Gender, pay and development: a cross-country analysis

This paper analyses the determinants of the female-male non-agricultural wage ratio in developing countries.By combining data on industrial composition, economic performance and women's labour market and economic outcomes for a group of developing countries, a cross-country study is carried out of the determinants of the gender pay gap in developing countries in the 1990s. The results show that higher female literacy and greater female labour market activity is associated with a lower wage gap. In addition, the greater the degree of industrialisation and market emergence, the greater the gender wage gap. And, as in the industrialised nations, women's over-representation in lower-paying occupations is a key factor in explaining women's lower relative pay.gender; pay; development; cross-country study

Where to Put the Kids? Effects of Type of Non-parental Child Care on Pre-teen Skills and Risky Behavior

This paper investigates pre-teenage effects of the choice of type of non-parental child care at age three (preschool relative to more informal family day care). We exploit a Danish panel data child survey merged with administrative records along with a pseudo-experiment that generates variation in the take-up of preschool across municipalities. As outcomes, we consider measures of overall and risky behavior in addition to objective and self-evaluated abilities. We find no strong evidence that one type of non-parental care outperforms the other, though children who have been placed in preschool tend to like school better.child care, skills, risky behaviors, evaluation

Health Shocks and Retirement: The Role of Welfare State Institutions

We investigate the effect of an acute health shock on retirement among elderly male workers in Denmark, 1991-1999, and in particular whether various welfare state programs and institutions impinge on the retirement effect. The results show that an acute health event increases the retirement chances of elderly male workers by 8%, and that this increase in the baseline retirement probability is not affected by eligibility to early exit programs and persists even after accounting for selection due to take-up of disability pension. Neither is it affected by the relatively long duration of sickness benefits in Denmark nor by the promotion of corporate social responsibility initiatives since the mid-1990s. In the late 1990s, however, the retirement rate following a health shock is reduced to 3% with the introduction of the subsidized employment program (fleksjob) but this effect is on the margin of being significant. For the most part, the retirement effect following a health shock seems to be immune to the availability of a multitude of government programs for older workers in Denmark.retirement, health shocks, welfare state programs, medical diagnoses

New workplace practices and the gender wage gap

We explore the effect of introducing new workplace practices on the gender gap using a unique 1999 survey on work and compensation practices of Danish private sector firms merged to a large matched employer-employee database. Self-managed teams, project organisation and job rotation schemes are the most widely implemented work practices. Wage gains from adopting new workplace practices accrue mainly to hourly paid males and salaried females but do not generate large changes in the gender gap in pay at the level of the firm. Considering practices individually, however, the gender wage gap among salaried workers is significantly reduced in firms which offer job rotation and project organisation, while among hourly paid workers the use of quality control circles significantly widens the gap in pay between male and female workers.new work practices; employer-employee data; wage differentials; gender

Overweight and Obesity and the Demand for Primary Physician Care

The standard economic model for the demand for health care predicts that unhealthy behaviour such as being overweight or obese should increase the demand for medical care, particularly as clinical studies link obesity to a number of serious diseases. In this paper, we investigate whether overweight or obese individuals demand more medical care than normal weight individuals by estimating a finite mixture model which splits the population into frequent and non-frequent users of primary physician (GP) services according to the individual's latent health status. Based on a sample of wage-earners aged 25-60 years drawn from the National Health Interview (NHI) survey 2000 and merged to Danish register data, we compare differences in the impact of being overweight and obese relative to being normal weight on the demand for primary physician care. Estimated bodyweight effects vary across latent classes and show that being obese or overweight does not increase the demand for primary physician care among infrequent users but does so among frequent users.overweight, obesity, demand for primary physician care

The Impact of Health on Individual Retirement Plans: a Panel Analysis comparing Selfreported versus Diagnostic Measures

