Magenheim, Ellen B.

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Swarthmore College Works Economics Faculty Works Economics Winter 1999 Investment In Human Capital: Review Of "The State And The Family: A Comparative Analysis Of Family Policies In Industrialized Countries" By A.H. Gauthier Ellen B. Magenheim Swarthmore College, emagenh1@swarthmore.edu This work is brought to you for free and open access by . It has been accepted for inclusion in Economics Faculty Works by an authorized administrator of Works. For more information, please contact myworks@swarthmore.edu. Follow this and additional works at: https://works.swarthmore.edu/fac-economics  Part of the Economics Commons Let us know how access to these works benefits you  Recommended Citation Ellen B. Magenheim. (1999). "Investment In Human Capital: Review Of "The State And The Family: A Comparative Analysis Of Family Policies In Industrialized Countries" By A.H. Gauthier". Forum For Applied Research And Public Policy. Volume 14, Issue 4. 110-110. https://works.swarthmore.edu/fac-economics/23 Investment in Human Capitalor most people, takingtheir children to thepediatrician, signingthem up for pianolessons, or making sure they dotheir homework are simply whatgood parents do—ways to manifest their love and desire for theirchildren to have successful andmeaningful lives. For an economist, such actions are investmentsin human capital, whether undertaken privately by the family orsupported by the government. Inother words, they are actionsintended to increase the odds ofproducing children who will growup to be responsible and productive members of society.From either perspective, that ofloving parent or analytical economist, we do know that the waychildren are treated today helps todetermine the adults they becometomorrow; specifically, childhoodexperiences may affect the level ofeducation they attain, theirproductivity in the labor force,and their contributions to society.In few countries are thesedecisions made without anygovernment involvement. Forexample, laws governing access toabortion, mandating parental leavebenefits, and providing cashbenefits to parents may influenceprivate decision making aboutchildbearing, family formation,and investments in children. Theappropriate division of responsibility between the family and theBY ELLEN MIAGENHEIMgovernment for providing financialsecurity, human capital development, time, and caring of children,has varied over time and acrosscountries. In The State and theFamily, Anne Hélène Gauthierdoes an admirable job of documenting the range of governmentalapproaches in 22 industrializedcountries over the last century.The author uses a fairly broaddefinition of family policy—publicinitiatives targeted at families withdependent children. Componentsof family policy can include cashtransfers, such as tax relief fordependent children, and services tofamilies such as after-school care.While these and many otherdisparate policy initiatives are allincluded under the rubric of familypolicy, the author notes that theterm "family policy" connotes acomprehensiveness and integrationthat, in fact, do not characterizemost countries' family policypackages.The author offers an interestingcomparative analysis of howdifferent countries that sharesimilar demographic patterns andtransformations in family life haveresponded to these phenomena indifferent ways. For example,France and Britain have implemented divergent programs torespond to similar patterns ofoverall decline in fertility andincreased incidence of births tosingle mothers. Gauthier arguesthat a country's history, politicalstructure, and social values allinfluence whether or how governments respond to demographic andsocial change.The extremely ambitious scopeof this book is both its strengthand its weakness. Gauthier acknowledges the trade-off she facedby taking on a project with such abroad scope. In fact, the book isshort on details about particularpolicies and largely ignores broadareas of policy, including healthand education.While readers may find this afrustrating book in this regard, itwhets the reader's appetite forfurther detail and analysis.Gauthier's overview of child andfamily policy in this century mayserve as a starting point for thosewho want to pursue research onspecific policies and analysis in aparticular country and to explorethe relationship between investments in human capital duringchildhood and the results of thoseinvestments in the future.m.Anne Hélène Gauthier, TheState and the Family: A Comparative Analysis of Family Policies inIndustrialized Countries (Oxford,UK; Clarendon Paperbacks,Oxford University Press, 1998);248 pp; paper, $19.95.Ellen MagenheimDepartment ofEconomicsSwarthmore CollegeSwarthmore, Pennsylvania110 " FoRUM for Applied Researchand Public Policy

Investment In Human Capital: Review Of  The State And The Family: A Comparative Analysis Of Family Policies In Industrialized Countries  By A.H. Gauthier

