nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2023‒07‒17
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Trade Shocks and Social Mobility: The Intergenerational Effect of Import Competition in Brazil By Andrés César; Matías Ciaschi; Guillermo Falcone; Guido Neidhöfer
  2. Educational Mobility Across Three Generations in Latin American Countries By Pablo Celhay; Sebastian Gallegos
  3. Age and Happiness By Piper, Alan
  4. Stephen versus Stephanie? Does Gender Matter for Peer-to-Peer Career Advice By Lordan, Grace; Lekfuangfu, Warn N.
  5. Income sources, intrahousehold allocation and individual poverty By Olivier Bargain
  6. Health and wellbeing spillovers of a partner’s cancer diagnosis By Angelini, Viola; Costa-Font, Joan

  1. By: Andrés César (CEDLAS-IIE-FCE-UNLP & CONICET); Matías Ciaschi (CEDLAS-IIE-FCE-UNLP & CONICET); Guillermo Falcone (CEDLAS-IIE-FCE-UNLP & CONICET); Guido Neidhöfer (ZEW Mannheim)
    Abstract: This paper investigates whether the impact of trade shocks on employment and wages persists across generations. Using survey data with retrospective information on parental employment and instrumental variables, we study the effect of increased Chinese import competition in Brazilian industries on individuals with differently exposed fathers. Results show that several years after the shock, children of more exposed fathers have lower education and earnings, lower chances of formal jobs, and are more likely to rely on social assistance. These effects are substantially stronger for children from disadvantaged background, indicating that the shock had a negative impact on intergenerational mobility.
    JEL: I24 J62 F14 F16 J23
    Date: 2023–07
  2. By: Pablo Celhay; Sebastian Gallegos (Universidad Adolfo Ibáñez)
    Abstract: This paper presents new evidence on educational mobility across three generations in six Latin American countries (LAC). Combining survey information with national census data we build a data set with 50, 000 triads of grandparents-parent-children born between 1890 and 1990. We estimate a five mobility measures, to show that (i) the empirical multi-generational persistence is high in LAC; (ii) it is much larger than what Becker & Tomes (1986) theoretical model predicts, with a bias that is twice as large for LAC compared to developed countries; (iii) Clark’s theory (2014) of high and sticky persistence provides a better approximation for describing mobility across multiple generations in developing countries. We also uncover that while relative measures suggest stagnant mobility across generations, there are significant improvements according to non-linear measures suggested by Asher, Novosad & Rafkin (2022). This result is especially relevant for developing countries such as LAC, where historical educational expansions have especially benefited the lower end of the schooling distribution.
    Keywords: developing countries, Latin America, intergenerational mobility, educational policy, multiple generations, compulsory schooling
    JEL: J62 J12 N36 P36 I24 I28
    Date: 2023–06
  3. By: Piper, Alan
    Abstract: This entry summarises quantitative research endeavours regarding the relationship between age and happiness. Firstly, the dominant finding in the literature is discussed: that, on average, happiness starts off high in early adulthood and declines to a midlife low and then, following the midlife low, average happiness increases again until retirement. As the discussion highlights, this midlife low finding has been found around the world, and at different time periods, with different datasets and methods. This entry also shows how some individuals suffer more at midlife than others, and discusses why this might be the case. While the dominant finding is largely (though not wholly) accepted, reasons for its existence and how it might be mitigated are less clear and remain to some extent a puzzle. The recommendations aim for more understanding here and regarding other trends at different parts of the lifecycle.
    Keywords: Age; ;Happiness; Life Satisfaction
    JEL: I31
    Date: 2023–03
  4. By: Lordan, Grace (London School of Economics); Lekfuangfu, Warn N. (Universidad Carlos III de Madrid)
    Abstract: Occupational segregation is one of the major causes of the gender pay gap. We probe the possibility that individual beliefs regarding gender stereotypes established in childhood contribute to gendered sorting. Using an experiment with two vignette designs, which was carried out in schools in the UK, we consider whether students aged 15-16 years recommend that a fictitious peer pursue different college majors and career paths simply because of their gender. We find strong evidence that this is the case. The within-majors treatment design shows that our respondents are 11 percentage points more likely to recommend corporate law to a male peer. The across-majors design reveals that students presented with a male fictitious peer tend to recommend degrees that have lower shares of females to males.
    Keywords: sorting, gender stereotype, gender, vignette design, occupational choice, college major choice
    JEL: J24
    Date: 2023–05
  5. By: Olivier Bargain (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Policies aimed at redistributing to the most vulnerable individuals must consider inequality within households as much as between households. In that spirit, many cash transfers are targeted at women rather than men. Tax legislations can also contain specific gender provisions that treat men and women differently. Whether these policies operate some intrahousehold redistribution, or are defeated by the household agency problem, is an open question. This paper provides new insights by adapting models of intrahousehold allocation to account for women's and men's net-of-tax earnings and targeted benefits as determinants of the household resource sharing function. We suggest applications using household expenditure data for Argentina and South Africa. Net-of-tax earnings and benefits commanded by women are often positively related to their and their children's resources. We provide counterfactual simulations to illustrate how women's financial power – and its sources – may modify their consumption share and thus their individual poverty status.
    Keywords: Collective model, Sharing rule, Tax-benefit policies, Engel curves
    Date: 2023
  6. By: Angelini, Viola; Costa-Font, Joan
    Abstract: Major health shocks can have far-reaching consequences on the welfare of an individual's support and emotional network. This paper investigates both long-term and short-term spillovers of a major non-communicable health shock, namely a cancer diagnosis (CD), on the health and well-being of an individual's partner. We rely on data from a longitudinal sample of individuals over fifty from 19 European countries. Our estimates provide economically relevant evidence of the spillovers of a CD on the partner's mental health and well-being. We document a negative association between a partner’s CD and several measures of well-being, which is not driven by changes in health behaviors and persists over time for some dimensions. These findings suggest that focusing on the individual economic impact of a CD is likely to underestimate its long-term welfare effects unless spillovers on the emotional support network are considered.
    Keywords: cancer; family spillovers; health behaviors; household well-being; employment; loneliness; welfare effects
    JEL: I18 J14
    Date: 2023–06–02

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