Earlier studies have concluded that the use of self-reported health in retirement models is likely to yield an unreliable impact of health on retirement due to “justification bias”. A few recent studies based on younger cohorts approaching retirement age have found little support for this hypothesis. This paper adds fresh evidence to this debate by considering the effect of health on retirement plans in samples of older workers and retirees drawn from a Danish panel survey from 1997-2002 merged to longitudinal register data. Using a wide array of alternative health measures, we compare the role of subjectively versus objectively measured health as a determinant of retirement planning. We control for unobserved heterogeneity as well as account for endogeneity and measurement error of health in retirement, and estimate separate models for women as well as men. As in the more studies, justification bias turns out not to be important. Self-rated physical and mental health are important predictors of retirement planning, in fact more important than economic factors, both among men as well as women. At a disaggregated level, back problems and myalgia significantly hasten male retirement, while back problems, osteoporosis and depression are conditions that significantly affect retirement among women. Retirement planning is in general unaffected by being hospitalised for a serious condition. Looking at health changes strengthens the conclusion that health is an important factor in retirement planning. In fact, health shocks seem to increase the propensity to retire earlier. However, health seems to be less important for retirement planning in Denmark compared to the US.Government Policy; Regulation; Public Health

Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households

We exploit time use data from Denmark and the United States to examine the impact institutions and social norms have on individuals' bargaining power within a household, hypothesizing that the more generous social welfare system and more egalitarian social norms in Denmark will mitigate the impact standard economic power measures have upon couples' time use. Further we posit that leisure time will be more sensitive to power considerations than housework time which may be more influenced by preferences regarding household public goods, to gendered notions of time use, and to censoring. Our results are generally supportive of these hypotheses, with leisure time on non-work days in the US being particularly responsive to economic power. In addition, we find some evidence that institutions matter as women in the US who are more likely to receive welfare benefits enjoy more leisure time than would be suggested by their economic power alone.Time Use, Power, Leisure, Institutions, Norms

Medium-term consequences of low birth weight on health and behavioral deficits – is there a catch-up effect?

A number of studies have documented negative long term effects of low birth weight. Yet, not much is known about the dynamics of the process leading to adverse health and educational outcomes in the long-run. While some studies find effects of the same size at both school age and young adulthood, others find a diminishing negative effect over time due to a catching-up process. The purpose of this paper is to try to resolve this puzzle by analyzing the medium term consequences of low birth weight measured as various child outcomes at ages 6 months, 3, 7 and 11, using data from the Danish Longitudinal Survey of Children. Observing the same children at different points in time allows us to chart the evolution of health and behavioral deficits among children born with low birth weight and helps inform the nature and timing of interventionslow birth weight; medium term effects; health and behavioral outcomes; longitudinal child-mother survey

External Validation of the Use of Vignettes in Cross-Country Health Studies

Cross-country comparisons of subjective assessments are rendered difficult if not impossible because of sub-population specific response style. To correct for this, the use of vignettes has become increasingly popular, notably within cross-country health studies. However, the validity of vignettes as a means to re-scale across sample populations critically rests on the assumption of "response consistency" (RC): that vignettes and self-assessments are evaluated on the same scale. In this paper, we seek to test this assumption by applying objective measures of health along with subjective measures and vignettes. Our results indicate that the assumption of RC is not innocuous and that our extended model relaxing this assumption improves the fit and significantly changes the cross-country rankings of health vis-à-vis the standard Chopit model.cross-country health comparison, vignettes, subjective and objective measures

Male and Female Competitive Behavior - Experimental Evidence

Male and female choices differ in many economic situations, e.g., on the labor market. This paper considers whether such differences are driven by different attitudes towards competition. In our experiment subjects choose between a tournament and a piece-rate pay scheme before performing a real task. Men choose the tournament significantly more often than women. Women are mainly influenced by their degree of risk aversion, but men are not. Men compete more against men than against women, but compete against women who are thought to compete. The behavior of men seems primarily to be influenced by social norms whose nature and origin we discuss.competition; experiment; gender; piece rater; relative ability; risk aversion; tournament