Monday, March 31, 2025

Would you and your significant other get married if the government paid you $14,000? What if they paid the two of you to have children?

See Even a $14,000 Government Handout Can’t Get South Korea’s Singles to Marry: State-sponsored dating has become a phenomenon in a country with rock-bottom fertility rates; ‘I don’t want my parents to find out’ by Soobin Kim and Dasl Yoon of The WSJ. Excerpts:

"State-sponsored dating has become a phenomenon here."

"City governments launched matchmaking services and other incentives to boost the world’s lowest birthrate. The national government has expanded parental leave and increased cash payouts to newlyweds."

"Fewer than 5% of births come outside of wedlock."

"Saha-gu, a district in South Korea’s second largest city of Busan, offers singles who match at its events around $340 to spend on dates. Those who get married receive roughly $14,000 upfront and are feted with housing subsidies and more cash to cover pregnancy-related expenses and international travel. No participant has claimed the prize for marriage."

One company "pays its employees roughly $75,000 each time they have a baby."

A church "gives its members $1,380 for each childbirth."

"around 42 districts launched matchmaking events between 2022 and last August"

"Seoul tries to speed up the get-to-know-each-other phase by offering a bundle of tickets and restaurant vouchers to its matches."

Related posts:

A number of women who put off having babies after the 2007-09 recession are forgoing them altogether; more educated women and student debt also contribute to decline in birth rates (2018

Should the Government Pay People to Have Sex? (2007) 

Can you choose when to have your baby born if it brings you some money? (2024)

Worldwide Efforts to Reverse the Baby Shortage Are Falling Flat: Subsidized minivans, no income taxes: Countries have rolled out a range of benefits to encourage bigger families, with no luck (2024)

Sunday, March 30, 2025

How Odysseus Started The Industrial Revolution

Factory work may have been a commitment device to get everyone to work hard. Odysseus tying himself to the mast was also a commitment device. Dean Karlan, Yale economics professor explains how commitment devices work:

"This idea of forcing one’s own future behavior dates back in our culture at least to Odysseus, who had his crew tie him to the ship’s mast so he wouldn’t be tempted by the sirens; and Cortes, who burned his ships to show his army that there would be no going back.

Economists call this method of pushing your future self into some behavior a “commitment device.” [Related: a Freakonomics podcast on the topic is called "Save Me From Myself."] From my WSJ op-ed:
Most of us don’t have crews and soldiers at our disposal, but many people still find ways to influence their future selves. Some compulsive shoppers will freeze their credit cards in blocks of ice to make sure they can’t get at them too readily when tempted. Some who are particularly prone to the siren song of their pillows in the morning place their alarm clock far from their bed, on the other side of the room, forcing their future self out of bed to shut it off. When MIT graduate student Guri Nanda developed an alarm clock, Clocky, that rolls off a night stand and hides when it goes off, the market beat a path to her door."
 See What Can We Learn From Congress and African Farmers About Losing Weight?

Something like this came up recently in the New York Times, in reference to factory work and the Industrial Revolution. See Looking at Productivity as a State of Mind. From the NY Times, 9-27-2014. By SENDHIL MULLAINATHAN, a professor of economics at Harvard. Excerpts:
"Greg Clark, a professor of economics at the University of California, Davis, has gone so far as to argue that the Industrial Revolution was in part a self-control revolution. Many economists, beginning with Adam Smith, have argued that factories — an important innovation of the Industrial Revolution — blossomed because they allowed workers to specialize and be more productive.

Professor Clark argues that work rules truly differentiated the factory. People working at home could start and finish when they wanted, a very appealing sort of flexibility, but it had a major drawback, he said. People ended up doing less work that way.

Factories imposed discipline. They enforced strict work hours. There were rules for when you could go home and for when you had to show up at the beginning of your shift. If you arrived late you could be locked out for the day. For workers being paid piece rates, this certainly got them up and at work on time. You can even see something similar with the assembly line. Those operations dictate a certain pace of work. Like a running partner, an assembly line enforces a certain speed.

As Professor Clark provocatively puts it: “Workers effectively hired capitalists to make them work harder. They lacked the self-control to achieve higher earnings on their own.”

The data entry workers in our study, centuries later, might have agreed with that statement. In fact, 73 percent of them did agree to this statement: “It would be good if there were rules against being absent because it would help me come to work more often.”"
The workers, like Odyssues, tied themselves to the mast to resist the temptation of slacking. This made it possible for factories to generate the large output of the Industrial Revolution.

Here is the link to the Journal of Economic History article by Professor Clark

Factory Discipline

Here is the abstract 

Related posts:  

Would you pay someone to make you work hard? (2022)

Can You Mix Economics With Religion? (The ancient Greeks a god of commerce and a god of wealth) (2022)

Are payday-routine videos a commitment device? (2023)

An Economic Approach to Homer's Odyssey by Tyler Cowen (2025)