nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2008‒10‒28
five papers chosen by
Maximo Rossi
University of the Republic

  1. The Dynamics of Social Assistance Receipt : Measurement and Modelling Issues, with an Application to Britain By Lorenzo Cappellari; Stephen P. Jenkins
  2. Noblesse Oblige? Determinants of Survival in a Life and Death Situation By Bruno S. Frey; David A. Savage; Benno Torgler
  3. A Crowding-Out Effect for Relative Income By Benno Torgler; Bruno S.Frey; Markus Schaffner; Sascha L.Schmidt
  4. Inequality Aversion and Performance in and on the Field By Benno Torgler; Markus Schaffner; Bruno S. Frey; Sascha L. Schmidt; Uwe Dulleck
  5. Urban Inequality By Edward L. Glaeser; Matthew G. Resseger; Kristina Tobio

  1. By: Lorenzo Cappellari; Stephen P. Jenkins
    Abstract: We model the dynamics of social assistance benefit receipt in Britain using data from the British Household Panel Survey, waves 1-15. First, we discuss definitions of social assistance benefit receipt, and present information about the trends between 1991 and 2005 in the receipt of social assistance benefits, and in annual rates of transition into and out of receipt. Second, we review potential multivariate modelling approaches especially the dynamic random effects probit models that are used in our empirical analysis and, third, discuss sample selection criteria and explanatory variables. Fourth, we present our regression estimation estimates and interpret them. The final section contains a summary of the substantive results, and highlights some lessons concerning application of the analysis for other countries and some methodological issues.
    Keywords: social assistance, welfare benefits, dynamic random effects probit, income dynamics
    JEL: I38 C33 C35
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp828&r=ltv
  2. By: Bruno S. Frey; David A. Savage; Benno Torgler
    Abstract: This paper explored the determinants of survival in a life and death situation created by an external and unpredictable shock. We are interested to see whether pro-social behaviour matters in such extreme situations. We therefore focus on the sinking of the RMS Titanic as a quasi-natural experiment do provide behavioural evidence which is rare in such a controlled and life threatening event. The empirical results support that social norm such as “women and children first” survive in such an environment. We also observe that women of reproductive age have a higher probability of surviving among women. On the other hand, we observe that crew members used their information advantage and their better access to resources (e.g. lifeboats) to generate a higher probability of surviving. The paper also finds that passenger class, fitness, group size, and cultural background matter.
    Keywords: Decision under Pressure, Altruism, Social Norms, Interdependent Preferences, Excess of Demand
    JEL: D63 D64 D71 D81
    Date: 2008–10–23
    URL: http://d.repec.org/n?u=RePEc:qut:dpaper:237&r=ltv
  3. By: Benno Torgler; Bruno S.Frey; Markus Schaffner; Sascha L.Schmidt
    Abstract: The risk of external interventions crowding-out intrinsic motivation has long been established in economics. This paper introduces a new dimension by arguing that a crowding-out effect does become possible if individuals receive higher relative compensation. Using a unique, large data set that focuses on 26 seasons in basketball (NBA) we find empirical support for a relative crowding-out effect. Performance is reduced as a reaction to a relative income advantage.
    Keywords: Crowding-out, relative income, positional concerns, motivation
    JEL: D00 D60 L83
    Date: 2008–10–23
    URL: http://d.repec.org/n?u=RePEc:qut:dpaper:236&r=ltv
  4. By: Benno Torgler (QUT); Markus Schaffner (QUT); Bruno S. Frey (University of Zurich); Sascha L. Schmidt (European Business School, Oestrich Winkel, Germany); Uwe Dulleck (QUT)
    Abstract: The experimental literature and studies using survey data have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. Individuals are concerned about social comparisons. However, behavioral evidence in the field is rare. This paper provides an empirical analysis, testing the model of inequality aversion using two unique panel data sets for basketball and soccer players. We find support that the concept of inequality aversion helps to understand how the relative income situation affects performance in a real competitive environment with real tasks and real incentives.
    Keywords: Inequality aversion, relative income, positional concerns, envy, social comparison, performance, interdependent preferences
    JEL: D00 D60 L83
    Date: 2008–10–21
    URL: http://d.repec.org/n?u=RePEc:qut:auncer:2008-25&r=ltv
  5. By: Edward L. Glaeser; Matthew G. Resseger; Kristina Tobio
    Abstract: What impact does inequality have on metropolitan areas? Crime rates are higher in places with more inequality, and people in unequal cities are more likely to say that they are unhappy. There is also a negative association between local inequality and the growth of both income and population, once we control for the initial distribution of skills. What determines the degree of inequality across metropolitan areas? Twenty years ago, metropolitan inequality was strongly associated with poverty, but today, inequality is more strongly linked to the presence of the wealthy. Inequality in skills can explain about one third of the variation in income inequality, and that skill inequality is itself explained by historical schooling patterns and immigration. There are also substantial differences in the returns to skill, related to local concentrations in different industries, and these too are strongly correlated with inequality.
    JEL: H0 I0 J0 R0
    Date: 2008–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14419&r=ltv

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