nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2021‒05‒31
eleven papers chosen by
Maximo Rossi
Universidad de la República

  1. The Fall in Income Inequality during COVID-19 in Four European Countries By Andrew E. Clark; Conchita d'Ambrosio; Anthony Lepinteur
  2. Hate is too great a burden to bear: Hate crimes and the mental health of refugees By Daniel Graeber; Felicitas Schikora
  3. Economic preferences across generations and family clusters: A large-scale experiment By Chowdhury, Shyamal; Sutter, Matthias; Zimmermann, Klaus F
  4. The Long-run Effects of Housingon Well-Being By Andrew E. Clark; Luis Diaz-Serrano
  5. With a Little Help from My Mother. The Matrilineal Advantage in European Grand Parenting. By Brunello, Giorgio; Yamamura, Eiji
  6. A Second Chance? Labor Market Returns to Adult Education Using School Reforms By Bennett, Patrick; Blundell, Richard; Salvanes, Kjell G
  7. The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects By Cahuc, Pierre; Kramarz, Francis; Nevoux, Sandra
  8. How Much Does COVID-19 Increase with Mobility? Evidence from New York and Four Other US Cities By Glaeser, Edward L; Gorback, Caitlin; Redding, Stephen J.
  9. Can Subsidized Employment Tackle Long-Term Unemployment? Experimental Evidence from North Macedonia By Armand, Alex; Carneiro, Pedro; Tagliati, Federico; Xia, Yiming
  10. Does Pain Lead to Job Loss? A Panel Study for Germany By Alan Piper; David G. Blanchflower; Alex Bryson
  11. Who Voted for Trump? Populism and Social Capital By Giuliano, Paola; Wacziarg, Romain

  1. By: Andrew E. Clark (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 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: We here use panel data from the COME-HERE survey to track income inequality during COVID-19 in France, Germany, Italy, and Spain. Relative inequality in equivalent household disposable income among individuals changed in a hump-shaped way between January 2020 and January 2021, with an initial rise from January to May 2020 being more than reversed by September 2020. Absolute inequality also fell over this period. Due to the pandemic some households lost more than others, and government compensation schemes were targeted towards the poorest, implying that on average income differences decreased. Generalized Lorenz domination reveals that these distributive changes reduced welfare in Italy.
    Keywords: COVID-19,Income Inequality COME-HERE,COME-HERE,Income Inequality
    Date: 2021–05
  2. By: Daniel Graeber (DIW Berlin, University of Potsdam, CEPA, BSE); Felicitas Schikora (DIW Berlin, FU Berlin)
    Abstract: Against a background of increasing violence against non-natives, we estimate the effect of hate crime on refugees’ mental health in Germany. For this purpose, we combine two datasets: administrative records on xenophobic crime against refugee shelters by the Federal Criminal Office and the IAB-BAMF-SOEP Survey of Refugees. We apply a regression discontinuity in time design to estimate the effect of interest. Our results indicate that hate crime has a substantial negative effect on several mental health indicators, including the Mental Component Summary score and the Patient Health Questionnaire-4 score. The effects are stronger for refugees with closer geographic proximity to the focal hate crime and refugees with low country-specific human capital. While the estimated effect is only transitory, we argue that negative mental health shocks during the critical period after arrival have important long-term consequences. Keywords: Mental health, hate crime, migration, refugees, human capital.
    Keywords: mental health, hate crime, migration, refugees, human capital
    JEL: I10 J15 J24 F22 O15
    Date: 2021–05
  3. By: Chowdhury, Shyamal; Sutter, Matthias; Zimmermann, Klaus F
    Abstract: Economic preferences are important for lifetime outcomes such as educational achievements, health status, or labor market success. We present a holistic view of how economic preferences are related within families. In an experiment with 544 families (and 1,999 individuals) from rural Bangladesh we find a large degree of intergenerational persistence of economic preferences. Both mothers' and fathers' risk, time and social preferences are significantly (and largely to the same degree) positively correlated with their children's economic preferences, even when controlling for personality traits and socio-economic background data. We discuss possible transmission channels for these relationships within families and find indications that there is more than pure genetics at work. Moving beyond an individual level analysis, we are the first to classify a whole family into one of two clusters, with either relatively patient, risk-tolerant and pro-social members or relatively impatient, risk averse and spiteful members. Socio-economic background variables correlate with the cluster to which a family belongs to.
