nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2012‒02‒08
three papers chosen by
Maximo Rossi
University of the Republic

  1. Retirement and home production : A regression discontinuity approach By Elena Stancanelli; Arthur Van Soest
  2. Does Labor Diversity Promote Entrepreneurship? By Marianna Marino; Pierpaolo Parrotta; Dario Pozzoli
  3. GINI DP 20: Does Income Inequality Negatively Affect General Trust? Examining three potential problems with the inequality-trust hypothesis By Sander Steijn; Bram Lancee

  1. By: Elena Stancanelli (Observatoire Français des Conjonctures Économiques); Arthur Van Soest (Tilburg University, Netspar)
    Abstract: Existing studies show that individuals who retire replace some private consumption by home production, but do not consider joint behaviour of couples. Here we analyze the causal effect of retirement of each partner on hours of home production of both partners in a couple. Our identification strategy exploits the earliest age retirement laws in France, enabling a fuzzy regression discontinuity approach. We find that own retirement significantly increases own hours of home production and the effect is larger for men than for women. Moreover, retirement of the female partner significantly reduces male hours of home production but not vice versa.
    Keywords: House work, Ageing,Retirement,Regression Discontinuity
    JEL: D13 J22 J14 C1
    Date: 2011–12
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:1128&r=ltv
  2. By: Marianna Marino (École Polytechnique Fédérale de Lausanne,); Pierpaolo Parrotta (Department of Economics and Business, Aarhus University, Denmark); Dario Pozzoli (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: We find evidence that workforce educational diversity promotes entrepreneurial behavior of employees as well as the formation of new firms, whereas diversity in demographics hinders transitions to selfemployment. Ethnic diversity favors entrepreneurship in financial and business services.
    Keywords: Labor diversity, entrepreneurship, transitions to self-employment
    JEL: C26 J24 L26
    Date: 2012–01–04
    URL: http://d.repec.org/n?u=RePEc:aah:aarhec:2012-04&r=ltv
  3. By: Sander Steijn (AISSR, University of Amsterdam); Bram Lancee (AIAS, Universiteit van Amsterdam)
    Abstract: Many studies on the consequences of income inequality find that where inequality is high, trust is low. There are, however, reasons to examine the relation between inequality and trust more closely. First, previous research does not differentiate between the effect of income inequality and that of national wealth. Furthermore, the underlying mechanism is often unclear. Finally, the association might be dependent on non-Western countries where income inequality is extremely high. In this paper, we evaluate whether there is a relation between income inequality and trust in a sample of Western developed economies when taking into account national wealth. Theoretically, we distinguish between stratification effects and perception effects of inequality. Empirically, besides actual income inequality and national wealth, we include a measurement of perceived inequality on the basis of individual level earnings estimations for stereotypical jobs. We find no significant effect of inequality on trust when taking into account national wealth, suggesting that in Western countries the amount of resources rather than its distribution explains trust. Key words: trust, income inequality, perceived inequality, national wealth, comparative research.
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:aia:ginidp:dp20&r=ltv

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