|
on Unemployment, Inequality and Poverty |
| By: | Costa-Font, Joan (London School of Economics); Nici?ska, Anna (University of Warsaw); Rosello-Roig, Melcior (University of Rome) |
| Abstract: | Past trauma resulting from personal life shocks, especially during periods of particular volatility, such as regime transition (or regime change), can give rise to significant long-lasting effects on people's health and well-being. We study this question by drawing on longitudinal and retrospective data to examine the effect of past exposure to major individual-level shocks (specifically hunger, persecution, dispossession, and exceptional stress) on current measures of an individual's health and mental well-being. We study the effect of the timing of the personal shocks, alongside the additional effect of 'institutional uncertainty' of regime change in post-communist European countries. Our findings are as follows: First, we document evidence of the detrimental effects of shocks on a series of relevant health and well-being outcomes. Second, we show evidence of more pronounced detrimental consequences of such personal shocks experienced by individuals living in formerly communist countries (which accrue to about 8% and 10% in the case of hunger and persecution, respectively) than in non-communist countries. The effects are robust and take place in addition to the direct effects of regime change and shocks. |
| Keywords: | transition shocks, Soviet communism, later life health, health care system |
| JEL: | I18 H75 H79 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17780 |
| By: | Brewer, Mike; Cominetti, Nye; Jenkins, Stephen P. |
| Abstract: | We first review research about income and earnings volatility and second provide new UK evidence about the latter using high‐quality administrative record data. The USA stands out as a high‐volatility country relative to the UK and other high‐income countries, but volatility levels have remained constant in these countries recently. Almost all research has considered volatility from an annual perspective whereas we provide new evidence about month‐to‐month earnings volatility. There is a distinct within‐year seasonal pattern to volatility, and volatility is highest for the top and bottom tenths of earners. High earnings volatility among top earners and its seasonality reflect pay bonus patterns whereas, for low earners, the instability of hours including zero‐hours contracts likely plays important roles. Our findings have relevance to the design of cash transfer support in the UK because the monthly reference periods it uses do not align with many earners' pay periods. |
| Keywords: | income volatility; earnings volatility; PAYE data; administrative record data; survey data |
| JEL: | D31 I31 J31 J38 |
| Date: | 2025–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127659 |
| By: | Preuss, Marcel (Cornell University); Reyes, Germán (Middlebury College); Somerville, Jason (Federal Reserve Bank of New York); Wu, Joy (University of British Columbia) |
| Abstract: | Elites disproportionately influence policymaking, yet little is known about their fairness and efficiency preferences–key determinants of support for redistributive policies. We investigate these preferences using an incentivized lab experiment with a group of future elites–Ivy League MBA students. We find that elites implement more unequal earnings distributions than the average American, are highly sensitive to both merit-based inequality and efficiency costs of redistribution, and are less likely to hold strict meritocratic views. These findings provide novel insights into how elites' redistributive preferences may shape high levels of inequality and limited redistributive policy in the United States. |
| Keywords: | meritocracy, efficiency, elite control, fairness ideals, redistributive preferences, MBA students, inequality, experimental economics |
| JEL: | D63 C91 H23 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17788 |
| By: | Lekfuangfu, Warn N. (Universidad Carlos III de Madrid); Olivera, Javier (National Bank of Belgium); Van Kerm, Philippe (University of Luxembourg) |
| Abstract: | Drawing on two data sources from across Europe, we show that both bequest motives of parents and children’s gender composition shape unequal divisions of bequests. First, the Survey on Health, Ageing and Retirement in Europe reveals that observed bequests are divided unequally when children differ in sex, caregiving, or income, with bequest motives strongest among mixed-sex children. Second, in a vignette experiment featuring alternative bequest motive scenarios and randomised gender compositions for two fictitious children, hypothetical bequests are most unequally divided under the exchange motive while children’s gender composition matters more under the altruistic motive. Fictitious parents favour daughters regardless of deservingness, granting the highest bequest share to a deserving daughter with a brother. In return, these patterns reinforce traditional gender norms. |
| Keywords: | altruism, deservingness, vignette experiment, gender, intergenerational transfers, bequest, exchange, Europe, HFCS, SHARE |
| JEL: | H24 D31 D63 E62 H53 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17833 |