nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2009‒01‒31
four papers chosen by
Maximo Rossi
University of the Republic

  1. Unemployment, Market Work and Household Production By Burda, Michael C.; Hamermesh, Daniel S.
  2. Migration in an Enlarged EU: A Challenging Solution? By Kahanec, Martin; Zimmermann, Klaus F.
  3. Inequality and Network Structure By Iyengar, G.; Kets, W.; Sethi, R.; Bowles, S.
  4. Happiness and Beliefs in Criminal Environments By Rafael Di Tella; Robert MacCulloch; Hugo Nopo

  1. By: Burda, Michael C. (Humboldt University, Berlin); Hamermesh, Daniel S. (University of Texas at Austin)
    Abstract: Using time-diary data from four countries we show that the unemployed spend most of the time not working for pay in additional leisure and personal maintenance, not in increased household production. There is no relation between unemployment duration and the split of time between household production and leisure. U.S. data for 2003-2006 show that almost none of the lower amount of market work in areas of long-term high unemployment is offset by additional household production. In contrast, in those areas where unemployment has risen cyclically reduced market work is made up almost entirely by additional time spent in household production.
    Keywords: unemployment, time use, household production, paid work
    JEL: E24 J22 D13
    Date: 2009–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3955&r=ltv
  2. By: Kahanec, Martin (IZA); Zimmermann, Klaus F. (IZA, DIW Berlin and Bonn University)
    Abstract: The 2004 and 2007 enlargements of the European Union were unprecedented in a number of economic and policy aspects. This essay provides a broad and in-depth account of the effects of the post-enlargement migration flows on the receiving as well as sending countries in three broader areas: labour markets, welfare systems, and growth and competitiveness. Our analysis of the available literature and empirical evidence shows that (i) EU enlargement had a significant impact on migration flows from new to old member states, (ii) restrictions applied in some of the countries did not stop migrants from coming but changed the composition of the immigrants, (iii) any negative effects in the labour market on wages or employment are hard to detect, (iv) post-enlargement migration contributes to growth prospects of the EU, (v) these immigrants are strongly attached to the labour market, and (vi) they are quite unlikely to be among welfare recipients. These findings point out the difficulties that restrictions on the free movement of workers bring about.
    Keywords: migration, migration effects, EU Eastern enlargement, free movement of workers
    JEL: F22 J15 J61
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3913&r=ltv
  3. By: Iyengar, G.; Kets, W.; Sethi, R.; Bowles, S. (Tilburg University, Center for Economic Research)
    Abstract: This paper explores the manner in which the structure of a social network constrains the level of inequality that can be sustained among its members. We assume that any distribution of value across the network must be stable with respect to coalitional deviations, and that players can form a deviating coalition only if they constitute a clique in the network. We show that if the network is bipartite, there is a unique stable payoff distribution that is maximally unequal in that it does not Lorenz dominate any other stable distribution. We obtain a complete ordering of the class of bipartite networks and show that those with larger maximum independent sets can sustain greater levels of inequality. The intuition behind this result is that networks with larger maximum independent sets are more sparse and hence offer fewer opportunities for coalitional deviations. We also demonstrate that standard centrality measures do not consistently predict inequality. We extend our framework by allowing a group of players to deviate if they are all within distance k of each other, and show that the ranking of networks by the extent of extremal inequality is not invariant in k.
    Keywords: inequality;networks;coalitional deviations;power;centrality.
    JEL: C71 D30 D85
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:dgr:kubcen:200876&r=ltv
  4. By: Rafael Di Tella; Robert MacCulloch; Hugo Nopo
    Abstract: This paper uses newly available data to describe the distribution of crime victimization and other criminal activities (including drug trafficking and corruption) around the world. The paper then documents a negative (positive) correlation between measures of criminal activity and happiness and measures of positive (negative) emotions. The paper also studies the correlation between ideological beliefs and criminal activity, finding that crime victims are more likely to believe that hard work does not pay and that the government should increase the amount of redistribution to the poor.
    Keywords: Happiness, crime, beliefs, income distribution
    JEL: I39 K42 Y80
    Date: 2009–01
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:4605&r=ltv

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