nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2017‒12‒03
seven papers chosen by
Maximo Rossi
Universidad de la República

  1. Long-run impacts of land regulation: evidence from tenancy reform in India By Besley, Timothy; Leight, Jessica; Pande, Rohini; Rao, Vijayendra
  2. Gender and Promotions: Evidence from Academic Economists in France By Clément Bosquet; Pierre-Philippe Combes; Cecilia García-Peñalosa
  3. The gender pay gap: statistical discrimination and self-selection By Ernesto Cárdenas
  4. Measuring inequality in the Middle East 1990-2016: The World's Most Unequal Region? By Alvaredo, Facundo; Assouad, Lydia; Piketty, Thomas
  5. Careful in the crisis?Determinants of older people's informal care receiptin crisis-struck European countries By Costa-i-Font, Joan; Karlsson, Martin; Øien, Henning
  6. Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care By Bruce Hollingsworth; Asako Ohinata; Matteo Picchio; Ian Walker
  7. Early-Life Correlates of Later-Life Well-Being: Evidence from the Wisconsin Longitudinal Study By Andrew E. Clark; Tom Lee

  1. By: Besley, Timothy; Leight, Jessica; Pande, Rohini; Rao, Vijayendra
    Abstract: Agricultural tenancy reforms have been widely enacted, but evidence on their long-run impact remains limited. In this paper, we provide such evidence by exploiting the quasi-random assignment of linguistically similar areas to different South Indian states that subsequently varied in tenancy regulation policies. Given imperfect credit markets, the impact of tenancy reform should vary by household wealth status, allowing us to exploit historic caste-based variation in landownership. Thirty years after the reforms, land inequality is lower in areas that saw greater intensity of tenancy reform, but the impact differs across caste groups. Tenancy reforms increase own cultivation among middle-caste households, but render low-caste households more likely to work as daily agricultural laborers. At the same time, agricultural wages increase. These results are consistent with tenancy regulations increasing land sales to relatively richer and more productive middle-caste tenants, but reducing land access for poorer low-caste tenants.
    Keywords: land reform; inequality; long-run impact of institutions
    JEL: O12 O13 Q15
    Date: 2016–01–01
  2. By: Clément Bosquet; Pierre-Philippe Combes; Cecilia García-Peñalosa
    Abstract: The promotion system for French academic economists provides an interesting environment to examine the promotion gap between men and women. Promotions occur through national competitions for which we have information both on candidates and on those eligible to be candidates. We can then examine the two stages of the process: application and success. Women are less likely to seek promotion and this accounts for up to 76% of the promotion gap. Being a woman also reduces the probability of promotion conditional on applying, although the gender difference is not statistically significant. Our results highlight the importance of the decision to apply.
    Keywords: gender gaps, promotions, academic labour markets
    JEL: J16 J7 I23
    Date: 2017–11
  3. By: Ernesto Cárdenas (Faculty of Economics and Management, Pontificia Universidad Javeriana Cali)
    Abstract: We develop a two sector competitive equilibrium model that rationalizes the gender pay gap by the coexistence of two mechanisms: a statistical discrimination mechanism linked to a stereotype belief in which women engage in child-rearing activities while men do not and a self-selection mechanism that makes men and women choose differently among unskilled jobs based on their physical endowments. We prove the existence of a competitive equilibrium where the gender pay gap arises. The model explains other empirical regularities related to women in the workplace like the motherhood penalty and the reversal education trend. We found that technological advancements reduce the gap among unskilled workers while an equal parental leave policy can reduce the gap among skilled workers. We study an Equal pay for Equal work policy and that in our model it may be an ineffective way to reduce the gender pay gap The version here presented corresponds to the updated study.
    Keywords: gender pay gap, statistical discrimination, self-selection, equal pay for equal work.
    JEL: J13 J16 J24 J71
    Date: 2017–11
  4. By: Alvaredo, Facundo; Assouad, Lydia; Piketty, Thomas
    Abstract: In this paper we combine household surveys, national accounts, income tax data and wealth data in order to estimate the level and evolution of income concentration in the Middle East for the period 1990-2016. According to our benchmark series, the Middle East appears to be the most unequal region in the world, with a top decile income share as large as 61%, as compared to 36% in Western Europe, 47% in the USA and 55% in Brazil. This is due both to enormous inequality between countries (particularly between oil-rich and population-rich countries) and to large inequality within countries (which we probably under-estimate, given the limited access to proper fiscal data). We stress the importance of increasing transparency on income and wealth in the Middle East, as well as the need to develop mechanisms of regional redistribution and investment.
    Date: 2017–10
  5. By: Costa-i-Font, Joan; Karlsson, Martin; Øien, Henning
    Abstract: Macroeconomic downturns can have an important impact on the receipt of informal and formal long-term care, since recessions increase the number of unemployed and affect net wealth. This paper investigates how the market for informal care changed during and after the Great Recession in Europe, with particular focus on their various determinants. We use data from the Survey of Health, Aging and Retirement in Europe, which includes a rich set of variables covering waves before and after the Great Recession. We find evidence of an increase in the availability of informal care after the economic downturn when controlling for year and country fixed effects. This trend is mainly driven by changes in care provision of individuals not cohabiting with the care recipient. We also find evidence of several determinants of informal care receipt changing during the crisis { such as physical needs, personal wealth and household structures.
    Keywords: long-term care; informal care; great recession; downturn; old age dependency.
    JEL: I18 J1
    Date: 2016–11–09
  6. By: Bruce Hollingsworth (Lancaster University, United Kingdom); Asako Ohinata (Department of Economics, University of Leicester, United Kingdom; CentER, Tilburg University, The Netherlands.); Matteo Picchio (Department of Economics and Social Sciences, Marche Polytechnic University, Ancona, Italy; Sherppa, Ghent University, Belgium; IZA, Germany.); Ian Walker (Management School, Lancaster University, United Kingdom; IZA, Germany.)
    Abstract: We investigate the impact of a policy reform, which introduced free formal personal care for all those aged 65 and above, on caregiving behaviour. Using a difference-indifferences estimator, we estimate that the free formal care reduced the probability of co-residential informal caregiving by 12.9%. Conditional on giving co-residential care, the mean reduction in the number of informal care hours is estimated to be 1:2 hours per week. The effect is particularly strong among older and less educated caregivers. In contrast to co-residential informal care, we find no change in extra-residential caregiving behaviour. We also observe that the average labour market participation and the number of hours worked increased in response to the policy introduction.
    Keywords: Long-term elderly care; ageing; financial support; informal caregiving; difference-in-differences
    JEL: C21 D14 I18 J14
    Date: 2017–11
  7. By: Andrew E. Clark; Tom Lee
    Abstract: We here use data from the Wisconsin Longitudinal Study (WLS) to provide one of the first analyses of the distal (early-life) and proximal (later-life) correlates of older-life subjective well-being. Unusually, we have two distinct measures of the latter: happiness and eudaimonia. Even after controlling for proximal covariates, outcomes at age 18 (IQ score, parental income and parental education) remain good predictors of well-being over 50 years later. In terms of the proximal covariates, mental health and social participation are the strongest predictors of both measures of well-being in older age. However, there are notable differences in the other correlates of happiness and eudaimonia. As such, well-being policy will depend to an extent on which measure is preferred.
    Keywords: life-course, well-being, eudaimonia, health, happiness
    JEL: I31 I38
    Date: 2017–11

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