nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2022‒01‒24
nine papers chosen by
Maximo Rossi
Universidad de la República

  1. Trustors' Disregard for Trustees Deciding Intuitively or Reflectively: Three Experiments on Time Constraints By Antonio M. Espin; Valerio Capraro; Brice Corgnet; Simon Gachter; Roberto Hernan-Gonzalez; Praveen Kujal; Stephen Rassenti
  2. Social mobility and economic development By Neidhöfer, Guido; Ciaschi, Matías; Gasparini, Leonardo; Serrano, Joaquín
  3. «Perceptions of Inequality and Social Mobility» By Raymundo Campos Vazquez; Alice Krozer; Aurora Ramírez Alvarez; Rodolfo De la Torre; Roberto Velez Grajales
  4. Taking the Pulse of Nations: a Biometric Measure of Well-being By David G. Blanchflower; Alex Bryson
  5. Health and Labor Market Impacts of Twin Birth : Evidence from a Swedish IVF Policy Mandate By Bhalotra, Sonia; Clarke, Damian; Mühlrad, Hanna; Palme, Mårten
  6. Discontinuities in the Age-Victimization Profile and the Determinants of Victimization By Bindler, Anna; Hjalmarsson, Randi; Ketel, Nadine; Mitrut, Andreea
  7. Parenting Values and the Intergenerational Transmission of Time Preferences By Anne Brenøe; Thomas Epper
  8. Does Democracy Make Taller Men? Cross-Country European Evidence By Alberto Batinti; Joan Costa-i-Font
  9. A decomposition method to evaluate the `paradox of progress' with evidence for Argentina By Javier Alejo; Leonardo Gasparini; Gabriel Montes-Rojas; Walter Sosa-Escudero

