nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2019‒12‒16
eight papers chosen by
Maximo Rossi
Universidad de la República

  1. People versus Machines in the UK: Minimum Wages, Labor Reallocation and Automatable Jobs By Lordan, Grace
  2. Police Trust and Domestic Violence: Evidence from Immigration Policies By Amuedo-Dorantes, Catalina; Arenas-Arroyo, Esther
  3. Accounting for Wealth Inequality Dynamics: Methods, Estimates and Simulations for France By Bertrand Garbinti; Jonathan Goupille-Lebret; Thomas Piketty
  4. Economic Insecurity and the Rise of the Right By Walter Bossert; Andrew E. Clark; Conchita d'Ambrosio; Anthony Lepinteur
  5. Do Appeals to Donor Benefits Raise More Money than Appeals to Recipient Benefits? Evidence from a Natural Field Experiment with Pick.Click.Give. By John A. List; James J. Murphy; Michael K. Price; Alexander G. James
  6. The “Missing Rich” in Household Surveys: Causes and Correction Approaches By Nora Lustig
  7. Lessons from Behavioral Economics to Improve Treatment Adherence in Parenting Programs: An Application to SMS By Ajzenman, Nicolas; López Bóo, Florencia
  8. The Causes and Consequences of Early-Adult Unemployment: Evidence from Cohort Data By Andrew E. Clark; Anthony Lepinteur

