nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2020‒12‒21
four papers chosen by
Maximo Rossi
Universidad de la República

  1. The Value of Time in the United States: Estimates from Nationwide Natural Field Experiments By Ariel Goldszmidt; John List; Robert Metcalfe; Ian Muir; Jenny Wang
  2. Why Is Europe More Equal Than the United States? By Thomas Blanchet; Lucas Chancel; Amory Gethin
  3. Predistribution vs. Redistribution: Evidence from France and the U.S By Antoine Bozio; Bertrand Garbinti; Jonathan Goupille-Lebret; Malka Guillot; Thomas Piketty
  4. Building an Epidemiology of Happiness By John F. Helliwell; David Gyarmati; Craig Joyce; Heather Orpana

  1. By: Ariel Goldszmidt; John List; Robert Metcalfe; Ian Muir; Jenny Wang
    Abstract: The value of time determines relative prices of goods and services, investments, productivity, economic growth, and measures of income inequality. Economists in the 1960s began to focus on the value of non-work time, pioneering a deep literature exploring the optimal allocation and value of time. By leveraging key features of these classic time allocation theories, we use a novel approach to estimate the value of time (VOT) via two large-scale natural field experiments with the ridesharing company Lyft. We use random variation in both wait times and prices to estimate a consumer's VOT with a data set of more than 14 million observations across consumers in US cities. We find that the VOT is roughly $19 per hour (or 75% (100%) of the after-tax mean (median) wage rate) and varies predictably with choice circumstances correlated with the opportunity cost of wait time. Our VOT estimate is larger than what is currently used by the US Government, suggesting that society is under-valuing time improvements and subsequently under-investing public resources in time-saving infrastructure projects and technologies.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:feb:natura:00720&r=all
  2. By: Thomas Blanchet (PSE - Paris School of Economics, WIL - World Inequality Lab , 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); Lucas Chancel; Amory Gethin (PSE - Paris School of Economics, WIL - World Inequality Lab , 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)
    Abstract: We combine all available household surveys, income tax and national accounts data in a systematic manner to produce comparable pretax and posttax income inequality series in 38 European countries between 1980 and 2017. Our estimates are consistent with macroeconomic growth rates and comparable with US Distributional National Accounts. We find that inequalities rose in most European countries since 1980 both before and after taxes, but much less than in the US. Between 1980 and 2017, the European top 1% pretax income share rose from 8% to 11% while it rose from 11% to 21% in the US. Europe's lower inequality levels are mainly explained by a more equal distribution of pretax incomes rather than by more equalizing taxes and transfers systems. "Predistribution" is found to play a much larger role in explaining Europe's relative resistance to inequality than "redistribution": it accounts for between two-thirds and
    Date: 2020–09
    URL: http://d.repec.org/n?u=RePEc:hal:wilwps:halshs-03022133&r=all
  3. By: Antoine Bozio (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, WIL - World Inequality Lab); Bertrand Garbinti (CREST - Centre de Recherche en Economie et Statistique [Bruz] - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz], WIL - World Inequality Lab); Jonathan Goupille-Lebret (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UL2 - Université Lumière - Lyon 2 - ENS Lyon - École normale supérieure - Lyon); Malka Guillot (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology in Zürich [Zürich], IPP - Institut des politiques publiques, WIL - World Inequality Lab); Thomas Piketty (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, WIL - World Inequality Lab)
    Abstract: How much redistribution policies can account for long-run changes in inequality? To answer this question, we quantify the extent of redistribution over time by the percentage reduction from pretax to post-tax inequalities, and decompose the changes in post-tax inequalities into different redistributive policies and changes in pretax inequalities. To estimate these redistributive statistics, we construct homogenous annual series of post-tax national income for France over the 1900-2018 period, and compare them with those recently constructed for the U.S. We obtain three major findings. First, redistribution has increased in both countries over the period, earlier in the U.S., later in France, to reach similar levels today. Second, the substantial long-run decline in post-tax inequality in France over the 1900-2018 period is due mostly to the fall in pretax inequality (accounting for three quarters of the total decline), and to a lesser extent to the direct redistributive role of taxes, transfers and other public spending (about one quarter). Third, the reason why overall inequality is much smaller in France than in the U.S. is entirely due to differences in pretax inequality. These findings suggest that policy discussions on inequality should, in the future, pay more attention to policies affecting pretax inequality and should not focus exclusively on "redistribution".
    Date: 2020–10
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-03022092&r=all
  4. By: John F. Helliwell; David Gyarmati; Craig Joyce; Heather Orpana
    Abstract: Starting from the assumption that improving well-being is the central consideration for public policies, we show how subjective well-being research can help, and already is helping, to choose public policies based on their consequences for all aspects of life. The core of the paper lies in examples where the methods we propose, often in systematic experimental contexts, have already been used to guide the evaluation and ranking of alternative policy options in public health, education, workplace training, and social welfare. The arrival of COVID-19 has increased the urgency for a well-being focus, since the policy decisions being faced by governments dealing with the pandemic require an approach much broader than provided by more typical policy evaluations in all disciplines, including especially the social context and the distribution of costs and consequences. A broader approach to policy design and choice is fully consistent with the underlying aims of epidemiology, with similar gains likely in other policy disciplines. A focus on subjective well-being as an umbrella measure of welfare might help to restore to economics the breadth of purpose and methods it had two centuries ago, when happiness was considered the appropriate goal for private actions and public policies.
    JEL: H12 H51 I14 I18 I31
    Date: 2020–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:28095&r=all

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