Department of Economics
University of California, Berkeley
August 18, 2010
Field Exam for Economic Demography
Please answer all parts of all four questions, which will be weighted equally in the total
grade. Cite the literature where appropriate. You have three hours.
1. Consider economic influences on marriage behavior and fertility.
a) Briefly explain the concept of the gains to marriage, originally developed by
Becker. Falling mortality in Third World countries led to rapid population growth
in recent decades. Drawing on Becker’s theory and class discussion, how might
this have affected the division of the gain to marriage between males and
females? (Think of the sex ratio in the marriage market.)
b) Briefly explain in words the role of the value of female time in the economic
theory of fertility; no equations or diagrams are necessary.
c) Now consider the effect on both marriage behavior and fertility of a reduction in
discrimination against women in the labor force, drawing on the relevant theories
you have sketched above.
2. A policy maker is worried about projected population aging in the US, and its fiscal
consequences. The policy maker consults experts. The first suggests that we raise the
quota for legal immigrants, in order to reduce the pace and extent of population aging.
The another argues that this would be a mistake, because increased immigration would
reduce wages and therefore reduce tax revenues rather than increase them. The first one
counters that wage rates are actually higher in local labor markets with higher proportions
of immigrants.
a) Could the economic consequences of population aging be avoided by switching
the responsibility for supporting the elderly from the public sector to the family?
Explain.
b) Does the empirical literature suggest that increased immigration would have a
substantial negative impact on wages of US native workers? Discuss this
literature and any issues of research design that you think are relevant.
c) Are there theoretical reasons to expect the impact of immigrant workers on native
wages to be large or small? Discuss, including consideration of the static effect
(holding capital constant), the dynamic impact (allowing capital to vary), and
demand side effects. You may use diagrams or equations if you choose, but they
are not required.
3. A strong positive association between health and socio-economic status has been
observed within many countries, but the direction of causality underlying this association
is disputed.
a) Discuss the evidence of this association that is presented in the study by Banks et
al that compares health outcomes in the US and UK.
