nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2012‒05‒29
thirteen papers chosen by
Maximo Rossi
University of the Republic

  1. Measuring Poverty Without The Mortality Paradox By Mathieu Lefebvre; Pierre Pestieau; Grégory Ponthière
  2. Income Inequality and Health: Lessons from a Refugee Residential Assignment Program By Grönqvist, Hans; Johansson, Per; Niknami, Susan
  3. The French Unhappiness Puzzle: the Cultural Dimension of Happiness By Claudia Senik
  4. Care or Cash? The Effect of Child Care Subsidies on Student Performance By Sandra E. Black; Paul J. Devereux; Katrine V. Løken; Kjell G. Salvanes
  5. Income inequality and health: lessons from a refugee residential assignment program By Grönqvist, Hans; Johansson, Per; Niknami, Susan
  6. Do Higher Childcare Subsidies Improve Parental Well-being? Evidence from Québec's Family Policies By Abel Brodeur; Marie Connolly
  7. The Asset Cost of Poor Health By Poterba, James; Venti, Steven F.; Wise, David Alsgaard
  8. Structural change in developing countries: has it decreased gender inequality? By Michelle Rendall
  9. Factor Shares and Income Ineqaulity - Empirical Evidence from Germany 2002-2008 By Martin Adler; Kai Daniel Schmid
  10. How Different are the Wage Curves for Formal and Informal Workers? Evidence from Turkey By Badi H. Baltagi; Yusuf Soner Baskaya; Timur Hulagu
  11. The Measurement of Educational Inequality: Achievement and Opportunity By Jérémie Gignoux; Francisco H. G. Ferreira
  12. Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans By Abel Brodeur
  13. Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination By Marco Castillo; Ragan Petrie; Máximo Torero; Lise Vesterlund

  1. By: Mathieu Lefebvre (CREPP - Center of Research in Public Economics and Population Economics - Université de Liège); Pierre Pestieau (CREPP - Center of Research in Public Economics and Population Economics - Université de Liège, 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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain, CEPR - Center for Economic Policy Research - CEPR); Grégory Ponthière (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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: Under income-differentiated mortality, poverty measures reflect not only the "true" poverty, but, also, the interferences or noise caused by the survival process at work. Such interferences lead to the Mortality Paradox: the worse the survival conditions of the poor are, the lower the measured poverty is. We examine several solutions to avoid that paradox. We identify conditions under which the extension, by means of a fictitious income, of lifetime income profiles of the prematurely dead neutralizes the noise due to differential mortality. Then, to account not only for the "missing" poor, but, also, for the "hidden" poverty (premature death), we use, as a fictitious income, the welfare-neutral income, making indifferent between life continuation and death. The robustness of poverty measures to the extension technique is illustrated with regional Belgian data.
    Keywords: premature mortality ; income-differentiated mortality ; poverty measurement ; censored income profile
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00622325&r=ltv
  2. By: Grönqvist, Hans (SOFI, Stockholm University); Johansson, Per (IFAU); Niknami, Susan (SOFI, Stockholm University)
    Abstract: This paper examines the effect of income inequality on health for a group of particularly disadvantaged individuals: refugees. Our analysis draws on longitudinal hospitalization records coupled with a settlement policy where Swedish authorities assigned newly arrived refugees to their first area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. The results reveal no statistically significant effect of income inequality on the risk of being hospitalized. This finding holds also for most population subgroups and when separating between different types of diagnoses. Our estimates are precise enough to rule out large effects of income inequality on health.
    Keywords: income inequality, immigration, quasi-experiment
    JEL: I10 J15
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6554&r=ltv
  3. By: 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 - INRA, UP4 - Université Paris 4, Paris-Sorbonne - Université Paris IV - Paris Sorbonne - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: This article sheds light on the important differences in self-declared happiness across countries of equivalent affluence. It hinges on the different happiness statements of natives and immigrants in a set of European countries to disentangle the influence of objective circumstances versus psychological and cultural factors. The latter turns out to be of non-negligible importance in explaining international heterogeneity in happiness. In some countries, such as France, they are mainly responsible for the country's unobserved idiosyncratic level of (un-)happiness.
