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W. Bradford Wilcox National Marriage Project University of Virginia 1

Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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In 2012, the World Family Map Project (WFMP) will launch a research initiative to track central indicators of family strength—i.e., indicators of family structure, family economic well-being, family processes, and family culture—around the globe, and to explore the associations between these strengths and the well-being of children. The WFMP is designed to cast a spotlight on the welfare of children and families around the world, and to be a resource for governments, NGOs, policy makers, journalists, and others interested in the welfare of children and families. The WFMP will be sponsored by Child Trends, a nonpartisan research organization in Washington, D.C., the National Marriage Project at the University of Virginia, and a range of universities and research institutes around the globe. W. Bradford Wilcox, associate professor of sociology and Director of the National Marriage Project at the University of Virginia, and Laura Lippman, senior research scientist at Child Trends, will co-direct the project, with advice from 12 other scholars from around the globe. Reynaldo Rivera at InterMedia Consulting is advising the project. In the fall of 2012, the WFMP will release an international report featuring three pieces of new research:1) An original article exploring the relationship between family structure, family economics, and children’s educational attainment in the developed world;2) An original article exploring the relationship between family structure, family economics, and children’s educational attainment in the developing world; and,3) A global map highlighting twenty of the latest trends in family structure, family economics, family process, and family culture in every major region of the world.

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Page 1: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

W. Bradford WilcoxNational Marriage Project

University of Virginia 1

Page 2: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

InterMedia Consulting (Italy) The Institute of Marriage and Family

Canada Universidad de Los Andes (Chile) University of Asia and the Pacific

(Philippines) Universitat Internacional Catalunya

(Spain) Universidad de la Sabana (Colombia) Universidad de Piura (Peru)

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Page 3: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

1) How do global demographic trendsaffect the world’s leading economies?

2) Which sectors of the economy are most closely tied to the fortunes of the family?

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Page 4: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

How Do Marriage & Fertility Matter? 1) Economic growth & viable welfare states

depend in part upon strong, sustainable families; 2) Key sectors of the economy—from household products

to insurance to groceries—profit when adults marry & have children.

Why Do They Matter? 3) Men more likely to play a productive role in the

economy when they get & stay married; 4) Children more likely to acquire human & social capital

needed for workforce if raised in intact, married family. What Is To Be Done?

5) Family-dependent companies should act in their own best interests to strengthen marriage & family life.

Page 5: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

Fiscal crisis currently enveloping Europe is tied in part to demographics: Almost 50% of recent increase in debt/GNP

ratio in Western countries can be attributed to growing share of elderly (65+) (Eberstadt & Groth 2010)

Many countries have had long periods of low fertility now translates into a relatively small working-age population in relation to retirees

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Because of low fertility, workforce will shrink in much of Europe & East Asia in this century.

From 2010-2050: Chinese workforce will decline by 21% Japanese workforce will decline by 35% Eastern European workforce will decline by 33% Western European workforce will decline by 11%

Page 7: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

The new face of East Asia is increasingly an elderly one. Japan’s slow rate of growth since 1990s partly

attributable to stagnating work force Economists are now predicting slowing

growth for South Korea and China as their populations age

Rand Report: “India will have more favorable demographics than China” for growth by the middle of the 21st century

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Page 8: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

The bottom line: These demographic “trends portend

ominous change in economic prospects [for many developed countries]: major increases in public debt patterns, and slower economic growth.” (Eberstadt and Groth 2010)

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Page 9: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

Some sectors of the economy seem particularly dependent on the health of strong, sustainable families.

In the United States, American who get married and have children spend more money in at least seven different sectors of the economy (Consumer Expenditure Survey 2008).

Page 10: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Page 11: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

1) Household size Bigger households buy more in bulk

(Auchan) 2) Children

Married parents spend more on kids, in part because they pool income & benefit from economies of scale (Bocconi)

3) Domesticity Married parents devote more attention to

home maintenance/improvements & chores (Leroy Merlin)

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Page 12: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

After marrying: Men work harder, work longer hours,

work more strategically, & earn more money In U.S., entry into marriage associated with at

least 160 hours more of work for men, compared to similar peers

The income premium varies from 14% (Mexico), 16% (Germany), 19% (U.S.), 22% (Italy), 35% (Russia)

New status in life associated with responsibility & care for others (Assicurazioni Generali)

Sources: Geist 2009, Gorman 2000; Ahituv & Lerman 2011; Nock 1998

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Page 13: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Page 14: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Children raised in intact, married homes are more likely to acquire the human and social capital they need to: Get good grades Steer clear of trouble with the law Avoid a teenage pregnancy Graduate from high school & college Be gainfully employed as young adults. Sources: Amato 2005; McLanahan & Sandefur 1994; Wilcox

et al 2011; Haskins & Sawhill 2011

Page 15: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Intact Single0

2

4

6

8

10

12% Young men in prison

US

Family Status Source: Harper and McLanahan 2004

Page 16: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Status of Father0

5

10

15

20

25

30

35

40

The United States

Dad StayedDad left 6-18Dad left be-fore six

Family Status

% Teenage girl pregnancy

Source: Ellis et al.,2003

Page 17: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Intact Single02468

1012141618

% Teens dropping out of high school

US

Family Status Source: McLanahan and Sandefur 1994

Page 18: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA
Page 19: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Girls-TwoGirls-One

Boys-TwoBoys-One

0

0.5

1

1.5

2

2.5

3

3.5Sweden

Suicide

Drug

# of parents

Likelihood of Risk

Source:Weitoft et al. 2003

Addiction

Page 20: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

“Although it was once possible to believe that …high rates of … cohabitation and nonmarital childbearing represented little more than lifestyle alternatives brought about by the freedom to pursue individual fulfillment, many analysts now believe that these individual choices can be damaging to the children who have no say in them and to the society that enables them.”

- Ron Haskins, Sara McLanahan, and Elizabeth Donahue, Brookings-Princeton Policy Brief (2005) 20

Page 21: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

The Second Demographic Transition has swept across Europe in the last 40 years: More individualism, less religion, less familism

The demographic expressions of this transition are as follows: European fertility rates falling below

sustainability; and, Marriage is less likely to ground family life of

adults and children in Europe.

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Page 23: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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Page 25: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

A recent study suggests that that the U.S. is 50-year low in individual life insurance (LIMRA 2010): 2004: 22% of households had no life insurance 2010: 30% of households had no life insurance Declines largest among men aged 54 and

under

Same story for Generali and other Italian insurance companies?

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Page 26: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

The primary answer will not be found in Brussels or Rome. Civil society & the market have important

roles to play.Businesses have substantial power

over: Internal corporate culture Corporate philanthropy Advertising.

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Page 27: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

Popular culture appears to have played a major role in shaping demographic revolutions of post-World War II period. Brazilian telenovelas smaller families (Ferrara et al.

2008)

Businesses should get behind: Shows Ads Social marketing campaigns

That reinforce positive messages about marriage & family life.

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Page 28: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

The bottom-line message of The Sustainable Demographic Dividend is that business, government, and civil society should strengthen the family because the wealth of nations & large sectors of the economy are tied to the fortunes of the family.

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Page 29: Sustain Demographic Dividend. Presentation in Italy_Dr. Wilcox. University of Virginia. USA

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The National Marriage Project at the University of Virginia:

(http://www.virginia.edu/marriageproject)

The Social Trends Institute in Barcelona: (http://www.socialtrendsinstitute.org)