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Munich Personal RePEc Archive

The black-white gap in non marital fertility education and mates in

segmented marriage markets

Stone, Joe A.

2 January 2012

Online at https://mpra.ub.uni-muenchen.de/35763/

MPRA Paper No. 35763, posted 06 Jan 2012 02:48 UTC

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Th e Bla ck-W h ite Ga p in N o n Ma rita l Fe rtility

Education an d Mates in Segm en ted Marriage Markets J oe A. Ston e

Departm ent of Econ om ics Un iversity of Oregon

J an uary 2, 20 12 Abs tra ct

This study is the first to fin d that m ate availability explain s m uch of the race gap in n on m arital fertility in the Un ited States. Both a gen eral an d an education -based m etric have stron g effects. The n ovel statistical power arises from differen ce-in - differen ces for blacks an d whites, m ultiple cohorts, periods, an d coefficien t restriction s con sisten t with both the data and m odels in which differen ces in m ate availability can in duce blacks an d whites to respon d in opposite direction s to changes in m ate availability. Results are robust to several altern ative specification s an d tests an d appear relevan t where m arriages are segm en ted alon g racial, religious, or other lin es.

J EL Categories A10 J 12 J 13.

Keywords race m arriage, fertility, education

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Ove rvie w

Non m arital birth shares, the shares of n on m arital births in total births, are m uch higher for blacks than for whites in the U. S., but have in creased for both. Man y explan ation s—econ om ic, political, legal, biological, and cultural have been proposed, gen eratin g volum in ous eviden ce for the effects of various public policies on fem ale headship an d n on m arital fertility.1 There is m uch less direct eviden ce to explain the pron oun ced race differen tial in n on m arital fertility. Wilson (198 7), Willis (1999), Brien (1997), an d others em phasize m ate availability, relative resources, education , an d other factors, but our eviden ce is the first to con firm that m etrics of m ate availability explain m uch of the race differen ce in n on m arital birth shares (NBS). Brien (1997) suggests that prior weak results, as in South an d Lloyd (1992), arise from m easurem en t error in locale-specific data, as com pared to use of state-aggregate data, but state-aggregate estim ates can also have weak power, perhaps because variation s tend to be com m on ly shared, leavin g little between -state variation an d low power in estim ation . The stron gest eviden ce to date for the role of m ate availability in n on m arital fertility does n ot apply directly to the black-white gap an d is drawn from idiosyn cratic sources of variation , such as prison in carceration rates (Charles and Luoh, 20 0 6), WWI m ilitary deaths (Fran ce Abram itzky et. al., 20 10 ), an d sex ratios am on g secon d- an d third-generation im m igran ts in the Un ited States (An grist, 20 0 1).

H ere, we focus directly on the race gap in n on m arital fertility. The n ovel stren gth of our estim ates is largely due to a differen ce-in -differen ces specification for blacks an d whites, m ultiple birth cohorts an d periods, an d coefficien t restriction s con sisten t with both the data an d theory. We assess robustn ess in several ways, e.g. by usin g altern ative

1For example, Gray et al (2006) and Moffitt (2000)

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age ran ges for cohort variables, in clusion of con trols for both fixed an d tim e-varyin g age effects, an d use of altern ative tests, in cludin g tests of Granger causality, which fail to reject the key regression results. Moreover, our n ull hypotheses require a specific set of restriction s in the pattern of effects for ch an ges in the m etrics of m ate availability am on g blacks an d whites—restriction s n ot rejected by the data an d groun ded in m odels of fertility an d m arriage in which blacks an d whites respon d in opposite direction s to chan ges in m ate availability due to their in itial differen ces in m ate availability. H en ce, odds that poten tial sources of bias would yield spurious results sim ultan eously

con sisten t with all n ull hypotheses in m ultiple estim ation m ethods appear rem ote.

