nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2014‒07‒05
six papers chosen by
Maximo Rossi
University of the Republic

  1. What Can Life Satisfaction Data Tell Us about Discrimination against Sexual Minorities? A Structural Equation Model for Australia and the United Kingdom* By Nattavudh Powdthavee; Mark Wooden
  2. Does grief transfer across generations? In-utero deaths and child outcomes. By Black, Sandra E.; Devereux, Paul J.; Salvanes, Kjell G.
  3. The Effects of Family Policy on Mothers' Labor Supply: Combining Evidence from a Structural Model and a Natural Experiment By Johannes Geyer; Peter Haan; Katharina Wrohlich
  4. Frequency and Intensity of Alcohol Consumption: New Evidence from Sweden By Heckley, Gawain A.; Jarl, Johan; Gerdtham , Ulf-G.
  5. Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labor Market Outcomes in Norway By Marianne Bertrand; Sandra E. Black; Sissel Jensen; Adriana Lleras-Muney
  6. The “Business Climate” and Economic Inequality By David Neumark; Jennifer Muz

  1. By: Nattavudh Powdthavee (Melbourne Institute of Applied Economic and Social Research); Mark Wooden (Melbourne Institute of Applied Economic and Social Research)
    Abstract: Very little is known about how the differential treatment of sexual minorities could influence subjective reports of overall well-being. This paper seeks to fill this gap. Data from two large surveys that provide nationally representative samples for two different countries – Australia (the HILDA Survey) and the UK (the UK Household Longitudinal Study) – are used to estimate a simultaneous equations model of life satisfaction. The model allows for self-reported sexual identity to influence a measure of life satisfaction both directly and indirectly through seven different channels: (i) income; (ii) employment; (iii) health (iv) partner relationships; (v) children; (vi) friendship networks; and (vii) education. Lesbian, gay and bisexual persons are found to be significantly less satisfied with their lives than otherwise comparable heterosexual persons. In both countries this is the result of a combination of direct and indirect effects.
    Keywords: Sexual orientation, sexual minorities, discrimination, life satisfaction, HILDA Survey, UKHLS
    JEL: I31 J71
    Date: 2014–04
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2014n09&r=ltv
  2. By: Black, Sandra E. (University of Texas); Devereux, Paul J. (University College Dublin); Salvanes, Kjell G. (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: While much is now known about the effects of physical health shocks to pregnant women on the outcomes of the in-utero child, we know little about the effects of psychological stresses. One clear form of stress to the mother comes from the death of a parent. We examine the effects of the death of the mother’s parent during pregnancy on both the short-run and the long-run outcomes of the infant. Our primary specification involves using mother fixed effects— comparing the outcomes of two children with the same mother but where a parent of the mother died during one of the pregnancies—augmented with a control for whether there is a death around the time of the pregnancy in order to isolate true causal effects of a bereavement during pregnancy. We find small negative effects on birth outcomes, and these effects are bigger for boys than for girls. The effects on birth outcomes seems to be driven by deaths due to cardiovascular causes suggesting that sudden deaths are more difficult to deal with. However, we find no evidence of adverse effects on adult outcomes. The results are robust to alternative specifications.
    Keywords: Intergenerational mobility; grief; children; health shocks.
    JEL: I10 I12 J13
    Date: 2014–06–30
    URL: http://d.repec.org/n?u=RePEc:hhs:nhheco:2014_023&r=ltv
  3. By: Johannes Geyer; Peter Haan; Katharina Wrohlich
    Abstract: Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers in Germany. In particular we estimate a structural labor supply model and exploit a natural experiment, i.e. the reform of parental leave benefits. By exploiting and combining the advantages of the different methods, i.e the internal validity of the natural experiment and the external validity of the structural model, we can go beyond evaluation studies restricted to one particular methodology. Our findings suggest that a combination of parental leave benefits and subsidized child care leads to sizable employment effects of mothers.Keywords: labor supply, parental leave benefits, childcare costs, structural model, natural experiment
    JEL: H31 J22 C52
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp645&r=ltv
  4. By: Heckley, Gawain A. (Dept. of Clinical Science, Lund University); Jarl, Johan (Dept. of Clinical Science, Lund University); Gerdtham , Ulf-G. (Department of Economics, Lund University)