  1. By: Antonio M. Espin (Department of Social Anthropology, University of Granada and Loyola Behavioral Lab, Loyola Andalucía University); Valerio Capraro (Department of Economics, Middlesex University Business School); Brice Corgnet (Emlyon Business School); Simon Gachter (University of Nottingham and IZA and CESifo); Roberto Hernan-Gonzalez (Burgundy School of Business, Universite Bourgogne Franche-Comte); Praveen Kujal (Department of Economics, Middlesex University); Stephen Rassenti (Economic Science Institute, Chapman University)
    Abstract: Previous studies have shown that women tend to be more egalitarian and less self-interested than men whereas men tend to be more concerned with social efficiency motives. The roots of such differences, however, remain unknown. Since different cognitive styles have also been associated with different distributional social preferences, we hypothesise that gender differences in social preferences can be partially explained by differences in cognitive styles (i.e., women rely more on intuition whereas men are more reflective). We test this hypothesis meta-analytically using data from seven studies conducted in four countries (USA, Spain, India, and UK; n=6,910) where cognitive reflection and social preferences were measured for men and women. In line with our hypothesis, differences in cognitive reflection scores explain up to 41% of the gender differences in social preferences. The mediation is barely affected by variables such as cognitive ability or study-level characteristics. These results suggest that the socio-ecological or cultural pressures that influence gender differences in cognitive styles are also partially responsible for gender differences in social preferences.
    Keywords: gender differences; cognitive reflection; social preferences; self-interest; social efficiency; egalitarianism
    JEL: B55 C91 C93 D31 D63 J16 Z13
    Date: 2021
  2. By: Neidhöfer, Guido; Ciaschi, Matías; Gasparini, Leonardo; Serrano, Joaquín
    Abstract: We explore the role of social mobility as a driver of economic development. First, we map the geography of intergenerational mobility of education for 52 Latin American regions, as well as its evolution over time. Then, through a new weighting procedure that considers the participation of cohorts to the economy in each year, we estimate the impact of changes in mobility on regional economic indicators, such as income per capita, poverty, child mortality, and luminosity. Our findings show that increasing social mobility had a significant and robust effect on the development of Latin American regions.
    Keywords: Intergenerational Mobility,Equality of Opportunity,Development,Growth,Latin America
    JEL: D63 I24 J62 O15
    Date: 2021
  3. By: Raymundo Campos Vazquez; Alice Krozer; Aurora Ramírez Alvarez; Rodolfo De la Torre; Roberto Velez Grajales (Centro de Estudios Espinosa Yglesias)
    Abstract: Despite evidence of high inequality and low social mobility throughout the world, there has been only limited demand for change. Using new survey and experimental data, we investigate how perceptions about inequality and social mobility affect preferences for redistribution in Mexico. In addition to the perceived level of inequality typically measured in previous studies, we explore perceptions about who is rich and poor and their share of the population. The shape of perceived inequality that we find provides new insights as to why people tolerate large differences between the rich and the poor. We find that Mexicans generally perceive poverty and inequality not too far from measured levels, but they overestimate the income of the rich and their proportion of the population.
    Date: 2020
  4. By: David G. Blanchflower; Alex Bryson
    Abstract: A growing literature identifies associations between subjective and biometric indicators of wellbeing. These associations, together with the ability of subjective wellbeing (SWB) metrics to predict health and behavioral outcomes, have spawned increasing interest in SWB as an important concept in its own right. However, some social scientists continue to question the usefulness of SWB metrics. We contribute to this literature in three ways. First, we introduce a biometric measure of wellbeing – pulse – which has been largely overlooked. Using nationally representative data on 165,000 individuals from the Health Survey for England (HSE) and Scottish Health Surveys (SHeS) we show that its correlates are similar in a number of ways to those for SWB, and that it is highly correlated with SWB metrics, as well as self-assessed health. Second, we examine the determinants of pulse rates in mid-life (age 42) among the 9,000 members of the National Child Development Study (NCDS), a birth cohort born in a single week in 1958 in Britain. Third, we track the impact of pulse measured in mid-life (age 42) on health and labor market outcomes at age 50 in 2008 and age 55 in 2013. The probability of working at age 55 is negatively impacted by pulse rate a decade earlier. The pulse rate has an impact over and above chronic pain measured at age 42. General health at 55 is lower the higher the pulse rate at age 42, while those with higher pulse rates at 42 also express lower life satisfaction and more pessimism about the future at age 50. Taken together, these results suggest social scientists can learn a great deal by adding pulse rates to the metrics they use when evaluating people’s wellbeing.
    JEL: I10 J1
    Date: 2021–12
  5. By: Bhalotra, Sonia (Department of Economics, University of Warwick, CEPR, IEA, IZA, CAGE); Clarke, Damian (Department of Economics, University of Chile and IZA); Mühlrad, Hanna (Institute for Evaluation of Labour Market and Education Policy (IFAU)); Palme, Mårten (Department of Economics, Stockholm University)
    Abstract: IVF allows women to delay birth and pursue careers, but IVF massively increases the risk of twin birth. There is limited evidence of how having twins influences women’s post-birth careers. We investigate this, leveraging a single embryo transfer (SET) mandate implemented in Sweden in 2003, following which the share of twin births showed a precipitous drop of 70%. Linking birth registers to hospitalization and earnings registers, we identify substantial improvements in maternal and child health and women’s earnings following IVF birth, alongside an increase in subsequent fertility. We provide the first comprehensive evaluation of SET, relevant given the secular rise in IVF births and growing concerns over twin birth risk. We contribute new estimates of the child penalty imposed by twin as opposed to singleton birth, relevant to the secular rise in the global twin birth rate.
    Keywords: twins ; IVF ; single embryo transfer ; career costs of children ; child penalty ; gender wage gap ; fertility ; maternal health ; neonatal health ; gender JEL Classification: J13 ; I11 ; I12 ; I38 ; J24
    Date: 2021
  6. By: Bindler, Anna (University of Gothenburg); Hjalmarsson, Randi (University of Gothenburg); Ketel, Nadine (Vrije Universiteit Amsterdam); Mitrut, Andreea (University of Gothenburg)
    Abstract: Many rights are conferred on Dutch youth at ages 16 and 18. Using national register data for all reported victimizations, we find sharp and discontinuous increases in victimization rates at these ages: about 13% for both genders at 16 and 9% (15%) for males (females) at 18. These results are comparable across subsamples (based on socio-economic and neighborhood characteristics) with different baseline victimization risks. We assess potential mechanisms using data on offense location, cross-cohort variation in the minimum legal drinking age driven by a 2014 reform, and survey data of alcohol/drug consumption and mobility behaviors. We conclude that the bundle of access to weak alcohol, bars/clubs and smoking increases victimization at 16 and that age 18 rights (hard alcohol, marijuana coffee shops) exacerbate this risk; vehicle access does not play an important role. Finally, we do not find systematic spillover effects onto individuals who have not yet received these rights.
    Keywords: victimization, crime, youth, youth protection laws, alcohol, inequality, RDD
    JEL: K42 K36 J13 I12 I14
    Date: 2021–12
  7. By: Anne Brenøe (Department of Economics, University of Zurich); Thomas Epper (CNRS - Centre National de la Recherche Scientifique, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, IÉSEG School Of Management [Puteaux])
    Abstract: We study how parents transmit patience to their children with a focus on two theoretically important channels of socialization: parenting values and parental involvement. Using high-quality administrative and survey data, and a setting without reverse causality concerns, we document a substantial intergenerational transmission of patience. We show that parenting values represent a key channel of the transmission. Authoritative parents (high in control and warmth) do not transmit patience to their children, in contrast to authoritarian and permissive parents. Thus, the authoritative parenting style seems to counteract the transmission of impatience. While parental involvement does not appear to be a relevant channel at the aggregate level, we document important heterogeneity by parent gender.
    Keywords: Intergenerational transmission,time preferences,patience,parenting style,parenting values,parental involvement
    Date: 2021–12–09
  8. By: Alberto Batinti; Joan Costa-i-Font
    Abstract: We study whether a democracy improves a measure of individual wellbeing; human heights. Drawing on individual-level datasets, we test the hypothesis using a battery of eight different measures of democracy and derived averages, and include models accounting for several confounders, regional and cohort fixed effects. We document that democracy - or its quality during early childhood - shows a strong and positive conditional correlation with male, but not female, adult stature. Our preferred estimates suggest that being born in a democracy increases average male stature from a minimum of 1.33 to a maximum of 2.4 cm. Together with the positive association with male stature and the increase in gender dimorphism, we also show an additional contribution when democracy increases furtherly during adolescent years, and when we adopt measures of existing democratic capital before birth and at the end of height plasticity in early adulthood. We also find that democracy is associated with a reduction in inequality of heights distribution. We find period-heterogeneity in our results, with early democratizations being more effective on heights than later ones. Results are robust to the inclusion/exclusion of countries exposed to communism.
    Keywords: democracy, wellbeing, human heights, waves of democratisation, communism, Europe, survey data
    JEL: I18 P20
    Date: 2021
  9. By: Javier Alejo; Leonardo Gasparini; Gabriel Montes-Rojas; Walter Sosa-Escudero
    Abstract: The `paradox of progress' is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the `Mincer equation' (that links wages and education) and the heterogeneity in its returns, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition in order to evaluate the relative contribution of each explanation. The estimators are based on the `functional derivative' approach. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.
    Date: 2021–12

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