Th e o re tic a l Co n te xt

Wilson (198 7), Willis (1999), an d others argue that blacks an d whites are likely to respon d differen tly to chan ges in m ate availability. Where eligible wom en exceed m en in a cohort, as for blacks, then with positive assortative m atin g, children ten d to be born outside m arriage to low-in com e/ education fathers and m others, at least when the in com es of the m others exceed a value critical to their decision to bear a child, so that in creases in the ratio of m en ’s to wom en ’s in com es/ education or in the ratio of m en to wom en decrease n on m arital birth rates when eligible wom en outn um ber m en , but where the ratio of eligible m en to wom en is above parity, as it is for whites, children ten d to be born within m arriage to high-in com e/ education m en an d wom en in positively assortative m atches.

M odel in tuition

In term s of m argin al effects, the Wilson -Willis approach yields the in tuitive result that a relative in crease in the short (lon g) side of m ate availability decreases (in creases) NBS. The overall ratio of m en to wom en has been below parity for blacks in recen t

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decades but above parity for whites, so that m ales are the short (long) side of m ate availability for blacks (whites), a divergen ce due largely to higher death, in carceration , m ilitary en listm en t, an d in stitution alization rates am on g black m en . Tem poral variation s in these rates ten d to be widely shared, with stan dard deviation s well below the correspon din g m ean s. H en ce, between -locale variation typically yields weak estim ates.

D a ta a n d Va ria b le s

All data are publicly available an d refer to the civilian , n on institution alized population , ages 20 -44.2 We lim it the an alysis to birth cohorts for which full data are available, from 1972 through 20 0 2. The cohorts, their birth years, an d the years at which they are ages 20 -24 and 40 -44 are presen ted in Table 1. As with m any cohort analyses, we em ploy five-year age ran ges, a ran ge wide en ough to provide reliable m easures, but n arrow en ough to lim it tim e- an d age-varyin g heterogen eity within the cohort.

Robustn ess checks usin g altern ative age groupin gs suggest that the cohort data are align ed appropriately for gen der differen ces in age at first m arriage an d tem poral differen ces, as em phasized by Neelakan tan an d Tertilt (20 0 8 ).

Table 2 reports sum m ary statistics for all variables used in estim ation .3 The depen den t variable is the n on m arital birth share (NBS), the share of n on m arital births am on g all births. As expected, NBSB, the NBS for blacks, (at 43.4) is greater than

2Non marital births are from National Vital Statistics Reports (2000, 2002); Total births from Vital Statistics of the United States

3Data for sex ratio are from U.S. Bureau of the Census

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NBSW, the NBS for whites (12.3), though both have risen over tim e, as reflected in the m in im um an d m axim um values.

Our prim ary, m ost gen eral m easure of m ate availability is SEXRATIO, the ratio of eligible m en to wom en when each cohort was 20 -24. This variable is calculated by dividin g the n um ber of m en in this age group for a given birth cohort by the n um ber of wom en an d m ultiplyin g by 10 0 to express the result in percen tage poin ts. The average sex ratio for whites, SEXRATIOW, is 10 2.5, ran gin g narrowly from 10 0 .9 for the oldest cohort to 10 7.0 for the m ost recen t cohort. By con trast, the average sex ratio for blacks SEXRATIOB is on ly 93.6, ran gin g from 8 8 .6 for the oldest cohort to 97.5 for the m ost recen t cohort an d un iform ly below un ity.

SEXRATIO values for whites an d blacks do n ot overlap, hen ce, estim ation by race or by whether the sex ratio is above or below parity are equivalen t. As an ticipated, stan dard deviation s for SEXRATIO relative to the correspon din g m ean s are larger than the relative variation typical for the locale-specific data shown to be subject to substan tial m easurem en t error.

Our qualitative m etric of m ate availability at the upper en d of potential m arriage pairs is POSTS, the ratio of m ale to fem ale school enrollm ents at ages 20 -24, which prim arily reflect post-secon dary school en rollm en ts. Use of relative wages in prior studies as an altern ative qualitative or resource m etric yields weak results, perhaps either because differen ces between average earn in gs for m en and wom en , especially am on g blacks are m uch sm aller than differen ces for post-secon dary schoolin g or because m easurem en t error dom in ates in locale-specific data.

