nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2018‒08‒13
ten papers chosen by
Maximo Rossi
Universidad de la República

  1. Locus of control and its intergenerational implications forearly childhood skill formation By Lekfuangfu, Warn N; Powdthavee, Nattavudh; Warrinnier, Nele; Cornaglia, Francesca
  2. Unfairness at Work: Well-Being and Quits By Marta Barazzetta; Andrew E. Clark; Conchita D'Ambrosio
  3. The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data By Sarah Flèche; Warn Lekfuangfu; Andrew E. Clark
  4. The Supply of Skill and Endogenous Technical Change: Evidence From a College Expansion Reform By Carneiro, Pedro; Liu, Kai; Salvanes, Kjell G
  5. Social Preferences and Social Curiosity By Weiwei Tasch; Daniel Houser
  6. Narratives, Imperatives, and Moral Reasoning By Roland Bénabou; Armin Falk; Jean Tirole
  7. Immigration and Redistribution By Alesina, Alberto F; Miano, Armando; Stantcheva, Stefanie
  8. Early-life correlates of later-life well-being: Evidence from the Wisconsin Longitudinal Study By Andrew E. Clark; Tom Lee
  9. Testing By Annika B. Bergbauer; Eric A. Hanushek; Ludger Woessmann
  10. How Sensitive is Regional Poverty Measurement in Latin America to the Value of the Poverty Line? By Andrés Castañeda; Santiago Garriga; Leonardo Gasparini; Leonardo Lucchetti; Daniel Valderrama

