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on Unemployment, Inequality and Poverty |
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Issue of 2008‒11‒04
four papers chosen by |
| By: | Simon Luechinger; Alois Stutzer; Rainer Winkelmann |
| Abstract: | We discuss a new approach to specifying and estimating ordered probit models with endogenous switching, or with binary endogenous regressor, based on copula functions. These models provide a framework of analysis for self-selection in economic well-being equations, where assigment of regressors may be choice based, resulting from well-being maximization, rather than random. In an application to public and private sector job satisfaction, and using data on male workers from the German Socio-Economic Panel, we find that a model based on Frank's copula is preferred over two alternative models with independence and normal copula, respectively. The results suggest that public sector workers are negatively selected. |
| Keywords: | Ordered probit, switching regression, Frank copula, job satisfaction, German Socio-Economic Panel |
| JEL: | I31 C23 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp135&r=ltv |
| By: | Andrew E. Clark; Andreas Knabe; Steffen Rätzel |
| Abstract: | This paper investigates the relationship between the subjective well-being of both the employed and unemployed and regional unemployment rates. While employed men suffer from regional unemployment, unemployed men are significantly less negatively affected. This is consistent with a social-norm effect of unemployment in Germany. We find no evidence of such an offsetting effect for women. |
| Keywords: | Social norms, unemployment, life satisfaction |
| JEL: | I31 Z13 J64 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp132&r=ltv |
| By: | Pierre Cahuc (CREST - Centre de Recherche en Économie et Statistique - INSEE - École Nationale de la Statistique et de l'Administration Économique); André Zylberberg (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | This paper analyzes optimum income taxation in a model with endogenous job destruction that gives rise to unemployment. It is shown that optimal tax schemes comprise both payroll and layoff taxes when the state provides public unemployment insurance and aims at redistributing income. The optimal layoff tax is equal to the social cost of job destruction, which amounts to the sum of unemployment benefits (that the state pays to unemployed workers) and payroll taxes (that the state does not get when workers are unemployed). |
| Keywords: | Layoff taxes, Optimal taxation, Job destruction. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:hal:paris1:halshs-00255794_v1&r=ltv |
| By: | Arne Bigsten (Department of Economics, University of Gothenburg, Gothenburg, Sweden.); Sven Tengstam (Department of Economics, University of Gothenburg, Gothenburg, Sweden.) |
| Abstract: | This paper investigates the relationship between income diversification and income change within Zambian smallholder households, and investigates what the constraints of income diversification are in this group. A panel data set of roughly 7000 smallholder farmer households interviewed in 2001 and 2004 is used. Different combinations of the four main income generating activities – farm income, agricultural wage work, non-agricultural wagework, and own-business income – are analyzed. |
| Keywords: | food security, policy, Zambia, Africa, smallholder, income |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-031&r=ltv |