Economic Demography
Paper Session
Saturday, Jan. 4, 2025 2:30 PM - 4:30 PM (PST)
- Chair: Mary Lopez, Occidental College
Marital Sorting, Social Security Benefits, and Retirement Behaviors of Married Women
Abstract
Married-down wives, compared to married-same and married-up wives, exhibit significantly higher labor force participation rates and are more likely to be breadwinners during their prime working years. However, little is known about how these differences during prime working ages translate into disparities in late-life labor supply and retirement behaviors. This paper examines how the retirement behavior of married women differs by educational assortative mating and identifies key drivers in understanding the patterns. We particularly focus on two mechanisms: leisure complementarities and Social Security (spousal) benefits.To this end, we employ the Health and Retirement Study linked with administrative Social Security data for our analyses. First, we document that “married-down” wives have a higher number of quarters of Social Security-covered employment and are less likely to receive Social Security spousal benefits. Furthermore, they are less likely to retire jointly with their husbands or claim retirement benefits early. In contrast, husbands of “married-down” wives are more likely to receive spousal benefits and claim retirement benefits earlier. These differences are robust to controlling for the age gap between spouses. Motivated by these patterns, we construct a structural model to identify the key factors shaping retirement outcomes across different marriage types. This dynamic structural model of married women incorporates leisure complementarities and institutional details of Social Security benefits. The model is estimated by simulated method of moments and then used to investigate how married women from different marriage types respond to policy counterfactuals related to Social Security spousal benefits.
Minding Your Business or Your Child? Motherhood and the Entrepreneurship Gap
Abstract
Women are less likely than men to start firms and female entrepreneurs are less likely to succeed. This paper studies the effect of childbirth on women’s entrepreneurial activity. Drawing on rich administrative data from Canada and using an event study and instrumental variable design, I show that childbirth has substantial negative effects on women’s founding rates and firm performance, accounting for a large share of the gender gap in entrepreneurship. The impact spills over onto workers, who experience a decrease in earnings. The effects are permanent: entrepreneurial outcomes never recover to their pre-birth levels. The results are not due to a reduction in risk-taking and cannot be fully explained by household specialization based on labor market advantage. Childcare availability, progressive gender norms, and access to credit reduce the adverse effect of childbirth on the entrepreneurship gap.Birth Order in the Very Long-Run: Estimating First-Born Premiums between 1850 and 1940
Abstract
The nineteenth-century American family experienced tremendous demographic, economic, and institutional changes. By using birth order effects as a proxy for family environment, and linked census data on men born between 1835 and 1910, we study how the family's role in human capital production evolved over this period. We find firstborn premiums for occupational outcomes, marriage, and fertility that are similar across census waves. Our results indicate that the returns to investments in the family environment were stable over a long period.Discussant(s)
Ashley Wong
,
Tilburg University
Kelly Ragan
,
Stockholm School of Economics
Reem Zaiour
,
Vanderbilt University
Meredith Paker
,
Grinnell College
JEL Classifications
- J1 - Demographic Economics
- I1 - Health