nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2012‒05‒15
eleven papers chosen by
Maximo Rossi
University of the Republic

  1. The Gender Wage Gap by Education in Italy By Chiara MUSSIDA; Matteo PICCHIO
  2. Gender, geography and generations : intergenerational educational mobility in post-reform India By Emran, M. Shahe; Shilpi, Forhad
  3. Human Capital and Regional Development By Nicola Gennaioli; Rafael Laporta; Florencio López-de-Silanes; Andrei Schleifer
  4. Rising Food Prices and Children’s Welfare By Nora Lustig
  5. What has driven the decline of infant mortality in Kenya ? By Demombynes, Gabriel; Trommlerova, Sofia Karina
  6. Health Perceptions in Latin America By Eduardo Lora
  7. Gender Gaps in Performance: Evidence from Young Lawyers By Ghazala Azmat; Rosa Ferrer
  8. Occupational Sex Segregation and Management-Level Wages in Germany: What Role Does Firm Size Play? By Anne Busch; Elke Holst
  9. Does Inequality Breed Altruism or Selfishness? Gauging Individuals' Predispositions towards Redistributive Schemes By Fabiana Machado
  10. Protecting Workers against Unemployment in Latin America and the Caribbean: Evidence from Argentina By Martín Gonzalez Rozada; Lucas Ronconi; Hernan Ruffo
  11. The Impact of Immigration on the Educational Attainment of Natives By Jennifer Hunt

  1. By: Chiara MUSSIDA (Department of Economics and Social Sciences, Università Cattolica del Sacro Cuore, Piacenza, Italy); Matteo PICCHIO (Research Foundation - Flanders (FWO); Sherppa, Ghent University; Department of Economics, CentER,Tilburg University; IZA, Bonn)
    Abstract: This paper studies the gender wage gap by educational attainment in Italy using the 1994–2001 ECHP data. We estimate wage distributions in the presence of covariates and sample selection separately for highly and low educated men and women. Then, we decompose the gender wage gap across all the wage distribution and isolate the part due to gender differences in the remunerations of the similar characteristics. We find that women are penalized especially if low educated. When we control for sample selection induced by unobservables, the penalties for low educated women become even larger, above all at the bottom of the wage distribution.
    Keywords: gender wage gap, education, counterfactual distributions, decompositions, hazard function
    JEL: C21 C41 J16 J31 J71
    Date: 2012–04–24
    URL: http://d.repec.org/n?u=RePEc:ctl:louvir:2012008&r=ltv
  2. By: Emran, M. Shahe; Shilpi, Forhad
    Abstract: India experienced sustained economic growth for more than two decades following the economic liberalization in 1991. While economic growth reduced poverty significantly, it was associated with an increase in inequality. Does this increase in inequality reflect deep-seated inequality of opportunity or efficient incentive structure in a market oriented economy? This paper provides evidence on economic mobility in post-reform India by focusing on the educational attainment of children. It uses two related measures of immobility: sibling and intergenerational correlations. The paper analyzes the trends in and patterns of educational mobility from 1992/93 to 2006, with a special emphasis on the roles played by gender and geography. The evidence shows that family background plays a strong role; the estimated sibling correlation in India in 2006 is higher than the available estimates for Latin American countries. There is a persistent gender gap in rural and less-developed areas. The only group that experienced substantial improvements is women in urban and developed areas, with the lower caste women benefiting the most. Almost 70 percent of the variance in children's education can be accounted for by parental education and geographic location. The authors provide possible explanations for the apparently puzzling improvements for urban women in a country with strong son preference.
