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Economic uncertainty, parental selection, and the criminal activity of the 'children of the wall'

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  • Chevalier A.
  • Marie O.
  • Marie O.

    (ROA)

Abstract

We explore the link between parental selection and criminality of children in a newcontext. After the collapse of the Berlin Wall in 1989, East Germany experienced a very large, but temporary, drop in birth rates mostly driven by economic uncertainty. We exploit this natural experiment in a differences in differences setup to first estimate that the children from these affected smaller cohorts are relatively much more likely to be criminally active. Using individual level data, we provide evidence that women who gave birth at this period of uncertainty were negatively selected into fertility.Further investigation of the underlying mechanisms reveals that emotional attachment and intergenerational transmission of risk attitudes play important roles in the parental selection-crime of children relationship. Finally, results for siblings support a causal interpretation of our findings.

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File URL: http://pub.maastrichtuniversity.nl/1ad076f4-994b-411b-8cd9-c42964586669
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Bibliographic Info

Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 020.

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Date of creation: 2013
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Handle: RePEc:unm:umaror:2013020

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Web page: http://www.maastrichtuniversity.nl/
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Keywords: Fertility; Family Planning; Child Care; Children; Youth; Vertical Restraints; Resale Price Maintenance; Quantity Discounts;

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  1. Charles, Kerwin Kofi & Stephens, Melvin, Jr, 2006. "Abortion Legalization and Adolescent Substance Use," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 481-505, October.
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  15. Cristian Pop-Eleches, 2006. "The Impact of an Abortion Ban on Socioeconomic Outcomes of Children: Evidence from Romania," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 744-773, August.
  16. John J. Donohue III & Steven D. Levitt, 2003. "Further Evidence that Legalized Abortion Lowered Crime: A Reply to Joyce," NBER Working Papers 9532, National Bureau of Economic Research, Inc.
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  18. Ted Joyce, 2004. "Did Legalized Abortion Lower Crime?," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
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  20. Randi Hjalmarsson & Matthew J. Lindquist, 2012. "Like Godfather, Like Son: Exploring the Intergenerational Nature of Crime," Journal of Human Resources, University of Wisconsin Press, vol. 47(2), pages 550-582.
  21. Sandner, Malte, 2013. "Effects of Early Childhood Intervention on Child Development and Early Skill Formation. Evidence from a Randomized Controlled Trial," Hannover Economic Papers (HEP) dp-518, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
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Cited by:
  1. Cygan-Rehm, Kamila & Riphahn, Regina T., 2014. "Teenage Pregnancies and Births in Germany: Patterns and Developments," IZA Discussion Papers 8229, Institute for the Study of Labor (IZA).

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