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Policies to reduce fertility in developing
countries generally boost education levels, but only slightly
At the national level, it has long been observed
that a country's average education level is negatively associated with its
total fertility rate. At the household level, it has also been well
documented that children's education is negatively associated with the
number of children in the family. Do these observations imply a causal
relationship between the number of children and the average education level
(the quantity–quality trade-off)? A clear answer to this question will help
both policymakers and researchers evaluate the total benefit of family
planning policies, both policies to lower fertility and policies to boost
it.
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Universal early education can be beneficial, and
more so for the poor, but quality matters
There is widespread interest in universal early
education, both to promote child development and to support maternal
employment. Positive long-term findings from small-scale early education
interventions for low-income children in the US have greatly influenced the
public discussion. However, such findings may be of limited value for
policymakers considering larger-scale, more widely accessible programs.
Instead, the best insight into the potential impacts of universal early
education comes from analysis of these programs themselves, operating at
scale. This growing research base suggests that universal early education
can benefit both children and families, but quality matters.
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Gender inequalities in daily time allocation may
have detrimental effects on earnings and well-being
Many countries experience gender differences, of
various magnitudes, in the time devoted to paid work (e.g. market work time)
and unpaid work (e.g. housework and childcare). Since household
responsibilities influence the participation of women, especially mothers,
in the labor market, the unequal sharing of unpaid work, with women bearing
the brunt of housework and childcare, is one of the main drivers of gender
inequality in the labor market. Understanding the factors behind these
gender inequalities is crucial for constructing policies aimed at promoting
gender equality and combating gender-based discrimination.
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Fertility and marriage rates are pro-cyclical in
many countries, but the longer-term consequences are inconclusive
Low fertility rates are a cause of social
concern in many developed countries, with growing youth unemployment often
being considered a primary cause. However, economic theory is not conclusive
about whether deterioration in youth employment prospects actually
discourages family formation or for how long the effect might persist. In
addition, recessions can affect the divorce rate. Therefore, understanding
the relationship between labor market conditions and family formation can
provide important insights into the type of policies that would be most
effective in promoting fertility.
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Boosting the efficiency of household production
could have large economic effects
The time household members in industrialized
countries spend on housework and shopping is substantial, amounting to about
half as much as is spent on paid employment. Women bear the brunt of this
burden, driven in part by the gender wage differential. Efforts to reduce
the gender wage gap and alter gendered norms of behavior should reduce the
gender bias in household production time and reduce inefficiency in home
production. Policymakers should also note the impact of tax policy on
housework time and its market substitutes, and consider ways to reduce the
distortions caused by sales and income taxes.
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The earned income tax credit raises income and
work incentives among low-income parents but little goes to adults without
children
The earned income tax credit provides important
benefits to low-income families with children in the US. At an annual cost
of about $60 billion, it increases the incomes of such families while
encouraging parents to work more by subsidizing their incomes. But
low-income adults without children and non-custodial parents receive only
very low payments under the program, providing them with little income
benefits or work incentives. Many of these adults are low-income young men
whose wages and employment rates have been declining for years and who might
benefit substantially from expanded eligibility for the earned income tax
credit.
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The evidence, though weak, favors legal, easy,
unilateral divorce
Many countries have enacted legislation over the
past few decades making divorce easier. Some countries have legalized
divorce where it had previously been banned, and many have eased the
conditions required for a divorce, such as allowing unilateral divorce (both
spouses do not have to agree on the divorce). Divorce laws can regulate the
grounds for divorce, division of property, child custody, and child support
or maintenance payments. Reforms can have a range of social effects beyond
increasing the divorce rate. They can influence female labor supply,
marriage and fertility rates, child well-being, household saving, and even
domestic violence and crime.
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