    Keywords: Population Policies,Primary Education,Education and Society,Population&Development,Rural Development Knowledge&Information Systems
    Date: 2012–05–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6055&r=ltv
  3. By: Nicola Gennaioli; Rafael Laporta; Florencio López-de-Silanes; Andrei Schleifer
    Abstract: We investigate the determinants of regional development using a newly constructed database of 1569 sub-national regions from 110 countries covering 74 percent of the worlds surface and 96 percent of its GDP. We combine the cross-regional analysis of geographic, institutional, cultural, and human capital determinants of regional development with an examination of productivity in several thousand establishments located in these regions. To organize the discussion, we present a new model of regional development that introduces into a standard migration framework elements of both the Lucas (1978) model of the allocation of talent between entrepreneurship and work, and the Lucas (1988) model of human capital externalities. The evidence points to the paramount importance of human capital in accounting for regional differences in development, but also suggests from model estimation and calibration that entrepreneurial inputs and human capital externalities are essential for understanding the data.
    Keywords: productivity, entrepreneurial education, regional externalities
    JEL: I25 O11 O15
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:bge:wpaper:581&r=ltv
  4. By: Nora Lustig (Division of Policy and Practice,UNICEF)
    Abstract: After three consecutive decades of decline, world prices of food commodities have risen over the past few years at an alarming pace. Rising food prices are a cause of major concern because high food prices bring significant and immediate setbacks for poverty reduction, nutrition, social stability, inflation and a rules-based trading system. Food prices are unique since food is unlike any other good. Food is essential for survival; it is the most basic of basic needs
    Keywords: child poverty, child disparities, policy design, measuring poverty, development strategies,food prices,basic needs,poverty reduction, nutrition, social stability
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:uce:wbrief:1201&r=ltv
  5. By: Demombynes, Gabriel; Trommlerova, Sofia Karina
    Abstract: Substantial declines in infant and under-5 mortality have taken place in recent years in many countries in Sub-Saharan Africa. Kenya's infant mortality rate has fallen by 7.6 percent per year, the fastest rate of decline among the 20 countries in the region for which recent Demographic and Health Survey data is available. Kenya's rate of postneonatal deaths per 1,000 live births fell by more than half over a five-year period, dropping from 47 to 22, as measured using data from the 2003 and 2008-09 Demographic and Health Surveys. Among the possible causes of the decline are various targeted new public health initiatives and improved access to water and sanitation. A Oaxaca-Blinder decomposition using Demographic and Health Survey data shows that the increased ownership of insecticide-treated bednets in endemic malaria zones explains 39 percent of the decline in postneonatal mortality and 58 percent of the decline in infant mortality. Changes in other observable candidate factors do not explain substantial portions of the decline. The portion of the decline not explained may be associated with generalized trends such as the overall improvement in living standards that has taken place with economic growth. The widespread ownership of insecticide-treated bednets in areas of Kenya where malaria is rare suggests that better targeting of insecticide-treated bednet provision programs could improve the cost-effectiveness of such programs.
    Keywords: Population Policies,Health Monitoring&Evaluation,Early Child and Children's Health,Adolescent Health,Disease Control&Prevention
    Date: 2012–05–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6057&r=ltv
  6. By: Eduardo Lora
    Abstract: This is the first study that uniformly analyzes health perceptions in all of Latin America and tests in a systematic way their relation to economic conditions at the country, income group and individual levels. The study uses three types of health self-assessment questions: i) health satisfaction; ii) health status on a scale of 0- 10; and iii) the EuroQol 5D instrument (EQ-5D), which asks about mobility, self- care, usual activities, pain/discomfort, and anxiety/depression. The empirical analysis finds support for the hypothesis that cultural differences between countries prevent cross-national comparisons of health perceptions, but it does not find support for the widely held view that the same applies within countries, presumably because the poor are more tolerant of their health problems.
