117 research outputs found

    Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers

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    This paper examines reputation formation in intra-familial interactions. We consider parental reputation in a repeated two-stage game in which adolescents decide whether to give a teen birth or drop out of high school, and given adolescent decisions, the parent decides whether to house and support his children beyond age 18. Drawing on the work of Milgrom and Roberts (1982) and Kreps and Wilson (1982), we show that the parent has, under certain conditions, the incentive to penalize older children for their teenage risky behaviors in order to dissuade the younger children from the same risky behaviors. The model generates two empirical implications: the likelihood of teen risky behaviors and parental transfers to a child who engaged in teen risky behaviors will decrease with the number of remaining children at risk. We test these two implications, using data from the National Longitudinal Survey of Youth, 1979 Cohort (NLSY79). Exploiting the availability of repeated observations on individual respondents and of observations on multiple siblings, we find evidence in favor of both predictions.

    Games Daughters and Parents Play: Teenage Childbearing, Parental Reputation, and Strategic Transfers

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    In this paper, we examine the empirical implications of reputation formation using a game-theoretic model of intra-familial interactions. We consider parental reputation in repeated two-stage games in which daughters' decision to have a child as a teenager and the willingness of parents to continue to house and support their daughters given their decisions. Drawing on the work of Milgrom and Roberts (1982) and Kreps and Wilson (1982) on reputation in repeated games, we show that parents have, under certain conditions, the incentive to penalize teenage (and typically out-of-wedlock) childbearing of older daughters, in order to get the younger daughters to avoid teenage childbearing. The two key empirical implications of this model is that the likelihood of teenage childbearing and parental transfers to a daughter who had a teen birth will decrease with the number of the daughter's sisters at risk. We test these two implications, using data from the National Longitudinal Survey of Youth, 1979 Cohort (NLSY79), exploiting the availability of repeated observations on young women (daughters) and of observations on multiple daughters (sisters) available in this data. Controlling for daughter- and family-specific fixed effects, we find evidence of differential parental financial transfer responses to teenage childbearing by the number of the daughter's sisters and brothers at risk.

    E Pluribus Unum: Bilingualism and Language Loss in the Second Generation

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    We examine patterns of language adaption in a sample of over 5,000 second generation students in South Florida and Southern California. Knowledge of English is near universal and preference for that language is dominant among most immigrant nationalities. On the other hand, only a minority remain fluent in the parental languages and there are wide variations among immigrant groups in the extent of their parental linguistic retention. These variations are important for theory and policy because they affect the speed of acculturation and the extent to which sizable pools of fluent bilinguals will be created by today's second generation. We employ multivariate and multi-level analyses to identify the principal factors accounting for variation in foreign language maintenance and bilingualism. While a number of variables emerge as significant predictors, they do not account for differences across immigrant nationalities which become even more sharply delineated. A clear disjunture exists between children of Asian and Hispanic backgrounds whose parental language maintenance and bilingual fluency vary significantly. Reasons for this divergence are explored and their policy implications are discussed.
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