Friday, March 23, 2012

NEP: New Economics Papers Unemployment, Inequality and Poverty Issue date: 2012-03-21


NEP: New Economics Papers Unemployment, Inequality and Poverty Issue date: 2012-03-21 
Edited by: Maximo Rossi

Universidad de la Republica

To subscribe/unsubscribe follow this link http://lists.repec.org/mailman/options/nep-ltv
In this issue we have:

The Rise and Fall of Income Inequality in Mexico, 1989â..2010
Campos, Raymundo; Lustig, Nora
Inequality Trends and their Determinants: Latin America over 1990-2011
Cornia, Giovanni Andrea

The Politics of Inequality and Redistribution in Latin Americaâ..s Post-Adjustment Era
Roberts, Kenneth M.

Grandparents' Childcare and Female Labor Force Participation
Posadas, Josefina; Vidal-Fernández, Marian

Policy Regimes, Inequality, Poverty and Growth: The Chilean Experience, 1973-2010
Contreras, Dante

Wealth and inequality in Italy
Giovanni D'Alessio

Decomposing the Composition Effect
Rothe, Christoph

The Distribution of Full Income in Greece
Koutsampelas, Christos; Tsakloglou, Panos

Did Trade Openness Affect Income Distribution in Latin America? Evidence for the years 1980â..2010
Szekely, Miguel

Gender Differences in Education
Pekkarinen, Tuomas

Is Religiosity of Immigrants a Bridge or a Buffer in the Process of Integration? A Comparative Study of Europe and the United States
García Muñoz, Teresa; Neuman, Shoshana

Hiring, Churn and the Business Cycle
Edward P. Lazear; James R. Spletzer

The Gender Wage Gap by Education in Italy
Mussida, C.; Picchio, M.

Economic Growth, Comparative Advantage, and 
Gender Differences in Schooling Outcomes: Evidence from the Birthweight Differences of Chinese Twins
Junsen Zhang; Mark Rosenzweig

Contents.

The Rise and Fall of Income Inequality in Mexico, 1989â..2010
Date: 2012
By: Campos, Raymundo
Lustig, Nora
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-10&r=ltv
Inequality in Mexico rose between 1989 and 1994 and declined between 1994 and 2010. We examine the role of market forces (demand and supply of labour by skill), institutional factors (minimum wages and unionization rate), and public policy (cash transfers) in explaining changes in inequality. We apply the â..re-centred influence functionâ.. method to decompose changes in hourly wages into characteristics and returns. The main driver is changes in returns. Returns rose (1989-94) due to institutional factors and labour demand. Returns declined (1994-2006) due to changes in supply and, to a lesser extent, in demand; institutional factors were not relevant. Government transfers contributed to the decline in inequality, especially after 2000.
Keywords: inequality, wages, disposable income, labour markets, Mexico

Inequality Trends and their Determinants: Latin America over 1990-2011
Date: 2012
By: Cornia, Giovanni Andrea
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-09&r=ltv
The paper reviews the steady and widespread decline in income inequality which has taken place in most of Latin America over 2002-10 and whichâ..â..if continued for another 2-3 yearsâ..â..would reduce the average regional income inequality to pre-liberalization levels. The paper then focuses on the factors, which may explain such inequality decline. A review of the literature and an econometric test indicate that a few complementary factors played an important role in this regard, including a drop in the skill premium following a rapid expansion of secondary education, and the adoption of a new development model by a growing number of left-of-centre governments which emphasizes fiscally-prudent but more equitable macroeconomic, tax, social expenditure and labour policies. For the region as a whole, improvements in terms of trade, migrant remittances, FDI and world growth playeda less important role than expected although their impact was perceptible in countries where such transactions were sizeable.
Keywords: income inequality, human capital inequality, policy regimes, external conditions, Latin America

