nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2015‒08‒25
fourteen papers chosen by
Maximo Rossi
Universidad de la República

  1. Rising Aspirations Dampen Satisfaction By Andrew E. Clark; Akiko Kamesaka; Teruyuki Tamura
  2. Trust, Well-Being and Growth: New Evidence and Policy Implications By Yann Algan; Pierre Cahuc
  3. Explaining the Gender Wage Gap: Estimates from a Dynamic Model of Job Changes and Hours Changes By Liu, Kai
  4. Do Earnings Really Decline for Older Workers ? By Stephen Bazen; Kadija Charni
  5. Statistical Methods for Distributional Analysis By Frank A. Cowell; Emmanuel Flachaire
  6. Crime Victimisation and Subjective Well-Being: Panel Evidence from Australia By Mahuteau, Stéphane; Zhu, Rong
  7. Intergenerational Mobility and Interpersonal Inequality in an African Economy By Sylvie Lambert; Martin Ravallion; Dominique Van de Walle
  8. Winning big but feeling no better? The effect of lottery prizes on physical and mental health By Bénédicte H. Apouey; Andrew E. Clark
  9. Are Universities Becoming More Unequal? By Yan Lau; Harvey S. Rosen
  10. Robust normative comparisons of socially risky situations By Nicolas Gravel; Benoît Tarroux
  11. An Analysis of Wage Differentials between Full- and Part-Time Workers in Spain By Ramos, Raul; Sanromá, Esteban; Simón, Hipólito
  12. Limited Self-Control, Obesity and the Loss of Happiness By Alois Stutzer; Armando N. Meier
  13. Aggregating Elasticities: Intensive and Extensive Margins of Female Labour Supply By Orazio Attanasio, Peter Levell, Hamish Low, Virginia Sánchez-Marcos
  14. The Effects of Two Influential Early Childhood Interventions on Health and Healthy Behaviors By Conti, Gabriella; Heckman, James J.; Pinto, Rodrigo

  1. By: Andrew E. Clark (PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Akiko Kamesaka (Aoyama Gakuin University, ESRIN - European State Research Institute - ESA); Teruyuki Tamura (Sophia University - Sophia University)
    Abstract: It is commonly-believed that education is a good thing for individuals. Yet its correlation with subjective well-being is most often only weakly positive, or even negative, despite the many associated better individual-level outcomes We here square the circle using novel Japanese data on happiness aspirations. If reported happiness comes from a comparison of outcomes to aspirations, then any phenomenon raising both at the same time will have only a muted effect on reported well-being. We find that around half of the happiness effect of education is cancelled out by higher aspirations, and suggest a similar dampening effect for income.
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-01122749&r=ltv
  2. By: Yann Algan (ECON - Département d'économie - Sciences Po); Pierre Cahuc (ECON - Département d'économie - Sciences Po)
    Abstract: This survey reviews the recent research on trust, institutions, and economic development. It discusses the various measures of trust and documents the substantial heterogeneity of trust across space and time. The conceptual mechanisms that explain the influence of trust on economic performance and the methods employed to identify the causal impact of trust on economic performance are reviewed. We document the mechanisms of interactions between trust and economic development in the realms of finance, innovation, the organization of firms, the labor market, and the product market. The last part reviews recent progress to identify how institutions and policies can affect trust.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01169659&r=ltv
  3. By: Liu, Kai (Norwegian School of Economics)
    Abstract: I address the causes of the gender wage gap with a new dynamic model of wage, hours, and job changes that permits me to decompose the gap into a portion due to gender differences in preferences for hours of work and in constraints. The dynamic model allows the differences in constraints to reflect possible gender differences in job arrival rates, job destruction rates, the mean and variance of the wage offer distribution, and the wage cost of part-time work. The model is estimated using the 1996 panel of the Survey of Income and Program Participation. I find that the preference for part-time work increases with marriage and number of children among women but not among men. These demographic factors explain a sizable fraction of the gender gap in employment, but they explain no more than 6 percent of the gender wage gap. Differences in constraints, mainly in the form of the mean offered wages and rates of job arrival and destruction, explain most of the gender wage gap. Policy simulation results suggest that, relative to reducing the wage cost of part-time work, providing additional employment protection to part-time jobs is more effective in reducing the gender wage gap.