Use of the broader spatial data for POSTS is con sisten t with the greater spatial m obility for m en an d wom en at higher levels of education an d skill. POSTS is favorable

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on average for wom en of both races early in the sam ple period, but has becom e in creasin gly un favorable, especially for black wom en . Overall, the average for POSTSW is 1.64, ran gin g from over 4.0 for the oldest cohort to on ly .8 9 for the m ost recen t cohort. The average ratio for POSTSB is 1.25, ran ging from 1.78 for the oldest cohort down to only 0 .71 for the m ost recen t cohort. These shifts exhibit the n ow-fam iliar dom in an ce of school en rollm en ts for wom en over m en durin g these ages– particularly so for blacks, for whom in carceration rates of youn g m ales have in creased relative fem ale- m ale en rollm en ts for black wom en (Mechoulan , 20 0 6).

We fin d sim ilar results usin g altern ative age ran ges for school en rollm en t, e.g., either 18 -21 or 18 -24 years old. Con sisten t with the Wilson -Willis m odel, we expect the effect of an increase in SEXRATIOB on NBSB to be negative because m ales are ‘short’

am on g blacks, an d the effect of an in crease in SEXRATIOW on NBSW to be positive because wom en are short am on g whites, if on ly slightly.

By con trast, we expect the effect of POSTS on NBS to be positive for both whites an d blacks because un til on ly very recen tly, m ales outn um ber fem ales in both cases.

Based on fam iliar racial differences in the tim in g of non m arital births, the black-white differen ce in NBS should declin e with age, so we con trol for cohort age and subsequen tly, also for age-year in teraction s to accoun t for tem poral chan ges in racial differen ces in the tim in g of fertility.

Es tim a tio n Is s u e s

Specification

Our focus is directly on the black-white gap in NBS, an d our estim ation strategy is to use differen ces for blacks an d whites across birth cohorts, tim e an d age, to iden tify the effects of SEXRATIO an d POSTS. Of course, age, year, an d birth cohort are lin early

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depen den t, so on ly two of these three effects are iden tified in lin ear form . Because values for SEXRATIO for blacks an d whites do n ot overlap, estim ation separately by race and separately by whether SEXRATIO is above or below un ity are equivalen t, so we begin by expressin g the black-white differen ce in NBS as a lin ear fun ction of fixed year in tercepts an d black-white differen ces in SEXRATIO an d POSTS, with all variables in log form , which m itigates differen ces in scale for blacks an d whites an d yields m ore robust results for cohort i, age j, an d year t:

[NBSWijt -NBSB ijt ]=

ct +bw1 SEXRATIOWijt-bB1 SEXRATIOBijt +bW2 POSTSW ijt -bB2 POSTSB ijt + b3 AGE + e ijt (1) Where cohort i, year t, age j, an d other effects com m on to blacks an d whites are elim in ated by differencin g by race, so that the age an d fixed year effects capture residual race differen ces.

For the two m etrics for m ate availability, SEXRATIO an d POSTS, the Wilson Willis m odels predict opposite, possibly equal, effects for blacks an d whites. That is, for equal but opposite effects to hold :

bw1+bB1 =bB2+bW2= 0 (2)

in which case, eq (1) reduces to eq (3) below:

[NBSWijt -NBSB ijt ]=

ct +b1 (SEXRATIOWijt -SEXRATIOBijt)+b2(POSTSW ijt -POSTSB ijt) +b3 AGE +e ijt (3) Where we expect b3<0 , an d b1 , b2 >0

En dogen eity

There is little reason to suspect en dogen eity bias for SEXRATIO because the cohort sex ratio at age 20 -24 is predeterm in ed an d in depen den t of NBS. H owever, POSTS is predeterm in ed on ly for subsequen t ages within a cohort an d strictly

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exogenous on ly across cohorts. Even so, we can assess the im portan ce of endogeneity bias for POSTS in several ways, includin g tests of Gran ger causality an d exam in in g the sen sitivity of the estim ated effect of POSTS to usin g altern ative age ran ges for school en rollm en ts, Moreover, we expect the specific sign s and restriction s in eq. (2), so that the likelihood of an y bias sim ultan eously con sisten t with all the prediction s for blacks an d whites appears rem ote. In addition , we are also able to replicate key results with tests of Granger causality.