  1. By: Lekfuangfu, Warn N; Powdthavee, Nattavudh; Warrinnier, Nele; Cornaglia, Francesca
    Abstract: This paper builds upon Cunha’s (2015) subjective rationality model in which parents have a subjective belief about the impact of their investment on the early skill formation of their children. We propose that this subjective belief is determined in part by locus of control (LOC), i.e., the extent to which individuals believe that their actions can influence future outcomes. Consistent with the theory, we show that maternal LOC measured at the 12th week of gestation strongly predicts maternal attitudes towards parenting style, maternal time investments, as well as early and late cognitive outcomes. We also utilize the variation in inputs and outputs by maternal LOC to help improve the specification typically used in the estimation of skill production function parameters.
    Keywords: locus of control; parental investment; human capital accumulation; early skill formation; ALSPAC
    JEL: I31 J01
    Date: 2017–04–27
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:67366&r=ltv
  2. By: Marta Barazzetta (Uni.lu - Université du Luxembourg); Andrew E. Clark (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Conchita D'Ambrosio (Uni.lu - Université du Luxembourg)
    Abstract: We consider the effect of unfair income on both subjective well-being and objective future job quitting. In five waves of German Socio-Economic Panel data, the extent to which labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.
    Keywords: SOEP,quits,Fair income,subjective well-being
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01431172&r=ltv
  3. By: Sarah Flèche (Centre for Economic Performance - LSE - London School of Economics and Political Science); Warn Lekfuangfu (LSE - London School of Economics and Political Science, Chulalongkorn University (THAILAND) - Chulalongkorn University (THAILAND)); Andrew E. Clark (Centre for Economic Performance - LSE - London School of Economics and Political Science, LSE - London School of Economics and Political Science, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: To what extent do childhood experiences continue to affect adult wellbeing over the life course? Previous work on this link has been carried out either at one particular adult age or for some average of adulthood. We here use two British birth-cohort datasets (the 1958 NCDS and the 1970 BCS) to map out the time profile of the effect of childhood on adult outcomes, including life satisfaction. We find that the effect of many aspects of childhood do not fade away over time, but are rather remarkably stable. In both birth cohorts child non-cognitive skills are the strongest predictors of adult life satisfaction at all ages. Of these, emotional health is the strongest. Childhood cognitive performance is more important than good conduct in explaining adult life satisfaction in the earlier cohort, whereas this ranking is inverted in the more recent BCS.
    Keywords: life satisfaction,cohort data,childhood,adult outcomes
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01570057&r=ltv
  4. By: Carneiro, Pedro; Liu, Kai; Salvanes, Kjell G
    Abstract: We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several cities in Norway, resulting from the construction of new colleges in the 1970s. We find that skilled wages increased as a response, suggesting that along with an increase in the supply there was also an increase in demand for skill. We also show that college openings led to an increase in the productivity of skilled labor and investments in R&D. Our findings are consistent with models of endogenous technical change where an abundance of skilled workers may encourage firms to adopt skill-complementary technologies, leading to an upward-sloping long-run demand for skill.
    Keywords: College Reform; endogenous technical change; Supply of Skills
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:13045&r=ltv
  5. By: Weiwei Tasch; Daniel Houser
    Abstract: Over the last two decades social preferences have been implicated in a wide variety of key economic behaviors. Here we investigate connections between social preferences and the demand for information about others’ economic decisions and outcomes, which we denote “social curiosity.” Our analysis is within the context of the inequality aversion model of Fehr and Schmidt (1999). Using data from laboratory experiments with sequential public goods games, we estimate social preferences at the individual level, and then correlate social preferences with one’s willingness to pay to make visible others’ contribution decisions. Our investigation enables us to shed light on how costs to knowing others’ economic decisions and outcomes impact decisions among people with different social preferences, and in particular the extent to which such costs impact the willingness for groups to cooperate.
    Keywords: laboratory experiment, curiosity, inequality aversion, sequential public goods game
    JEL: C91 H41
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_7132&r=ltv
  6. By: Roland Bénabou; Armin Falk; Jean Tirole
    Abstract: By downplaying externalities, magnifying the cost of moral behavior, or suggesting not being pivotal, exculpatory narratives can allow individuals to maintain a positive image when in fact acting in a morally questionable way. Conversely, responsibilizing narratives can help sustain better social norms. We investigate when narratives emerge from a principal or the actor himself, how they are interpreted and transmitted by others, and when they spread virally. We then turn to how narratives compete with imperatives (general moral rules or precepts) as alternative modes of communication to persuade agents to behave in desirable ways.
    JEL: D62 D64 D78 D83 D91 H41 K42 L14 Z13
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:24798&r=ltv
  7. By: Alesina, Alberto F; Miano, Armando; Stantcheva, Stefanie
    Abstract: We design and conduct large-scale surveys and experiments in six countries to investigate how natives' perceptions of immigrants influence their preferences for redistribution. We find strikingly large biases in natives' perceptions of the number and characteristics of immigrants: in all countries, respondents greatly overestimate the total number of immigrants, think immigrants are culturally and religiously more distant from them, and are economically weaker -- less educated, more unemployed, poorer, and more reliant on government transfers -- than is the case. While all respondents have misperceptions, those with the largest ones are systematically the right-wing, the non-college educated, and the low-skilled working in immigration-intensive sectors.Support for redistribution is strongly correlated with the perceived composition of immigrants -- their origin and economic contribution -- rather than with the perceived share of immigrants per se. Given the very negative baseline views that respondents have of immigrants, simply making them think about immigration in a randomized manner makes them support less redistribution, including actual donations to charities. We also experimentally show respondents information about the true i) number, ii) origin, and iii) ``hard work'' of immigrants in their country. On its own, information on the ``hard work'' of immigrants generates more support for redistribution. However, if people are also prompted to think in detail about immigrants' characteristics, then none of these favorable information treatments manages to counteract their negative priors that generate lower support for redistribution.
    Keywords: Fairness; Immigration; Online Experiment; Perceptions; race; redistribution; survey; taxation
    JEL: D72 D91 H21 H23 H24 H41
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:13035&r=ltv
  8. By: Andrew E. Clark (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Tom Lee (Institute for Fiscal Studies)
    Abstract: We use data from the Wisconsin Longitudinal Study (WLS) to consider the distal and proximal correlates of happiness and eudaimonia in later life. 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 well-being. Although some factors are important in explaining both happiness and eudaimonia, there are notable differences between the two measures: well-being policy will thus depend to an extent on which measure is preferred.
    Keywords: depression,eudaimonia,health,Life-course,well-being
    Date: 2017–07
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01570052&r=ltv
  9. By: Annika B. Bergbauer; Eric A. Hanushek; Ludger Woessmann
    Abstract: School systems regularly use student assessments for accountability purposes. But, as highlighted by our conceptual model, different configurations of assessment usage generate performance-conducive incentives of different strengths for different stakeholders in different school environments. We build a dataset of over 2 million students in 59 countries observed over 6 waves in the international PISA student achievement test 2000-2015. Our empirical model exploits the country panel dimension to investigate reforms in assessment systems over time, where identification comes from taking out country and year fixed effects along with a rich set of student, school, and country measures. We find that the expansion of standardized external comparisons, both school-based and student-based, is associated with improvements in student achievement. The effect of school-based comparison is stronger in countries with initially low performance. Similarly, standardized monitoring without external comparison has a positive effect in initially poorly performing countries. By contrast, the introduction of solely internal testing and internal teacher monitoring including inspectorates does not affect student achievement. Our findings point out the pitfalls of overly broad generalizations from specific country testing systems.
    JEL: H0 I20 J24
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:24836&r=ltv
  10. By: Andrés Castañeda (World Bank); Santiago Garriga (Paris School of Economics - École des hautes études en sciences sociales); Leonardo Gasparini (CEDLAS-FCE-UNLP and CONICET); Leonardo Lucchetti (World Bank); Daniel Valderrama (Georgetown University – Department of Economics)
    Abstract: This paper contributes to the methodological literature on the estimation of international poverty lines for Latin America based on the official poverty lines chosen by the Latin American governments and commonly used in the public debate. The paper exploits a comprehensive data set of 86 up-to-date official extreme and total urban poverty lines across 18 countries in Latin America, as well as the recently updated values of the national purchasing power parity conversion factors from the 2011 International Comparison Program, and a set of harmonized household surveys. By using 3 and 6 US dollars per person a day at 2011 PPP as the extreme and total poverty lines for Latin America, this paper illustrates the sensitiveness of poverty rates to changes of the values of the poverty lines as a result of the recent update of the PPP values, the period of reference, and the relative cost of living across the countries in the region. The poverty lines with the 2011 PPP values lead to an increase in total poverty rates in Latin America when compared to the 2005 PPP values, while they leave the extreme poverty rate unaffected. In general, country-specific poverty rankings remain fairly stable to the values of the poverty lines selected.
    JEL: I3 I32 D6 E31 F01
    Date: 2018–08
    URL: http://d.repec.org/n?u=RePEc:dls:wpaper:0233&r=ltv

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