nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2009‒01‒03
nine papers chosen by
Maximo Rossi
University of the Republic

  1. Subjective Measures of Economic Well-Being and the Influence of Income Uncertainty By Johannes Schwarze
  2. Gender pairing and bargaining – Beware the same sex! By Matthias Sutter; Ronald Bosman; Martin Kocher; Frans van Winden
  3. A Spatial-Dependence Continuous-Time Model for Regional Unemployment in Germany By Johan H. L. Oud; Henk Folmer; Roberto Patuelli; Peter Nijkamp
  4. Comparing the Early Research Performance of PhD Graduates in Labor Economics in Europe and the USA By Ana Rute Cardoso; Paulo Guimarães; Klaus F. Zimmermann
  5. The Timing of Labor Demand By Ana Rute Cardoso; Daniel S. Hamermesh; José Varejão
  6. Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series By Neumark, David; Wall, Brandon; Zhang, Junfu
  7. Charitable Giving for Overseas Development: UK Trends over a Quarter Century By Atkinson, Anthony B.; Backus, Peter G.; Micklewright, John; Pharoah, Cathy; Schnepf, Sylke V.
  8. Do People Become Healthier after Being Promoted? By Boyce, Christopher J.; Oswald, Andrew J.
  9. Measuring Unemployment Insurance Generosity By Pallage, Stéphane; Scruggs, Lyle; Zimmermann, Christian

