer-group influences exerted by individuals who are in the same school cohort but are not necessarily of the same age.

Do Siblings' Fertility Decisions Influence Each Other?

Individuals’ fertility decisions are shaped not only by their own characteristics and life course paths but also by social interaction with others. However, in practice, it is difficult to disentangle the role of social interaction from other factors, such as individual and family background variables. We measure social interaction through the cross-sibling influences on fertility. Continuous-time hazard models are estimated separately for women’s first and second births. In addition to individual socioeconomic variables, demographic variables, and an unobserved factor specific to each sibling pair, siblings’ birth events and their timing enter as time-varying covariates. We use data from longitudinal population-wide Norwegian administrative registers. The data cover more than 110,000 sibling pairs and include the siblings’ fertility, education, income, and marital histories. Our results indicate that cross-sibling influences are relatively strong for the respondents’ first births but weak for the second parity transition.

The past and future of knowledge-based growth

Conventional R&D-based growth theory argues that productivity growth is driven by population growth but the data suggest that the erstwhile positive correlation between population and productivity turned negative during the 20th century. In order to resolve this problem we integrate R&D-based innovations into a unified growth framework with micro-founded fertility and schooling behavior. The model explains the historical emergence of R&D-based growth and the subsequent emergence of mass education and the demographic transition. The ongoing child quality-quantity trade-off during the transition explains why in modern economies high growth of productivity and income is associated with low or negative population growth. Because growth in modern economies is based on the education of the workforce, the medium-run prospects for future economic growth - when fertility is going to be below replacement level in virtually all developed countries - are much better than suggested by conventional R&D-based growth theories.

Social involvement, behavioural risks and cognitive functioning among older people

ABSTRACT This study analyses the relationships between cognitive performance, social participation and behavioural risks, taking into account age and educational attainment. We examine individual data for 11 European countries and Israel from the first wave of the Survey on Health, Ageing and Retirement in Europe (SHARE). The stochastic frontier approach methodology enables us to identify different sources of plasticity on cognitive functioning while taking into account age-related decline in cognitive performance. Several social participation variables were examined: employment status, attending educational courses, doing voluntary or charity work, providing help to family, friends or neighbours, participating in sports, social or other clubs, in a religious organisation and in a political or community organisation, and we controlled for age, education, income, physical activity, body-mass index, smoking and drinking. In the pooled sample, the results clearly show that all kinds of social involvement enhance cognitive functions, in particular in work. Moreover, behavioural risks such as physical inactivity, obesity, smoking or drinking were clearly detrimental to cognitive performance. Models for men and women were run separately. For both genders, all social involvement indicators associated with better cognitive performance. The results varied by countries, however, particularly the signs of the associations with a number of indicators of social involvement and behavioural risks.

Union Instability as an Engine of Fertility? A Microsimulation Model for France

Opportunities for conceiving and bearing children are fewer when unions are not formed or are dissolved during the childbearing years. At the same time, union instability produces a pool of persons who may enter new partnerships and have additional children in stepfamilies. The balance between these two opposing forces and their implications for fertility may depend on the timing of union formation and parenthood. In this article, we estimate models of childbearing, union formation, and union dissolution for female respondents to the 1999 French Etude de l’Histoire Familiale. Model parameters are applied in microsimulations of completed family size. We find that a population of women whose first unions dissolve during the childbearing years will end up with smaller families, on average, than a population in which all unions remain intact. Because new partnerships encourage higher parity progressions, repartnering minimizes the fertility gap between populations with and those without union dissolution. Differences between the two populations are much smaller when family formation is postponed—that is, when union formation and dissolution or first birth occurs after age 30, or when couples delay childbearing after union formation.

Transition to Parenthood: The Role of Social Interaction and Endogenous Networks

Empirical studies indicate that the transition to parenthood is influenced by an individual’s peer group. To study the mechanisms creating interdependencies across individuals’ transition to parenthood and its timing, we apply an agent-based simulation model. We build a one-sex model and provide agents with three different characteristics: age, intended education, and parity. Agents endogenously form their network based on social closeness. Network members may then influence the agents’ transition to higher parity levels. Our numerical simulations indicate that accounting for social interactions can explain the shift of first-birth probabilities in Austria during the period 1984 to 2004. Moreover, we apply our model to forecast age-specific fertility rates up to 2016.

Optimal choice of health and retirement in a life-cycle model

We examine within a life-cycle model the simultaneous choice of health care and retirement (together with consumption). Health tends to have an impact on retirement through morbidity, determining earnings and the disutility of work, and through longevity, determining the need to accumulate retirement wealth. Conversely, the age of retirement drives the demand for health care through the value of survival and the value of morbidity reductions. We characterise the optimal relationship between health expenditure and retirement and apply our model to analyse the effects of moral hazard in the annuity market. While moral hazard always induces excessive health investments and an excessive duration of working life, it also triggers an excessive level of consumption if the impact of health on the disutility of work is sufficiently large. We examine a transfer scheme and mandatory retirement as policies towards curtailing moral hazard. Numerical analysis illustrates the role of moral hazard in shaping the life-cycle allocation.