Re s u lts

Colum n 1 of Table 3 presen ts the baselin e regression for eq. (3) The regression in cludes fixed year effects, which are join tly sign ifican t, but om itted for brevity. The differen ce-in -differen ces specification in eq. (3) pushes the data hard, leaving on ly 23 degrees of freedom , roughly the m in im um n eeded to rely on the sm all-sam ple properties of ordin ary least squares. H en ce, the power of the estim ates in colum n 1 rests n ot on large n um bers, but on the exten t to which cohort variation s in the data are sufficien tly large an d com m on en ough across locales to iden tify the effects of m ate availability, given the restriction s of eq. (2). Otherwise, with such lim ited degrees of freedom , stan dard errors will likely be large an d yield in sign ifican t coefficien ts even where sign ifican ce is expected. In fact, however, power does n ot appear to be a problem for the estim ates. The equation fit is stron g, with an R-squared of 0 .766, an d all coefficien ts are sign ifican t in the hypothesized direction . In addition , the coefficien t for AGE is sign ifican tly n egative, in dicatin g that n on m arital fertility falls relative to total fertility m ore rapidly with age for blacks as com pared to whites.4 The coefficien ts for

4 Gray and Stone (2010) examine factors determining black-white differences in the timing of both marital and nonmarital fertility.

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SEXRATIO an d POSTS are sign ifican tly positive, as hypothesized an d in dicate in each case that an in crease in the short side of m ate availability for blacks or whites decreases the correspon din g NBS.

Ro b u s tn e s s a n d S p e cifica tio n Te s ts

Age-y ear in teraction s

Addition of an age-year in teraction in Colum n 2 dem on strates that estim ates for the m etrics of m ate availability are n ot sensitive to the sign ificant in teraction between cohort age an d year, an d in dicates that the age-NBS profile for the race gap in NBS becam e even m ore n egative later in the later years of the period.

R esidual diagn ostics

The J arque-Bera test of n orm ality does n ot reject the n ull hypothesis that the regression residuals follow a n orm al distribution (p=.0 38 3), an d The Q statistic for first- order autocorrelation fails to reject the n ull of zero autocorrelation , (p =0 .327), an d the Q-statistic for first-order autocorrelation fails to reject the n ull of zero autocorrelation , (p =0 .327). The absen ce of sign ifican t autocorrelation is con sisten t with the absen ce of sign ifican t specification error and len ds creden ce to relian ce on the recursive in ertia of predeterm in ed data at earlier ages of a cohort for iden tification . Results are n ot sen sitive to use of differen t, n eighborin g age ran ges for either SEXRATIO or POSTS, an d tests for Gran ger causality based on the regression residuals reject the null hypothesis of no Gran ger causality for each of the hypothesized lin ks in eq. (3), an d yet also fail to reject the n ull of n o reverse Gran ger causality from the race gap in NBS to either SEXRATIO or POSTS, so the tests raise n o sign ifican t con cerns regarding reverse causality or en dogen eity bias, at least in the Gran ger sen se.

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Coefficien t restriction s

Despite the strong significance and power of the in dividual estim ates, a Wald test of the join t lin ear restriction s set out in eq. (2) an d im posed in colum n 1 (for equal, but opposite effects for blacks an d whites) fails to reject the restriction s (p= 0 .712).

Un restricted estim ates of eq. (3) are presen ted in Table 4. The separate variables by race for SEXRATIO an d POSTS en ter sign ifican tly as a set, but POSTSW is the on ly m etric for m ate availability to en ter sign ifican tly.

