nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2020‒10‒12
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Parental Unemployment, Social Insurance and Child Well-Being across Countries By Hansen, Kerstin F.; Stutzer, Alois
  2. Social protection preparedness and natural hazards: Latin America and the Caribbean By Rodolfo Beazley; Ana Solórzano; Valentina Barca
  3. Labor Supply and Automation Innovation By Alexander M. Danzer; Carsten Feuerbaum; Fabian Gaessler
  4. Implications of the changing nature of work for employment and inequality in Ghana By Carlos Gradín; Simone Schotte

  1. By: Hansen, Kerstin F. (University of Basel); Stutzer, Alois (University of Basel)
    Abstract: Based on a unique repeated cross-sectional data set of school-aged children in Europe, the Middle East and North America, we analyze how children's subjective well-being is related to parents' employment status, depending on the institutional context. We find that parental unemployment is strongly negatively related to children's life satisfaction across countries and years. The effect is thereby moderated by the generosity of unemployment benefits. Exploiting across- and within-country variation, our results suggest that a higher benefit replacement rate alleviates the negative effects of fathers', but not mothers', unemployment. We further test the robustness of our results considering unemployment benefits jointly with social work norms. While the buffering effect of unemployment insurance remains, the spillover effects of paternal unemployment seem to be more pronounced in environments with stricter social work norms.
    Keywords: unemployment, parental unemployment, children, child well-being, subjective well-being, unemployment insurance, social work norms
    JEL: D1 I3 J6
    Date: 2020–09
  2. By: Rodolfo Beazley (IPC-IG); Ana Solórzano (IPC-IG); Valentina Barca (IPC-IG)
    Abstract: "This One Pager discusses the use of social protection systems to respond to covariate shocks, focusing especially on Latin America and the Caribbean, where systems have been expanded and strengthened in recent decades". (...)
    Keywords: social protection, emergency preparedness, natural hazards, covariate shocks
    Date: 2020–02
  3. By: Alexander M. Danzer (KU Eichstaett-Ingolstadt, IZA Bonn, CReAM, CESifo); Carsten Feuerbaum (KU Eichstaett-Ingolstadt , Max Planck Institute); Fabian Gaessler (Max Planck Institute)
    Abstract: While economic theory suggests substitutability between labor and capital, little evidence exists regarding the causal effect of labor supply on inventing labor-saving technologies. We analyze the impact of exogenous changes in regional labor supply on automation innovation by exploiting an immigrant placement policy in Germany during the 1990s and 2000s. Difference-in-differences estimates indicate that one additional worker per 1,000 manual and unskilled workers reduces automation innovation by 0.05 patents. The effect is most pronounced two years after immigration and confined to industries containing many low-skilled workers. Labor market tightness and external demand are plausible mechanisms for the labor-innovation nexus.
    Keywords: Labor supply, automation, innovation, patents, labor market tightness, quasi-experiment
    JEL: O31 O33 J61
    Date: 2020–07
  4. By: Carlos Gradín; Simone Schotte
    Abstract: In this paper, we analyse the role of the changing nature of occupational employment and wages in explaining the trend in earnings inequality in Ghana between 2006 and 2017, a period in which there was a substantial transformation of the economy, with workers moving out of agriculture and generally taking more-skilled and less-routine jobs in services, in a context of a stagnant manufacturing sector and an oil-based expansion. We show that there was an initial decline in earnings inequality which is best explained by the fall in the skill premium that followed the expansion of education.
    Keywords: Skills, tasks, occupational employment and wages, Earnings inequality, Ghana
    Date: 2020

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