The paper explains long-term changes in birth, death rates, and in attitude to personal consumption by evolution of preferences by means of cultural transmission. When communities are culturally isolated, they are focused on population growth, which results in large fertility and welfare transfers to children, limited adult consumption, and lack of old-age support. With increasing cultural contact across communities, successful cultural traits induce their hosts to increase their social visibility by limiting fertility and increasing longevity via higher individual consumption. Empirical analysis confirms that social visibility, as measured by the number of language versions of Wikipedia biographical pages, is associated with fewer children and longer lifespan. The presence of notable individuals precedes reduced aggregate birth rates.

How do weather shocks influence human mobility and poverty, and how will long-term climate change affect future migration over the course of the 21st century? These questions have gained unprecedented attention in public debates as global warming is already having severe impacts around the world, and prospects for the coming decades get worse. Low-latitude countries in general, and their agricultural areas in particular, have contributed the least to climate change but are the most adversely affected. The effect on people's voluntary and forced displacements is of major concern for both developed and developing countries. On 18 October 2019, Agence Française de Développement (AFD) and Luxembourg Institute of Socio-Economic Research (LISER) organized a workshop on Climate Migration with the aim of uncovering the mechanisms through which fast-onset variables (such as weather anomalies, storms, hurricanes, torrential rains, floods, landslides, etc.) and slow-onset variables (such as temperature trends, desertification, rising sea level, coastal erosion, etc.) influence both people's incentives to move and mobility constraints. This special issue gathers five papers prepared for this workshop, which shed light on (or predict) the effect of extreme weather shocks and long-term climate change on human mobility, and stress the implications for the development community.

This paper studies how the rates of deduction for early retirement have to be determined in pay-as-you-go (PAYG) systems in order to keep their budget stable. The derivation of these deductions requires the use of a multiperiod intertemporal budget constraint that involves assumptions about the retirement behavior of past, present, and future cohorts. In general, it is not possible to calculate budget-neutral deductions from the budget constraint of a single individual who retires before the target retirement age—an approach that dominates the related literature. Only for specific cases one can use this second approach but then one has to adjust the discount rate to the assumption about collective retirement. If there is only one deviating individual, then the right choice is the market interest rate while for a stationary retirement distribution it is the internal rate of return of the PAYG system. In this case, the necessary deductions are lower than under the standard approach. This is also true for retirement ages that fluctuate randomly around a stationary distribution. Various long-run developments (e.g., increases in life expectancy or permanent changes in the average retirement age) might cause challenges for the sustainability of the pension system. These developments, however, can only be dealt with by adequate adjustments to the basic pension formulas and not by the use of deduction rates.

Pensions may be provided for in a modern society by a mix of several methods, namely by voluntary individual savings, mandatory fully-funded occupational pension systems, mandatory social security financed by pay-as-you-go, and old-fashioned hoarding in cash. We call a specific mixture of the four systems a pension composition. We assume that individual workers decide on their own individual savings, that the fully-funded occupational system is decided upon by the age cohort of the median worker, and that social security is decided upon by the median voter. We assume that individual and collective pension savings are the only sources of capital supply. When capital supply equals demand from industry, there is equilibrium in the capital market with a corresponding equilibrium interest rate and pension composition. In this paper, we assume a demography with one hundred age brackets and we investigate how changes in the birth rates, survival rates, and the retirement age affect the pension composition and the capital market equilibrium. Our conclusion is that for a given technology, the pension composition and the interest rate are determined by the demography and cannot be modified at will as a long-term political instrument.

Under dynamic efficiency, a pay-as-you-go (PAYG) pension scheme helps the current generation of retirees but hurts future generations because they are forced to save via a return-dominated scheme. Abandoning it is deemed welfare-improving but typically not for all generations. But what if agents are present-biased (hence, undersave for retirement) and the “paternalistically motivated forced savings” component of a PAYG scheme motivated its existence in the first place? This paper shows it is possible to transition from such a PAYG scheme on to a higher return, mandated fully-funded scheme; yet, no generation is hurt in the process. The results inform the debate on policy design of pension systems as more and more policy makers push for the transition to take place but are forced to recognize that current retirees may get hurt along the way.

