Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas

Using census data, Costa and Kahn (QJE, 2000) find that power couples - couples in which both spouses have college degrees - are increasingly likely to be located in the largest metropolitan areas. One explanation for this trend is that college educated couples are more likely to face a co-location problem - the desire to satisfy the career aspirations of both spouses - and therefore are more attracted to large labor markets than are other couples. An alternative explanation is that all college educated individuals, married and unmarried, are attracted to the amenities and high returns to education found in large cities and that as a result, the formation of power couples through marriage of educated singles and additional education is more likely to occur in larger than smaller metropolitan areas. Using the Panel Study of Income Dynamics (PSID), we analyze the dynamic patterns of migration, marriage, divorce and education in relation to city size and find that power couples are not more likely to migrate to the largest cities than part-power couples or power singles. Instead, the location trends are better explained by the higher rate of power couple formation in larger metropolitan areas. Regression analysis suggests that it is only the education of the husband and not the joint education profile of the couple that affects the propensity to migrate to large metropolitan areas.

Proximity and Coresidence of Adult Children and their Parents: Description and Correlates

The ability of family members to engage in intergenerational transfers of hands-on care requires close proximity or coresidence. In this paper we describe and analyze the patterns of proximity and coresidence involving adult children and their mothers using data from the National Survey of Families and Households (NSFH) and the U.S. Census. Although intergenerational coresidence has been declining in the United States, most Americans live within 25 miles of their mothers. In both the raw data and in regression analyses, the most robust predictor of proximity of adult children to their mothers is education. Individuals are less likely to live near their mothers if they have a college degree. Virtually all previous studies have considered coresidence alone, or else treat coresidence as a limiting case of close proximity. We show that this treatment is misleading. We find substantial differences in the correlates of proximity by gender and marital status, indicating the need to model these categories separately. Other demographic variables such as age, race and ethnicity also affect the probability of coresidence and close proximity, but characteristics indicating a current need for transfers (e.g., disability) are not correlated with close proximity.

Family Proximity, Childcare, and Women's Labor Force Attachment

We show that close geographical proximity to mothers or mothers-in-law has a substantial positive effect on the labor supply of married women with young children. We argue that the mechanism through which proximity increases labor supply is the availability of childcare. We interpret availability broadly enough to include not only regular scheduled childcare during work hours but also an insurance aspect of proximity (e.g., a mother or mother-in-law who can provide irregular or unanticipated childcare). Using two large datasets, the National Survey of Families and Households and the public use files of the U.S. Census, we find that the predicted probability of employment and labor force participation is 4-10 percentage points higher for married women with young children living in close proximity to their mothers or their mothers-in-law compared with those living further away.

Living close to mothers or mothers-in-law gives married women with young children greater freedom to work

In an increasingly mobile society, there may still be incentives for remaining close to family members, especially for those with young children. Janice Compton and Robert A. Pollak take a close look at the effects on the labor supply – how many hours they are willing to work – of young mothers of living close to their mothers or mothers-in-law. They find that married women who live closer to their children’s grandmothers are more likely to be willing and able to work, and work longer hours. They argue that this effect is directly related to the greater availability of childcare that grandparents provide for married mothers with young children

Effects of the 2001 Extension of Paid Parental Leave Provisions on Birth Seasonality in Canada

It is well known that there exists a strong seasonal pattern in births and that the pattern differs across geographic regions. While historically this seasonal pattern has been linked to exogenous factors, modern birth seasonality patterns can also be explained by purposive choice. If birth month of a child is at least partially chosen by the parents then, by extension, it can also be expected that this can be influenced by anything that changes the costs and benefits associated with that choice, including public policy. This paper explores the effect that the 2001 extension of paid parental leave benefits had on birth seasonality in Canada. Overall we find strong results that the pattern of birth seasonality in Canada changed after 2001, with a notable fall in spring births and an increase in late summer and early fall births. We discuss the potential effects of this unintended consequence, including those related to health and development, educational preparedness and outcomes, and econometric modelling

Proximity and Coresidence of Adult Children and their Parents: Description and Correlates

The ability of family members to engage in intergenerational transfers of hands-on care requires close proximity or coresidence. In this paper we describe and analyze the patterns of proximity and coresidence involving adult children and their mothers using data from the National Survey of Families and Households (NSFH) and the U.S. Census. Although intergenerational coresidence has been declining in the United States, most Americans live within 25 miles of their mothers. In both the raw data and in regression analyses, the most robust predictor of proximity of adult children to their mothers is education. Individuals are less likely to live near their mothers if they have a college degree. Virtually all previous studies have considered coresidence alone, or else treat coresidence as a limiting case of close proximity. We show that this treatment is misleading. We find substantial differences in the correlates of proximity by gender and marital status, indicating the need to model these categories separately. Other demographic variables such as age, race and ethnicity also affect the probability of coresidence and close proximity, but characteristics indicating a current need for transfers (e.g., disability) are not correlated with close proximity.Social Security Administrationhttp://deepblue.lib.umich.edu/bitstream/2027.42/64474/1/wp215.pd

Determinants of Retirement: Does Money Really matter?