    Keywords: Bangladesh; Economic preferences within families; Experiment; family clusters; Intergenerational Transmission of Preferences; risk preferences; social preferences; socio-economic status; Time preferences
    JEL: C90 D1 D64 D81 D90 J13 J24 J62
    Date: 2020–07
  4. By: Andrew E. Clark (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 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); Luis Diaz-Serrano (Universitat Rovira i Virgili, Universidad Antonio de Nebrija)
    Abstract: This paper provides one of the first testsof adaptation tothe complete set ofresidential transitions. We use long-run SOEP panel data and consider the impact of all housing transitions, whether or not they involvea change in housing tenureor geographical movement, on both life satisfaction and housing satisfaction. Controlling for individual characteristics and housing quality, some residential transitionsaffect life satisfactiononly little, while all transitions have a significant effect on housing satisfaction. This latter is particularly large for renters who become homeowners and move geographically,and for renters who move without changing tenure status. Regarding housing satisfaction, we find very little evidence of adaptation even after five years. Losing homeowner status is the only transition that produces lower housing satisfaction, and here the effect seems to become even more negative over time.
    Keywords: Housing,Adaptation,well-being,SOEP
    Date: 2021–05
  5. By: Brunello, Giorgio (University of Padova); Yamamura, Eiji (Seinan Gakuin University)
    Abstract: This study documents the matrilineal advantage in grandparent – grandchildren relationships in Europe, using data on 20 European countries and Israel from the Survey of Health, Ageing and Retirement (SHARE). We show that maternal grandparents look after grandchildren and provide financial or material gifts to children more than paternal grandparents do. In exchange, daughters help their parents with personal care, household tasks and paperwork more than sons do. The matrilineal advantage is stronger for grandmothers than for grandfathers, and stronger in the more conservative societies of Southern Europe, where gender inequality is higher and trust in others is lower.
    Keywords: childcare, Europe, family
    JEL: J12 J13
    Date: 2021–05
  6. By: Bennett, Patrick; Blundell, Richard; Salvanes, Kjell G
    Abstract: Roughly one third of a cohort drop out of high school across OECD countries, and developing effective tools to address prime-aged high school dropouts is a key policy question. We leverage high quality Norwegian register data, and for identifi cation we exploit reforms enabling access to high school for adults above the age of 25. The paper fi nds that considerable increases inhigh school completion and beyond among women lead to higher earnings, increased employment, and decreased fertility. As male education remains unchanged by the reforms, later life education reduces the pre-existing gender earnings gap by a considerable fraction.
    Keywords: Adult education; Fertility; Gender Inequality; Returns to education
    JEL: I26 I28 J13
    Date: 2020–08
  7. By: Cahuc, Pierre (Sciences Po, Paris); Kramarz, Francis (CREST (ENSAE)); Nevoux, Sandra (CREST (ENSAE))
    Abstract: To understand which firms take-up short-time work and which workers they enroll in this program, we provide a model which shows that short-time work may save jobs in firms hit by strong negative revenue shocks, but not in less severely-hit firms, where hours worked are reduced, without saving jobs. Using detailed data on the administration of the program covering the universe of French establishments in the 2008-2009 Great Recession, we find that short-time work did indeed save jobs and increase hours of work in firms faced with large negative shocks. These firms have been able to recover rapidly in the aftermath of the Recession thanks to short-time work. We also provide evidence of large windfall effects which significantly increased the cost of the policy per job saved; yet we also find that short-time work remains more cost-efficient at saving jobs than wage subsidies.
