nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2010‒05‒02
four papers chosen by
Maximo Rossi
University of the Republic

  1. Neighbourhood Child Poverty in Sweden By Gustafsson, Björn; Österberg, Torun
  2. Income Aspirations and Cooperation: Experimental Evidence By Dalton, P.S.
  3. Income Comparisons among Neighbours and Life Satisfaction in East and West Germany By Knies G
  4. Upward Social Mobility, Well-being and;Political Preferences: Evidence from the;BHPS By Andrew CLARK; Emanuela D'ANGELO

  1. By: Gustafsson, Björn (Göteborg University); Österberg, Torun (University of Gothenburg)
    Abstract: This paper takes a fresh look at child poverty at the neighbourhood level in the three metropolitan regions of Sweden using unique data for 1990, 1996 and 2002. We find that the number of neighbourhoods with high child poverty rates is much larger in 2002 than in 1990, but also that most poor children in the three regions live outside poor neighbourhoods. A disproportionally large fraction of children with backgrounds from low- and middle-income countries live in poor neighbourhoods. Regression analysis shows that high neighbourhood poverty rates are mainly due to parents’ low employment and to low parental education.
    Keywords: child poverty, neighbourhood, Sweden
    JEL: I32 J13 R23
    Date: 2010–04
  2. By: Dalton, P.S. (Tilburg University, Center for Economic Research)
    Abstract: This article is the first attempt to study the empirical link between income aspirations and cooperation in a one shot public good game. By combining experimental with survey data, we find evidence that the more frustrated people are with their income, the lower is their propensity to cooperate with foreigners and compatriots. The quantitative effect is remarkable: participants who are most frustrated are 46 percent more likely to free-ride on foreigners than those who are satisfied with their income.
    Keywords: Social Preferences;Aspirations;Cooperation;Maslow
    JEL: D01 D6 H4 C9
    Date: 2010
  3. By: Knies G (Institute for Social and Economic Research)
    Abstract: This paper draws on the German Socio-economic Panel Study (SOEP) to investigate whether changes in othersÂ’ income are perceived differently in post-transition and capitalist societies. We find that the neighbourhood income effect for West Germany is negative and slightly more marked in neighbourhoods where the neighbours interact socially. In contrast, the coefficients on neighbourhood income in East Germany are positive, but not statistically significant. This suggests not only that there is a divide between East and West Germany, but also that neighbours may not be a relevant comparison group in societies that have comparatively low levels of neighbouring.
    Date: 2010–04–19
  4. By: Andrew CLARK (Paris School of Economic, Paris, IZA, Bonn); Emanuela D'ANGELO (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: The paper uses 15 waves of BHPS data to provide an integrated analysis of the roles of both individual social status and upward mobility relative to own parents on job and life satisfaction, preferences for redistribution, pro-public sector attitudes and voting. Both greater individual social status and greater mobility with respect to parents are associated with higher levels of satisfaction. However, this symmetric effect disappears for political preferences. While greater social status is associated with less favourable attitudes to redistribution and the public sector, greater upward mobility is associated with more Left-wing attitudes. These attitudes translate into actual reported voting behaviour. Upwards social mobility produces satisfied Left-wingers.
    Keywords: Inequality, Redistribution, Satisfaction, Social Mobility, Voting
    JEL: A14 C25 D31 D63 J28 J62
    Date: 2010–04

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