We investigate the impact of male–female conflict over gender norms on marital outcomes. As marriage requires mutual agreement regarding the role of husband and wife, we hypothesize that a person who is less likely to encounter a potential mate with similar gender norms will face a lower chance of marrying. Even if two parties marry despite a difference in gender norms, their marriage may be more vulnerable to external shocks, making divorce more likely relative to their counterparts without gender norm conflict. Finally, we predict that in the presence of gender norm conflict, high-skilled individuals may be less likely to get or stay married relative to low-skilled individuals, as the former group faces better outside options. Estimates from an analysis of U.S. marriage markets differentiated by birth cohort, state, race, and skill level support our theoretical predictions. Additional extensions explore heterogeneous effects and additional outcomes such as the presence of children in the household.

This study explores how the distinctive Korean age reckoning, the Confucian age culture, and the school-entry-cutoff date affect the decisions of parents on both birth and school-entry timing for their children in Korea. There is a traditional method of age calculation in Korea that all people get one year older on January 1. Korea also has a distinctive age culture influenced by Confucianism. I find a substantial amount of birth and school-entry timing selections around the Korean age-cutoff date, January 1. The estimation results show that children born in January and February delayed school entry by 18.2–21.2 percentage points more than those born in November and December and 24% of births moved from one week before January 1 to one week after when the school-entry cutoff was March 1. After the school-entry cutoff has changed to January 1, children barely delay school enrollment, while more births are moved from December to January: 42% of births are shifted within the 7-day window. These behaviors are made by two motives: (1) parents want their children to have the same Korean age with their classmates because of the Confucian age culture; (2) they also want their children to be relatively older to have academic advantages.

Recent surveys of the literature on climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this paper, we conduct a meta-analysis in order to investigate the role of the methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. We code 51 papers representative of the literature in terms of methodological approaches. This results in the coding of more than 85 variables capturing the methodology of the main dimensions of the analysis at the regression level. These dimensions include authors' reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods, and last but not least measures of the climatic factors. We look at the influence of these characteristics on the probability of finding any effect of climate change, a displacement effect, an increase in immobility, and evidence in favor of a direct vs. an indirect effect. Our results highlight the role of some important methodological choices, such as the frequency of the data on mobility, the level of development, the measures of human mobility and of the climatic factors as well as the econometric methodology.

This paper explores the extent to which child labor perpetuates the cycle of household poverty, as well as food insecurity using the sixth round of the Ghana Living Standards Survey. The study employs a counterfactual framework and an endogenous treatment effect econometric technique to accurately examine the causal link between child labor and long-term household poverty and food security. Results suggest a positive relationship between early paid work and long-term poverty and food insecurity. This finding provides empirical evidence to indicate that child labor has the potential to create and perpetuate poverty traps. From a policy perspective, findings from this study also contribute to the modern policy debates surrounding the achievement of the sustainable development goals on reducing poverty and hunger in developing countries.

In this paper, we investigate the long-term effects of climate change on the mobility of working-age people. We use a world economy model that covers almost all the countries around the world, and distinguishes between rural and urban regions as well as between flooded and unflooded areas. The model is calibrated to match international and internal mobility data by education level for the last 30 years, and is then simulated under climate change variants. We endogenize the size, dyadic, and skill structure of climate migration. When considering moderate climate scenarios, we predict mobility responses in the range of 70–108 million workers over the course of the twenty-first century. Most of these movements are local or inter-regional. South–South international migration responses are smaller, while the South–North migration response is of the “brain drain” type and induces a permanent increase in the number of foreigners in OECD countries in the range of 6–9% only. Changes in the sea level mainly translate into forced local movements. By contrast, inter-regional and international movements are sensitive to temperature-related changes in productivity. Lastly, we show that relaxing international migration restrictions may exacerbate the poverty effect of climate change at origin if policymakers are unable to select/screen individuals in extreme poverty.

This article analyzes the effect of international migration on the wage gap between women and men who remain in Mexico. We use historical distance to the U.S. border over early twentieth-century railroad networks as an exogenous factor causing changes in the relative supply of men and women, due to predominately male migration. A 10% decrease in the relative labor supply of men tends to increase the wage gap between women and men by approximately 1.1 percentage points, suggesting that they are not perfect substitutes. However, the results imply a greater elasticity of substitution between men and women than that suggested by previous studies.