The worker to non-worker ratio in Canada is forecasted to fall dramatically over the next few decades due both to demographic pressures and the recent decline in the average age of retirement. If governments desire to reverse these trends, it is necessary to determine whether altering Canada’s retirement income programs may impact retirement decisions. This analysis focuses on the CPP/QPP program using the internal longitudinal files of the Survey of Labour and Income Dynamics (SLID) and concludes that limited changes to CPP/QPP benefit levels will not have a large impact on the labour force behaviour of older workers. CPP/QPP benefits can affect retirement through two channels – by altering the relative benefits of work (the substitution effect) and by changing the net present value of lifetime wealth (the wealth effect). We first demonstrate that retirement and CPP/QPP benefit take-up are not temporally connected for most Canadians. This means that the substitution effect is unlikely to have an important impact on retirement decisions. We then use hazard regressions and ordered probit analyses to determine which factors influence retirement behaviour. We find no evidence that expected CPP/QPP benefits or current wage levels influence the retirement decision. This result provides further evidence that CPP/QPP benefits are not having a large impact on retirement through the substitution effect. We also find no evidence that wealth affects the retirement decision. Instead, demographic factors such as disability status, labour force status of spouse and class of worker dominate the regressions. This does not necessarily mean that the CPP/QPP program does not influence retirement, only that its influence is likely to be embedded in the structure of the program and the existence of borrowing constraints rather than through the benefit levels. However, the results also indicate that structural changes may not be required in order to raise the retirement age. Variables that do have a strong effect on retirement behaviour are moving in directions that may result in a reversal of the early retirement trend. Au Canada, le ratio des actifs aux non-actifs devrait diminuer sensiblement au cours des prochaines décennies, en raison de tensions démographiques et de la récente baisse de l’âge moyen de la retraite. Si les administrations publiques désirent inverser ces tendances, il leur faut déterminer si la modification des régimes de revenu de retraite peut influer sur les décisions liées à la retraite. Cette analyse porte sur le RPC/RRQ; elle utilise les fichiers longitudinaux internes de l’enquête sur la dynamique du travail et du revenu (EDTR) et elle conclut que des changements limités aux prestations du RPC/RRQ n’auront pas d’importantes répercussions sur le comportement des travailleurs plus âgés. Les prestations du RPC/RRQ peuvent influer sur la retraite de deux façons – en modifiant les avantages comparatifs du travail (l’effet de substitution) et en changeant la valeur actualisée nette de la richesse viagère (l’effet de richesse). Nous démontrons d’abord que la retraite et les prestations du RPC/RRQ ne sont pas reliées dans le temps pour la plupart des Canadiens. Cela signifie que l’effet de substitution n’aura probablement pas de répercussions importantes sur les décisions liées à la retraite. Nous utilisons ensuite des régressions de risques et des analyses ordonnées par la méthode des probits pour déterminer les facteurs qui influent sur le comportement. Nous constatons que rien ne prouve que les prestations prévues du RPC/RRQ ou les salaires actuels influent sur les décisions liées à la retraite. Ce résultat prouve encore une fois que les prestations du RPC/RRQ n’ont pas de répercussions importantes sur la retraite par le biais de l’effet de substitution. Nous constatons aussi que rien ne prouve que la richesse influe sur les décisions liées à la retraite. Plutôt, des facteurs démographiques, comme l’état de personne handicapée, la situation d’activité du conjoint et la catégorie de travailleurs, dominent les régressions. Cela ne signifie pas nécessairement que le RPC/RRQ n’influe pas sur la retraite, mais seulement que son influence est probablement incluse dans la structure du programme et l’existence des contraintes d’emprunt plutôt que de se manifester par le biais des prestations. Toutefois, les résultats indiquent aussi qu’il se peut qu’il ne soit pas nécessaire d’apporter des changements structurels pour relever l’âge de la retraite. Les variables qui influent fortement sur le comportement évoluent dans des directions qui peuvent se traduire par une inversion de la tendance à la retraite anticipée.