nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2021‒10‒18
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Who's Afraid of Evidence-Based Policymaking? By Ori Heffetz; John List
  2. Marginal returns to citizenship and educational performance By Gathmann, Christina; Vonnahme, Christina; Busse, Anna; Kim, Jongoh
  3. Time Preferences, Illness, and Death By Norrgren, Lisa
  4. Income Risk Inequality: Evidence from Spanish Administrative Records By Manuel Arellano; Stéphane Bonhomme; Micole De Vera; Laura Hospido; Siqi Wei
  5. Gender Differences in Economics PhD Field Specializations with Correlated Choices By Sierminska, Eva; Oaxaca, Ronald L.
  6. Economics and American Judaism in the 21st Century By Carmel Chiswick

  1. By: Ori Heffetz; John List
    Abstract: Carefully designed scientific experiments have been an engine of economic, technological, and social progress for well over a century, which is why the public generally trusts such methods. Unfortunately, governments around the world still routinely oppose controlled trials of public policies.
    Date: 2021
  2. By: Gathmann, Christina; Vonnahme, Christina; Busse, Anna; Kim, Jongoh
    Abstract: Citizenship is the most important right a host country can bestow on its immigrant population. Yet, little is known which citizenship policies work and who actually benefits from them. To answer these questions, we estimate the marginal returns to citizenship on children's school performance and skill development. For identification, we use two national reforms, which facilitated naturalization for first-generation immigrants and introduced birthright citizenship. We find substantial unobserved heterogeneity in returns with reverse selection on gains, i.e., the returns are highest for those with the lowest propensity of take-up. Citizenship significantly improves the school performance of immigrant children but has only modest effects on test scores. Policy simulations indicate that raising citizenship take-up would generate sizable benefits overall. Based on marginal treatment response functions, we also show that expanding birthright citizenship carries higher returns than facilitating naturalization.
    Keywords: Citizenship,migration,policy evaluation,marginal treatment effects,marginal treatment response functions
    JEL: I21 J15
    Date: 2021
  3. By: Norrgren, Lisa (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: This paper investigates the predictive power of time preferences on the risk of early mortality and illness in adulthood. Using a unique Swedish cohort of 12,956 individuals born in 1953, interviewed in 1966, and followed with register data up to 2018, the paper finds that patient adolescents are 17–21% less likely to die before age 65. Patient adolescents have fewer hospitalizations and diagnoses in their adult life and are less likely to be diagnosed with conditions associated with lifestyle risk factors. Patient adolescents are also more in favor of sports activities and school rules on smoking. The investigated channels for the relationship between time preferences and future health include lifestyle, mother’s time preferences, and the adolescent’s education attainment and future income. Controlling for education and income reduces the coefficient for time preferences on early mortality by one-fourth.
    Keywords: Time preferences; illnes; death
    JEL: D90 D91 I10 I12
    Date: 2021–10
  4. By: Manuel Arellano (CEMFI); Stéphane Bonhomme (University of Chicago); Micole De Vera (CEMFI); Laura Hospido (Banco de EspaÑa and iza); Siqi Wei (CEMFI)
    Abstract: In this paper we use administrative data from the social security to study income dynamics and income risk inequality in Spain between 2005 and 2018. We construct individual measures of income risk as functions of past employment history, income, and demographics. Focusing on males, we document that income risk is highly unequal in Spain: more than half of the economy has close to perfect predictability of their income, while some face considerable uncertainty. Income risk is inversely related to income and age, and income risk inequality increases markedly in the recession. These findings are robust to a variety of specifications, including using neural networks for prediction and allowing for individual unobserved heterogeneity.
    Keywords: Spain, income dynamics, administrative data, income risk, inequality
    JEL: D31 E24 E31 J31
    Date: 2021–09
  5. By: Sierminska, Eva; Oaxaca, Ronald L.
    Abstract: We model the process of field specialization choice among beginning economists within a multivariate logit framework that accommodates single and dual primary field specializations and incorporates correlations among field specialization choices. Conditioning on personal, economic, and institutional variables reveals that women graduate students are less likely to specialize in Labor/Health, Macro/Finance, Industrial Organization, Public Economics, and Development/Growth/International and are more likely to specialize in Agricultural/Resource/Environmental Economics. Field-specific gender faculty ratios and expected relative salaries as well as economics department rankings are significant factors for gender doctoral specialization dissimilarity. Preferences and characteristics contribute about equally to field specialization dissimilarity.
    Keywords: gender,economics,specialization,salaries
    JEL: J01 J16 J31
    Date: 2021
  6. By: Carmel Chiswick (George Washington University)
    Abstract: American Judaism is viewed from an economic perspective. Non-traditional family units and non-traditional religious practices are now persistent features of American Jewry. Incentives affecting the education, family formation and consumption patterns of American Jews are shown to have implications for patterns of Jewish observance and for the American Jewish community. Comparing US religious pluralism with Israel's state-sponsored Rabbinate suggests stresses as well as complementarities between the two largest Jewish communities, including a rise in anti-Zionism and anti-Semitism. Forecasting the future of American Judaism is based on trends in economic conditions and changes in religious institutions affecting its cultural context.
    Keywords: economics, demography, religion, Judaism, pluralism, consumption, value of time, cost of Judaism, Israel, anti-Semitism
    JEL: Z12 J19 D10
    Date: 2021

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