Alternative Boomerang Kids, Intergenerational Co-residence, and Maternal Labor Supply
This study investigates the boomerang phenomenon among adult children in Thailand. We estimate the effect of having children on co-residence between parents and adult children using Socio-Economic Survey panel data. We find that adult children who have moved out tend to move back in with their parents after having children to save time and money on childcare. The presence of young children increases the likelihood of intergenerational co-residence by over 30%. This study is the first to provide empirical evidence of boomerang kids in an Asian context, which is distinctive compared with Western countries. The relationship between intergenerational co-residence and the maternal labor supply is also examined using the instrumental variable approach based on the cross-sectional Labor Force Survey, which has data covering over 30 years. Our results show that co-residence increases the female labor supply by 21% and also extends women’s working hours by 10 hours.
Parenthood Penalty and Gender Wage Gap: Recent Evidence from Thailand
This study first examines the evolution of gender wage gap in Thailand, using cross-sectional data from the Labor Force Survey (LFS) for 1985–2017. We find that education, occupation, and industry significantly contribute to gender wage gap convergence in Thailand. Furthermore, for females, the wage gap between mothers and non-mothers has increased over time, while for males, the changes are relatively small. Thereafter, we examine the gender wage gap associated with marriage and parental status, using panel data from the Socio-Economic Survey (SES) for 2005– 2012, and find wage penalty for both motherhood and fatherhood in Thailand.
Labour Supply of Married Women in Thailand: 1985-2016
This study investigates the labour supply behaviour of married Thai women with reference to their own and their spouse’s wages. By utilising data of the national Labour Force Survey in Thailand from 1985 to 2016, the wage imputation technique and the instrumental variables approach are applied to correct sample selection and to alleviate endogeneity, common issues that cause bias in estimating female labour supply. By controlling for spousal education and number of children, the main findings indicate an inverse relationship between married women’s labour supply and wages, contrary to the results found in most developed countries. The estimated own wage elasticity ranges from -1.70 to -2.40 and cross elasticity ranges from -0.16 to -0.17, indicating that the impact of own wage on labour supplied is much larger than spouse’s wage. The results from disaggregation classified according to different socioeconomic backgrounds also show the negative elasticities between own and spouses’ wage across all subgroups, except for those with university degrees and higher income.
The Economics of Altruism – The Old, the Rich, the Female
This study examines whether certain observed characteristics are associated people’s altruistic feelings and behaviors. The paper utilizes a National Mental Health Survey that gathered questions about respondents’ self-reported altruism along with their demographic, labor force, and income information. The empirical results reveal that (1) older people are more altruistic; (2) higher income people are more altruistic; and (3) women are more altruistic. The results are robust once the potential endogeneity problem of the income variable is eliminated by the use of the instrumental variable estimation method.
Intensive and Extensive Margins of Labour Supply in Thailand: Decomposing the Pattern of Work Behaviours
The paper highlights the important differences between the extensive margins (participation) and the intensive margins (hours-of-work) of labour supply, in the case of Thailand. We use Thailand’s Labour Force Survey to explore the evolution of labour supply at both margins over the past three decades. We show that Thailand’s extensive margins of labour supply follow the conventional life-cycle pattern of an inverted U-shape along the age distribution. However, for the intensive margins, occupation types and education levels play significant roles in dictating the shape of hours-of-work along the life-cycle. We employ a pseudo-cohort analysis to allow us to track the same representative age-gender sample across their life time. While we find that men supply more mean hours per capita than women, we do not find much marriage premium on the intensive margin among those who worked. Marriage premium is highly noticeable along the extensive margin. At all ages, women have smaller extensive margins. Female workforce also reduce the margins more strongly when they reach older ages than men. In our statistical exercise combining a decomposition approach with forecasting, we find that a policy targeting raising participation rates work more effective than a policy on intensive margins, in increasing the total hours-of-work of the working age population.
Mortality Risk and Human Capital Investment: The Legacy of Landmines in Cambodia
Life expectancy plays a key role in determining households’ optimal investment in children’s human capital accumulation. This paper examines this relationship by looking at a unique case of Cambodia and the nation’s prevalence of landmines. Extensive usage of landmines during its long civil conflict since the 1970s was followed by large international effort of landmine clearance operation. A two-fold increase in landmine clearance effort during the periods 2004-2005 in affected areas, has led to a subsequent sharp fall in landmine casualty rates. Together with the male-biased characteristic of landmine accidents, all three variations allow us to estimate the impact of working-age mortality risk on skill formation using a difference-in-difference-in-difference model. To deal with the unobservable, landmine casualty rates are also instrumented by the stock of dangerous land in neighbouring areas. We find a strong negative effect of landmine mortality on both schooling and health investment outcomes. When the mortality risk from such a fearful event as landmine accidents is replaced by a more common incident of traffic accidents, any mortality effect on schooling outcomes is no longer detected. This is evidence of a role played by subjective life expectation in optimal decision making on the households.
Intertwining Inequality and Labor Market under the New Normal
This paper builds on a life cycle model of occupational choices and financial frictions to understand the main channel through which demography and inequality influence the economy. Based on household data from Thailand, younger cohorts are likely to be workers and older cohorts are likely to be entrepreneurs due to age-dependent skills and asset accumulation. Under the new normal faced by the Thai economy as well as others, aging population can lower overall total factor productivity and increase inequality. An increase in equilibrium wage due to shortage of labor supply drives mediocre entrepreneurs to become self-employed – a low-income and low-productivity occupation – and worsens total factor productivity and hence inequality. Moreover, a decline in world interest rates associated with global aging population will exacerbate this negative effect. Reducing financial frictions or alleviating a borrowing constraint of talented entrepreneurs can mitigate this effect while extending retirement age will only improve output per capita while total factor productivity and inequality worsen.