nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2022‒02‒07
thirteen papers chosen by
Maximo Rossi
Universidad de la República

  1. Rising top-income persistence in Australia: Evidence from income tax data By Nicolas Hérault; Dean Hyslop; Stephen P. Jenkins; Roger Wilkins
  2. Redistributive effect and the progressivity of taxes and benefits: evidence for the UK, 1977–2018 By Nicolas Hérault; Stephen P. Jenkins
  3. What accounts for the rising share of women in the top 1%? By Richard V. Burkhauser; Nicolas Hérault; Stephen P. Jenkins; Roger Wilkins
  4. Pandemic Policy and Individual Income Changes across Europe By Andrew Clark; Conchita D'Ambrosio; Anthony Lepinteur; Giorgia Menta
  5. Pandemic Policy and Life Satisfaction in Europe By Andrew E. Clark; Anthony Lepinteur
  6. Compensating for academic loss: Online learning and student performance during the COVID-19 pandemic By Andrew E. Clark; Huifu Nong; Hongjia Zhu; Rong Zhu
  7. The Age U-shape in Europe: The Protective Role of Partnership By Andrew E. Clark; Hippolyte d'Albis; Angela Greulich
  8. Life Satisfaction and the Human Development Index Across the World By Remi Yin; Anthony Lepinteur; Andrew E. Clark; Conchita D’ambrosio
  9. Demography and Well-being By Andrew E. Clark
  10. Lucky Women in Unlucky Cohorts: Gender Differences in the Effects of Initial Labor Market Conditions in Latin America By Inés Berniell; Leonardo Gasparini; Mariana Marchionni; Mariana Viollaz
  11. The Marginal Labor Supply Disincentives of Welfare: Evidence from Administrative Barriers to Participation By Moffitt, Robert A.; Zahn, Matthew V.
  12. The importance of capital in closing the entrepreneurial gender gap: a longitudinal study of lottery wins By Sarah Flèche; Anthony Lepinteur; Nattavudh Powdthavee
  13. Job quality and workplace gender diversity in Europe By Andrew E. Clark; Conchita D’ambrosio; Rong Zhu

  1. By: Nicolas Hérault (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne); Dean Hyslop (Motu Research); Stephen P. Jenkins (London School of Economics and Political Science); Roger Wilkins (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne)
    Abstract: We use a new Australian longitudinal income tax dataset, Alife, covering 1991–2017, to examine levels and trends in the persistence in top-income group membership, focussing on the top 1%. We summarize persistence in multiple ways, documenting levels and trends in rates of remaining in top-income groups; re-entry to the top; the income changes associated with top-income transitions; and we also compare top-income persistence rates for annual and ‘permanent’ incomes. Regardless of the perspective taken, top-income persistence increased markedly over the period, with most of the increase occurring in the mid-2000s and early 2010s. In the mid- to late-2010s, Australian top-income persistence rates appear to have been near the top of the range of tax-data estimates for other countries. Using univariate breakdowns and multivariate regression, we show that the rise in top-income persistence in Australia was experienced by many population subgroups.
    Keywords: top incomes, income mobility, top-income persistence
    JEL: D31 I31 C81
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2021n20&r=
  2. By: Nicolas Hérault (Melbourne Institute: Applied Economic & Social Research, the University of Melbourne); Stephen P. Jenkins (London School of Economics and Political Science)
    Abstract: We apply the Kakwani approach to decomposing redistributive effect into average rate, progressivity, and reranking components using yearly UK data covering 1977–2018. We examine cash and in-kind benefits, and direct and indirect taxes. In addition, we highlight an empirical implementation issue – the definition of the reference (‘pre-fisc’) distribution. Drawing on an innovative counterfactual approach, our empirical analysis shows that trends in the redistributive effect of cash benefits are largely associated with cyclical changes in average benefit rates. In contrast, trends in the redistributive effects of direct and indirect taxes are mostly associated with changes in progressivity. For in-kind benefits, changes in the average benefit rate and progressivity each played the major roles at different times.
    Keywords: Kakwani decomposition, inequality, redistributive effect, progressivity, reranking, benefits, taxes
    JEL: D31 H24 H50 I38
    Date: 2021–11
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2021n23&r=
  3. By: Richard V. Burkhauser (Cornell University; IZA; NBER); Nicolas Hérault (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Stephen P. Jenkins (LSE, ISER (University of Essex); University of Melbourne; IZA); Roger Wilkins (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)
    Abstract: The share of women in the top 1% of the UK’s income distribution has been growing over the last two decades (as in several other countries). Our first contribution is to account for this secular change using regressions of the probability of being in the top 1%, fitted separately for men and women, in order to contrast between the sexes the role of changes in characteristics and changes in returns to characteristics. We show that the rise of women in the top 1% is primarily accounted for by their greater increases (relative to men) in the number of years spent in full-time education. Although most top income analysis uses tax return data, we derive our findings taking advantage of the much more extensive information about personal characteristics that is available in survey data. Our use of survey data requires justification given survey under-coverage of top incomes. Providing this justification is our second contribution.
