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“REQUIREMENTS OF THE FAMILY THAT FORMS: SOME ECONOMIC CONSIDERATIONS ” . Maria Sophia Aguirre Department of Economics The Catholic University of America Washington, DC VI World Meeting of Families Mexico, January 14-18, 2009. How Does Women Fit in the Economy?. Socioeconomic Relevance.

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requirements of the family that forms some economic considerations

“REQUIREMENTS OF THE FAMILY THAT FORMS: SOME ECONOMIC CONSIDERATIONS”

Maria Sophia Aguirre

Department of Economics

The Catholic University of America

Washington, DC

VI World Meeting of Families

Mexico, January 14-18, 2009

slide3
Socioeconomic Relevance
  • Children develop best within a family that is functional, i.e., with their biological parents in a stable marriage
    • Marriage Increases likelihood of father having good relations with children.
    • Marriage reduces the probability of children divorcing themselves or becoming unwed parents.
  • The academic and social performance of a child is very closely related to the structure of the family in which he lives and this is important for the quality of human and social capital
    • Divorce reduces the likelihood of children graduating from college and high school.
    • Divorce increases risk of course failure.
slide4
The psychological stability and health of a child is closely related to healthy families and this is important for worker productivity and government finances
    • Children enjoy better physical health, on average, than other family forms.
    • Sharply reduces infant mortality.
    • Increases life expectancy, especially for men
    • Associated with reduced abuse of alcohol, and substance abuse for adults and teens.
    • Associated with better health and lower probability of injuries for both men and women.
    • Lower levels of physiological distress and mental illness.
    • Mothers have lower levels of depression than single or co-habiting mothers.
slide5
The breakdown of the family is a symptom of a sick and weak society
    • Abuse of women is 25 times more likely to occur in an irregular family.
    • Men who have witnessed domestic violence are three times more likely to abuse their own wives and children.
    • Substance abuse and teen-age pregnancy is higher in broken families.
    • Women and children of broken families have a higher probability of living in poverty.
    • Increase of the social welfare expenditures burden.
    • Higher levels of suicide.
    • Boys from single parents have are more likely to engaged in delinquent and criminal behavior.
family constitution and life style

Family Constitution and Life Style

Its impact in Numbers:

Long-Term Effects on Individual and Family Economic Wellbeing

slide7
Family Relationships and Its Relation to the Frequency of Family Dining(% of Teens)

40%

40%

171%

Source: National Center on Addiction and Substance Abuse, Columbia University.

slide8
Academic Performance and Its Relation to the Frequency of Family Dining(% of Teens Obtaining Mostly A or B Grades in School)

38%

Source: National Center on Addiction and Substance Abuse, Columbia University.

slide9
Substance Abuse and Its Relation to the Frequency of Family Dining(% of Teens Who Have Tried Abuse Substances)

73%

142%

191%

169%

Source:National Center on Addiction and Substance Abuse, Columbia University.

slide10
Percentage of Children Whose Families have Family Dining by Family Structure(% of children)

3.5 times

higher

Source: Administration for Children and Families, Department of House and Human Services

slide11
SUSTAINABLE GROWTH REQUIRES
  • Savings
  • Wealth
  • Investment: Physical and Human Capital
  • Remittances?
slide12
Average Net Wealth Worth within the USA per Education Level

Average of NETWORTH

25000000

20000000

15000000

MARRIED

Married

Single-parent

Co-habiting

10000000

5000000

0

Less than high school

High school

Some College

College

EDCL

253%

333%

Sources: Aguirre (2007)

slide13
Average of NETWORTH

40000000

35000000

30000000

AGECL

25000000

<35

35-44

45-54

20000000

55-64

65-74

>75

15000000

10000000

5000000

0

Married

Single-parents

Co-habiting

Family Structure

Average Net Wealth Worth in USA per

Age Classification

40%

51%

Sources: Aguirre (2007)

slide14
160,000

140,000

Wealth

120,000

Housing

100,000

Canadian Dollars

80,000

60,000

40,000

20,000

0

Married

Co-Habiting

Single-Parent

Marital Status

Average Net Wealth in Canada

per Family Structure

263 %

155%

250%

200 %

Sources: Aguirre (2007)

slide15
Net Wealth in Canada

242%

Sources: Aguirre (2007)

slide16
Percentage of Head of Households that Report Owning Property and Holding Savings in Guatemala

Source:ENEI (2004)

slide17
Level of Education of the Head of Household per Race and Family Structurein Guatemala

Sources:ENEI (2004)

net wealth by family structure in chile
1,200,000

1,000,000

800,000

Millions of Pesos (1997)

600,000

400,000

200,000

0

Married

Single Mother

Cohabiting

Family Structure

Net Wealth by Family Structurein Chile

126 %

139%

160%

Sources: INE (1997)

slide21
Education Level Achieved by Head of Household who Receive Remittances by Family Structure(% of Family Structure)
slide22
School Attendance of Children (6-14) in Households who Receive Remittances by Family Structure(% of Family Structure)
guatemalan children in families who receive remittances
Guatemalan Children in Families who Receive Remittances

Have a highest probability of attending grade school in married households (it increases by 58%)

Have the lowest probability of attending high school in non-married households (it decreases by 89% for single mothers.)

If women is head of household and works the probability decreases by 66%.

slide25
Conclusion
  • The family is a necessary good for economic development: it should be promoted and protected if poverty reduction wants to be achieved.
    • Children develop in the best way within a family that is functional, i.e., with his biological parents in a stable marriage.
    • The breakdown of the family: damagesthe economy and the society since human, moral, and social capital is reduced and social costs increased.
slide26
Family structure is relevant for wealth. This happens to be the case after other characteristics are controlled by.
  • The impact of children on family wealth is best within marriage.
  • Evidence seems to hold across countries. In socialized market economies the negative impacts seem to be mitigated but not eliminated.
  • Healthy family structures support private property.
  • Family dinners shows evidence of the importance of families spending time together.
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