    JEL: I10 J10
    Date: 2011–12
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:4757&r=ltv
  7. By: Ghazala Azmat; Rosa Ferrer
    Abstract: This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike most high-skilled professions, the legal profession uses widely-accepted and objective methods to measure and reward lawyers productivity: the number of hours billed to clients and the amount of new client revenue generated. We find clear evidence of a gender gap in annual performance. Male lawyers bill ten-percent more hours and bring in more than double the new client revenue. We show that the differential impact across genders in the presence of young children and the differences in aspirations to become a law-firm partner account for a large part of the difference in performance. These gaps in performance have important consequences for gender gaps in earnings. While individual and firm characteristics explain up to 50 percent of the gap in earnings, the inclusion of performance measures explains most of the remainder.
    Keywords: performance measures, gender gaps, lawyers
    JEL: M52 J16 K40 J44
    Date: 2012–03
    URL: http://d.repec.org/n?u=RePEc:bge:wpaper:604&r=ltv
  8. By: Anne Busch; Elke Holst
    Abstract: The paper analyzes the gender pay gap in private-sector management positions based on German panel data and using fixed-effects models. It deals with the effect of occupational sex segregation on wages, and the extent to which wage penalties for managers in predominantly female occupations are moderated by firm size. Drawing on economic and organizational approaches and the devaluation of women's work, we find wage penalties for female occupations in management only in large firms. This indicates a pronounced devaluation of female occupations, which might be due to the longer existence, stronger formalization, or more established "old-boy networks" of large firms.
    Keywords: Gender pay gap, managerial positions, occupational sex segregation, gendered organization, firm size
    JEL: B54 J16 J24 J31 J71 L2 M51
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1206&r=ltv
  9. By: Fabiana Machado
    Abstract: While decreasing inequality is generally considered desirable, and there is a growing understanding of which policies do and do not promote equality, much less is known regarding why these policies are adopted to varying degrees of intensity in different times and places. To explain this variation, the constituencies for different policies under various conditions must be identified. This paper explores that question using Brazilian public opinion data on preferences regarding taxation, conditional cash transfers, pension schemes and educations. It is found that disagreement across socio-economic groups arises on how government should address inequality rather than whether it should do so. While poorer respondents support cash transfers more than the rich, the rich are more likely than the poor to support expenditures on public education. Contrary to what is commonly assumed, inequality seems to breed altruism among the rich regarding the quintessential poverty reduction scheme of conditional cash transfers.
    JEL: H53 I28 I38
    Date: 2012–01
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:4762&r=ltv
  10. By: Martín Gonzalez Rozada; Lucas Ronconi; Hernan Ruffo
    Abstract: This paper takes advantage of several reforms that provide time and cross sectional variation to identify the effects of unemployment insurance and severance payments on the duration of unemployment and on the separation probability in Argentina. Administrative data permits analysis of the duration of unemployment of covered spells with detailed information about transfers and their duration, while household surveys permit the study of separation probability and transitions to informal jobs, which are not observed in administrative data. It is found that unemployment duration increases significantly when unemployment insurance transfers are higher or are provided for a longer period; the effects of severance pay on unemployment duration are less robust. On the other hand, higher severance pay is found to reduce separation probability, while unemployment insurance transfers have a positive but small effect on separations.
    JEL: I38 J64 J65 J68
    Date: 2011–12
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:4759&r=ltv
  11. By: Jennifer Hunt
    Abstract: Using a state panel based on census data from 1940-2010, I examine the impact of immigration on the high school completion of natives in the United States. Immigrant children could compete for schooling resources with native children, lowering the return to native education and discouraging native high school completion. Conversely, native children might be encouraged to complete high school in order to avoid competing with immigrant high-school dropouts in the labor market. I find evidence that both channels are operative and that the net effect is positive, particularly for native-born blacks, though not for native-born Hispanics. An increase of one percentage point in the share of immigrants in the population aged 11-64 increases the probability that natives aged 11-17 eventually complete 12 years of schooling by 0.3 percentage points, and increases the probability for native-born blacks by 0.4 percentage points. I account for the endogeneity of immigrant flows by using instruments based on 1940 settlement patterns.
    JEL: J15
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:18047&r=ltv

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