nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2020‒09‒21
seven papers chosen by
Maximo Rossi
Universidad de la República

  1. The Economics of Happiness By Nikolova, Milena; Graham, Carol
  2. Skilled and Unskilled Labor Are Less Substitutable than Commonly Thought By Tomas Havranek; Zuzana Irsova; Lubica Laslopova; Olesia Zeynalova
  3. Intergenerational Effects of Early-Life Advantage: Lessons from a Primate Study By Amanda M. Dettmer; James J. Heckman; Juan Pantano; Victor Ronda; Stephen J. Suomi
  4. 2020 Summary Data of Natural Field Experiments Published on By John List
  5. Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights By Drydakis, Nick; Zimmermann, Klaus F.
  6. Marriage as Insurance: Job Protection and Job Insecurity in France By Andrew E. Clark; Conchita d'Ambrosio; Anthony Lepinteur
  7. Does Immigration Improve Quality of Care in Nursing Homes? By Furtado, Delia; Ortega, Francesc

  1. By: Nikolova, Milena; Graham, Carol
    Abstract: Welfare and well-being have traditionally been gauged by using income and employment statistics, life expectancy, and other objective measures. The Economics of Happiness, which is based on people’s reports of how their lives are going, provides a complementary yet radically different approach to studying human well-being. Typically, subjective well-being measures include positive and negative feelings (e.g., momentary experiences of happiness or stress), life evaluations (e.g., life satisfaction), and feelings of having a life purpose. Both businesses and policymakers now increasingly make decisions and craft policies based on such measures. This chapter provides an overview of the Happiness Economics approach and outlines the promises and pitfalls of subjective well-being measures.
    Date: 2020
  2. By: Tomas Havranek (Charles University, Prague, Czech Republic); Zuzana Irsova (Charles University, Prague, Czech Republic); Lubica Laslopova (Charles University, Prague, Czech Republic); Olesia Zeynalova (Charles University, Prague, Czech Republic)
    Abstract: A key parameter in the analysis of wage inequality is the elasticity of substitution between skilled and unskilled labor. We question the common view that the elasticity exceeds 1. Two biases, publication and attenuation, conspire to pull the mean elasticity reported in the lit- erature to 1.9. After correcting for the biases, the literature is consistent with the elasticity in the US of 0.6–0.9. Our analysis relies on 729 estimates of the elasticity collected from 76 studies as well as 37 controls that reflect the context in which the estimates were obtained. We use recently developed nonlinear techniques to correct for publication bias and employ Bayesian and frequentist model averaging to address model uncertainty. Our results sug- gest that, first, insignificant estimates of the elasticity are underreported. Second, because researchers typically estimate the elasticity’s inverse, measurement error exaggerates the elasticity, and we show the exaggeration is substantial. Third, elasticities are systematically larger for developed countries, translog estimation, and methods that ignore endogeneity.
    Keywords: elasticity of substitution, skill premium, meta-analysis, model uncertainty, publication bias
    JEL: J23 J24 J31
    Date: 2020–09
  3. By: Amanda M. Dettmer; James J. Heckman; Juan Pantano; Victor Ronda; Stephen J. Suomi
    Abstract: This paper uses three decades of studies with Rhesus monkeys to investigate the intergenerational effects of early life advantage. Monkeys and their offspring were both randomly assigned to be reared together or apart from their mothers. We document significant intergenerational effects of maternal presence. We also estimate, for the first time, the intergenerational complementarity of early life advantage, where the intergenerational effects of maternal rearing are only present for offspring that were mother-reared. This finding suggests that parenting is the primary mechanism driving the intergenerational effects. Our paper demonstrates how studies of primates can inform human development.
    JEL: I12 Y80
    Date: 2020–08
  4. By: John List
    Abstract: Last year I put together a summary of data from my field experiments website that pertained to natural field experiments. Several people have asked me if I have an update. In this document I update all figures and numbers to show the details for 2020. I also include the description from the 2019 paper below.
    Date: 2020
  5. By: Drydakis, Nick; Zimmermann, Klaus F.
    Abstract: The paper initiates a research agenda to study new developments of the effects of sexual orientation and gender identity on the labour market performance of individuals. It presents a selection of the small previous literature to establish the important spectrum of topics and identify important challenges to compare them to the papers in the special issue of the International Journal of Manpower (Volume 41, Issue 6) dedicated to Sexual Orientation and the Labor Market. We rely on quantitative empirical studies and compare findings along a variety of topics such as, earnings patterns, occupational access constraints, relationships between subjective well-being indicators and marriage status, workplace experiences and family support all along the sexual orientation and gender identity issues. Contrary to the earlier literature, the most recent studies have found that gay men received either the same wages or higher wages compared to heterosexual men, while lesbian women have been found to receive lower wages in comparison to heterosexual women. We reveal the new evidence on this emerging puzzling pattern of sexual orientation and wages, but highlight also other innovations in the special issue: (i) the first ever meta-analysis of field experiments on occupational access discrimination based on sexual orientation, (ii) utilizing the moderating role of marital status and family support, (iii) studying occupational access discrimination based on gender identity, and (iv) evaluate how distastes, stereotypes, and positive workplace actions affect trans people’s labour market performance. The article attempts to provide a fast and insightful guidance to the major challenges, received wisdom and open issues in the field of sexual orientation and gender identity at work and in the labour market. We summarize the implications provided in all chapters to develop the best evidence-based policy making.
    Keywords: Sexual orientation,gender identity,sexual discrimination
    JEL: D63 J71 J15 J16
    Date: 2020
  6. By: Andrew E. Clark (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Conchita d'Ambrosio (University of Luxembourg [Luxembourg]); Anthony Lepinteur (University of Luxembourg [Luxembourg])
    Abstract: Job insecurity is one type of risk that workers face on the labour market. As with any risk, individuals can choose to insure against it. We consider marriage as potential insurance against labour-market risk. The 1999 rise in the French Delalande layoff tax for older workers produced an exogenous rise in job insecurity for younger workers. A difference-in-differences estimation in panel data reveals that this greater job insecurity for the under-50s led to a significant rise in their probability of marriage, and especially with partners who had greater job security, consistent with marriage providing insurance on the labour market.
    Keywords: Marriage,Insurance,Employment Protection,Perceived Job Security,Difference-in-Differences
    Date: 2020–09
  7. By: Furtado, Delia (University of Connecticut); Ortega, Francesc (Queens College, CUNY)
    Abstract: The growing healthcare needs of baby boomers require significant increases in the number or productivity of healthcare workers. This paper explores how immigrants may fill these gaps in nursing homes. First, we show that immigrant inflows are associated with reduced wages of lower skilled nurses along with increases in their employment. We then show that more immigrant labor leads to fewer falls among residents and improvements in other measures of quality of care. We also find that only in competitive nursing home markets is there a link between immigrant inflows and the quality of care provided in nursing homes.
    Keywords: immigration, nursing homes, monopoly power
    JEL: J61 J14 I11 L13
    Date: 2020–07

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