Swarthmore College 
Works 
Economics Faculty Works Economics 
Winter 1999 
Investment In Human Capital: Review Of "The State And The 
Family: A Comparative Analysis Of Family Policies In 
Industrialized Countries" By A.H. Gauthier 
Ellen B. Magenheim 
Swarthmore College, emagenh1@swarthmore.edu 
Follow this and additional works at: https://works.swarthmore.edu/fac-economics 
 Part of the Economics Commons 
Let us know how access to these works benefits you 
 
Recommended Citation 
Ellen B. Magenheim. (1999). "Investment In Human Capital: Review Of "The State And The Family: A 
Comparative Analysis Of Family Policies In Industrialized Countries" By A.H. Gauthier". Forum For Applied 
Research And Public Policy. Volume 14, Issue 4. 110-110. 
https://works.swarthmore.edu/fac-economics/23 
This work is brought to you for free by Swarthmore College Libraries' Works. It has been accepted for inclusion in 
Economics Faculty Works by an authorized administrator of Works. For more information, please contact 
myworks@swarthmore.edu. 
Investment in Human Capital
or most people, taking
their children to the
pediatrician, signing
them up for piano
lessons, or making sure they do
their homework are simply what
good parents do—ways to mani
fest their love and desire for their
children to have successful and
meaningful lives. For an econo
mist, such actions are investments
in human capital, whether under
taken privately by the family or
supported by the government. In
other words, they are actions
intended to increase the odds of
producing children who will grow
up to be responsible and produc
tive members of society.
From either perspective, that of
loving parent or analytical econo
mist, we do know that the way
children are treated today helps to
determine the adults they become
tomorrow; specifically, childhood
experiences may affect the level of
education they attain, their
productivity in the labor force,
and their contributions to society.
In few countries are these
decisions made without any
government involvement. For
example, laws governing access to
abortion, mandating parental leave
benefits, and providing cash
benefits to parents may influence
private decision making about
childbearing, family formation,
and investments in children. The
appropriate division of responsibil
ity between the family and the
BY ELLEN MIAGENHEIM
government for providing financial
security, human capital develop
ment, time, and caring of children,
has varied over time and across
countries. In The State and the
Family, Anne Hélène Gauthier
does an admirable job of docu
menting the range of governmental
approaches in 22 industrialized
countries over the last century.
The author uses a fairly broad
definition of family policy—public
initiatives targeted at families with
dependent children. Components
of family policy can include cash
transfers, such as tax relief for
dependent children, and services to
families such as after-school care.
While these and many other
disparate policy initiatives are a
ll
included under the rubric o
f family
policy, the author notes that the
term "family policy" connotes a
comprehensiveness and integration
that, in fact, do not characterize
most countries' family policy
packages.
The author offers an interesting
comparative analysis o
f
how
different countries that share
similar demographic patterns and
transformations in family life have
responded to these phenomena in
different ways. For example,
France and Britain have imple
mented divergent programs to
respond to similar patterns o
f
overall decline in fertility and
increased incidence of births to
single mothers. Gauthier argues
that a country's history, political
structure, and social values all
influence whether o
r
how govern
ments respond to demographic and
social change.
The extremely ambitious scope
o
f
this book is both it
s strength
and its weakness. Gauthier ac
knowledges the trade-off she faced
b
y
taking o
n
a project with such a
broad scope. In fact, the book is
short o
n
details about particular
policies and largely ignores broad
areas o
f policy, including health
and education.
While readers may find this a
frustrating book in this regard, it
whets the reader's appetite for
further detail and analysis.
Gauthier's overview of child and
family policy in this century may
serve a
s
a starting point for those
who want to pursue research on
specific policies and analysis in a
particular country and to explore
the relationship between invest
ments in human capital during
childhood and the results of those
investments in the future.m.
Anne Hélène Gauthier, The
State and the Family: A Compara
tive Analysis o
f Family Policies in
Industrialized Countries (Oxford,
UK; Clarendon Paperbacks,
Oxford University Press, 1998);
248 pp; paper, $19.95.
Ellen Magenheim
Department o
f
Economics
Swarthmore College
Swarthmore, Pennsylvania
110 " FoRUM for Applied Researchand Public Policy


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Investment In Human Capital: Review Of The State And The Family: A Comparative Analysis Of Family Policies In Industrialized Countries By A.H. Gauthier

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