The Economies of Scale of Living Together and How They Are Shared: Estimates Based on a Collective Household Model

How large are the economies of scale of living together? And how do partners share their resources? The first question is usually answered by equivalence scales. Traditional estimation and application of equivalence scales assumes equal sharing of income within the household. This paper uses data on financial satisfaction to simultaneously estimate the sharing rule and the economy of scale parameter in a collective household model. The estimates indicate substantial scale economies of living together, especially for couples who have lived together for some time. On average, wives receive almost 50% of household resources, but there is heterogeneity with respect to the wives' contribution to household income and the duration of the relationship.collective household models, sharing rule, equivalence scale, subjective data

Parenthood and the Gender Gap in Commuting

Childbirth increases the opportunity cost of commuting and makes it difficult for both parents to work far away from home. Using detailed Norwegian register data, we show that the commuting patterns of men and women diverge immediately after childbirth and that those differences persist for at least a decade. We show that this divergence in commuting exposes mothers to more concentrated labor markets with fewer job opportunities and establishments of lower quality. These findings help explain the child penalty documented in the prior literature and have important implications for the design of policies seeking to address the remaining gender wage gap

Swallow this: Childhood and Adolescent Exposure to Fast Food Restaurants, BMI, and Cognitive Ability

Using spatial and temporal variation in openings of fast food restaurants in Norway between 1980 and 2007, we study the effects of changes in the supply of high caloric nutrition on the health and cognitive ability of young adult males. Our results indicate that exposure to these establishments during childhood and adolescence increases BMI and has negative effects on cognition. Heterogeneity analysis does not reveal meaningful differences in the effects across groups, including for those with adverse prenatal health or high paternal BMI, an exception being that cognition is only affected by exposure at ages 0–12 and this effect is mediated by paternal education

The Impact of Paid Maternity Leave on Maternal Health

We examine the impact of the introduction of paid maternity leave in Norway in 1977 on maternal health in the medium and long term. Using administrative data combined with survey data on the health of women around age 40, we find the reform improved a range of maternal health outcomes, including BMI, blood pressure, pain, and mental health. The reform also increased health-promoting behaviors, such as exercise and not smoking. The effects were larger for first-time and low-resource mothers and women who would have taken little unpaid leave in the absence of the reform.publishedVersio

(Breaking) intergenerational transmission of mental health

We estimate health associations across generations and dynasties using information on healthcare visits from administrative data for the entire Norwegian population. A parental mental health diagnosis is associated with a 9.3 percentage point (40%) higher probability of a mental health diagnosis of their adolescent child. Intensive margin physical and mental health associations are similar, and dynastic estimates account for about 40% of the intergenerational persistence. We also show that a policy targeting additional health resources for the young children of adults diagnosed with mental health conditions reduced the parent-child mental health association by about 40%

Natural Resources, Demand for Skills, and Schooling Choices

This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects

Revisiting 'mothers and sons' preference formation and the female labor force in Switzerland

NOTICE: This is the author’s version of a work that was accepted for publication in "Labour Economics". Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in "Labour Economics" 2013, 20:82-91,doi:10.1016/j.labeco.2012.11.003 . Copyright © 2011 Elsevier Ltd. All rights reservedThis paper analyzes the interrelation between men's gender role attitudes and female labor supply decision. Following Fernández, Fogli, and Olivetti (2004), I argue that the recent increases in the female labor market participation rate are driven by the growing proportion of men who were brought up in a family with a working mother. First, the paper reexamines the results of the cross-section analysis of Fernández, Fogli, and Olivetti (2004) using the Swiss Household Panel 2005 to illustrate that married women whose mothers-in-law were working are themselves significantly more likely to be in the labor force. In a second step, the paper attempts to test one of their model's crucial mechanisms and show that the effect of a wife's labor market integration on her husband's well-being diverges depending on the former labor market status of his mother. Taken together, this evidence can be interpreted as varying preferences for women with high labor market integration due to exposure to certain sexual stereotypes early in life

The Effects of Cognitive and Noncognitive Skills on Migration Decisions.

There is growing evidence that cognitive and noncognitive skills affect the economic and social outcomes of individuals. In this paper, we analyze how they affect the migration decisions of individuals during their lifetimes. We use data that combine military enlistment and administrative records for the male population born in 1932 and 1933 in Norway. Records of interviews with a psychologist at age 18 allow us to construct an index of `sociability' and `adaptability' for each individual, as well as an index of cognitive ability, the intelligence quotient. We find that adaptability and cognitive ability have significant and positive impacts on the probability of an individual migrating out of his area, whether this involves rural{urban, long distance, or international migration. Adaptability has a particularly strong impact on migration for individuals with low cognitive skills, implying a strong positive selection of less educated migrants with respect to the (previously unobserved) adaptability skill. We also show that cognitive skills have a strong positive effect on the pre- and post-migration wage differential, whereas adaptability has no significant effect. Moreover, individuals with high cognitive ability migrate to areas with large wage returns to cognitive abilities, whereas this is not true for individuals with high adaptability. This evidence suggests that adaptability reduces the psychological cost of migrating, whereas cognitive skills increase the monetary returns associated with migration

The economies of scale of living together and how they are shared – Estimates based on a collective household model

How large are the economies of scale of living together? And how do partners share their resources? The first question is usually answered by equivalence scales. Traditional estimation and application of equivalence scales assumes equal sharing of income within the household. This paper uses data on financial satisfaction to simultaneously estimate the sharing rule and the economy of scale parameter in a collective household model. The estimates indicate substantial scale economies of living together, especially for couples who have lived together for some time. On average, wives receive almost 50% of household resources, but there is heterogeneity with respect to the wives’ contribution to household income and the duration of the relationship

Disease Control and Inequality Reduction: Evidence from a Tuberculosis Testing and Vaccination Campaign

This paper examines the economic impact of a tuberculosis control program launched in Norway in 1948. In the 1940s, Norway had one of the highest tuberculosis infection rates in Europe, affecting about 85 percent of the inhabitants. To lower the disease burden, the Norwegian government launched a large-scale tuberculosis testing and vaccination campaign that substantially reduced tuberculosis infection rates among children. We find that cohorts in school during and after the campaign in municipalities with high tuberculosis prevalence gained more in terms of education, income, and longevity following this public health intervention. The results also suggest that individuals from a low socioeconomic background benefited more from the intervention. Hence, we present new evidence that a narrowing of the gap in childhood health can lead to a reduction in socioeconomic inequalities in adulthood