    Keywords: Happiness ; Subjective Well-Being ; International Comparisons ; France ; Immigration ; European Social Survey
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00628837&r=ltv
  4. By: Sandra E. Black; Paul J. Devereux; Katrine V. Løken; Kjell G. Salvanes
    Abstract: Given the wide use of childcare subsidies across countries, it is surprising how little we know about the effect of these subsidies on children’s longer run outcomes. Using a sharp discontinuity in the price of childcare in Norway, we are able to isolate the effects of childcare subsidies on both parental and student outcomes. We find very small and statistically insignificant effects of childcare subsidies on childcare utilization and parental labor force participation. Despite this, we find significant positive effect of the subsidies on children’s academic performance in junior high school, suggesting the positive shock to disposable income provided by the subsidies may be helping to improve children’s scholastic aptitude.
    JEL: J13
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:18086&r=ltv
  5. By: Grönqvist, Hans (Swedish Institute for Social Research (SOFI)); Johansson, Per (IFAU - Institute for Evaluation of Labour Market and Education Policy); Niknami, Susan (Swedish Institute for Social Research (SOFI))
    Abstract: This paper examines the effect of income inequality on health for a group of particularly disadvantaged individuals: refugees. Our analysis draws on longitudinal hospitalization records coupled with a settlement policy where Swedish authorities assigned newly arrived refugees to their first area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. The results reveal no statistically significant effect of income inequality on the risk of being hospitalized. This finding holds also for most population subgroups and when separating between different types of diagnoses. Our estimates are precise enough to rule out large effects of income inequality on health.
    Keywords: Income inequality; Immigration; Quasi-experiment
    JEL: I10 J15
    Date: 2012–05–05
    URL: http://d.repec.org/n?u=RePEc:hhs:ifauwp:2012_011&r=ltv
  6. By: Abel Brodeur; Marie Connolly
    Abstract: In this paper, we investigate the effect of a change in childcare subsidies on parental subjective well-being. Starting in 1997, the Canadian province of Québec implemented a generous program providing $5-a-day childcare to children under the age of 5. By 2007, the percentage of children attending subsidized day care had tripled and mothers’ labor force participation had increased substantially. Objectively, more labor force participation is seen as a positive improvement, bringing with it higher income, independence and bargaining power. Yet a decrease in women’s subjective well-being over previous decades has been documented, perhaps due to a Second Shift effect where women work more but still bear the brunt of housework and childrearing (Hochschild and Machung, 1989). Using data from the Canadian General Social Survey, we estimate a triple-differences model using differences pre- and post- reforms between Québec and the rest of Canada and between parents with young children and those with older children. Our estimates suggest that Québec’s family policies led to a small decrease in parents’ subjective well-being. Of note, though, we find large and positive effects for poor household families and high school graduates and negative effects for middle household income families. We find similar negative effects on life satisfaction for both men and women, but different effects on satisfaction with work-life balance. This suggests that fathers’ life satisfaction could be influenced by their wives’ labor supply while their work-life balance is not.
    Keywords: Childcare, labor supply, subjective well-being, life satisfaction, happiness, work-life balance
    JEL: I31 J20 J28
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:lvl:lacicr:1223&r=ltv
  7. By: Poterba, James; Venti, Steven F.; Wise, David Alsgaard
    Abstract: This paper examines the correlation between poor health and asset accumulation for households in the first nine waves of the Health and Retirement Survey. Rather than enumerating the specific costs of poor health, such as out of pocket medical expenses or lost earnings, we estimate how the evolution of household assets is related to poor health. We construct a simple measure of health status based on the first principal component of HRS survey responses on self-reported health status, diagnoses, ADLs, IADL, and other indicators of underlying health. Our estimates suggest large and substantively important correlations between poor health and asset accumulation. We compare persons in each 1992 asset quintile who were in the top third of the 1992 distribution of latent health with those in the same 1992 asset quintile who were in the bottom third of the latent health distribution. By 2008, those in the top third of the health distribution had accumulated, on average, more than 50 percent more assets than those in the bottom third of the health distribution. This “asset cost of poor health†appears to be larger for persons with substantial 1992 asset balances than for those with lower balances.
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:hrv:hksfac:4669670&r=ltv
  8. By: Michelle Rendall
    Abstract: This paper examines the evolution of female labor market outcomes from 1987 to 2008 by assessing the role of changing labor demand requirements in four developing countries: Brazil, Mexico, India and Thailand. The results highlight the importance of structural change in reducing gender disparities by decreasing the labor demand for physical attributes. The results show that India, the country with the greatest physical labor requirements, exhibits the largest labor market gender inequality. In contrast, Brazil's labor requirements have followed a similar trend seen in the United States, reducing gender inequality in both wages and labor force participation.
