nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2017‒01‒29
six papers chosen by
Maximo Rossi
Universidad de la República

  1. 'Acting Wife': Marriage Market Incentives and Labor Market Investments By Leonardo Bursztyn; Thomas Fujiwara; Amanda Pallais
  2. Does postponing minimum retirement age improve healthy behaviours before retirement? Evidence from middle-aged Italian workers? By Bertoni, Marco; Brunello, Giorgio; Mazzarella, Gianluca
  3. Locus of Control and Investment in Training By Marco Caliendo; Deborah A. Cobb-Clark; Helke Seitz; Arne Uhlendorff
  4. The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries By Claudia Olivetti; Barbara Petrongolo
  5. Euler Equations, Subjective Expectations and Income Shocks By Agnes Kovacs; Orazio Attanasio
  6. Does Family Planning Increase Children's Opportunities? Evidence from the War on Poverty and the Title X By Martha J. BAILEY; Zoë McLaren; Olga MALKOVA

  1. By: Leonardo Bursztyn; Thomas Fujiwara; Amanda Pallais
    Abstract: Do single women avoid career-enhancing actions because these actions could signal personality traits, like ambition, that are undesirable in the marriage market? We answer this question through two field experiments in an elite U.S. MBA program. Newly-admitted MBA students filled out a questionnaire on job preferences and personality traits to be used by the career center in internship placement; randomly-selected students thought their answers would be shared with classmates. When they believed their classmates would not see their responses, single and non-single women answered similarly. However, single women reported desired yearly compensation $18,000 lower and being willing to travel seven fewer days per month and work four fewer hours per week when they expected their classmates would see their answers. They also reported less professional ambition and tendency for leadership. Neither men nor non-single women changed their answers in response to peer observability. A supplementary experiment asked students to make choices over hypothetical jobs before discussing their choices in their career class small groups; we randomly varied the groups' gender composition. Single women were much less likely to select career-focused jobs when their answers would be shared with male peers, especially single ones. Two results from observational data support our experimental results. First, in a new survey, almost three-quarters of single female students reported avoiding activities they thought would help their career because they did not want to appear ambitious. They eschewed these activities at higher rates than did men and non-single women. Second, while unmarried women perform similarly to married women in class when their performance is kept private from classmates (on exams and problem sets), they have significantly lower participation grades.
    JEL: C93 J12 J16 Z10
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23043&r=ltv
  2. By: Bertoni, Marco (university of padova); Brunello, Giorgio (university of padova); Mazzarella, Gianluca (university of padova)
    Abstract: By increasing the residual working horizon of employed individuals, pension reforms that raise minimum retirement age are likely to affect the returns to investments in health-promoting behaviours before retirement, with consequences for individual health. Using the exogenous variation in minimum retirement age induced by a sequence of Italian pension reforms during the 1990s and 2000s, we show that Italian males aged 40 to 49 reacted to the longer time to retirement by raising regular exercise and by reducing smoking and regular alcohol consumption. Dietary habits were also affected, with positive consequences on obesity and self-reported satisfaction with health.
    JEL: H55 I12 J26
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:unm:umagsb:2016016&r=ltv
  3. By: Marco Caliendo; Deborah A. Cobb-Clark; Helke Seitz; Arne Uhlendorff
    Abstract: This paper extends standard models of work-related training by explicitly incorporating workers' locus of control into the investment decision. Our model both differentiates between general and specific training and accounts for the role of workers and firms in training decisions. Workers with an internal locus of control are predicted to engage in more general training than are their external co-workers because their subjective expected investment returns are higher. In contrast, we expect little relationship between specific training and locus of control because training returns largely accrue to firms rather than workers. We then empirically test the predictions of our model using data from the German Socioeconomic Panel (SOEP). We find that, consistent with our model, locus of control is related to participation in general but not specific training. Moreover, we provide evidence that locus of control influences participation in general training through its effect on workers' expectations about future wage increases. Specifically, general training is associated with a much larger increase in the expected likelihood of receiving a future pay raise for those with an internal rather than external locus of control, while we do not find any relationship in the case of specific training. Actual post-training wages for those who receive general or specific training do not depend on locus of control.
    Keywords: Human Capital Investment, On-the-job Training, Locus of Control, Wage Expectations
    JEL: J24 C23 D84
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp890&r=ltv
  4. By: Claudia Olivetti; Barbara Petrongolo
    Abstract: We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. The outcomes of interest are female employment, gender gaps in earnings and fertility. We begin with a discussion of the historical introduction of family policies ever since the end of the nineteenth century and then turn to the details regarding family policies currently in effect across high-income nations. We sketch a framework concerning the effects of family policy to motivate our country- and micro-level evidence on the impact of family policies on gender outcomes. Most estimates of the impact of parental leave entitlement on female labor market outcomes range from negligible to weakly positive. The verdict is far more positive for the beneficial impact of spending on early education and childcare.
    Keywords: parental leave, childcare, family policies, gender gaps
    JEL: J13 J16 J18
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1464&r=ltv
  5. By: Agnes Kovacs; Orazio Attanasio
    Abstract: Abstract In this paper, we make three substantive contributions: first, we use elicited subjective income expectations to identify the levels of permanent and transitory income shocks in a life-cycle framework; second, we use these shocks to assess whether households' consumption is insulated from them; third, we use the shock data to estimate an Euler equation for consumption. We find that households are able to smooth transitory shocks, but adjust their consumption in response to permanent shocks, albeit not fully. The estimates of the Euler equation parameters with and without expectational errors are similar, which is consistent with rational expectations. We break new ground by combining data on subjective expectations about future income from the Michigan Survey with micro data on actual income from the Consumer Expenditure Survey.
    Keywords: life cycle models, estimating Euler Equations, survey expectations
    JEL: C13 D12 D84 D91 E21
    Date: 2017–01–24
    URL: http://d.repec.org/n?u=RePEc:oxf:wpaper:820&r=ltv
  6. By: Martha J. BAILEY (University of Michigan); Zoë McLaren (University of Michigan); Olga MALKOVA (University of Kentucky)
    Abstract: This paper examines the relationship between parents’ access to family planning and the economic resources of the average child. Using the county-level introduction of U.S. family planning programs between 1964 and 1973, we find that children born after programs began had 2.5% higher household incomes. They were also 7% less likely to live in poverty and 11% less likely to live in households receiving public assistance. Even with extreme assumptions about selection, these estimates are large enough to imply that family planning programs directly increased children’s resources, including increases in mothers’ paid work and increased childbearing within marriage.
    Date: 2016–09
    URL: http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4m2172qdla9frbe808qonnn40r&r=ltv

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