The Effect of Poverty on the Health of Newborn Children – Evidence from Germany

This paper analyses the association between health outcomes of newborn children and mother’s poverty status during pregnancy.We use a new questionnaire accompanying the GSOEP which collects abundant information on health outcomes. The findings indicate that there is generally no effect from poverty to health, except on the probability of preterm birth. Furthermore,we find some indication of intergenerational transmission of health status.Poverty, child birth, doctor visits

The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation

The introduction of the German parental leave benefit (Elterngeld) applied to all children born on January 1st, 2007 or later. The new Elterngeld considerably changed the amount of transfers to families during the first two years postpartum. We show that the incentives created by using a cut-off date led more than 1000 parents to postpone the delivery of their children from December 2006 to January 2007. Besides analyzing the timing of delivery the paper focuses on potential adverse health outcomes of children affected by the shift in date of birth.Cut-off date effect, fertility, policy evaluation

Child Benefit Reform and Labor Market Participation

This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sum transfers to families with children.We analyze the impact on the labor force participation of family members. Comparing behavioral changes of adults with children with behavioral changes of adults without children,we find that single mothers and mothers with a working partner considerably reduced the number of working hours (conditional on participation). Participation rates however did not decrease. For single fathers neither participation rates nor working hours display any significant changes.Child support, labor supply, program evaluation

Does Money Buy Higher Schooling? Evidence from Secondary School Track Choice in Germany

The German schooling system selects children into different secondary school tracks already at a very early stage in life. School track choice heavily influences choices and opportunities later in life. It has often been observed that secondary schooling achievements display a strong correlation with parental income.We use sibling fixed effects models and information on a natural experiment in order to analyze whether this correlation is due to a causal effect of income or due to unobservable factors that themselves might be correlated across generations. Our main findings suggest that income has no positive causal effect on school choice and that differences between high- and low-income households are driven by unobserved heterogeneity, e.g. differences in motivation.Child poverty, educational attainment, secondary schools, sibling differences, natural experiment

Does Money Buy Higher Schooling? Evidence from Secondary School Track Choice in Germany

The German schooling system selects children into different secondary school tracks already at a very early stage in life. School track choice heavily influences choices and opportunities later in life. It has often been observed that secondary schooling achievements display a strong correlation with parental income. We use sibling fixed effects models and information on a natural experiment in order to analyze whether this correlation is due to a causal effect of income or due to unobservable factors that themselves might be correlated across generations. Our main findings suggest that income has no positive causal effect on school choice and that differences between high- and low-income households are driven by unobserved heterogeneity, e.g. differences in motivation.Child poverty, educational attainment, secondary schools, sibling differences, natural experiment.

Revisiting the Complementarity between Education and Training: The Role of Personality, Working Tasks and Firm Effects

This paper addresses the question to which extent the complementarity between education and training can be attributed to differences in observable characteristics, i.e. to individual, job and firm specific characteristics. The novelty of this paper is to analyze previously unconsidered characteristics, in particular, personality traits and tasks performed at work which are taken into account in addition to the standard individual specific determinants. Results show that tasks performed at work are strong predictors of training participation while personality traits are not. Once working tasks and other job related characteristics are controlled for, the skill gap in training participation drops considerably for off-the-job training and vanishes for on-the-job training.training, personality traits, working tasks, Oaxaca decomposition

Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany

This paper analyses the duration of child poverty in Germany. In our sample, we observe the entire income history from the individuals' birth to their coming of age at age 18. Therefore we are able to analyze dynamics in and out of poverty for the entire population of children, whether they become poor at least once or not. Using duration models, we allow poverty exit and re-entry to be correlated even after controlling for observable characteristics and also account for correlations with initial conditions. Our results indicate that household composition, most importantly single parenthood, and the labour market status as well as level of education of the household head are the main driving forces behind exit from and re-entry into poverty and thus determine the (longterm) experience of child poverty. However, unobserved heterogeneity seems to play an important role as well.Child poverty, duration analysis, unobserved heterogeneity.

Now Daddy's Changing Diapers and Mommy's Making Her Career: Evaluating a Generous Parental Leave Regulation Using a Natural Experiment

Over the last decades many OECD countries introduced parental leave regulations in order to counteract low and decreasing birth rates. In general, these regulations aim at making parenthood more attractive and more compatible with a working career, especially for women. The recent German Elterngeld reform is one example: By replacing 67 per cent of prepartum parental labor earnings for up to 14 months after birth of the child – if both father and mother take up the transfer – it intends to i) smooth or prevent households' earnings decline postpartum, ii) make childbearing attractive for working women while iii) keeping them close to the labor market, and iv) incentivize fathers to participate in childcare. We evaluate the reform by using a natural experiment created by the quick legislative process of the Elterngeld reform: Comparing outcomes of parents with children born shortly after and before the coming into effect of the law on 1 January 2007 yields unbiased estimates of the reform effects, because at the time when these children were conceived none of the parents knew that the regulation would be in force by the time their child is born. Our results are based on unique data from the official evaluation of the reform, which we conducted for the German government, and they show that the reform has been generally successful in attaining its objectives. In particular, we find a significant decrease in mothers' employment probability during the 12 months after giving birth, and a significant increase in mothers' employment probability after the Elterngeld transfer expires.parental leave, natural experiment, female labor market participation

Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany

This paper analyses the duration of child poverty in Germany. In our sample, we observe the entire income history from the individuals' birth to their coming of age at age 18. Therefore we are able to analyze dynamics in and out of poverty for the entire population of children, whether they become poor at least once or not. Using duration models, we allow poverty exit and re-entry to be correlated even after controlling for observable characteristics and also account for correlations with initial conditions. Our results indicate that household composition, most importantly single parenthood, and the labour market status as well as level of education of the household head are the main driving forces behind exit from and re-entry into poverty and thus determine the (long-term) experience of child poverty. However, unobserved heterogeneity seems to play an important role as well.Child poverty, duration analysis, unobserved heterogeneity.

A Portrait of Child Poverty in Germany

This paper offers a descriptive portrait of income poverty among children in Germany between the early 1980s and 2001, with a focus on developments since unification in 1991. Data from the German Socio-Economic Panel are used to estimate poverty rates, rates of entry to and exit from poverty, and the duration of time spent in and out of poverty. The analysis focuses upon comparisons between East andWest Germany,by family structure, and citizenship status. Child poverty rates have drifted upward since 1991, and have been increasing more than the rates for the overall population since the mid-1990s. In part these changes are due to increasing poverty among children from households headed by non-citizens. Children in single parent households are by all measures at considerable risk of living in poverty. There are also substantial differences in the incidence of child poverty and its dynamics between East and West Germany.Poverty dynamics, poverty duration, immigrant households