Christina Paxson

Orphans in Africa: Parental Death, Poverty, and School Enrollment

We examine the impact of orphanhood on children’s school enrollment in 10 sub-Saharan African countries. Although poorer children in Africa are less likely to attend school, the lower enrollment of orphans is not accounted for solely by their poverty. We find that orphans are less likely to be enrolled than are nonorphans with whom they live. Consistent with Hamilton’s rule, the theory that the closeness of biological ties governs altruistic behavior, outcomes for orphans depend on the relatedness of orphans to their household heads. The lower enrollment of orphans is largely explained by the greater tendency of orphans to live with distant relatives or unrelated caregivers.

Sex Differences in Morbidity and Mortality

Women have worse self-rated health and more hospitalization episodes than men from early adolescence to late middle age, but are less likely to die at each age. We use 14 years ofdata from the u.s. National Health Interview Survey to examine this paradox. Our results indicate that the difference in self-assessed health between women and men can be entirely explained by differences in the distribution ofthe chronic conditions they face. This is not true, however, for hospital episodes and mortality. Men with several smoking-related conditions-including cardiovascular disease and certain lung disorders-are more likely to experience hospital episodes and to die than women who suffer from the same chronic conditions, implying that men may experience more-severe forms of these conditions. While some of the difference in mortality can be explained by differences in the distribution of chronic conditions, an equally large share can be attributed to the larger adverse effects of these conditions on male mortality. The greater effects ofsmoking-related conditions on men’s health may be due to their higher rates ofsmoking throughout their lives.

Economies of Scale, Household Size, and the Demand for Food

Household scale economics are plausibly attributed to shared household public goods that make larger households better off at the same level of per capita resources. larger households should therefore have higher per capita consumption of private goods, such as food, provided that they do not substitute too much toward the effectively cheaper public goods. The evidence shows exactly the opposite. Data from rich and poor countries indicate that, at constant per capita total expenditure, the per capita demand for food decreases with household size and that it does so most in the poorest countries, where substitution should be the least.

Cognitive Development among Young Children in Ecuador The Roles of Wealth, Health, and Parenting

We examine the relationship between early cognitive development, socioeconomic status (SES), child health, and parenting quality in a developing country. We use a sample of more than 3,000 predominantly poor preschool-aged children from Ecuador, and analyze determinants of their scores on a widely used test of language ability. We find that household wealth and parental education are associated with higher scores, and that these associations are larger among older children. Child health and measures of parenting quality are associated with test performance, and account for a fraction, although not the majority, of the association between SES and cognitive development.

Labor Supply Preferences, Hours Constraints, and Hours-Wage Tradeoffs

In a labor market with tied hours-wage packages and wage dispersion for a particular type of job, constrained workers may be willing to sacrifice wage gains for better hours when changing jobs. Likewise, workers may accept jobs offering undesirable hours only if the associated wage gains are large. We investigate this issue empirically by examining whether overemployment and underemployment on the initial and new job affects the relation between hours changes and wage changes for quitters. Our results generally support the view that an individual requires compensation to work in a job that, given the individuals particular preferences, offers unattractive hours.

Consumption and Income Seasonality in Thailand

Many households in developing countries rely on seasonal agriculture for their incomes. This paper investigates whether household consumption expenditure tracks income across seasons. Using data from Thailand, I contrast the seasonal consumption patterns of households with different seasonal income patterns and estimate the responsiveness of seasonal consumption to seasonal income. I find little evidence that consumption tracks income over the course of the year. The findings suggest that observed seasonal consumption patterns are the result of seasonal variations in preferences or prices, common to all households, rather than an inability of households to use savings behavior to smooth consumption.

CAUSES AND CONSEQUENCES OF EARLY-LIFE HEALTH

We examine the consequences of child health for economic and health outcomes in adulthood, using height as a marker of childhood health. After reviewing previous evidence, we present a conceptual framework that highlights data limitations and methodological problems that complicate the study of this topic. We then present estimates of the associations between height and a range of outcomes—including schooling, employment, earnings, health, and cognitive ability—measured in five data sets from early to late adulthood. These results indicate that, on average, taller individuals attain higher levels of education. Height is also positively associated with better economic, health, and cognitive outcomes. These associations are only partially explained by the higher average educational attainment of taller individuals. We then use data from the National Longitudinal Survey of Youth 1979 Children and Young Adults survey to document the associations between health, cognitive development, and growth in childhood. Even among children with the same mother, taller siblings score better on cognitive tests and progress through school more quickly. Part of the differences found between siblings arises from differences in their birth weights and lengths attributable to mother’s behaviors while pregnant. Taken together, these results support the hypothesis that childhood health influences health and economic status throughout adulthood.

Growth and Saving Among Individuals and Households

The lifecycle theory of saving and consumption predicts that changes in an economys rate of economic growth will affect its aggregate saving rate by changing the lifetime resources of younger people relative to older people. However, studies that track the saving behavior of cohorts of household heads over time as they age have yielded estimates of age-saving profiles that are too flat for growth to have much effect on the aggregate saving rate. One problem with the cohort approach is that multigenerational households are common in many counties, and the age-saving profiles of households may be quite different from the age-saving profiles of individuals that make up households. In this paper, we propose a method for estimating individual age-saving profiles using household data. This method is applied to data from Taiwan and Thailand. We find that the individual method yields results that are more favorable to the lifecycle model. These results imply that changes in the rate of economic growth may in some circumstances have large effects on the aggregate saving rate. However, the size and sign of these effects depends on the rate of economic growth and the rate of population growth, and in many cases the effect of growth on saving is small.

The effects of economic and population growth on national saving and inequality.

This is a progress report on ongoing research into the effects of economic and population growth on national saving rates and inequality. The theoretical basis for the investigation is the life cycle model of saving and inequality. We report evidence that is conditional on the validity of the model, as well as evidence that casts doubt on it. Using time series of cross-sectional household surveys from Taiwan, Thailand, Britain, and the United States, we show that it is possible to force a life cycle interpretation on the data on consumption, income, and saving, but that the evidence is not consistent with large rate-of-growth effects, whereby economic and population growth enhances rates of national saving. The well-established cross-country link between economic growth and saving cannot be attributed to life cycle saving, nor will changes in economic or population growth exert large effects on saving within individual countries. There is evidence in favor of the life cycle model’s prediction that within-cohort inequality of consumption and of total income—though not necessarily inequality of earnings-—should increase with the age of the cohort. Decreases in the population growth rate redistribute population toward older, more unequal, cohorts, and can increase national inequality. We provide calculations on the magnitude of these effects.

Work, Welfare, and Child Maltreatment

We examine how child maltreatment—including neglect, physical and sexual abuse, and other forms of maltreatment—is affected by parental economic circumstances. Using state‐level panel data on cases of maltreatment and numbers of children in foster care, we find that increases in the fractions of children with absent fathers and working mothers in a state are related to increases in many measures of maltreatment, as are increases in the share of families with two nonworking parents and those with incomes below 75% of the poverty line. Decreases in state welfare benefit levels are associated with increases in foster care placement.