    Keywords: short-time work, employment, hours of work
    JEL: E24 J22 J65
    Date: 2021–05
  8. By: Glaeser, Edward L; Gorback, Caitlin; Redding, Stephen J.
    Abstract: How effective are restrictions on geographic mobility in limiting the spread of the COVID-19 pandemic? Using zip code data for Atlanta, Boston, Chicago, New York (NYC), and Philadelphia, we estimate that total COVID-19 cases per capita decrease on average by approximately 20 percent for every ten percentage point fall in mobility between February and May 2020. To address endogeneity concerns, we instrument for travel by the share of workers in remote work friendly occupations, and find a somewhat larger average decline of COVID-19 cases per capita of 27 percent. Using weekly data by zip code for NYC and a panel data specification including week and zip code fixed effects, we estimate a similar average decline of around 17 percent, which becomes larger when we measure mobility using NYC turnstile data rather than cellphone data. We find substantial heterogeneity across both space and over time, with stronger effects for NYC, Boston and Philadelphia than for Atlanta and Chicago, and the largest estimated coefficients for NYC in the early stages of the pandemic.
    Keywords: Cities; COVID-19; mobility
    JEL: H12 I12 J17 R41
    Date: 2020–07
  9. By: Armand, Alex; Carneiro, Pedro; Tagliati, Federico; Xia, Yiming
    Abstract: This paper examines the impact of an experiment in North Macedonia in which vulnerable unemployed individuals applying to a subsidized employment program were randomly selected to attend job interviews. Employers hiring a new employee from the target population receive a subsidy covering the wage cost of the worker for the first six months. Using administrative employment data, we find that attending the job interview led to an increase of 15 percentage points in the likelihood of being employed 3.5 years after the start of the intervention. We also find positive and statistically significant effects on individuals' non-cognitive and work-related skills.
    Keywords: Active Labor Market Policy; job search; unemployment; Wage Subsidies
    JEL: J08 J68 O15
    Date: 2020–08
  10. By: Alan Piper (Paris School of Economics; International Public Economics Department, School of Business and Economics, Freie Universität Berlin); David G. Blanchflower (Bruce V. Rauner Professor of Economics, Dartmouth College, Adam Smith Business School, University of Glasgow; NBER and Bloomberg); Alex Bryson (University College London; IZA, Bonn; NIESR, London)
    Abstract: The cross-sectional association between pain and unemployment is well-established. But the absence of panel data containing data on pain and labor market status has meant less is known about the direction of any causal linkage. Those longitudinal studies that do examine the link between pain and subsequent labor market transitions suggest results are sensitive to the measurement of pain and model specification We contribute to this literature using large-scale panel data from the German Socio-Economic Panel (GSOEP) for the period 2002 to 2018. We show that pain leads to job loss. Workers suffering pain are more likely than others to leave their job for unemployment or economic inactivity. This probability rises with the frequency of the pain suffered in the previous month. The effect persists having accounted for fixed unobserved differences across workers, is apparent among those who otherwise report good general health and is robust to the inclusion of controls for mental health, life satisfaction and the employee’s occupation
    Keywords: pain; health; unemployment; job loss; economic inactivity; underemployment; panel analysis; GSOEP
    JEL: I10 J60 J64
    Date: 2021–05–01
  11. By: Giuliano, Paola; Wacziarg, Romain
    Abstract: We argue that low levels of social capital are conducive to the electoral success of populist movements. Using a variety of data sources for the 2016 US Presidential election at the county and individual levels, we show that social capital, measured either by the density of memberships in civic, religious and sports organizations or by generalized trust, is significantly negatively correlated with the vote share and favorability rating of Donald Trump around the time of the election.
    Keywords: populism; social capital; voting behavior
    JEL: D72 Z1
    Date: 2020–08

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