nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2017‒04‒23
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Personality Traits, Intra-household Allocation and the Gender Wage Gap By Christopher Flinn; Petra Todd; Weilong Zhang
  2. Do Payroll Tax Breaks Stimulate Formality? Evidence from Colombia’s Reform By Adriana Kugler; Maurice Kugler; Luis Omar Herrera Prada
  3. Challenged by Migration: Europe’s Options By Constant, Amelie F.; Zimmermann, Klaus F.
  4. Equality among Unequals By Mathieu Faure; Nicolas Gravel

  1. By: Christopher Flinn (New York University); Petra Todd (University of Pennsylvania); Weilong Zhang (University of Pennsylvania)
    Abstract: A model of how personality traits affect household time and resource allocation decisions and wages is developed and estimated. In the model, households choose between two modes of behavior: cooperative or noncooperative. Spouses receive wage offers and allocate time to supplying labor market hours and to producing a public good. Personality traits, measured by the so-called Big Five traits, can affect household bargaining weights and wage offers. Model parameters are estimated by Simulated Method of Moments using the Household Income and Labor Dynamics in Australia (HILDA) data. Personality traits are found to be important determinants of household bargaining weights and of wage offers and to have substantial implications for understanding the sources of gender wage disparities.
    Keywords: gender wage differentials, personality and economics outcomes, household bargaining, Time Allocation
    JEL: D10 J12 J16 J22 J31 J71
    Date: 2017–04
    URL: http://d.repec.org/n?u=RePEc:hka:wpaper:2017-029&r=ltv
  2. By: Adriana Kugler; Maurice Kugler; Luis Omar Herrera Prada
    Abstract: Alternative work arrangements have grown rapidly around the world. In Latin America, these alternative work arrangements have long been part of the labor market and have continued to grow. The informal sector grew rapidly in Latin America over the past few decades comprising up to half of the working population in many countries. Some attribute the growth in alternative work arrangements and informality to regulations and taxes, while others argue that it is precisely the lack of enforcement of regulations that allows unprotected employment arrangements to flourish. We examine whether reducing taxes associated with employment stimulates formal sector employment. We exploit the fact that the Tax Reform introduced in Colombia in 2012 affected only certain types of workers and not others. In particular, workers earning less than 10 minimum wages (MW) and self-employed workers with more than 2 employees experienced a reduction of payroll taxes of 13.5% between 2013 and 2014. We use the Colombian Household Surveys, Social Security records and the Monthly Manufacturing Sample to conduct difference-in-difference analyses of the reform. We find evidence of increased formal employment for the affected groups after the reform using all three datasets. We find that the probability of formal employment and the likelihood of transitioning into registered employment increased for the affected groups after the reform. We also find that the level and share of permanent employment relative to temp employment grew after the reform for those earnings less than 10 MW. The results are greatest for those in smaller firms and those earnings close to the MW.
    JEL: H2 J2 J24 J31
    Date: 2017–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23308&r=ltv
  3. By: Constant, Amelie F.; Zimmermann, Klaus F.
    Abstract: This paper examines the migration and labor mobility in the European Union and elaborates on their importance for the existence of the EU. Against all measures of success, the current public debate seems to suggest that the political consensus that migration is beneficial is broken. This comes with a crisis of European institutions in general. Migration and labor mobility have not been at the origin of the perceived cultural shift. The EU in its current form and ambition could perfectly survive or collapse even if it solves its migration challenge. But it will most likely collapse, if it fails to solve the mobility issue by not preserving free internal labor mobility and not establishing a joint external migration policy.
    Keywords: labor mobility,migration,European Union,refugees
    JEL: D01 D02 D61 F02 F16 F22 F66 J6
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:46&r=ltv
  4. By: Mathieu Faure (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Nicolas Gravel (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille)
    Abstract: This paper establishes an equivalence between three incomplete rankings of distributions of income among agents that are vertically differentiated with respect to some other non-income characteristic (health, household size, etc.). The first ranking is that associated with the possibility of going from one distribution to the other by a finite sequence of income transfers from richer and more highly ranked agents to poorer and less highly ranked ones. The second ranking is the unanimity of all comparisons of two distributions made by a utilitarian planer who assumes that agents convert income into utility by the same function exhibiting a marginal utility of income that is decreasing with respect to both income and the source of vertical differentiation. The third ranking is the Bourguignon (1989) ordered poverty gap dominance criterion.
    Keywords: equalization, transfers, heterogenous agents, poverty gap, Dominance, utilitarianism
    JEL: D30 D63 I32
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:aim:wpaimx:1702&r=ltv

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