    Abstract: This paper provides an extensive analysis of the demand for alcohol in terms of total quantity and quantity subdivided into frequency and intensity demand. The analysis compares across alcohol types (beer, wine and spirits), alcohol drinking pattern (average drinker vs. binge drinkers) and also how these decisions differ across gender. The analysis is based on a large sample of cross-sectional data from Sweden 2004-11. The results show a positive socioeconomic (income and education) gradient in quantity. This gradient is generally positive in the frequency decision while negative in the intensity decision. Women predominantly choose to drink wine and show a strong positive socioeconomic gradient in both frequency and intensity demand for wine. Binge drinkers show less of a differentiation across alcohol types and this is true even of binge drinking women. Smoking is universally positively associated with quantity, frequency and intensity of alcohol demand with the exception of wine binge drinkers. The results highlight that while quantity consumed has a positive socioeconomic gradient, policies targeted at the less affluent and less educated are likely to have the greatest impact in reducing the social cost of alcohol and in reducing the socioeconomic gradient in health and socioeconomic related health inequality.
    Keywords: Alcohol; demand; drinking pattern; binge drinking
    JEL: I10 I12 I14
    Date: 2014–06–27
    URL: http://d.repec.org/n?u=RePEc:hhs:lunewp:2014_025&r=ltv
  5. By: Marianne Bertrand; Sandra E. Black; Sissel Jensen; Adriana Lleras-Muney
    Abstract: In late 2003, Norway passed a law mandating 40 percent representation of each gender on the board of publicly limited liability companies. The primary objective of this reform was to increase the representation of women in top positions in the corporate sector and decrease gender disparity in earnings within that sector. We document that the newly (post-reform) appointed female board members were observably more qualified than their female predecessors, and that the gender gap in earnings within boards fell substantially. While the reform may have improved the representation of female employees at the very top of the earnings distribution (top 5 highest earners) within firms that were mandated to increase female participation on their board, there is no evidence that these gains at the very top trickled-down. Moreover the reform had no obvious impact on highly qualified women whose qualifications mirror those of board members but who were not appointed to boards. We observe no statistically significant change in the gender wage gaps or in female representation in top positions, although standard errors are large enough that we cannot rule economically meaningful gains. Finally, there is little evidence that the reform affected the decisions of women more generally; it was not accompanied by any change in female enrollment in business education programs, or a convergence in earnings trajectories between recent male and female graduates of such programs. While young women preparing for a career in business report being aware of the reform and expect their earnings and promotion chances to benefit from it, the reform did not affect their fertility and marital plans. Overall, in the short run the reform had very little discernible impact on women in business beyond its direct effect on the newly appointed female board members.
    JEL: J24 J3 J7 J78
    Date: 2014–06
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:20256&r=ltv
  6. By: David Neumark; Jennifer Muz
    Abstract: “Business climate indexes” characterize state economic policies, and are often used to try to influence economic policy debate. However, they are also useful in research as summaries of a large number of state policies that cannot be studied simultaneously. Prior research found that business climate indexes focused on productivity and quality of life do not predict economic growth, while indexes emphasizing taxes and costs of doing business indicate that low-tax, low-cost states have faster growth of employment, wages, and output. In this paper, we study the relationship between these two categories of business climate indexes and the promotion of equality or inequality. We do not find that the productivity/quality-of-life indexes predict more equitable outcomes, although some of the policies underlying them suggest they might. We do find, however, that the same tax-and-cost related indexes that are associated with higher economic growth are also associated with increases in inequality.
    JEL: H71 J38
    Date: 2014–06
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:20260&r=ltv

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