On e can see from the larger stan dard errors an d weaker power for the other in dividual estim ates that the restriction s play an im portan t role in the power of the in dividual estim ates in colum n 1 of Table 3, despite the fact that the join t test of the restriction s fails to reject them . Note that the sign ifican tly positive effect of POSTSW is con sisten t with the Wilson -Willis approach, where a relative in crease (decrease) in the long side of m ate availability , in this case white m ales en rolled in school at ages 20 -24, in creases (decreases) NBS. The weak in dividual estim ates in Table 4 are in lin e with other sim ilarly weak prior estim ates, suggestin g that prior eviden ce m ay m ask the sign ifican t effects foun d here, perhaps because either the opposin g effects for blacks an d whites can cel to zero in pooled specification s for blacks an d whites or because the iden tifyin g power of differen cin g by race or cross-race restriction s is n ot exploited.

Exp la in in g th e Ra cia l Ga p

R egression v arian ce

The m odel expressed by eq. (3) explain s about 77% of the sam ple varian ce of the (log) race gap in n on m arital birth shares for blacks an d whites. Because this

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explan atory power is n ot due solely to our two m etrics of m ate availability, we isolate their effects usin g the estim ates in Table 3 to sim ulate chan ges in the race gap.

M odel sim ulation

To use the estim ated m odel to sim ulate the proportion of the m axim um chan ge in the (log) race gap explain ed by SEXRATIO an d POSTS, we 1) calculate the m axim um chan ge for the race gap in the sam ple (i.e. from m in to m ax), an d 2) use the m odel coefficien ts alon g with the m axim um chan ge in each explan atory variable to sim ulate the chan ge in the race gap attributable to the two m etrics of m ate availability. The m axim um chan ge in the log race gap is 2.8 1, of which SEXRATIO explain s 0 .8 5, or 30 .2%, an d POSTS explain s .60 , or 21.4%. H en ce the two m etrics join tly accoun t for 51.6%, m ore than half of the m axim um chan ge in the race gap in NBS. AGE differen ces explain - .544, -19.4%, so the proportion of the chan ge in the race gap (n et of age effects) explain ed by m etrics of m ate availability is higher, roughly 64%.

Co n clu d in g Re m a rks

Our two m etrics of m ate availability reflect an d are heavily in fluen ced by education an d other public policies, especially the decades-long ‘war on drugs’ in the U.S, possibly at the loss of a gen eration of black m en to fam ilies they m ight have fathered with their children ’s m other. Results here com plem en t other recen t eviden ce on effects of in carceration rates in the U. S. an d WWI m ilitary deaths in Fran ce on n on m arital fertility, but in dicate broader effects for both a gen eral an d an education - based m etric for m ate availability directly on the black-white gap in n on m arital fertility.

Gen eral m ate availability is less a factor am on g whites, though the relative pools of college educated m en an d wom en are n ow rapidly chan gin g am on g both whites an d blacks. Our results m ay be relevan t where m arriages are segm en ted alon g racial, ethn ic,

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or religious lin es, as for exam ple, am on g castes in In dia, ethn ic Malays an d Chin ese in Malaysia; or whites, South Asian s, an d blacks in the U. K. (Barthoud 20 11). Fin ally, the results here con firm theoretical con jectures that the direction of the effect of a chan ge in m ate availability depen ds on both the direction of the chan ge an d whether the chan ge com es from the lon g or short side of the m arriage m arket.

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Re fe re n ce s

Abram itzky, R., Delavan do, A. an d Luis Vascon celos. 20 10 . “Marryin g Up: The Role of Sex Ratio in Assortative Matchin g.” Workin g paper Stan ford U.

Berthoud. 20 11. “Fam ily Form ation in M ulticultural Britain : Three pattern s of div ersity.” workin g paper In stitute for Social an d Econ om ic Research, U. Essex Brien , Michael J . 1997. "Racial Differen ces in Marriage an d the Role of Marriage Markets." Journ al of H um an R esources 32(4):741-78

Cen sus. 20 0 5. Fertility of Am erican W om en : 20 0 4. Washin gton : Com m erce Dept.

