nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2022‒06‒20
seven papers chosen by
Maximo Rossi
Universidad de la República

  1. Beyond income inequality: non-monetary rewards to work By Andrew E. Clark; Maria Cotofan; Richard Layard
  2. Do Individuals Adapt to All Types of Housing Transitions? By Clark, Andrew E.; Diaz-Serrano, Luis
  3. Minimum Income Support for Families with Children in Europe and the US: Where Does It Stand? By Aerts, Elise; Marx, Ive; Parolin, Zachary
  4. Fertility and Family Labor Supply By Katrine Marie Jakobsen; Thomas H. Jørgensen; Hamish Low; Katrine Marie Jakobsen
  5. The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects By Pierre Cahuc; Francis Kramarz; Sandra Nevoux
  6. Trends of Educational Mobility Across Three Generations in Latin America By Celhay, Pablo A.; Gallegos, Sebastian
  7. Worker stress, burnout, and wellbeing before and during the COVID-19 restrictions in the United Kingdom By Pelly, Diane; Daly, Michael; Delaney, Liam; Doyle, Orla

  1. By: Andrew E. Clark; Maria Cotofan; Richard Layard
    Abstract: Discussion of income inequality focuses primarily on wages with limited consideration of the non-monetary rewards to work, not least the satisfaction that employees experience in doing their jobs. Andrew Clark, Maria Cotofan and Richard Layard use data on subjective wellbeing to reveal the full extent of UK labour market inequality.
    Keywords: Employment, equality, Wellbeing, labour markets, labor markets, labour, labor
    Date: 2021–06–15
  2. By: Clark, Andrew E. (Paris School of Economics); Diaz-Serrano, Luis (Universitat Rovira i Virgili)
    Abstract: This paper provides one of the first tests of adaptation to the complete set of residential transitions. We use long-run SOEP panel data and consider the impact of all housing transitions, whether or not they involve a change in housing tenure or geographical movement, on both life satisfaction and housing satisfaction. Controlling for individual characteristics, some residential transitions affect life satisfaction only 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 only uncover evidence of some adaptation for renter-renter moves. 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
    JEL: D19 R21
    Date: 2022–05
  3. By: Aerts, Elise; Marx, Ive; Parolin, Zachary (Columbia University)
    Abstract: This paper takes stock of income support provisions for families with children in the European Union, the United Kingdom, and the United States. We look at the impact of regulatory instruments such as statutory minimum wages and also at the role of more direct income supports like child benefits and refundable tax credits. We also consider the impact of design. What is the relative role of universal as opposed to more targeted provisions, be it by family type or (pre-tax) income level? In short, what can we learn from the best-performing countries when it comes to ensuring that families with children have adequate minimum resources? We demonstrate that there is very substantial variation in the levels of income support provided to working and non-working families across Europe and the US. The most generous countries support incomes through layers of policies of which significant minimum wages and both universal and targeted child benefits (or tax credits) are key layers. The main lesson here is that, if the political will is there, workable policy mixes are available to make sure that parents have adequate minimum income resources to provide their children an upbringing free from poverty. (Stone Center on Socio-Economic Inequality Working Paper)
    Date: 2022–05–05
  4. By: Katrine Marie Jakobsen; Thomas H. Jørgensen; Hamish Low; Katrine Marie Jakobsen
    Abstract: We study the role of fertility adjustments for the labor market responsiveness of men and women. First, we use longitudinal Danish register data and tax reforms from 2009 to provide new empirical evidence on asymmetric fertility adjustments to tax changes of men and women. Second, we quantify the importance of these fertility adjustments for understanding the labor supply responsiveness of couples through a life-cycle model of family labor supply and fertility. Allowing fertility adjustments increases the labor supply responsiveness of women by 28%. These adjustments affect human capital accumulation and has permanent implications for the gender wage gap within couples.
    Keywords: fertility, labor supply, human capital accumulation, gender inequality, tax reform, life-cycle
    JEL: J22 J13 D15 H24
    Date: 2022
  5. By: Pierre Cahuc (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Francis Kramarz (ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique); Sandra Nevoux (Banque de France - Banque de France - Banque de France)
    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,Unemployement,Hours of work
    Date: 2021–05–01
  6. By: Celhay, Pablo A.; Gallegos, Sebastian
    Abstract: This paper provides new evidence on long term intergenerational mobility in developing countries. We gather data linking schooling outcomes across three generations for six Latin American countries. Our work complements recent evidence going beyond two generations in more mobile, developed nations. Our main findings indicate that (i) the empirical multi-generational persistence is higher than what seminal theoretical models predict, with a much larger upward bias for Latin America than for developed countries; (ii) absolute mobility has increased but relative mobility remains constant over fifty years, and (iii) compulsory schooling laws plausibly contribute to explaining these mobility patterns, because they increased education levels but also reduced the dispersion of schooling. Overall, this paper contributes to our understanding of long run intergenerational mobility with novel evidence for the highly immobile Latin American region, where family background effects tend to be comparatively longer-lasting.
    Keywords: Desarrollo, Educación, Investigación socioeconómica, Políticas públicas, Sector académico,
    Date: 2022
  7. By: Pelly, Diane; Daly, Michael; Delaney, Liam; Doyle, Orla
    Abstract: COVID-19 created a transformational shift in the working environment for much of the labour force, yet its impact on workers is unclear. This study uses longitudinal data to examine the wellbeing of 621 full-time workers assessed before (November 2019–February 2020) and during (May–June 2020) the first lockdown in the United Kingdom. We employ fixed effects analyses to investigate the impact of the restrictions and mandatory homeworking on cognitive, emotional, and psychological wellbeing. Within the sample, the rate of full-time homeworking increased from 2 to 74% between waves. We identify significant changes in 9 of the 15 measures assessed, with a general pattern of improvements in wellbeing during lockdown. Overall levels of stress, self-rated mental health, positive emotions and life and job satisfaction are not adversely affected by the restrictions. There is a reduction in the burnout symptoms of disengagement (−0.13 sd) and exhaustion (−0.20 sd) and in the frequency with which negative emotions are experienced at work (−0.15 sd). Workers feel more autonomous (+0.09 sd), closer to their co-workers (+0.10 sd), and more attached to their organisations (+0.19 sd). However, homelife satisfaction declines (−0.11 sd). These findings highlight the possibility that the COVID-19 pandemic and large-scale transition to homeworking was associated with unchanged or improved worker wellbeing. This study has important implications for governments and employers regarding a global shift to homeworking.
    Keywords: burnout; COVID-19 restrictions; homeworking; lockdown; mental health; stress; subjective wellbeing
    JEL: R14 J01
    Date: 2022–04–05

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