  1. By: Johannes Schwarze
    Abstract: This paper provides evidence that subjective measures of individual well being can be used to study the impact of income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach might be biased if income uncertainty is essential. The paper was written in 1994.
    Keywords: Income uncertainty, subjective well-being, satisfaction, income evaluation
    JEL: C23 D12 D81 I31
    Date: 2008
  2. By: Matthias Sutter; Ronald Bosman; Martin Kocher; Frans van Winden
    Abstract: We study the influence of gender and gender pairing on economic decision making in an experimental two-person bargaining game where the other party’s gender is known to both actors. We find that (1) gender per se has no significant effect on behavior, whereas (2) gender pairing systematically affects behavior. In particular, we observe much more competition and retaliation and, thus, lower efficiency when the bargaining partners have the same gender than when they have the opposite gender. These findings are consistent with predictions from psychology. Implications of our results for real-world organizations are discussed.
    Keywords: gender pairing, bargaining, psychology, experiment
    JEL: C72 C91 C92
    Date: 2008–12
  3. By: Johan H. L. Oud (Radboud University Nijmegen, The Netherlands); Henk Folmer (University of Groningen, The Netherlands; University of Wageningen, The Netherlands); Roberto Patuelli (University of Lugano, Switzerland; The Rimini Centre for Economic Analysis, Italy); Peter Nijkamp (VU University Amsterdam, The Netherlands)
    Abstract: This paper analyzes patterns of regional labour market development in Germany over the period 2000-2003 by means of a spatial-dependence continuous-time model. (Spatial) panel data are routinely modelled in discrete time. However, there are compelling arguments for continuous time modelling of (spatial) panel data. Particularly, most social processes evolve in continuous time such that analysis in discrete time is an oversimplification, gives a distorted representation of reality and leads to misinterpretation of estimation results. The most compelling reason for continuous time modelling is that, in contrast to discrete time modelling, it allows for adequate modelling of dynamic adjustment processes (see, for example, Special Issue 62:1, 2008, of Statistica Neerlandica). We introduce spatial dependence in a continuous time modelling framework and apply the unified framework to regional labour market development in Germany. The empirical results show substantial autoregressive effects for unemployment and population development, as well as a negative effect of unemployment development on population development. The reverse effect is not significant. Neither are the effects of the development of regional average wages and of the manufacturing sector on the development of unemployment and population.
    Keywords: Continuous time modelling, structural equation modelling, spatial dependence, panel data, disattenuation, measurement errors, Germany
    JEL: C33 E24 O18 R11
    Date: 2008–12
  4. By: Ana Rute Cardoso; Paulo Guimarães; Klaus F. Zimmermann
    Abstract: This paper analyzes the early research performance of PhD graduates in labor economics, addressing the following questions: Are there major productivity differences between graduates from American and European institutions? If so, how relevant is the quality of the training received (i.e. ranking of institution and supervisor) and the research environment in the subsequent job placement institution? The population under study consists of labor economics PhD graduates who received their degree in the years 2000 to 2005 in Europe or the USA. Research productivity is evaluated alternatively as the number of publications or the quality-adjusted number of publications of an individual. When restricting the analysis to the number of publications, results suggest a higher productivity by graduates from European universities than from USA universities, but this difference vanishes when accounting for the quality of the publication. The results also indicate that graduates placed at American institutions, in particular top ones, are likely to publish more quality-adjusted articles than their European counterparts. This may be because, when hired, they already have several good acceptances or because of more focused research efforts and clearer career incentives.
    Keywords: graduate programs; research productivity
    JEL: A23 J44 A11 A14 A10
    Date: 2008–12–15
  5. By: Ana Rute Cardoso; Daniel S. Hamermesh; José Varejão
    Abstract: We examine the timing of firms' operations in a formal model of labor demand. Merging a variety of data sets from Portugal from 1995-2004, we describe temporal patterns of firms' demand for labor and estimate production-functions and relative labor-demand equations. The results demonstrate the existence of substitution of employment across times of the day/week and show that legislated penalties for work at irregular hours induce firms to alter their operating schedules. The results suggest a role for such penalties in an unregulated labor market, such as the United States, in which unusually large fractions of work are performed at night and on weekends.
    Keywords: J23; J78
    Date: 2008–12–01
  6. By: Neumark, David (University of California, Irvine); Wall, Brandon (Stanford University); Zhang, Junfu (Clark University)
    Abstract: We use a new database, the National Establishment Time Series (NETS), to revisit the debate about the role of small businesses in job creation. Birch (e.g., 1987) argued that small firms are the most important source of job creation in the U.S. economy. But Davis et al. (1996a) argued that this conclusion was flawed, and based on improved methods and using data for the manufacturing sector, they concluded that there was no relationship between establishment size and net job creation. Using the NETS data, we examine evidence for the overall economy, as well as for different sectors. The results indicate that small firms and small establishments create more jobs, on net, although the difference is much smaller than what is suggested by Birch's methods. Moreover, in the recent period we study, a negative relationship between establishment size and job creation holds for both the manufacturing and services sectors.
    Keywords: job creation, job destruction, small businesses
    JEL: J20 L25 L53
    Date: 2008–12
  7. By: Atkinson, Anthony B. (Nuffield College, Oxford); Backus, Peter G. (University of Warwick); Micklewright, John (University of Southampton); Pharoah, Cathy (City University London); Schnepf, Sylke V. (University of Southampton)
    Abstract: Charitable giving for overseas development and emergency relief is important in the UK, being about a quarter of the size of government development aid. There has been a strong growth over time, reflecting the activities of development charities and the public response to a series of humanitarian emergencies. This paper examines how individual overseas giving has changed over the quarter century since 1978, using a newly constructed panel data set on donations to individual UK charities. When did the increase take place? Did the public respond to events such as Live Aid? Or has there been a steady upward trend as our society became more globalised? What form did the increase in giving take? Which charities have grown fastest? Have new charities displaced old? How do changes in giving for overseas compare with changes in giving for other causes such as cancer relief or animal welfare? What, if any, is the relation with Official Development Assistance?
    Keywords: charitable giving, overseas development, philanthropy, UK
    JEL: D12 D64 F35 L31
    Date: 2008–12
  8. By: Boyce, Christopher J. (University of Warwick); Oswald, Andrew J. (University of Warwick)
    Abstract: This paper uses longitudinal data to explore whether greater job status makes a person healthier. Taking the evidence as a whole, promotees do not exhibit a health improvement after promotion. Instead the data suggest that workers with good health are more likely to be promoted. In the private sector, we find that job promotion significantly worsens people's psychological strain (on a GHQ score). For the public sector, there are some tentative signs of the reverse. We discuss caveats to our conclusions, suggest caution in their interpretation, and argue that further longitudinal studies are needed.
    Keywords: health, Whitehall studies, GHQ, locus of control, job satisfaction, mortality, status
    JEL: I1
    Date: 2008–12
  9. By: Pallage, Stéphane (University of Québec at Montréal); Scruggs, Lyle (University of Connecticut); Zimmermann, Christian (University of Connecticut)
    Abstract: In this paper, we develop a methodology to summarize the various policy parameters of an unemployment insurance scheme into a single generosity parameter. Unemployment insurance policies are multdimensional objects. They are typically defined by waiting periods, eligibility duration, benefit levels and asset tests when eligible, which makes intertemporal or international comparisons difficult. To make things worse, labor market conditions, such as the likelihood and duration of unemployment matter when assessing the generosity of different policies. We build a first model with such complex characteristics. Our model features heterogeneous agents that are liquidity constrained but can self-insure. We then build a second model that is similar, except that the unemployment insurance is simpler: it is deprived of waiting periods and agents are eligible forever with constant benefits. We then determine which level of benefits in this second model makes agents indifferent between both unemployment insurance policies. We apply this strategy to the unemployment insurance program of the United Kingdom and study how its generosity evolved over time.
    Keywords: unemployment insurance, labor market policy evaluation
    JEL: E24 J65
    Date: 2008–12

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