Charles, Kerwin K. an d Min g Ching Luoh. 20 0 6. “Male In carceration , the Marriage Market, an d Fem ale outcom es,” NBER workin g paper

Gray, J o A., Stockard, J ean an d J oe A. Ston e. 20 0 6. “The Risin g Share of Non m arital Births: Fertility Choice or Marriage Behavior?” Dem ography 43:2, 241-53

Mechoulan Stéphan e. 20 0 6 “Extern al Effects of Black Male In carceration on Black Fem ales.” U. Toron to.

Moffitt, Robert. 20 0 0 . “Welfare an d Fem ale H eadship in U.S. Tim e Series.” Am erican Econ om ic R ev iew 90 :373-77

Neelakan tan, U. an d M. Tertilt. 20 0 8 . “A n ote on m arriage m arket clearin g.” Econ om ics Letters 10 1 (2): 103-105.

South, Scott J . an d Kim M. Lloyd. 1992. “Marriage Markets an d Non m arital Fertility in the Un ited States.” Dem ography 29: 247-64

Willis, Robert J . 1999. “A Theory of Out-of-Wedlock Childbearin g.” Journ al of Political Econ om y 10 7(6): S33-64.

Wilson , W. 198 7. The Truly disadv an taged: Chicago: U Chicago Press

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Ta b le 1. Co h o rts a n d B irth Ye a rs ( 19 72 -2 0 0 7) , ( Age s 2 0 -2 4 )

Cohort # Age 20 -24 in Age 40 -44 in

1 1952 1972

2 1957 1977

3 1962 198 2

4 1967 198 7

5 1972 1992

6 1977 1997

7 198 2 20 0 2

8 198 7 9 1992 10 1997

11 20 0 2

Ta ble 2 . S u m m a ry s ta tis tics ( 19 72 -2 0 0 7) , ( Age s 2 0 -4 4 )

NBSB NBSW SEXRATIOB SEXRATIOW POSTSB POSTSW

Mean 43.42 12.28 93.64 10 2.49 124 165

Median 41.60 10 .54 93.42 10 2.11 125 130

Max 8 1.30 44.60 97.47 10 6.998 178 414

Min 23.0 8 2.71 8 8 .57 10 0 .94 71 8 9

Std.

Dev.

15.65 9.49 2.0 7 1.41 34 75

Obs. 35 Notes:

See text for sources of data.

All ratios in percen tage poin ts.

Bsuffix Blacks Wsuffix Whites

NBS Non marital births as a share of total births SEXRATIO Ratio of males to females

POSTS Ratio of males to females enrolled in school at ages 20-24 AGE Average cohort age (same for blacks and whites)

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Ta ble 3 . Ra ce Ga p in N o n m a rita l Birth S h a re s ln ( w h ite / bla ck) , ( 19 72 - 2 0 0 7) , ( a ge s 2 0 -4 4 )

(Robust std. errors below coefficien ts)

(1) (2) Con stan t 1.468 2 46.8 0 2*

1.5473 5.445

lnSEXRATIO 14.238 1 7.68 6*

5.5743 1.775

ln POSTS 0 .6412* 0 .5473*

0 .20 68 0 .150 9

ln AGE -0 .544* -7.129*

0 .221 0 .774

Year effects Yes* Yes*

AGE x YEAR/ k No 0 .0 0 2*

R-squared 0 .766* 0 .937*

See n otes, Table 2.

* sign ifican t .0 5

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Ta ble 4 . U n re s tricte d Es tim a te s , N o n m a rita l B irth S h a re ln ( w h ite / bla ck) , ( 19 72 -2 0 0 7) , ( Age s 2 0 -2 4 )

(Robust std. errors below coefficien ts)

Con stan t -0 .469 34.610

lnSEXRATIOW 3.268

5.8 57

ln SEXRATIOB -3.149

7.261

lnPOSTSW 1.564*

0 .40 8

ln POSTSB -0 .38 1

0 .527

ln AGE -1.20 3*

0 .374

Year Effects Yes

AGE x YEAR No

R-Squared 0 .8 0 9*

See n otes to Table 2 * sign ifican t .0 5

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