nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2018‒11‒12
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Inequality in Life Expectancies across Europe By Radim Bohácek; Jesús Bueren; Laura Crespo; Pedro Mira; Josep Pijoan-Mas
  2. Grandparents, Moms, or Dads? Why Children of Teen Mothers Do Worse in Life By Anna Aizer; Paul J. Devereux; Kjell G. Salvanes
  3. Unsuccessful subjective well-being assimilation among immigrants: The role of faltering perceptions of the host society By Martijn Hendriks; Martijn (M.J.) Burger
  4. Assortative Matching or Exclusionary Hiring? The Impact of Firm Policies on Racial Wage Differences in Brazil By Card, David; Gerard, Francois; Lagos, Lorenzo; Severnini, Edson

  1. By: Radim Bohácek (GERGE-EI); Jesús Bueren (European University Institute); Laura Crespo (Banco de España); Pedro Mira (CEMFI, Centro de Estudios Monetarios y Financieros); Josep Pijoan-Mas (CEMFI, Centro de Estudios Monetarios y Financieros)
    Abstract: We use harmonized household panel data from 10 European countries (SHARE) plus US (HRS) and England (ELSA) to provide novel and comparable measurements of education and gender differences in life expectancy and disability-free life expectancy, as well as in the underlying multi-state life tables. Common across countries we find significant interactions between socio-economic status and gender: (a) the education advantage in life expectancy is larger for males, (b) the female advantage in life expectancy is larger among the low educated, (c) education reduces disability years and this added advantage is larger for females, and (d) females suffer more disability years but this disadvantage is hardly present for the high educated. Common across countries we also find that the education advantage in disability years is due to better health transitions by the highly-educated, and that the female disadvantage in disability years is due to better survival in ill-health by females. Looking at the differences across countries, we find that inequalities are largest in Eastern Europe, lowest in Scandinavia, and that the education gradient in life expectancy for males correlates positively with income inequality and negatively with public health spending across countries.
    Keywords: Life expectancy, healthy life expectancy, education gradient, gender gap.
    JEL: I14 I24 J14 J16
    Date: 2018–09
    URL: http://d.repec.org/n?u=RePEc:cmf:wpaper:wp2018_1810&r=ltv
  2. By: Anna Aizer; Paul J. Devereux; Kjell G. Salvanes
    Abstract: Women who give birth as teens have worse subsequent educational and labor market outcomes than women who have first births at older ages. However, previous research has attributed much of these effects to selection rather than a causal effect of teen childbearing. Despite this, there are still reasons to believe that children of teen mothers may do worse as their mothers may be less mature, have fewer financial resources when the child is young, and may partner with fathers of lower quality. Using Norwegian register data, we compare outcomes of children of sisters who have first births at different ages. Our evidence suggests that the causal effect of being a child of a teen mother is much smaller than that implied by the cross-sectional differences but that there are still significant long-term, adverse consequences, especially for children born to the youngest teen mothers. Unlike previous research, we have information on fathers and find that negative selection of fathers of children born to teen mothers plays an important role in producing inferior child outcomes. These effects are particularly large for mothers from higher socio-economic groups.
    JEL: I3 J13 J24
    Date: 2018–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:25165&r=ltv
  3. By: Martijn Hendriks (Erasmus University Rotterdam); Martijn (M.J.) Burger (Erasmus University Rotterdam)
    Abstract: Immigrants in developed countries typically fail to assimilate in terms of subjective well-being, meaning that their happiness and life satisfaction do not substantially increase with their length of stay or across generations, and therefore their subjective well-being remains lower than that of natives. This contrasts with migrants’ own expectations and the predictions of straight-line assimilation theory, along with the general improvement of immigrants’ objective living conditions with their length of stay. Using European Social Survey data, we show that the subjective well-being assimilation of first-generation immigrants in developed European countries is impaired by the gradual development of less positive perceptions of the host country’s economic, political, and social conditions. These faltering societal perceptions particularly affect immigrants whose societal conditions strongly improved by migration and immigrants who arrived after childhood. Faltering societal perceptions continue to impair subjective well-being assimilation across generations. However, compared with natives, first-generation immigrants derive a subjective well-being advantage from their more positive societal perceptions. We attribute these findings to immigrants’ growing aspirations and expectations that follow from their habituation to better conditions in their host country and fewer (more) comparisons to inferior (better) conditions of the people in their home (host) country. Our findings suggest that delaying or decelerating the process of immigrants’ faltering societal perceptions is a promising pathway to improved subjective well-being assimilation and reduced frustration about their perceived lack of progress.
    Keywords: subjective well-being; migration; assimilation; aspirations; expectations
    JEL: I31 F22
    Date: 2018–10–28
    URL: http://d.repec.org/n?u=RePEc:tin:wpaper:20180080&r=ltv
  4. By: Card, David; Gerard, Francois; Lagos, Lorenzo; Severnini, Edson
    Abstract: A growing body of research shows that firms' employment and wage-setting policies contribute to wage inequality and pay disparities between groups. We measure the effects of these policies on racial pay differences in Brazil. We find that nonwhites are less likely to work at establishments that pay more to all race groups, a pattern that explains about 20% of the white-nonwhite wage gap for both genders. The pay premiums offered by different employers are also compressed for nonwhites relative to whites, contributing another 5% of the overall gap. We then ask how much of the under-representation of nonwhites at higher-paying workplaces is due to the selective skill mix at these establishments. Using a counterfactual based on the observed skill distribution at each establishment and the nonwhite shares in different skill groups in the local labor market, we conclude that assortative matching accounts for about two-thirds of the under-representation gap for both men and women. The remainder reflects an unexplained preference for white workers at higher-paying establishments. The wage losses associated with unexplained sorting and differential wage setting are largest for nonwhites with the highest levels of general skills, suggesting that the allocative costs of race-based preferences may be relatively large in Brazil.
    Date: 2018–10
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:13273&r=ltv

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