Think Tanks Empowering the Individual and the Family

1
Think Tanks Empowering the Individual and the
Family
The Case of Chile
Liberty Forum Colorado Springs, Colorado

• Rodrigo Castro
• Libertad y Desarrollo
• www.lyd.org
• April 2006

2
Overview Family and Demographic Trends in Chile
3
Life Expectancy
Source INE.
4
Population Ageing
5
International Demographic Indicators
Source UNO-Statistics Division Database and
Census 1992, 2002
6
International Demographic Indicators
Source UNO-Statistics Division Database and
Census 1992, 2002
7
Changes in Family Structure in Chile
Source INE, Census (1992, 2002)
8
Family Structure by income quintile
Note other included head of household is widow
or single Source CASEN Survey, 2003
9
Childbearing
Source Demography Report, INE
10
Determinants of childbearing in Chile (1960-2003)
Source (1) Central Bank of Chile (2) Census of
Population 1992, 2002 (3) Employment Survey, U
de Chile (4) Demography Report, INE (5)
Demography Report, INE
11
In wedlock and out of wedlock childbearing ()
Source Demography Report, INE
12
Out-of-wedlock childbearing. International
Comparison
Source Ventura Bachrach Nonmarital
Childbearing in the United States, 1940-99,
National Vital Statistics Reports 48.
13
Out-of-wedlock Childbearing among adolescents
(1990-02)
Source INE, Vital Statistics Report
14
Head of Household Civil Status
Source Census (2002)
15
Adolescent mothers drop-out rate by income
quintile
Source CASEN Survey (2003)
16
Family life satisfaction
Source PUC-Inst.Sociología Encuesta Nacional de
la Familia.
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Woman and Work
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Women Headship in Chile
Source INE. Census of Housing and Population
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Women Headship by age
Source INE. Census 2002
20
Women Labor Participation ( of total women 15)
Source Census (1982, 1992, 2002)
21
Women Labor Participation and Pre-School Coverage
by income quintiles
Source CASEN Survey (2003)
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Women Labor Participation. International
Comparison
 
Source PNUD, Human Development Report (2005)
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Working Hours in Chile
Source CASEN Survey (2003)
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Empirical Evidence
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Empirical Evidence

• Children who grew up with no father
• 60 of condemned for robbery
• 72 of adolescent condemned for homicide
• 70 of condemned for long term period

• Adolescents involved in alcohol and drugs are
  likely to
• belong to families in conflict
• belong to separated parents

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Empirical Evidence

• Family desintegration brings
• Difficulty to equalize opportunities and increase
  poverty
• Problems in educational outcomes bad behavior,
  low performance and drop out
• More antisocial behavior in adolescents
• Social capital is based on trust
• Higher social capital, higher capacity to solve
  conflicts and advance in peace
• Family is the basic pillar to create social
  capital

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Family Structure and Educational Outcomes
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Methodology

• Parents Survey of SIMCE Test
• SIMCE 2002 4th level (235,462 relatives, 86 are
  parents)
• SIMCE 2003 10th level (243,156 students, 83 of
  parents)
• 4th level, 94 of respondent are father or mother
• 10th level, 92 of respondents are father or
  mother

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Variables

• Family structure and possible effect on schooling
  outcomes
• Mother labor situation and schooling performance
• SIMCE outcomes available for parents
• Outcomes expectations for parents

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Key Findings

• Average performance is higher for children that
  live with both parents that other family
  structure.
• This relationship is a little different regarding
  socioeconomic level scores differences are
  higher at children with low income level.
• In average, a full time working mother does not
  affect schooling performance.
• Within low and medium low income levels mother at
  home is more important than high income levels.

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Determinants of Separations and Divorces
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Average of Annual Divorces, pre and post Divorce
Law
Source
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Theoretical and Empirical Evidence

• Becker (1977) pointed out that people get
  separated or divorce when expected utility of
  being married is less than expected utility of
  getting divorce. Some factors that influence
• Changes in expectations about marriage earnings,
  such as couples salary.
• Deviations from fertility expectations.
• Increase in education.
• Age when they got married.
• Social differences cultural religion, etc
• Marriage duration probability to get married a
  second time.
• Divorces costs

34
Theoretical and Empirical Evidence

• Becker (1977) found that education effect is
  unstable and not statistical significant, but
  salaries, men and womens health, etc are
  statistical significant and signs are as
  expected.
• Weiss and Willis (1996) reported that important
  changes in income affect divorce probability.
• Phillips and Griffiths (2002), Australia - found
  that an easier divorce process and increase in
  womens salary increase probability to get
  divorce.

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Theoretical and Empirical Evidence

• White and Lillard (1991) found that children in
  preschool improve marriage relationship, out of
  wedlock childbearing increase probability of
  divorce.
• Vuri (2001) found that fertility rate has a
  positive impact in divorce.

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Variables and Data

• Data Social Protection Survey (2002), 17000
  contributors to the Social Security System
  (www.proteccionsocial.cl)
• Dependent variables
• Number of children
• Out of wedlock children
• Age in which man and woman began their couple
  life
• Education of interviewer
• Duration of marriage
• Income
• Labor activity duration

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Key Findings

• Determinants of probability of separation are
  consistent with theory
• Main differences in estimation are with age when
  get married and marriage duration.

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Challenges Designing Better Public Policies
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Public Policies

• International experience is a point of departure
  to develop public policies that strenght family
  and help to change the current trends
• That policies should be based upon subsidiary
  principle and therefore avoid welfare family
  dependents
• Policies have to design and implement to strenght
  the role of family

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Public Policies... in education

• Transfer all government aid throughout voucher
  system
• Differenciate voucher, targeting more resources
  to the most needed (with higher cost of
  education)
• Spread out info about the key role of family
  within society and effect on educational outcomes
• Enhance parents owes and rights to educate their
  children, e.g areas such as sexual education
• Allow parents to get engage in municipal school
  management

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Competitive Funds

• Prevent domestic violence and enhance health
  family relationships
• Sexual education programs designed and chosen at
  school level by parents and teachers
• Pre-marriage orientation
• Programs of support for couple in crisis
• Programs aim to prevent alcoholism and drug abuse

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Public Policies... in labor

• Labor flexibility that allows more women could
  work and have children
• Child care support programs design for working
  mothers
• Enhance microcredit programs and seed capital
  that incentives work at home and independent work

43
Public Policies... in tax legislation

• Reshape current donation law aim to improve
  incentives of private organizations that develop
  support programs for the most needed
• Individuals should be able to donate with tax
  benefits also.

44
Think Tanks Empowering the Individual and the
Family
The Case of Chile
Liberty Forum Colorado Springs, Colorado

• Rodrigo Castro
• Libertad y Desarrollo
• www.lyd.org
• April 2006