    Keywords: top incomes; women; survey data; decomposition
    JEL: D31 J16
    Date: 2020–06
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2020n09&r=
  4. By: Andrew Clark (Paris School of Economics); Conchita D'Ambrosio (University of Luxembourg); Anthony Lepinteur (University of Luxembourg); Giorgia Menta (Luxembourg Institute of Socio-Economic Research)
    Abstract: We use data from the COME-HERE panel survey collected by the University of Luxembourg to assess the effects of COVID-19 policy responses on disposable incomes in France, Germany, Italy, Spain and Sweden between January 2020 and October 2021. Policy responses are measured by the Stringency and Economic Support Indices from the Oxford COVID-19 Government-Response Tracker. Controlling for the evolution of the pandemic itself, we find that the income cost of greater stringency measures is borne only by the most economically-vulnerable, while government economic-support measures have a positive effect across the income distribution.
    Keywords: COVID-19, Income losses, Lockdown policies, Economic support policies
    JEL: I18 I32 H24
    Date: 2022–02
    URL: http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2022-600&r=
  5. 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); Anthony Lepinteur (Uni.lu - Université du Luxembourg)
    Abstract: We use data from the COME-HERE longitudinal survey collected by the University of Luxembourg to assess the effects of the policy responses to the COVID-19 pandemic on life satisfaction in France, Germany, Italy, Spain and Sweden over the course of 2020. Policy responses are measured by the Stringency Index and the Economic Support Index from the Blavatnik School of Government. Stringency is systematically associated with lower life satisfaction, controlling for the intensity of the pandemic itself. This stringency effect is larger for women, those with weak ties to the labor market, and in richer households. The effect of the Economic Support is never statistically different from zero.
    Keywords: COVID-19,Life satisfaction,Policy stringency,Economic support
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467211&r=
  6. 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); Huifu Nong (Guangdong University of Finance & Economics); Hongjia Zhu (Jinan University [Guangzhou]); Rong Zhu (Flinders University [Adelaide, Australia])
    Abstract: The COVID-19 pandemic has led to widespread school shutdowns, with many continuing distance education via online-learning platforms. We here estimate the causal effects of online education on student exam performance using administrative data from Chinese Middle Schools. Taking a difference-in-differences approach, we find that receiving online education during the COVID-19 lockdown improved student academic results by 0.22 of a standard deviation, relative to pupils without learning support from their school. Not all online education was equal: students who were given recorded online lessons from external higher-quality teachers had higher exam scores than those whose lessons were recorded by teachers from their own school. The educational benefits of distance learning were the same for rural and urban students, but the exam performance of students who used a computer for online education was better than those who used a smartphone. Last, while everyone except the very-best students performed better with online learning, it was low achievers who benefited from teacher quality.
    Keywords: COVID-19 pandemic,Online education,Student performance,Teacher quality
    Date: 2021–08
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467128&r=
  7. 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); Hippolyte d'Albis (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); Angela Greulich (Sciences Po - Sciences Po)
    Abstract: In this study, we ask whether the U-shaped relationship between life satisfactionand age is flatter for individuals who are partnered. An analysis of cross-sectionalEU-SILC data indicates that the decline in life satisfaction from the teens to thefifties is almost four times larger for non-partnered than for partnered individuals,whose life satisfaction essentially follows a slight downward trajectory with age.However, the same analysis applied to three panel datasets (BHPS, SOEP andHILDA) reveals a U-shape for both groups, albeit somewhat flatter for the partneredthan for the non-partnered individuals. We suggest that the difference between thecross-sectional and the panel results reflects compositional effects: i.e., there isa significant shift of the relatively dissatisfied out of marriage in mid-life. Thesecompositional effects tend to flatten the U-shape in age for the partnered individualsin the cross-sectional data.
    Keywords: Life satisfaction,Life cycle,Partnership,Marriage
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467204&r=
  8. By: Remi Yin (Uni.lu - Université du Luxembourg); Anthony Lepinteur (Uni.lu - Université du Luxembourg); 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); Conchita D’ambrosio (Uni.lu - Université du Luxembourg)
    Abstract: We use annual data on over 150 countries between 2005 and 2018 to look at the relationship between subjective well-being (both cognitive and affective) and the Human Development Index (HDI). The HDI appears to be more closely related to cognitive than affective well-being. We also consider the relationships between the three HDI components (the Income, Health, and Education Indices) and well-being, and find that, on average, the Income Index has the strongest predictive power. Importantly, we find that the three HDI components only matter equally in Western and rich countries. Our analysis contributes to the discussion about cultural sensitivity in paradigms of societal development in two ways. We first show that differences in preferences toward development aims exist. Second, we propose a weighting procedure for a culturally-sensitive version of the HDI.
    Keywords: Human Development Index,Subjective well-being,Gallup World Poll,Country groups
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467218&r=
  9. 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)
    Abstract: Demography studies the characteristics of populations. One such characteristic is well-being: this was the subject of the 2019 Wittgenstein Conference. Here, I discuss how objective well-being domains can be summarised to produce an overall well-being score, and how taking self-reported (subjective) well-being into account may help in this effort. But given that there is more than one type of subjective well-being score, we would want to know which one is "best". We would also need to decide whose well-being counts, or counts more than that of others. Finally, I briefly mention the potential role of adaptation and social comparisons in the calculation of societal well-being.