    Keywords: gender gap, job mobility, part-time work
    JEL: D91 J31 J16 J63
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp9255&r=ltv
  4. By: Stephen Bazen (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université); Kadija Charni (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université)
    Abstract: Cross section data suggest that the relationship between age and hourly earnings is an inverted-U shape. Evidence from panel data does not necessarily confirm this finding suggesting that older workers may not experience a reduction in earnings at the end of their working life. In this paper we use panel data on males for Great Britain in order to examine why the two types of data provide conflicting conclusions. Concentrating on the over 50s, several hypotheses are examined: overlapping cohorts, job tenure, job-changing, labour supply behaviour and selectivity bias. Cohort and individual fixed effects partly explain the divergent conclusions. However, for fully, year-on-year employed individuals, there is no evidence of earnings decline at the end of working life. We find no role for selectivity due to retirement, although shorter working hours or partial retirement along with job-changing late in life do provide an explanation for why hourly earnings decline for certain older workers. We find no evidence that the process of ageing itself leads to lower earnings as suggested by the cross section profile.
    Date: 2015–02
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01119425&r=ltv
  5. By: Frank A. Cowell (STICERD - LSE - London School of Economics); Emmanuel Flachaire (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université)
    Abstract: This Chapter is about the techniques, formal and informal, that are commonly used to give quantitative answers in the field of distributional analysis - covering subjects including inequality, poverty and the modelling of income distributions. It deals with parametric and non-parametric approaches and the way in which imperfections in data may be handled in practice.
    Date: 2014–04
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01115996&r=ltv
  6. By: Mahuteau, Stéphane (NILS, Flinders University); Zhu, Rong (NILS, Flinders University)
    Abstract: This paper estimates the effect of physical violence and property crimes on subjective well-being in Australia. Our methodology improves on previous contributions by (i) controlling for the endogeneity of victimisation and (ii) analysing the heterogeneous effect of victimisation along the whole distribution of well-being. Using fixed effects panel estimation, we find that both types of crimes reduce reported well-being to a large extent, with physical violence exerting a larger average effect than property crimes. Furthermore, using recently developed panel data quantile regression model with fixed effects, we show that the negative effects of both crimes are highly heterogeneous, with a monotonic decrease over the distribution of subjective well-being.
    Keywords: victimisation, subjective well-being, panel quantile regression
    JEL: C21 I31
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp9253&r=ltv
  7. By: Sylvie Lambert (PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Martin Ravallion (Georgetown University - Georgetown University); Dominique Van de Walle (Banque Mondiale - Banque Mondiale)
    Abstract: How much economic mobility is there across generations in a poor, primarily rural, economy? How much do intergenerational linkages contribute to current inequality? We address these questions using original survey data on Senegal that include an individualized measure of consumption. While intergenerational linkages are evident, we find a relatively high degree of mobility across generations, associated with the shift from farm to non-farm sectors and greater economic activity of women. Male-dominated bequests of land and housing bring little gain to consumption and play little role in explaining inequality, though they have important effects on sector of activity. Inheritance of non-land assets and the education and occupation of parents (especially the mother) and their choices about children's schooling are more important to adult welfare than property inheritance. Significant gender inequality in consumption is evident, though it is almost entirely explicable in terms of factors such as education and (non-land) inheritance. There are a number of other pronounced gender differences, with intergenerational linkages coming through the mother rather than the father.
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:hal:pseose:halshs-00933975&r=ltv
  8. By: Bénédicte H. Apouey (PSE - Paris-Jourdan Sciences Economiques - CNRS - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), IZA - Institute for the Study of Labor - IZA)
    Abstract: We use British panel data to determine the exogenous impact of income on a number of individual health outcomes: general health status, mental health, physical health problems, and health behaviours (drinking and smoking). Lottery winnings allow us to make causal statements regarding the effect of income on health, as the amount won by winners is largely exogenous. Positive income shocks have no significant effect on self-assessed overall health, but a significant positive effect on mental health. This result seems paradoxical on two levels. First, there is a well-known gradient in health status in cross-section data, and, second, general health should partly reflect mental health, so that we may expect both variables to move in the same direction. We propose a solution to the first apparent paradox by underlining the endogeneity of income. For the second, we show that lottery winnings are also associated with more smoking and social drinking. General health will reflect both mental health and the effect of these behaviours, and so may not improve following a positive income shock.
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:hal:pseose:halshs-00566789&r=ltv
  9. By: Yan Lau; Harvey S. Rosen
    Abstract: Observers have expressed concern about growing inequality in resources across universities. But are universities really becoming more unequal? We argue that the typical approach of examining endowment growth alone is not sensible. In line with the literature on household inequality, we focus instead on a comprehensive income measure. We find that although there is considerable inequality among institutions, concerns about the inexorable growth of inequality are overblown. Whether one looks at income, endowment wealth, or expenditure, inequality has been high but stable, exhibiting only negligible increases in recent years. Furthermore, there has been little mobility within the higher education sector.