  1. By: Lordan, Grace (London School of Economics)
    Abstract: This study follows the Lordan and Neumark (2018) analysis for the US, and examines whether minimum wage increases affect employment opportunities in automatable jobs in the UK for low-skilled low-wage workers. Overall, I find that increasing the minimum wage decreases the share of automatable employment held by low-skilled low-wage workers, and increases the likelihood that workers in automatable jobs become disemployed. On aggregate the effect size is modest, but I also provide evidence that these effects are larger in more recent years. The study also highlights significant heterogeneity by industry and demographic group, including more substantive adverse effects for older low-skilled workers in manufacturing, as well as effects at the intensive margin.
    Keywords: technology, robotics, automation, unemployment, employment, minimum wage
    JEL: J23 J38
    Date: 2019–10
  2. By: Amuedo-Dorantes, Catalina (University of California, Merced); Arenas-Arroyo, Esther (Vienna University of Economics and Business)
    Abstract: Domestic violence is a serious under-reported crime in the United States, especially among immigrant women. While the Violence against Women Act (VAWA) allows battered immigrants to petition for legal status without relying on abusive U.S. citizen or legal permanent resident spouses, we find that intensified interior immigration enforcement has curbed the VAWA self-petition rate. In contrast, sanctuary policies limiting the cooperation of police with immigration authorities have helped counteract that impact. The results, which prove robust to alternative measures of the policies, support the hypothesized changes in victims' reporting in response to the policies. Understanding survivors' responses to immigration policy is crucial given growing police mistrust and vulnerability to crime among immigrants.
    Keywords: immigration enforcement, trust acts, domestic violence, United States
    JEL: J12 J16 J15 K37
    Date: 2019–10
  3. By: Bertrand Garbinti (Banque de France, Crest); Jonathan Goupille-Lebret (Univ Lyon, CNRS, ENS de Lyon, GATE UMR 5824, F-69342 Lyon, France); Thomas Piketty (Paris School of Economics)
    Abstract: Measuring and understanding the evolution of wealth inequality is a key challenge for researchers, policy makers, and the general public. This paper breaks new ground on this topic by presenting a new method to estimate and study wealth inequality. This method combines fiscal data with household surveys and national accounts in order to provide annual wealth distribution series, with detailed breakdowns by percentiles, age and assets. Using the case of France as an illustration, we show that the resulting series can be used to better analyze the evolution and the determinants of wealth inequality dynamics over the 1970-2014 period. We show that the decline in wealth inequality ends in the early 1980s, marking the beginning of a rise in the top 1% wealth share, though with significant fluctuations due largely to asset price movements. Rising inequality in saving rates coupled with highly stratified rates of returns has led to rising wealth concentration in spite of the opposing effect of house price increases. We develop a simple simulation model highlighting how changes in the combination of unequal saving rates, rates of return and labor earnings that occurred in the early 1980s generated large multiplicative effects that led to radically different steady-state levels of wealth inequality. Taking advantage of the joint distribution of income and wealth, we show that top wealth holders are almost exclusively top capital earners, and less and less are made up of top labor earners; it has become increasingly difficult in recent decades to access top wealth groups with one’s labor income only.
    Keywords: income inequality, wealth inequality, gender inequality
    JEL: D31 E01 E21 N3
    Date: 2019
  4. By: Walter Bossert (CIREQ - Centre interuniversitaire de recherche en économie quantitative, University of Montreal - University of Montreal); 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 (INSIDE - INtegrative research unit on Social and Individual DEvelopment - University of Luxembourg [Luxembourg]); Anthony Lepinteur (INSIDE - INtegrative research unit on Social and Individual DEvelopment - University of Luxembourg [Luxembourg])
    Abstract: Economic insecurity has attracted growing attention in social, academic and policy cir- cles. However, there is no consensus as to its precise de_nition. Intuitively, economic insecurity is multi-faceted, making any comprehensive formal de_nition that subsumes all possible aspects extremely challenging. We propose a simpli_ed approach, and character- ize a class of individual economic-insecurity measures that are based on the time pro_le of economic resources. We then apply our economic-insecurity measure to data on political preferences. In US, UK and German panel data, and conditional on current economic resources, economic insecurity is associated with both greater political participation (sup- port for a party or the intention to vote) and notably more support for parties on the right of the political spectrum. We in particular _nd that economic insecurity predicts greater support for both Donald Trump before the 2016 US Presidential election and the UK leaving the European Union in the 2016 Brexit referendum.
    Keywords: Economic index numbers,Insecurity,Political participation,Conservatism,Right-leaning political parties,Trump,Brexit
    Date: 2019–10
  5. By: John A. List (Department of Economics, University of Chicago; NBER); James J. Murphy (Department of Economics, University of Alaska, Anchorage; Economic Science Institute, Chapman University); Michael K. Price (Department of Economics, Finance and Legal Studies, Culverhouse College of Commerce, University of Alabama; NBER); Alexander G. James (Department of Economics, University of Alaska, Anchorage)
    Abstract: We partnered with Alaska’s Pick.Click.Give. Charitable Contributions Program to implement a statewide natural field experiment with 540,000 Alaskans designed to explore whether targeted appeals emphasizing donor benefits through warm glow impact donations. Results highlight the relative import of appeals to self. Individuals who received such an appeal were 4.5 percent more likely to give and gave 20 percent more than counterparts in the control group. Yet, a message that instead appealed to recipient benefits had no effect on average donations relative to the control group. We also find evidence of long-run effects of warm glow appeals in the subsequent year.
    Keywords: Fields Experiment; Experimental Economics; Charitable Giving; Philanthropy, Warm Glow; Nonprofits; Altruism; Alaska; Permanent Fund Dividend
    JEL: C93 D01 D64 D91 H41 L30 L38 M31 M37
    Date: 2019
  6. By: Nora Lustig (Stone Center for Latin American Studies, Department of Economics, Tulane University, CEQ Institute)
    Abstract: This paper presents a survey of causes and correction approaches to address the “missing rich” problem in household surveys. “Missing rich” here is a catch-all term for the issues that affect the upper tail of the distribution of income: undercoverage, sparseness, unit and item nonresponse, underreporting and top coding. Upper tail issues can result in serious biases and imprecision of survey-based inequality measures. A number of correction approaches have been proposed. A main distinction is between those that rely on within-survey methods and those that combine survey data with information from external sources such as tax records, National Accounts, rich lists or other external information. Within each category, the methods can correct by replacing top incomes or increasing their weight (reweighting). Correction methods can be nonparametric and parametric. This survey aims to help researchers choose appropriate correction strategies and design robustness tests.
    Keywords: top incomes, inequality measures, nonresponse, underreporting, replacing and reweighting methods, imputation, poststratification, Pareto distribution, tax records
    JEL: C14 C18 C81 C83 D31
    Date: 2019–11
  7. By: Ajzenman, Nicolas (São Paulo School of Economics-FGV); López Bóo, Florencia (Inter-American Development Bank)
    Abstract: A growing literature shows how insights from behavioral economics can be successfully adopted in simple interventions through SMS or other types of low-cost communications. In this short, note we provide concrete basic guidelines to design behaviorally informed messages, based on theory and our own experience. We provide examples applied to parenting interventions.
    Keywords: behavioral interventions, parenting, child development, poverty
    JEL: D9 D90 D91 I15 I38 J38
    Date: 2019–11
  8. By: 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); Anthony Lepinteur (University of Luxembourg [Luxembourg])
    Keywords: Unemployement,Life Satisfaction,Habituation
    Date: 2019–06

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