    Keywords: Subjective well-being,Demography,Measurement,Policy
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467198&r=
  10. By: Inés Berniell (CEDLAS-IIE-FCE-UNLP); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP and CONICET); Mariana Marchionni (CEDLAS-IIE-FCE-UNLP and CONICET); Mariana Viollaz (CEDLAS-IIE-FCE-UNLP and IZA)
    Abstract: This paper assesses gender differences in the effects of adverse conditions at labormarket entry in a developing region. Using harmonized microdata from national household surveys for 15 Latin American countries, we build a synthetic panel of cohorts that potentially transition from school to work and observe their labor market outcomes 10 years later. We find that men who faced higher unemployment rates at ages 18-20 suffer a negative effect on employment at ages 27-30. In contrast, women from those same unlucky cohorts have higher employment rates and earnings. Our results are consistent with women acting as secondary workers in downturns. We also find that women from unlucky cohorts control a larger share of family income and are more likely to be the head of household 10 years after labor market entry, and that adverse initial labor market conditions are correlated to more egalitarian perceptions about gender roles later in life.
    JEL: J16 J21 J22 J31
    Date: 2022–02
    URL: http://d.repec.org/n?u=RePEc:dls:wpaper:0294&r=
  11. By: Moffitt, Robert A.; Zahn, Matthew V.
    Abstract: Existing research on the static effects of the manipulation of welfare program benefit parameters on labor supply has allowed only restrictive forms of heterogeneity in preferences. Yet preference heterogeneity implies that the marginal effects on labor supply of welfare expansions and contractions may differ in different time periods with different populations and which sweep out different portions of the distribution of preferences. A new examination of the heavily studied AFDC program uses variation in state-level administrative barriers to entering the program in the late 1980s and early 1990s to estimate the marginal labor supply effects of changes in program participation induced by that variation. The estimates are obtained from a theory-consistent reduced form model which allows for a nonparametric specification of how changes in welfare program participation affect labor supply on the margin. Estimates using a form of local instrumental variables show that the marginal treatment effects are quadratic, rising and then falling as participation rates rise (i.e., becoming more negative then less negative on hours of work). The average work disincentive is not large but that masks some margins where effects are close to zero and some which are sizable. Traditional IV which estimates a weighted average of marginal effects gives a misleading picture of marginal responses. A counterfactual exercise which applies the estimates to three historical reform periods in 1967, 1981, and 1996 when the program tax rate was significantly altered shows that marginal labor supply responses differed in each period because of differences in the level of participation in the period and the composition of who was on the program.
    Keywords: Keywords, Marginal Treatment Effects, Welfare, Labor Supply
    JEL: I38 J22
    Date: 2022–01–19
    URL: http://d.repec.org/n?u=RePEc:jhu:papers:66674&r=
  12. By: Sarah Flèche (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science); Anthony Lepinteur (University of Luxembourg [Luxembourg]); Nattavudh Powdthavee (WBS - Warwick Business School - University of Warwick [Coventry])
    Abstract: Can capital constraints explain why there are more male than female entrepreneurs in most societies? We study this issue by exploiting longitudinal data on lottery winners. Comparing between large to small winners, we find that an increase in lottery win in period t-1 significantly increases the likelihood of becoming self-employed in period t. This windfall effect is statistically the same in magnitude for men and women; a one percent increase in exogenous income increases the probability of female selfemployment by 0.6 percentage points, which is approximately 10% of the gender entrepreneurial gap. These results suggest that we can causally reduce the gender entrepreneurial gap by improving women's access to capital that might not be as readily available to the aspiring female entrepreneurs as it is to male entrepreneurs.
    Keywords: BHPS JEL codes: J16,lottery wins,self-employment,gender inequality,BHPS JEL Codes: J16,Gender inequality,J24,J21
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-03472910&r=
  13. 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); Conchita D’ambrosio (Uni.lu - Université du Luxembourg); Rong Zhu (Flinders University [Adelaide, Australia])
    Abstract: We here consider the relationship between workplace gender measures and employees' perceived job quality, where the former cover both the gender mix of workers with the same job title and the gender of the immediate boss. Data from the 2015 European Working Conditions Survey show that men's job evaluation is higher in gender-balanced job positions at the workplace, while that of women is higher in either gender-balanced or male-dominated positions. The gender of the immediate boss plays no significant role in employee job evaluation. There is some evidence that these correlations differ by job-quality domains. We introduce co-worker support and help, gender discrimination, and unwanted sexual attention as possible mediators of the gender-mix correlations: these change the estimated coefficients only little. Our estimated correlations could therefore reflect a pure preference for job-position gender composition. Last, we use a bounding approach to show that our main results are robust to the potential influence of unobservables. Overall, job-position gender diversity is associated with higher worker well-being.
    Keywords: Perceived job quality,Job-position gender diversity,Gender of immediate boss
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03467113&r=

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