nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2011‒04‒30
six papers chosen by
Maximo Rossi
University of the Republic

  1. Keynesian hospitals? Public employment and political pressure By Andrew E. Clark; Carine Milcent
  2. The emerging aversion to inequality - Evidence from long subjective data By Irena Grosfeld; Claudia Senik
  3. The consequences of early childhood growth failure over the life course: By Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
  4. Heterogeneity in Schooling Rates of Return By Henderson, Daniel J.; Polachek, Solomon; Wang, Le
  5. Tullock Challenges: Happiness, Revolutions and Democracy By Bruno S. Frey
  6. How did the great recession affect different types of workers ? evidence from 17 middle-income countries By Cho, Yoonyoung; Newhouse, David

  1. By: Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, IZA - Institute for the Study of Labor - IZA, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris); Carine Milcent (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris)
    Abstract: This paper uses an unusual administrative dataset covering the universe of French hospitals to consider hospital employment: this is consistently higher in public hospitals than in Not-For-Profit or private hospitals, even controlling for many measures of hospital output (such as the type of operations and care provided, and the bed capacity rate). Public-hospital employment is positively correlated with the local unemployment rate, whereas no relationship is found in non-Public hospitals. This is consistent with public hospitals providing employment in depressed areas. We appeal to the Political Science literature and calculate local political allegiance, using expert evaluations on various parties political positions and local election results. The relationship between public hospital employment and local unemployment is stronger the more left-wing the local municipality. This latter result holds especially when electoral races are tight, consistent with a concern for re-election.
    Keywords: hospitals ; public employment ; overmanning ; political preferences
    Date: 2011–04–18
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00586792&r=ltv
  2. By: Irena Grosfeld (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris); Claudia Senik (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, Université Paris-Sorbonne - Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche)
    Abstract: This paper provides evidence of a change in the relationship between individual satisfaction with the state of country's economy and income inequality during transition from a command to market economic system. Using data from a series of extensive and frequent surveys of Polish population, we identify a structural break in this relationship. In the beginning of transition, an increase in income inequality is interpreted by population as a positive signal of increased opportunities; this sentiment is particularly strong among older people and people with right-wing political views. Later in the transition period, increased inequality becomes an important reason for dissatisfaction of the public with the country's economic situation and reforms, as people become more skeptical about the legitimacy of income generation process. We also provide direct evidence from opinion polls of a change in the public sentiment about income inequality.
    Keywords: inequality ; subjective well-being ; growth ; breakpoint ; transition
    Date: 2011–04–18
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00586788&r=ltv
  3. By: Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
    Abstract: This paper examines the impact over the life course of early childhood growth failure as measured by achieved height at 36 months. It uses data collected on individuals who participated in a nutritional supplementation trial between 1969 and 1977 in rural Guatemala and who were subsequently reinterviewed between 2002 and 2004. It finds that individuals who did not suffer growth failure in the first three years of life complete more schooling, score higher on tests of cognitive skill in adulthood, have better outcomes in the marriage market, earn higher wages and are more likely to be employed in higher-paying skilled labor and white-collar jobs, are less likely to live in poor households, and, for women, fewer pregnancies and smaller risk of miscarriages and stillbirths. Growth failure has adverse impacts on body size and several dimensions of physical fitness in adulthood but does not have marked effects on risk indicators of cardiovascular and related chronic diseases. These results provide a powerful rationale for investments that reduce early-life growth failure.
    Keywords: Chronic disease, early life growth failure, fertility, Human capital, Poverty, Undernutrition, Wages,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1073&r=ltv
  4. By: Henderson, Daniel J. (Binghamton University, New York); Polachek, Solomon (Binghamton University, New York); Wang, Le (University of New Hampshire)
    Abstract: This paper relaxes the assumption of homogeneous rates of return to schooling by employing nonparametric kernel regression. This approach allows us to examine the differences in rates of return to education both across and within groups. Similar to previous studies we find that on average blacks have higher returns to education than whites, natives have higher returns than immigrants and younger workers have higher returns than older workers. Contrary to previous studies we find that the average gap of the rate of return between white and black workers is larger than previously thought and the gap is smaller between immigrants and natives. We also uncover significant heterogeneity, the extent of which differs both across and within groups. The estimated densities of returns vary across groups and time periods and are often skewed. For example, during the period 1950-1990, at least 5% of whites have negative returns. Finally, we uncover the characteristics common amongst those with the smallest and largest returns to education. For example, we find that immigrants, aged 50-59, are most likely to have rates of return in the bottom 5% of the population.
    Keywords: Mincer regressions, nonparametric, rate of return to education
    JEL: C14 J24
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5662&r=ltv
  5. By: Bruno S. Frey
    Abstract: Gordon Tullock has been one of the most important founders and contributors to Public Choice. Two innovations are typical "Tullock Challenges". The first relates to method: the measurement of subjective well-being, or happiness. The second relates to digital social networks such as Facebook, Twitter, or to some extent Google. Both innovations lead to strong incentives by the governments to manipulate the policy consequences. In general "What is important, will be manipulated by the government". To restrain government manipulation one has to turn to Constitutional Economics and increase the possibilities for direct popular participation and federalism, or introduce random mechanisms.
    Keywords: Happiness, social networks, constitutional economics, random mechanisms, public choice
    JEL: D72 H10 I31 P16 D02
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:cra:wpaper:2011-12&r=ltv
  6. By: Cho, Yoonyoung; Newhouse, David
    Abstract: This paper examines how different types of workers in 17 middle-income countries were affected by labor market retrenchment during the great recession. Impacts on different types of workers varied by country and were only weakly related to the severity of the shock. Among active workers, youth experienced by far the largest adverse impacts on employment, unemployment, and wage employment, particularly relative to older adults. The percentage employment reductions, for example, were greatest for youth in each sector of the economy, as firms reacted to the shock by substituting away from inexperienced workers. Employment rates, as a share of the population, also plummeted for men. Larger drops in male employment were primarily attributable to men's higher initial rate of employment, although men's concentration in the hard-hit industrial sector also played an important role. Within each sector, percentage employment declines were similar for men and women. Added worker effects among women were mild, even among less-educated workers. Differences in labor market outcomes across education groups and urban or rural residence tended to be smaller. These findings bolster the case for targeted support to displaced youth and wage employees. Programs targeted to female and unskilled workers should be undertaken with appropriate caution or empirical support from timely data, as they may not benefit the majority of affected workers.
    Keywords: Labor Markets,Labor Policies,Labor Standards,Work&Working Conditions,Population Policies
    Date: 2011–04–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5636&r=ltv

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