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

Author

Listed:
  • Chevalier, A.
  • Marie, O.

    (Research Centre for Educ and Labour Mark, Macro, International & Labour Economics)

Abstract
We explore the link between parental selection and criminality of children in a new context. 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 in 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.

Suggested Citation

  • Chevalier, A. & Marie, O., 2013. "Economic uncertainty, parental selection, and the criminal activity of the ‘children of the wall’," Research Memorandum 066, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2013066
    DOI: 10.26481/umagsb.2013066
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Children born just after the Berlin wall fell were lower achievers – here’s why
      by Olivier Marie, Assistant Professor in Economics at Maastricht University in The Conversation on 2014-11-04 12:09:20
    2. Children born just after the Berlin Wall fell were lower achievers – here’s why
      by ? in PsyPost on 2014-11-05 03:32:00

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    Cited by:

    1. Huebener, Mathias & Marcus, Jan, 2017. "Compressing instruction time into fewer years of schooling and the impact on student performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58, pages 1-14.
    2. Kamila Cygan-Rehm & Regina T. Riphahn, 2014. "Teenage pregnancies and births in Germany: patterns and developments," Applied Economics, Taylor & Francis Journals, vol. 46(28), pages 3503-3522, October.
    3. Franz Westermaier, 2016. "The Impact of Lengthening the School Day on Substance Abuse and Crime: Evidence from a German High School Reform," Discussion Papers of DIW Berlin 1616, DIW Berlin, German Institute for Economic Research.
    4. Freier, Ronny & Simmler, Martin & Wittrock, Christian, 2021. "Public good provision and local employment – Evidence from grammar school closures in East Germany," Regional Science and Urban Economics, Elsevier, vol. 88(C).

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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