nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2012‒11‒24
six papers chosen by
Maximo Rossi
University of the Republic

  1. Social Spending and Income Redistribution in Argentina During the 2000s: the Rising Role of Noncontributory Pensions By Nora Lustig; Carola Pessino
  2. Intergenerational Earnings Mobility and Preferences for Redistribution By Siedler, Thomas; Sonnenberg, Bettina
  3. Assortative Matching and Gender By Merlino, Luca Paolo; Parrotta, Pierpaolo; Pozzoli, Dario
  4. The Relationship between Structural Change and Inequality: A Conceptual Overview with Special Reference to Developing Asia By Aizenman, Joshua; Lee, Minsoo; Park, Donghyun
  5. Kindergarten for All: Long Run Effects of a Universal Intervention By Drange , Nina; Havnes, Tarjei; Sandsør, Astrid M. J.
  6. High-Performance Management Practices and Employee Outcomes in Denmark By Cristini, Annalisa; Eriksson, Tor; Pozzoli, Dario

  1. By: Nora Lustig; Carola Pessino
    Abstract: Between 2003 and 2009, Argentina’s social spending as a share of GDP increased by 7.6 percentage points. Marginal benefit incidence analysis for 2003, 2006, and 2009 suggests that the contribution of cash transfers to the reduction of disposable income inequality and poverty rose markedly between 2006 and 2009 primarily due to the launching of a noncontributory pension program – the pension moratorium – in 2004. Noncontributory pensions as a share of GDP rose by 2.2 percentage points between 2003 and 2009 and entailed a redistribution of income to the poor, and from the formal sector pensioners with above minimum pensions to the beneficiaries of the pension moratorium. The redistributive impact of the expansion of public spending on education and health was also sizeable and equalizing, but to a lesser degree. An assessment of fiscal funding sources puts the sustainability of the redistributive policies into question, unless nonsocial spending is significantly cut.
    Keywords: social spending, benefit incidence, inequality, poverty, Argentina
    JEL: D31 H22 I38
    Date: 2012–11
    URL: http://d.repec.org/n?u=RePEc:cem:doctra:499&r=ltv
  2. By: Siedler, Thomas (University of Hamburg); Sonnenberg, Bettina (DIW Berlin)
    Abstract: This paper analyzes the extent to which intergenerational upward and downward mobility in earnings are related to individuals' preferences for redistribution. A novel survey question from the German Socio-Economic Panel Study – whether the taxes paid by unskilled workers are too high, adequate or too low – are used to elicit attitudes toward redistribution. Intergenerational mobility with regard to long-term earnings is measured using a rich panel data spanning an observation window of 22 years. The results reveal that intergenerational mobility is significantly related to preferences for redistribution. The empirical results yield strong and robust support for Piketty's (1995) rational-learning theory: individuals who experience upward (downward) intergenerational mobility are less (more) likely to favor redistribution taxation policies.
    Keywords: preferences for redistribution, intergenerational mobility, long-run earnings, panel data
    JEL: J62 H23
    Date: 2012–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6981&r=ltv
  3. By: Merlino, Luca Paolo (Free University of Brussels); Parrotta, Pierpaolo (Aarhus School of Business); Pozzoli, Dario (Aarhus University)
    Abstract: Exploiting the richness of the Danish register data on individuals and companies, we are able to provide an overall assessment of the assortative matching patterns arising in the period 1996-2005 controlling for firms and individual characteristics. We find strong differences between men and women in assortativity. While positive assortative matching in job-to-job transitions emerges for good female workers, good male workers are more likely to be promoted. These differences are not present in female friendly firms which have high profits and where good female workers tend to find jobs. Complementary analysis on job-to-unemployment and job-to-self-employment transitions reveals a lower employer's willingness to retain women. Overall, we find strong evidence of glass-ceilings in certain firms preventing women to climb the carrier ladder and pushing them to look for better jobs offered by more female friendly firms.
    Keywords: assortative matching, gender gap, glass ceiling, sticky floor
    JEL: J16 J24 J62
    Date: 2012–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6983&r=ltv
  4. By: Aizenman, Joshua (Asian Development Bank Institute); Lee, Minsoo (Asian Development Bank Institute); Park, Donghyun (Asian Development Bank Institute)
    Abstract: Structural change has a far-reaching impact on inequality. Extensive structural change is both a cause and consequence of the exceptionally rapid economic growth, which enabled developing Asia to raise living standards and reduce poverty at a historically unprecedented rate. The region has already begun the difficult and complex task of addressing inequality arising from structural change. There is a growing recognition that more sustainable growth supported by broad-based political and social support requires a growth strategy, which provides equality of opportunity, especially in education and employment. The newly developing more inclusive growth philosophy envisions expanded social protection systems and social safety nets to protect the poor and the vulnerable.
    Keywords: inequality; structural change; developing asia
    JEL: O15 O53 P46
    Date: 2012–11–13
    URL: http://d.repec.org/n?u=RePEc:ris:adbiwp:0396&r=ltv
  5. By: Drange , Nina (Statistics Norway); Havnes, Tarjei (University of Oslo); Sandsør, Astrid M. J. (University of Oslo)
    Abstract: Theory and evidence point towards particularly positive effects of high-quality child care for disadvantaged children. At the same time, disadvantaged families often sort out of existing programs. To counter differences in learning outcomes between children from different socioeconomic backgrounds, European governments are pushing for universal child care. However, evidence on the effects of universal programs is scarce. We provide evidence on the long-run effect on schooling of mandating kindergarten at age 5–6. Our identifying variation comes from a reform that lowered school starting-age from 7 to 6 in Norway in 1997. Our precise DD estimates reveal hardly any effect, both overall, across subsamples, and over the grading distribution. A battery of specification checks support our empirical strategy.
    Keywords: kindergarten, early childhood intervention, distributional effects, difference-in-differences, child care, child development
    JEL: J13 H40 I28
    Date: 2012–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6986&r=ltv
  6. By: Cristini, Annalisa (University of Bergamo); Eriksson, Tor (Aarhus School of Business); Pozzoli, Dario (Aarhus University)
    Abstract: High-performance work practices are frequently considered to have positive effects on corporate performance, but what do they do for employees? After assessing the correlation between organizational innovation and firm performance, this article investigates whether high-involvement work practices affect workers in terms of wages, wage inequality and workforce composition. The analysis is based on a survey directed at Danish firms matched with linked employer-employee data and also examines whether the relationship between high-involvement work practices and employee outcomes is affected by the industrial relations context.
    Keywords: workplace practices, wage inequality, workforce composition, hierarchy
    JEL: C33 J41 J53 L20
    Date: 2012–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6984&r=ltv

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