India's sex ratio at birth (SRB) has become increasingly masculine, coinciding with a declining total fertility rate. Couples often resort to sex-selective abortion or even infanticide to ensure the birth of a son. We use household-level data from all four waves of India's National Family Health Survey (NFHS) to investigate the effect of India's demographic transition on the SRB. Mixed-effects logit regression analysis demonstrates that since the early 1990s, the probability of a third-order birth being male is decreasing in the number of sons previously born, while for second-order births, this effect does not become apparent until the 2000s. Accounting for geographic heterogeneity in the fertility transition, we find additional heterogeneity in son preference and sex selection at the village/neighborhood level. This heterogeneity has strengthened over time at both second- and third-order births and in more and less gender skewed regions of the country, suggesting potential convergence in sex ratios across India. By incorporating the most recent 2015–16 round of the NFHS, we demonstrate that previously documented trends in sex selection continue, and additionally that sex selection is increasingly occurring at lower parities as the desire for a smaller family combines with the traditional preference for sons.

We study the link between residential segregation and fertility for the socially excluded and marginalized Roma ethnic minority. Using original survey data we collected in Serbia, we investigate whether fertility differs between ethnically homogeneous and mixed neighborhoods. Our results show that Roma in less-segregated areas tend to have significantly fewer children (around 0.8). Most of the difference arises from Roma in less-segregated areas waiting substantially more after having a boy than their counterparts in more-segregated areas. We exploit variation in the share of Serbian sounding first names to provide evidence that a mechanism at play is a shift in preferences toward lower fertility and sons rather than daughters induced by a higher exposure to the Serbian majority culture.

In light of increasing environmental stress and its likely implications for migration patterns, we conduct a cross-country individual-level analysis of the impact of self-reported exposure to environmental stress on people's migration intentions and their destination choice. We simultaneously model intentions to migrate domestically and internationally for 90 countries worldwide in 2010. We find that self-reported exposure to environmental stress increases the probability to intend to migrate both domestically and internationally in the coming year. In absolute terms, the largest impact is obtained for domestic migration, but controlling for the fact that this is the most common form of migration anyway, environmental stress particularly raises intraregional migration intentions. Overall, the effects on migration intentions to the different destinations are strongest in low- and middle-income countries in Africa and Latin America and the Caribbean, while in high-income countries, and in Europe particularly, environmental stress appears to spur only domestic migration intentions.

Three important features of Indian labor markets enduringly coexist: rent-seeking, occupational immobility, and caste. These facts are puzzling, given theories that predict static, equilibrium social inequality without conflict. Our model explains these facts as an equilibrium outcome. Some people switch caste-associated occupations for an easier source of rents, rather than for productivity. This undermines trust between castes and shuts down occupational mobility, which further encourages rent-seeking due to an inability of workers to sort into occupations. We motivate our contribution with novel stylized facts exploiting a unique survey question on casteism in India, which we show is associated with rent-seeking.

We investigate gender differences across multiple dimensions after 3 months of the first UK lockdown of March 2020, using an online sample of approximately 1,500 Prolific respondents’ residents in the UK. We find that women's mental health was worse than men along the four metrics we collected data on, that women were more concerned about getting and spreading the virus, and that women perceived the virus as more prevalent and lethal than men did. Women were also more likely to expect a new lockdown or virus outbreak by the end of 2020, and were more pessimistic about the contemporaneous and future state of the UK economy, as measured by their forecasted contemporaneous and future unemployment rates. We also show that between earlier in 2020 before the outbreak of the Coronavirus pandemic and June 2020, women had increased childcare and housework more than men. Neither the gender gaps in COVID-19-related health and economic concerns nor the gender gaps in the increase in hours of childcare and housework can be accounted for by a rich set of control variables. Instead, we find that the gender gap in mental health can be partially accounted for by the difference in COVID-19-related health concerns between men and women.

Migration is a common means of adaptation to weather shocks. Previous research has identified heterogeneous effects according to age, sex, and wealth, but little is still known about how marriage-related institutions affect such migration. Relying on a quasi-experimental identification strategy, we analyze marriage- and work-related migration in Malawi following large droughts, separating the effects for female and male migrants according to different age groups. The analysis based on stated motives of migration reveals marginal decreases in marriage-related migration among girls, but increases in marriage-related migration within districts for women in older age groups. We also find large increases in work-related between-district migration for boys, and to a smaller extent also for girls following severe drought. The results add to the evidence of the potentially adverse effects of migration as a coping mechanism following drought when other means of insurance do not exist.