A Treatise on the Family. G. S. Becker. Cambridge, MA: Harvard University Press. 1981. Gary Becker is one of the most famous and influential economists of the second half of the 20th century, a fervent contributor to and expounder of the University of Chicago free-market philosophy, and winner of the 1992 Nobel Prize in economics. Although any book with the word "treatise" in its title is clearly intended to have an impact, one coming from someone as brilliant and controversial as Becker certainly had such a lofty goal. It has received many article-length reviews in several disciplines (Ben-Porath, 1982; Bergmann, 1995; Foster, 1993; Hannan, 1982), which is one measure of its scholarly importance, and yet its impact is, I think, less than it may have initially appeared, especially for scholars with substantive interests in the family. This book is, its title notwithstanding, more about economics and the economic approach to behavior than about the family. In the first sentence of the preface, Becker writes "In this book, I develop an economic or rational choice approach to the family." Lest anyone accuse him of focusing on traditional (i.e., material) economics topics, such as family income, poverty, and labor supply, he immediately emphasizes that those topics are not his focus. "My intent is more ambitious: to analyze marriage, births, divorce, division of labor in households, prestige, and other non-material behavior with the tools and framework developed for material behavior." Indeed, the book includes chapters on many of these issues. One chapter examines the principles of the efficient division of labor in households, three analyze marriage and divorce, three analyze various child-related issues (fertility and intergenerational mobility), and others focus on broader family issues, such as intrafamily resource allocation. His analysis is not, he believes, constrained by time or place. His intention is "to present a comprehensive analysis that is applicable, at least in part, to families in the past as well as the present, in primitive as well as modern societies, and in Eastern as well as Western cultures." His tone is profoundly conservative and utterly skeptical of any constructive role for government programs. There is a clear sense of how much better things were in the old days of a genderbased division of labor and low market-work rates for married women. Indeed, Becker is ready and able to show in Chapter 2 that such a state of affairs was efficient and induced not by market or societal discrimination (although he allows that it might exist) but by small underlying household productivity differences that arise primarily from what he refers to as "complementarities" between caring for young children while carrying another to term. Most family scholars would probably find that an unconvincingly simple explanation for a profound and complex phenomenon. What, then, is the salient contribution of Treatise on the Family? It is not literally the idea that economics could be applied to the nonmarket sector and to family life because Becker had already established that with considerable success and influence. At its core, microeconomics is simple, characterized by a belief in the importance of prices and markets, the role of self-interested or rational behavior, and, somewhat less centrally, the stability of preferences. It was Becker's singular and invaluable contribution to appreciate that the behaviors potentially amenable to the economic approach were not limited to phenomenon with explicit monetary prices and formal markets. Indeed, during the late 1950s and throughout the 1960s, he did undeniably important and pioneering work extending the domain of economics to such topics as labor market discrimination, fertility, crime, human capital, household production, and the allocation of time. Nor is Becker's contribution the detailed analyses themselves. Many of them are, frankly, odd, idiosyncratic, and off-putting. …

A Treatise on the Family

The theory of precautionary saving is shown in this paper to be isomorphic to the Arrow-Pratt theory of risk aversion, making possible the application of a large body of knowledge about risk aversion to precautionary saving, and more generally, to the theory of optimal choice under risk In particular, a measure of the strength of precautionary saving motive analogous to the Arrow-Pratt measure of risk aversion is used to establish a number of new propositions about precautionary saving, and to give a new interpretation of the Oreze-Modigliani substitution effect

Precautionary Saving in the Small and in the Large

Economics Of Discrimination

China's economic reforms have resulted in spectacular growth and poverty reduction. However, China's institutions look ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve the "China puzzle," this paper analyzes China's institution—a regionally decentralized authoritarian system. The central government has control over personnel, whereas subnational governments run the bulk of the economy; and they initiate, negotiate, implement, divert, and resist reforms, policies, rules, and laws. China's reform trajectories have been shaped by regional decentralization. Spectacular performance on the one hand and grave problems on the other hand are all determined by this governance structure. ( JEL O17, O18, O43, P21, P25, P26)

/pdf/the-fundamental-institutions-of-china-s-reforms-and-o9kbft6df0.pdf

The Fundamental Institutions of China's Reforms and Development

Migration, both within and beyond borders, has become an increasingly prominent theme in domestic and international debates, and is the topic of the 2009 Human Development Report (HDR09). The starting point is that the global distribution of capabilities is extraordinarily unequal, and that this is a major driver for movement of people. Migration can expand their choices — in terms of incomes, accessing services and participation, for example — but the opportunities open to people vary from those who are best endowed to those with limited skills and assets. These underlying inequalities, which can be compounded by policy distortions, is a theme of the report.The report investigates migration in the context of demographic changes and trends in both growth and inequality. It also presents more detailed and nuanced individual, family and village experiences, and explores less visible movements typically pursued by disadvantaged groups such as short term and seasonal migration.There is a range of evidence about the positive impacts of migration on human development, through such avenues as increased household incomes and improved access to education and health services. There is further evidence that migration can empower traditionally disadvantaged groups, in particular women. At the same time, risks to human development are also present where migration is a reaction to threats and denial of choice, and where regular opportunities for movement are constrained.National and local policies play a critical role in enabling better human development outcomes for both those who choose to move in order to improve their circumstances, and those forced to relocate due to conflict, environmental degradation, or other reasons. Host country restrictions can raise both the costs and the risks of migration. Similarly, negative outcomes can arise at the country levels where basic civic rights, like voting, schooling and health care are denied to those who have moved across provincial lines to work and live. HDR09 shows how a human development approach can be a means to redress some of the underlying issues that erode the potential benefits of mobility and/or force migration.

Human Development Report 2009. Overcoming Barriers: Human Mobility and Development

http://hub.hku.hk/bitstream/10722/192328/1/content.pdf

Political decentralization and corruption: Evidence from around the world

This paper applies the recently developed econometric methods of panel unit root tests and nonlinear mean reversion to investigate price convergence in China—the largest transitional economy in the world. We find that prices did converge to the law of one price in China for an overwhelming majority of goods and services, based on a large panel data set. The finding sheds light on the extent of the market economy in China, and casts doubt on Young's proposition that the economic reform has led to the fragmentation of Chinese domestic markets.

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The law of one price: evidence from the transitional economy of china

https://cyberleninka.org/article/n/1188111.pdf

Does parental absence reduce cognitive achievements? Evidence from rural China

http://www.ln.edu.hk/econ/staff/fansimon/JDE-unemployment.pdf

International migration and "educated unemployment"

Labour migration has long been a topic of intense interest in population research in general and in development economics in particular. The topic has been gaining added appeal in the era of globalization. The received wisdom has been that such migration results in a detrimental brain drain for the developing countries (for a systematic review see Bhagwati and Wilson, 1989).1 A recent and growing literature argues that the brain drain is accompanied by a beneficial brain gain.2 The new writings contend that compared with a closed economy, an economy open to migration differs not only in the opportunities that workers face but also in the structure of the incentives that they confront; higher prospective returns to human capital in a foreign country impinge favourably on human capital formation decisions at home.

/pdf/the-brain-drain-educated-unemployment-human-capital-7f39dt08mf.pdf

C. Simon Fan

Papers

Political decentralization and corruption: Evidence from around the world

The law of one price: evidence from the transitional economy of china

Does parental absence reduce cognitive achievements? Evidence from rural China

International migration and "educated unemployment"

The brain drain, "educated unemployment", human capital formation, and economic betterment