The Politics of Inequality and Redistribution in Latin Americaâ..s Post-Adjustment Era
Date: 2012
By: Roberts, Kenneth M.
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-08&r=ltv
Declining social and economic inequalities since the late 1990s coincided with several basic shifts in Latin Americaâ..s political landscape, including an electoral turn to the left and a revival of social mobilization from below. These shifts helped to â..repoliticizeâ.. inequality and return redistributive policies to a central place on the political agenda in the aftermath to the structural adjustment policies of the 1980s and 1990s.Equity gains, however, have occurred under conservative governments as well as leftist ones, and they are associated with a diverse set of public policy initiatives. The new politics of inequality, therefore, differ significantly from those of Latin Americaâ..s ISI era, as well as those that prevailed during the period of economic liberalization.
Keywords: inequality, redistribution, structural adjustment, political parties, populism, social policy

Grandparents' Childcare and Female Labor Force Participation
Date: 2012-02
By: Posadas, Josefina (World Bank)
Vidal-Fernández, Marian (University of New South Wales)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6398&r=ltv
In the U.S., grandparents look after one in five preschool children of employed women. Does this source of informal childcare increase female labor force participation and if so, up to what extent? The main challenge to answer this question is that a positive relationship between grandparents’ childcare and female labor force participation might not be causal. We use the maternal grandmother’s death as an instrument of grandparents’ childcare to measure the effect of grandparents’ childcare on maternal labor force participation (MLFP). We compare OLS and IV estimates and find that grandparents’ childcare increases MLFP by 15 percentage points on average. We argue that most of the effect is driven by families from socio-economically disadvantaged backgrounds.
Keywords: maternal labor force participation, grandparents, childcare, NLSY
JEL: J2

Policy Regimes, Inequality, Poverty and Growth: The Chilean Experience, 1973-2010
Date: 2012
By: Contreras, Dante
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-04&r=ltv
Since the 1970s, Chile has exhibited a highly skewed income distribution accompanied with strong fluctuations over time. Although income distribution worsened notably in the 1970s-80s, a significant improvement was recorded in the first half of the 1990s, resulting from better economic and social policies in the return to democracy. Nonetheless, Chile still faces significant challenges to improve development. There must be an active macroeconomic policy focused on the real economy. Chile also needs profound microeconomic reforms, including (i) capital markets, developing long-term financing channels for small businesses; (ii) radical progress in quality of education and labour training; and (iii) vigorous public support for innovation.
Keywords: income distribution, 
macroeconomic policy, microeconomic policies

Wealth and inequality in Italy
Date: 2012-02
By: Giovanni D'Alessio (Banca d'Italia)
URL: http://d.repec.org/n?u=RePEc:bdi:opques:qef_115_12&r=ltv
The paper describes first the evolution in total household wealth in Italy over the period 1965-2010 before addressing the analysis of wealth inequality. On the basis of reconstructed data, we show that household wealth inequality declined until the beginning of the 1990s. It then grew significantly during that decade, remaining at approximately the same level afterwards. By international standards, Italy does not have a high level of wealth inequality (contrary to the evidence available for income). Wealth distribution has changed significantly over time, favouring elderly rather than young households. The origins of wealth (savings, gifts, inheritance, capital gains) are also examined and the statistical evidence is discussed together with the opinions on inequality collected by means of statistical surveys.
Keywords: wealth, inequality
JEL: D31

Decomposing the Composition Effect
Date: 2012-02
By: Rothe, Christoph (Toulouse School of Economics)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6397&r=ltv
This paper proposes a decomposition of the composition effect, i.e. the part of the observed between-group difference in the distribution of some economic outcome that can be explained by differences in the distribution of covariates. Our decomposition contains three types of components: (i) the "direct contributions" of each covariate due to between-group differences in the respective marginal distributions, (ii) several “two way” and "higher order" interaction effects due to the interplay between two or more covariates' marginal distributions, and (iii) a "dependence effect" accounting for between-group differences in dependence patterns among the covariates. Our methods can be used to decompose differences in arbitrary distributional features, like quantiles or inequality measures, and allows for general nonlinear relationships between the outcome and the covariates. It can easily be implemented in practice using standard econometric techniques. An application to wage data from the US illustrates the empirical relevance of the decomposition’s components.
Keywords: counterfactual distribution, decomposition methods
JEL: C13

