nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2023‒02‒20
eight papers chosen by
Maximo Rossi
Universidad de la República

  2. Background matters, but not whether parents are immigrants: outcomes of children born in Denmark By Fjaellegaard Jensen, Mathias; Manning, Alan
  3. Opiates of the Masses? Deaths of Despair and the Decline of American Religion By Tyler Giles; Daniel M. Hungerman; Tamar Oostrom
  4. Subjective Inequity Aversion: Unfair Inequality, Subjective Well-Being, and Preferences for Redistribution By Bohmann, Sandra; Kalleitner, Fabian
  5. Residential Location and the Male-Female Gap in Labor Market Outcomes - A Lesson from Newcomers to Israel By Moshe Buchinsky; Chemi Gotlibovski; Osnat Lifshitz
  6. Labor market insurance policies in the XXI century By Boeri, Tito; Cahuc, Pierre
  7. Do Minimum Wage Hikes Lead to Employment Destruction? Evidence from a Regression Discontinuity Design in Argentina By Nicolás Abbate; Bruno Jiménez
  8. Beyond Burnout: from Measuring to Forecasting By Bart Blackburn; Tiffany Chan; Elizabeth Cherot; Richard B. Freeman; Xi Hu; Eric Matt; C. Aubrey Rhodes

  1. By: John List
    Abstract: 2022 Summary of Artefactual Experiments
    Date: 2023
  2. By: Fjaellegaard Jensen, Mathias; Manning, Alan
    Abstract: On average, children born in Denmark with immigrant parents (first-generation locals) have lower earnings, higher unemployment, less education, more welfare transfers, and more criminal convictions than children with local-born parents. This is different from the US where first-generation locals often have better unconditional outcomes. However, like the US, when we condition on parental socio-economic characteristics, first-generation locals generally perform as well or better than the children of locals. There is little distinctive about being a child of immigrants, other than the fact that they are more likely to come from deprived backgrounds.
    JEL: J15 J61 J62 N34
    Date: 2022–10–17
  3. By: Tyler Giles; Daniel M. Hungerman; Tamar Oostrom
    Abstract: In recent decades, death rates from poisonings, suicides, and alcoholic liver disease have dramatically increased in the United States. We show that these "deaths of despair" began to increase relative to trend in the early 1990s, that this increase was preceded by a decline in religious participation, and that both trends were driven by middle-aged white Americans. Using repeals of blue laws as a shock to religiosity, we confirm that religious practice has significant effects on these mortality rates. Our findings show that social factors such as organized religion can play an important role in understanding deaths of despair.
    JEL: I18 J11 Z12
    Date: 2023–01
  4. By: Bohmann, Sandra; Kalleitner, Fabian
    Abstract: This paper argues that `inequity aversion' can be understood as an emotional reaction to perceived injustice that arises from individuals’ comparisons of their own and others’ outcomes to a subjective fairness ideal. In particular, we assume that subjective perceptions of inequity and not objective deviations from equality are crucial to understanding how individuals react to inequality. The paper formalizes these insights by adapting the Fehr and Schmidt (1999) model of inequity aversion replacing the fairness frame of objective equality with subjectively perceived equity. We test this model using data from the European Social Survey 2018 analyzing the association between respondents' perceived fairness of own, top, and bottom incomes with subjective well-being and preferences for redistribution. Results from spline regressions with country-fixed effects indicate that perceived injustice of own and top incomes is positively related to individuals' subjective well-being. For the perceived injustice of bottom incomes, we find no substantive relationships with subjective well-being. Further analyses indicate a positive link between the perceived injustice of bottom and top incomes and preferences for redistribution. In sum, our results suggest that injustice perceived for oneself is connected to utility while perceived injustice of others is related to increased willingness to back redistributive policy proposals even if they are not in line with material self-interest.
    Date: 2023–01–23
  5. By: Moshe Buchinsky (UCLA - University of California [Los Angeles] - UC - University of California, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Chemi Gotlibovski (MTA - The Academic College of Tel Aviv-Yaffo); Osnat Lifshitz (Reichman University [Herzliya])
    Abstract: We estimated two dynamic programing models, one for men and one for women, on a sample of immigrants who arrived in Israel from the Former Soviet Union (FSU) between 1989 and 1995. Following the literature, we assume that the household maximizes its expected utility based only on the husband's human capital. Therefore, the family's residential location decision is based on the husband's labor market opportunities. We study the potential effect of this assumed behavior on the labor market's gender gaps. In the model estimated for men, we endogenize the decisions regarding residential location, employment location, and occupational choices. In contrast, in the model estimated for women the family's residential location is taken as given. Using the estimated parameters from the two models and a number of counterfactual simulations, we are able to decompose the observed gender wage gap into two parts–one based on behavioral differences and the other based on the lower labor market returns for women. The simulations indicate that if women had the same labor market returns and the same preferences as men, their outcomes would have been similar to those of men. Moreover, the simulations show that even without any changes in their labor market conditions, women would have gained in terms of both job quality and wages if the family's residential location was based on their human capital.