    JEL: I22 I23
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21432&r=ltv
  10. By: Nicolas Gravel (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université); Benoît Tarroux (CREM - Centre de Recherche en Economie et Management - CNRS - Université de Caen Basse-Normandie - UR1 - Université de Rennes 1)
    Abstract: In this paper, we theoretically characterize robust empirically implementable normative criteria for evaluating socially risky situations. Socially risky situations are modeled as distributions, among individuals, of lotteries on a finite set of state-contingent pecuniary consequences. Individuals are assumed to have selfish Von Neumann-Morgenstern preferences for these socially risky situations. We provide empirically implementable criteria that coincide with the unanimity, over a reasonably large class of such individual preferences, of anonymous and Pareto-inclusive Von Neuman Morgenstern social rankings of risks. The implementable criteria can be interpreted as sequential expected poverty dominance.An illustration of the usefulness of the criteria for comparing the exposure to unemployment risk of different segments of the French and US workforce is also provided.
    Date: 2015–02
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-01057024&r=ltv
  11. By: Ramos, Raul (University of Barcelona); Sanromá, Esteban (University of Barcelona); Simón, Hipólito (Universidad de Alicante)
    Abstract: This research examines wage differences between part-time and full-time workers using microdata from the Spanish Structure of Earnings Survey. The main contribution of the paper is related to the analysis of differences along the wage distribution using econometric decomposition methods and introducing a regional perspective. The evidence shows that part-time workers in Spain experience a significant wage disadvantage. This disadvantage is worse in the case of female workers and it is not homogenous along the wage distribution, being comparatively more relevant for the most qualified women and becoming positive for the most qualified men. However, the disadvantage is practically explained by the endowments of characteristics, with a leading role of segregation of part-time workers in low-wage firms. From a regional perspective, although in the majority of the regions wage differences tend to be explained by endowments of characteristics, there are several regions where the unexplained part of the differential is significant, particularly in the case of male workers. These regional differences seem to be related to differences in the market power of firms at the regional level.
    Keywords: part-time work, wage gap, regional differences
    JEL: J31 J22 J41 R23
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp9257&r=ltv
  12. By: Alois Stutzer; Armando N. Meier
    Abstract: Is obesity the consequence of an optimally chosen lifestyle or do people consume too much relative to their long-term preferences? The latter perspective accepts that people might face self-control problems when exposed to the immediate gratification from food. We exploit unique survey data for Switzerland in multinomial logit and ordered probit regressions to study i) the covariates of obesity including indicators of self-control, and ii) the consequences of obesity on the subjective well-being of people with limited willpower. Our main finding is that obesity decreases the well-being of individuals who report having limited self-control, but not otherwise.
    Keywords: obesity; revealed preference; self-control problem; subjective well-being
    JEL: D12 D91 I12 I31
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:cra:wpaper:2015-14&r=ltv
  13. By: Orazio Attanasio, Peter Levell, Hamish Low, Virginia Sánchez-Marcos
    Abstract: There is a renewed interest in the size of labour supply elasticities and the discrepancy between micro and macro estimates. Recent contributions have stressed the distinction between changes in labour supply at the extensive and the intensive margin. In this paper, we stress the importance of individual heterogeneity and aggregation problems. At the intensive margins, simple specications that seem to fit the data give rise to non linear expressions that do not aggregate in a simple fashion. At the extensive margin, aggregate changes in participation are likely to depend on the cross sectional distribution of state variables when a shock hits and, therefore, are likely to be history dependent. We tackle these aggregation issues directly by specifying a life cycle model to explain female labour supply in the US and estimate its various components. We estimate the parameters of different component of the model. Our results indicate that (i) at the intensive margin, Marshallian and Hicksian elasticities are very heterogeneous and, on average, relatively large; (ii) Frisch elasticities are, as implied by the theory, even larger; (iii) aggregate labour supply elasticities seem to vary over the business cycle, being larger during recessions.
    Keywords: labour supply elasticities, heterogeneity, aggregation, non-separability
    JEL: J22 D91
    Date: 2015–06–15
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1519&r=ltv
  14. By: Conti, Gabriella (University College London); Heckman, James J. (University of Chicago); Pinto, Rodrigo (University of California, Los Angeles)
    Abstract: This paper examines the long-term impacts on health and healthy behaviors of two of the oldest and most widely cited U.S. early childhood interventions evaluated by the method of randomization with long-term follow-up: the Perry Preschool Project (PPP) and the Carolina Abecedarian Project (ABC). There are pronounced gender effects strongly favoring boys, although there are also effects for girls. Dynamic mediation analyses show a significant role played by improved childhood traits, above and beyond the effects of experimentally enhanced adult socioeconomic status. These results show the potential of early life interventions for promoting health.
    Keywords: health, early childhood intervention, social experiment, randomized trial, Abecedarian Project, Perry Preschool Project
    JEL: C12 C93 I12 I13 J13 J24
    Date: 2015–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp9247&r=ltv

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