nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2006‒04‒29
three papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Wage Inequality in Russia (1994–2003) By Lukyanova Anna
  2. Labor Market Assimilation of Recent Immigrants in Spain. By Catalina Amuedo-Dorantes; Sara de la Rica
  3. Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital By Benno Torgler; Justina A.V. Fischer

  1. By: Lukyanova Anna
    Abstract: The paper documents the changes in the size of the wage distribution in Russia over the period 1994–2003. Developments in wage inequality varied a lot by sub-periods: overall wage inequality stayed stable in 1994–1996, then it jumped following the 1998 crisis and remained at higher levels for three years. In 2002 the trend reversed again and in the course of a single year wage inequality fell back to the level of the mid-1990s. We find that evolution wage inequality was largely driven by changes in the upper end of the wage distribution. Decomposition of wage inequality by population sub-groups shows that inequality has been higher for men, younger and low-educated workers, and rural inhabitants. The structure of inequality did not change much over the period from 1994 to 2003. Demographic variables (mainly gender and region) explain the largest proportion of wage dispersion (over 40% of the explained variation and 15% of total variation). Nearly equivalent is the contribution of firm characteristics with industry affiliation of employer playing the leading role. Our results show that returns to education continued to rise at all percentiles of the wage distribution converging at the level of about 8–9% of wage increase for an additional year of schooling.
    Keywords: Russia, wage inequality, decomposition, quantile regression
    JEL: E24 J31
    Date: 2006–04–26
  2. By: Catalina Amuedo-Dorantes (Department of Economics, San Diego State University & IZA); Sara de la Rica (Depto. Fundamentos del Análisis Económico II, Universidad del País Vasco & IZA)
    Keywords: immigrant assimilation, employment, occupational attainment and mobility, Spain
    JEL: J61
    Date: 2006–04–24
  3. By: Benno Torgler (Yale Center for International and Area Studies); Justina A.V. Fischer (Swiss Institute for International Economics and Applied Economic Research (SIAW))
    Abstract: Research evidence on the impact of relative income position on individual attitudes and behaviour is sorely lacking. Therefore, this paper assesses such positional impact on social capital by applying 14 different measurements to International Social Survey Programme data from 25 countries. We find support for a positional concern effect or ‘envy’ whose magnitude in several cases is quite substantial. The results indicate that such an effect is non-linear. In addition, we find an indication that absolute income level is also relevant. Lastly, changing the reference group (regional versus national) produces no significant differences in the results.
    Keywords: Relative Income Position, Envy, Positional Concerns, Social Capital, Social Norms, Happiness
    JEL: Z13 H26 I31 D00 D60
    Date: 2006–02

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