Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

While earlier empirical studies found a negative saving effect of old-age dependency rates without considering longevity, recent studies have found that longevity has a positive effect on growth without considering old-age dependency rates. In this paper, we first justify the related yet independent roles of longevity and old-age dependency rates in determining saving and growth by using a growth model that encompasses both neoclassical and endogenous growth models as special cases. Using panel data from a recent World Bank data set, we then find that the longevity effect is positive and the dependency effect is negative in savings and investment regressions. The estimates indicate that the differences in the demographic variables across countries or over time can well explain the differences in aggregate savings rates. We also find that both population age structure and life expectancy are important contributing factors to growth.

Altruism, Favoritism, and Guilt in the Allocuation of Family Resources: Sophie's Choice in Mao's Mass Send Down Movement

In this paper, we use new survey data on twins born in urban China, among whom many experienced the consequences of the forced mass rustication movement of the Chinese “cultural revolution,” to identify the distinct roles of altruism and guilt in affecting behavior within families. Based on a model depicting the choices of the allocation of parental time and transfers to multiple children incorporating favoritism, altruism and guilt, we show the conditions under which guilt and altruism can be separately identified by experimental variation in parental time with children. Based on within-twins estimates of affected cohorts, we find that parents selected children with lower endowments to be sent down; that parents behaved altruistically, providing more gifts to the sibling with lower earnings and schooling; but also exhibited guilt – given the current state variables of the two children, the child experiencing more years of rustication received significantly higher transfers.guilt, altruism, China

The Effect of the One-Child Policy on Fertility in China: Identification Based on the Differences-in-Differences

This paper measures the effect of China's one-child policy on fertility by exploring the natural experiment that has been created by China's unique affirmative birth control policy, which is possibly the largest social experiment in human history. Because the one-child policy only applied to Han Chinese, but not to ethnic minorities, we construct a differences-in-differences estimator to identify the effect of the policy on fertility. Such a natural experiment is a rare opportunity, whether for the analysis of the effect on fertility or for the analysis of economics in general. Using two rounds of the Chinese Population Census, we find that the one-child policy has had a large effect on fertility. The average effect on the post-treatment cohorts on the probability of having a second child is as large as -11 percentage points. We also find that the magnitude is larger in urban areas and for more educated women. Our robustness tests suggest that our differences-in-differences estimates of the effect of the one-child policy are not very likely to be driven by other policy or socio-economic changes that have affected the Han and the minorities differently.

Estimating the Effect of the One-Child Policy on Sex Ratio Imbalance in China: Identification Based on the Difference-in-Differences

In China, the male-biased sex ratio has increased significantly. Because the one-child policy only applied to the Han Chinese but not to minorities, this unique affirmative policy allows us to identify the causal effect of the one-child policy on the increase in sex ratios by a difference-in-differences (DD) estimator. Using the 1990 census, we find that the strict enforcement of the one-child policy has led to 4.4 extra boys per 100 girls in the 1980s, accounting for about 94% of the total increase in sex ratios during this period. The robust tests indicate that the estimated policy effect is not likely confounded by other omitted policy shocks or socioeconomic changes. Moreover, we conduct the DD estimation using both the 2000 census and the 2005 mini-census. Our estimates suggest that the one-child policy has resulted in about 7.0 extra boys per 100 girls for the 1991-2005 birth cohort. The effect of the one-child policy accounts for about 57% and 54% of the total increases in sex ratios for the 1990s and the 2001-2005 birth cohorts, respectively.one-child policy, sex ratio imbalance, difference-in-differences estimator