nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2006‒05‒27
four papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam By Tomomi Tanaka; Colin F. Camerer; Quang Nguyen
  2. Effort and Comparison Income : Survey and Experimental Evidence By Andrew Clark; Davis Masclet; Marie-Claire Villeval
  3. The Wage Curve: An Entry Written for the New Palgrave, 2nd Edition By David G. Blanchflower; Andrew J. Oswald
  4. Tax Rates with Corruption: Labour-market Effects. Empirical Cross-country Comparisons on OECD Countries By Mária Lackó

  1. By: Tomomi Tanaka; Colin F. Camerer; Quang Nguyen
    Date: 2006–05–14
  2. By: Andrew Clark; Davis Masclet; Marie-Claire Villeval (GATE CNRS)
    Abstract: This paper combines ISSP survey data and experimental evidence from a gift-exchange game to determine the effect of status or relative income on work effort. We find a strong effect of others’ incomes on individual effort decisions in both datasets. The individual’s rank in the income distribution has a more powerful effect on effort than does others’ average income, suggesting that comparisons are more ordinal than cardinal. We further show that, controlling for own income and income rank, the width of the relevant income distribution matters, with effort increasing in the distance from the bottom of the income distribution. Last, effort is also affected by comparisons over time: those who received higher income offers or had higher income rank in the past exert lower levels of effort for a given current income
    Keywords: comparison income, effort, experiment, income distribution, peak-end, rank
    JEL: A13 C92 D63 J33 M54
    Date: 2006–01
  3. By: David G. Blanchflower (Dartmouth College, NBER and IZA Bonn); Andrew J. Oswald (University of Warwick and IZA Bonn)
    Abstract: This paper summarizes evidence for the existence of a wage curve - a downward-sloping relationship between the level of pay and the local unemployment rate - in modern micro data. At the time of writing, the curve has been found in 40 nations. Its elasticity is approximately -0.1.
    Keywords: wage determination, unemployment, wage curve, Phillips curve
    JEL: J3 J4 J6 E24 E31
    Date: 2006–05
  4. By: Mária Lackó (Institute of Economics, Hungarian Academy of Sciences)
    Abstract: The paper investigates how tax rates, corruption and institutional aspects of the labour market influence the size of the segments of the labour market such as unemployment, employment, self-employment and activity in the hidden economy. The novelty of our approach is the theoretical justification of the interaction between the perception of taxes and of corruption, as well as the establishment of a new concept and variable, the subjective tax rate. Alternative regression calculations are carried out on data for OECD countries for the period 1995 to 2000. The tests confirm the validity of the new variable and the results imply the need for a more sophisticated policy approach for influencing labour market outcomes.
    Keywords: Taxation, corruption, labour market, hidden economy
    JEL: D73 J2 H26
    Date: 2006–05–15

This nep-ltv issue is ©2006 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.