The Distribution of Full Income in Greece
Date: 2012-02
By: Koutsampelas, Christos (University of Cyprus)
Tsakloglou, Panos (Athens University of Economics and Business)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6396&r=ltv
Non-cash incomes from either private or public sources can have substantial effects on the distribution of economic welfare. However, standard approaches to inequality measurement either neglect them or take into account only selected non-monetary items. Using data for Greece in the mid 2000s we show that it is possible to incorporate a comprehensive list of non-monetary components into the analysis of income inequality. The results indicate that inequality declines sharply when we move from the distribution of disposable monetary income to the distribution of full income, that includes both cash and non-cash incomes. Both private and public non-cash incomes are far more equally distributed than monetary income, but the inequality-reducing effect of publicly provided in-kind services is stronger. The structure of inequality changes when non-cash incomes are included in the concept of resources, but the effects are not dramatic. Non-cash incomes appear to accrue more heavily to younger and older individuals, thus reducing differences across age groups.
Keywords: income distribution, imputed rent, in-kind public transfers
JEL: D31

Did Trade Openness Affect Income Distribution in Latin America? Evidence for the years 1980â..2010
Date: 2012
By: Szekely, Miguel
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-03&r=ltv
This paper offers a medium-term perspective for analysing the trade opennessâ..inequality relationship in Latin America. We present three contributions. The first is that we assemble a database on income distribution indicators systematically estimated from household surveys with emphasis on within-country consistency of methodology, definitions, and coverage for the years 1980-2010. This 30-year database allows observing clearly that the increases in inequality throughout the 1980s and 1990s decades have been almost totally counteracted by the improvements during the first 10 years of the twenty-first century: 75 per cent of the deterioration in income distribution was reversed in the first decade of 2000. The second is an estimation of the association between trade openness and income distribution over the 30-year period. Our central conclusion in this regard is that greater trade openness is associated with contemporaneous increases in inequality in the region. The third is that trade openness contributedâ..â..together with other factorsâ..â..to the increase in inequality during the 1980s and 1990s, but once fully implemented, it did not lead to further rises in inequality, and did not represent a permanent obstacle to improvements in income distribution triggered by other factors such as greater education levels across the population.
Keywords: inequality, education, trade

Gender Differences in Education
Date: 2012-02
By: Pekkarinen, Tuomas (Aalto University)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6390&r=ltv
This paper surveys the trends in gender gaps in education, their causes and potential policy implications. I show that female educational attainment has surpassed, or is about to surpass, male educational attainment in most industrialized countries. These gaps reflect male overrepresentation among secondary school drop-outs and female overrepresentation among tertiary education students and graduates. Existing evidence suggests that this pattern is a result of a combination of increasing returns to education and lower female effort costs of education. Widening gender gap in education combined with recent wage and employment polarization will likely lead to widening inequalities and is linked to declining male labor force participation. The paper discusses evidence on educational policies that both widen and reduce gender gaps in educational outcomes.
Keywords: gender differences, test scores, education
JEL: I20

Is Religiosity of Immigrants a Bridge or a Buffer in the Process of Integration? A Comparative Study of Europe and the United States
Date: 2012-02
By: García Muñoz, Teresa (Universidad de Granada)
Neuman, Shoshana (Bar-Ilan University)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6384&r=ltv
This study reviews and evaluates the intertwined relationship between immigration and religiosity, focusing on the two sides of the Atlantic – Europe and the United States. Based on the existing literature and on a statistical analysis of several data sets (the International Social Survey Program – ISSP: Module Religion, 2008; the European Social Survey – ESS, waves 2002-2010; and the General Social Survey – GSS, waves 2002-2010) the following aspects are explored: (i) the current religious landscape of Europe and of the United States and projections for the future; (ii) religiosity of immigrants (in Europe and the United States): are they more religious than the native populations (in terms of church attendance and of prayer habits)?; (iii) how does religiosity of immigrants affect integration: is it serving as a bridge that smoothens integration into the local population, or as a buffer against the harsh integration process?; and (iv) are the intersections between religiosity and integration different in Europe and in the United States, due to historical differences in the state-religion relationship, immigration policies and concepts? The main findings are the following: (a) immigrants are indeed more religious than the populations in the receiving countries. This fact, combined with higher fertility rates and also a continued inflow of immigrants, will lead to major changes in the religious landscape, both in Europe and in the United States; and (b) while in the united States religiosity of immigrants serves as a bridge between the immigrants and the local population, in Europe it has mainly the function of a buffer and of "balm to the soul".
Keywords: immigration, religion, integration, Europe, United States
JEL: J11