    Keywords: Structural change, job tasks, female employment, wage gap, Latin America, Asia
    JEL: J20 J23 J24 J31 O31 O33
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:zur:econwp:077&r=ltv
  9. By: Martin Adler; Kai Daniel Schmid
    Abstract: We examine the interplay between changes in the functional distribution of income and the distribution of market income among households. We use micro data from the German Socio-Economic Panel as well as macro data from the German Federal Statistical Office from 2002 to 2008. We categorize and evaluate the implications of changes in the functional distribution of income upon the distribution of income among individuals on the basis of a simple theoretic framework that links the degree of the concentration of income from asset ows among individuals to the (structural) relationship between individuals' levels of market income and their respective income shares from asset ows. Our empirical analysis oers two insights: First, the relative rise of income from asset ows reported by German National Accounting Statistics is also evident in the micro data taken from the German Socio-Economic Panel. Second, rising capital income shares are associated with an increasing concentration of market income.
    Keywords: Factor Shares, Income Distribution, Inequality, Market Income
    JEL: D31 D33 E6 E25
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:iaw:iawdip:82&r=ltv
  10. By: Badi H. Baltagi; Yusuf Soner Baskaya; Timur Hulagu
    Abstract: This paper presents wage curves for formal and informal workers using a rich individual level data for Turkey over the period 2005-2009. The wage curve is an empirical regularity describing a negative relationship between regional unemployment rates and individuals' real wages. While this relationship has been well documented for a number of countries including Turkey, less attention has focused on how this relationship differs for informal versus formal employment. This is of utmost importance for less developed countries where informal employment plays a signifcant role in the economy. Using the Turkish Household Labor Force Survey observed over 26 NUTS-2 regions, we find that real hourly wages of informal workers in Turkey are more sensitive to variations in regional unemployment rates than wages of formal workers. This is true for all workers as well as for different gender and age groups.
    Keywords: Formal/Informal Employment, Wage Curve, Regional Labor Markets
    JEL: C26 J30 J60 O17
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:tcb:wpaper:1216&r=ltv
  11. By: Jérémie Gignoux (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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Francisco H. G. Ferreira (The World Bank - The World Bank, IZA - Institute for the Study of Labor - IZA)
    Abstract: This paper proposes two related measures of educational inequality: one for educational achievement and another for educational opportunity. The former is the simple variance (or standard deviation) of test scores. It is selected after careful consideration of two measurement issues that have typically been overlooked in the literature: the implications of the standardization of test scores for inequality indices, and the possible sample selection biases arising from the PISA sampling frame. The measure of inequality of educational opportunity is given by the share of the variance in test scores which is explained by pre-determined circumstances. Both measures are computed for the 57 countries in which PISA surveys were conducted in 2006. Inequality of opportunity accounts for up to 35% of all disparities in educational achievement. It is greater in (most of) continental Europe and Latin America than in Asia, Scandinavia and North America. It is uncorrelated with average educational achievement and only weakly negatively correlated with per capita GDP. It correlates negatively with the share of spending in primary schooling, and positively with tracking in secondary schools.
    Keywords: Educational inequality ; Educational achievement ; Inequality of opportunity
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00646594&r=ltv
  12. By: Abel Brodeur (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 - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper provides estimates of the effects of smoking policies on self-reported well-being using US county-level data. Because the bans were implemented at different times, it is possible to exploit these variations to identify the effect on a broad range of outcomes like self-reported well-being. The impact of smoking bans is estimated on those likely to be smokers relatively to others in order to take into account the effect on former, potential and current smokers. Our estimates suggest that the implementation of smoking bans make those who are predicted to be smokers more satisfied with their life. Within-family externalities and time-inconsistent family-utility maximization explain these findings. Additionally, there is evidence that the largest effect of smoking bans is for parents and married couples where the spouse is predicted to smoke.
    Keywords: Smoking policies ; Subjective well-being ; Social interactions ; Behavior
    Date: 2012–02
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00664269&r=ltv
  13. By: Marco Castillo; Ragan Petrie; Máximo Torero; Lise Vesterlund
    Abstract: We examine gender differences in bargaining outcomes in a highly competitive and commonly used market: the taxi market in Lima, Peru. Examining the entire path of negotiation we find that men face higher initial prices and rejection rates. These differentials are consistent with both statistical and taste-based discrimination. To identify the source of the inferior treatment of men we conduct an experiment where passengers send a signal on valuation before negotiating. The signal eliminates gender differences and the response is shown only to be consistent with statistical discrimination. Our study secures identification within the market of interest and demonstrates that there are environments where sophisticated statistical inference is the sole source of differential gender outcomes.
    JEL: C78 C93 J16
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:18093&r=ltv

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