    Keywords: Family migration, Gender wage gap, Household Labor Supply, Residential Location
    Date: 2023
  6. By: Boeri, Tito; Cahuc, Pierre
    Abstract: The recovery from the Covid-19 crisis will force governments to accelerate transformation in their menu of labor market policy tools. The crisis was a stress test for unemployment insurance schemes as it involved a sudden and unexpected shutdown of a very large set of activities. This forced countries to introduce, often from scratch, income support schemes for workers under new forms of employment, and the self-employed. There was also a considerable expansion of short-time work schemes notably towards the small business. The challenge ahead of us is perhaps even harder as post-Covid19 labor markets are likely to be characterized by substantial labor reallocation. Major innovations in labor market policy are required to smooth consumption of workers involved in this reallocation. We survey the large body of research on schemes reducing the costs of reallocation complementary to unemployment insurance. Our attention is on short-time work (preventing layoffs by subsidizing hours reductions), partial unemployment insurance (enabling workers to combine unemployment benefits with low-income jobs), and wage insurance (offering a temporary wage subsidy to workers changing jobs). The properties of these new schemes are first presented and compared to those of standard unemployment benefits. Next the main results of the empirical literature on the effects of wage insurance, partial unemployment insurance and short-time work are presented. A final section is devoted to discussing directions for further research.
    Keywords: partial unemployment insurance; wage insurance; short-time work
    JEL: H50 J60
    Date: 2022–10–11
  7. By: Nicolás Abbate (CEDLAS-IIE-FCE-UNLP); Bruno Jiménez (Princeton University & CEDLAS-IIE-FCE-UNLP)
    Abstract: In this paper, we evaluate a series of minimum wage hikes implemented in the early XXIst century in Argentina using administrative records of registered employment. We identify the effect of raising the minimum wage on job separations via a regression discontinuity design. More specifically, we compare the match destruction rates for a treatment group directly bound by the minimum wage hikes and a control group slightly out of its legal scope. We show that this method represents an improvement over previous ones because it reduces the incidence of Type-I error. We find that, when aggregated, these hikes had a precisely estimated zero effect on separation rates. However, the increases enacted in 2008 arise as an exception. They decreased separations by 4.8 percentage points (19%). These results suggest that the employment effects of minimum wages may not flow through employment destruction.
    JEL: J31 J80 K31
    Date: 2023–02
  8. By: Bart Blackburn; Tiffany Chan; Elizabeth Cherot; Richard B. Freeman; Xi Hu; Eric Matt; C. Aubrey Rhodes
    Abstract: Burnout of physicians and other medical personnel is a major problem in the economics of healthcare systems, potentially costing billions of dollars. Knowledge of the determinants and costs of burnout at the organization level is sparse, making it difficult to assess the net benefits of interventions to reduce burnout at the level where arguably the greatest change can be affected. In this paper, we use data from a midsize healthcare organization with about 500 clinicians in 2021-22 to advance analysis of clinical burnout in two ways. First, we estimate the costs of clinician burnout beyond the widely studied losses due to turnover. Including hard-to-measure and potentially long-term costs that arise from reduced patient satisfaction and lower productivity of burnt-out clinicians at work, our analysis suggests a much higher cost of burnout per clinician than previous estimates that exclude these costs. Second, we use standard medical billing and administrative operating data to forecast turnover and productivity of clinicians to serve as an early warning system. Accurate estimates of both the cost of burnout now and of likely future costs should help decision-makers be proactive in their approach to solving the burnout crisis currently affecting the healthcare industry. While our empirical analysis relates to a particular healthcare organization, the framework for quantifying the costs of burnout can be used by other organizations to assess the cost-effectiveness of ameliorative policies.
    JEL: I1 I19 I3 I30 I31
    Date: 2023–01

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