Berkay Özcan

The Risk of Divorce and Household Saving Behavior

We analyze the impact of an increase in the risk of divorce on the saving behaviour of married couples. From a theoretical perspective, the expected sign of the effect is ambiguous. We take advantage of the legalization of divorce in Ireland in 1996 as an exogenous increase in the likelihood of marital dissolution. We analyze the saving behaviour over time of couples who were married before the law was passed. We propose a difference-in-differences approach where we use as comparison groups either married couples in other European countries (not affected by the law change), or Irish families who did not experience a significant increase in the expected risk of divorce (such as very religious families, or single individuals). Our results suggest that the increase in the risk of divorce brought about by the law was followed by an increase in the propensity to save of married couples, consistent with a rise in precautionary savings interpretation. An increase in the risk of marital dissolution of about 40 percent led to a 7 to 13 percent rise in the proportion of married couples reporting positive savings.

Decline in the negative association between low birth weight and cognitive ability

Significance Many studies have shown that children with a low birth weight (less than 2.5 kg) have worse cognitive ability than children with a normal birth weight. No existing study has analyzed whether, given the advances in neonatology and obstetric practice that have occurred over the past 50 years in developed contexts, the association between low birth weight and cognitive ability has changed over time. Using data from the 1958 National Child Development Study, the 1970 British Cohort Study, and the 2000–2002 Millennium Cohort Study, we show that the association between low birth weight and decreased cognitive ability has been more than halved between the 1958 and 1970 birth cohorts and the cohort born around the year 2001. Low birth weight predicts compromised cognitive ability. We used data from the 1958 National Child Development Study (NCDS), the 1970 British Cohort Study (BCS), and the 2000–2002 Millennium Cohort Study (MCS) to analyze how this association has changed over time. Birth weight was divided into two categories, <2,500 g (low) and 2,500–4,500 g (normal) and verbal cognitive ability was measured at the age of 10 or 11 y. A range of maternal and family characteristics collected at or soon after the time of birth were considered. Linear regression was used to analyze the association between birth weight and cognitive ability in a baseline model and in a model that adjusted for family characteristics. The standardized difference (SD) in cognitive scores between low-birth-weight and normal-birth-weight children was large in the NCDS [−0.37 SD, 95% confidence interval (CI): −0.46, −0.27] and in the BCS (−0.34, 95% CI: −0.43, −0.25) cohorts, and it was more than halved for children born in the MCS cohort (−0.14, 95% CI: −0.22, −0.06). The adjustment for family characteristics did not explain the cross-cohort differences. The results show that the association between low birth weight and decreased cognitive ability has declined between the 1950s and 1970s birth cohorts and the 2000--2002 birth cohort, despite a higher proportion of the low-birth-weight babies having a very low birth weight (<1,500 g) in the more recent birth cohort. Advancements in obstetric and neonatal care may have attenuated the negative consequences associated with being born small.

Family Trajectories and Well-being of Children Born to Lone Mothers in the UK

We investigate how lone mothers’ heterogeneity in partnership trajectories is associated with children’s well-being. We use data from the Millennium Cohort Study, which follows a large sample of children born in the UK in 2000–2002. We divide children who were born to lone mothers into four groups based on their mothers’ partnership trajectories between birth and age seven, which cover more than 80% of these children’s family experiences. We then analyse how these trajectories are associated with markers of health, cognitive and socio-emotional outcomes measured at around age seven. We find that compared to the children that live continuously with lone mothers, children whose biological father stably joined the household have better cognitive and socio-emotional outcomes. In contrast, children in trajectories characterised by living with a stepfather or who experienced biological father joining in the family followed by biological parents’ dissolution had outcomes similar to children living continuously with lone mothers. The results underscore the importance of treating children born to lone mothers as a heterogeneous category.

The cultural origin of saving behavior

Traditional economic interpretations have not been successful in explaining differences in saving rates across countries. One hypothesis is that savings respond to cultural specific social norms. The accepted view in economics so far is that culture does not have any effect on savings. We revisit this evidence using a novel dataset, which allows us to study the saving behavior of up to three generations of immigrants in the United Kingdom. Against the backdrop of existing evidence, we find that cultural preferences are an important explanation for cross-country differences in saving behavior, and their relevance persists up to three generations.

Family forms among first- and second-generation immigrants in metropolitan America, 1960-2009

As a result of international immigration, ethnic diversity has increased rapidly in many countries, not only in major cities, but also in smaller cities. This trend is not limited to the traditional immigrant receiving countries, such as the United States and Canada, but occurs also in many other countries where doors are gradually opening to immigration, especially in Asia. This combination of a growing immigrant population and ethnic diversity has fostered a more complex immigrant integration process. This book addresses the subject at the city ecological level, inter-group level, and individual level. It contributes to the understanding of immigrant adaptation in a multi-ethnic context, brings Asian perspectives into the discussion of immigration and race and ethnic relations, and will serve as a basis for future study of immigrant adaptation in a multi-ethnic context.