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on Unemployment, Inequality and Poverty |
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Issue of 2016‒02‒29
seven papers chosen by |
| By: | Burkhauser, Richard V. (Cornell University); Herault, Nicolas (Melbourne Institute of Applied Economic and Social Research); Jenkins, Stephen P. (London School of Economics); Wilkins, Roger (Melbourne Institute of Applied Economic and Social Research) |
| Abstract: | Estimates of UK income inequality trends differ substantially according to whether estimates are based on household survey data (used for official statistics) or tax return data (used in the top incomes literature). We reconcile differences in variable definitions and combine survey and tax return data in order to take advantage of the much better coverage of top incomes in the latter, and provide improved estimates of UK inequality trends since the mid-1990s. We show there was a marked increase in income inequality in the early 2000s that survey-based estimates do not reveal, and our conclusions are robust to changes in the definitions of income, income-sharing unit, and summary inequality measure. In addition, our reconciled and combined data provide more comparable estimates of UK-US inequality trends than the top incomes literature to date. |
| Keywords: | inequality, income inequality, top income shares, HBAI, SPI, top incomes, tax return data, survey data |
| JEL: | D31 C81 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9718&r=ltv |
| By: | Eric A. Hanushek; Jens Ruhose; Ludger Woessmann |
| Abstract: | Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted measures of human capital can explain within-country income differences. We develop detailed measures of state human capital based on school attainment from census micro data and on cognitive skills from state- and country-of-origin achievement tests. Partitioning current state workforces into state locals, interstate migrants, and immigrants, we adjust achievement scores for selective migration. We use the new human capital measures in development accounting analyses calibrated with standard production parameters. We find that differences in human capital account for 20-35 percent of the current variation in per-capita GDP among states, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses. |
| JEL: | I25 J24 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:hoo:wpaper:15112&r=ltv |
| By: | John V. Winters (Oklahoma State University); Yu Li (Oklahoma State University) |
| Abstract: | This paper examines the effects of county-level urbanization and natural amenities on subjective well-being (SWB) in the U.S. SWB is measured using individual-level data from the Behavioral Risk Factor Surveillance System (BRFSS) which asks respondents to rate their overall life satisfaction. Using individual-level SWB data allows us to control for several important individual characteristics. The results suggest that urbanization lowers SWB, with relatively large negative effects for residents in dense counties and large metropolitan areas. Natural amenities also affect SWB, with warmer winters having a significant positive effect on selfreported life-satisfaction. Implications for researchers and policymakers are discussed. |
| Keywords: | subjective well-being; urbanization; population density; amenities; quality of life |
| JEL: | I00 Q00 R00 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:okl:wpaper:1508&r=ltv |
| By: | Orazio P. Attanasio; Andrea Bonfatti; Sagiri Kitao; Guglielmo Weber |
| Abstract: | This paper studies the effect of demographic transitions on the economy of Latin America and the Caribbean (LAC). The paper builds a model of multi-regions of the world and derives the path of macroeconomic variables including aggregate output, capital, labor and the saving rate as economies face a rapid shift in demographics. The timing and the extent of the demographic transition differ across regions. The model is simulated under both closed economy and open economy assumptions to quantify the roles played by factor mobility across regions in shaping capital accumulation and equilibrium factor prices. |
| Keywords: | Economic Development & Growth, Income, Consumption & Saving, Interest rates, Wages, Social Security, Capital flows, Capital flows, Demographic trends, Latin America and the Caribbean (LAC) |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:89358&r=ltv |
| By: | Eric A. Hanushek; Guido Schwerdt; Ludger Woessmann; Lei Zhang |
| Abstract: | Policy proposals promoting vocational education focus on the school-to-work transition. But with technological change, gains in youth employment may be offset by less adaptability and diminished employment later in life. To test for this trade-off, we employ a difference-in-differences approach that compares employment rates across different ages for people with general and vocational education. Using micro data for 11 countries from IALS, we find strong and robust support for such a trade-off, especially in countries emphasizing apprenticeship programs. German Microcensus data and Austrian administrative data confirm the results for within-occupational-group analysis and for exogenous variation from plant closures, respectively. |
| JEL: | J24 J64 J31 I20 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:hoo:wpaper:15113&r=ltv |
| By: | Costas Meghir (Economics Deptartment, Yale University); Orazio Attanasio (University College London); Sarah Cattan (Institute for Fiscal Studies); Emla Fitzsimons (UCL Institute of Education and Institute for Fiscal Studies); Marta Rubio-Codina (Institute for Fiscal Studies and Inter-American Development Bank) |
| Abstract: | We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children. We estimate production functions for cognitive and socio-emotional skills as a function of maternal skills and child's past skills, as well as material and time investments that are treated as endogenous. The effects of the program can be fully explained by increases in parental investments, which have strong effects on outcomes and are complementary to both maternal skills and child's past skills. |
| Keywords: | human capital, early childhood development, poverty alleviation |
| JEL: | J13 J24 I24 I25 I32 O15 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:1046&r=ltv |
| By: | Sabatini, Fabio; Sarracino, Francesco |
| Abstract: | Online social networks, such as Facebook, disclose an unprecedented volume of personal information amplifying the occasions for social comparisons, which are a source of frustration. We test the hypothesis that the use of social networking sites (SNS) increases social comparisons as proxied by people’s dissatisfaction with their income. After controlling for the possibility of reverse causality, our results suggest that SNS users have a higher probability to compare their achievements with those of others. We conclude that SNS can be a strong engine of frustration for their users. |
| Keywords: | social networks; social networking sites; social comparisons; satisfaction with income; relative deprivation. |
| JEL: | D83 I31 O33 Z1 Z13 |
| Date: | 2016–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69201&r=ltv |