Hiring, Churn and the Business Cycle
Date: 2012-03
By: Edward P. Lazear
James R. Spletzer
URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:17910&r=ltv
Churn, defined as replacing departing workers with new ones as workers move to more productive uses, is an important feature of labor dynamics. The majority of hiring and separation reflects churn rather than hiring for expansion or separation for contraction. Using the JOLTS data, we show that churn decreased significantly during the most recent recession with almost four-fifths of the decline in hiring reflecting decreases in churn. Reductions in churn have costs because they reflect a reduction in labor movement to higher valued uses. We estimate the cost of reduced churn to be $208 billion. On an annual basis, this amounts to about .4% of GDP for a period of 3 1/2 years.
JEL: J21

The Gender Wage Gap by Education in Italy
Date: 2012
By: Mussida, C.
Picchio, M. (Tilburg University, Center for Economic Research)
URL: http://d.repec.org/n?u=RePEc:dgr:kubcen:2012021&r=ltv
Abstract: This paper studies the gender wage gap by educational attainment in Italy using the 1994–2001 ECHP data. We estimate wage distributions in the presence of covariates and sample selection separately for highly and low educated men and women. Then, we decompose the gender wage gap across all the wage distribution and isolate the part due to gender differences in the remunerations of the similar characteristics. We find that women are penalized especially if low educated. When we control for sample selection induced by unobservables, the penalties for low educated women become even larger, above all at the bottom of the wage distribution.
Keywords: gender wage gap;education;counterfactual distributions;decompositions;hazard function.
JEL: C21
Economic Growth, Comparative Advantage, and 

Gender Differences in Schooling Outcomes: Evidence from the Birthweight Differences of Chinese Twins
Date: 2012-02
By: Junsen Zhang (Chinese University of Hong Kong)
Mark Rosenzweig (Economic Growth Center, Yale University)
URL: http://d.repec.org/n?u=RePEc:egc:wpaper:1008&r=ltv
Data from two surveys of twins in China are used to contribute to an improved understanding of the role of economic development in affecting gender differences in the trends in, levels of, and returns to schooling observed in China and in many developing countries in recent decades. In particular, we explore the hypothesis that these phenomena reflect differences in comparative advantage with respect to skill and brawn between men and women in the context of changes in incomes, returns to skill, and/or nutritional improvements that are the result of economic development and growth.
Keywords: schooling, gender, twins, China
JEL: J24

This nep–ltv issue is ©2012 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, it must include this copyright notice. It may not be sold, or placed in something else for sale.

General information on the NEP project can be found at http://nep.repec.org/. For comments please write to the director of NEP, Marco Novarese at < director @ nep point repec point org >.

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Friday, March 16, 2012

NEP: New Economics Papers Unemployment, Inequality and Poverty Issue date: 2012-03-14


Edited by: Maximo Rossi

Universidad de la Republica

Papers: 6

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In this issue we have:

Educational Upgrading and Returns to Skills in Latin America. Evidence from a Supply-Demand Framework, 1990-2010
Leonardo Gasparini; Sebastián Galiani; Guillermo Cruces; Pablo Acosta

Labour Market Penalties of Mothers: the Role of Reconciliation Policies
Lia Pacelli; Silvia Pasqua; Claudia Villosio

Employment and Distribution Effects of the Minimum Wage
Fabián Slonimczyk; Peter Skott

Understanding Material Deprivation in Europe: A Multilevel Analysis
Christopher T. Whelan; Bertrand Maître

Trends in Tariff Reforms and Trends in the Structure of Wages
Sebastián Galiani; Guido Porto

The Intergenerational Transmission of Education: Evidence from Taiwanese Adoptions
Hammitt, James; Liu, Jin-Tan; Tsou, Meng-Wen

Contents.

Educational Upgrading and Returns to Skills in Latin America. Evidence from a Supply-Demand Framework, 1990-2010
Date: 2012-03
By: Leonardo Gasparini (CEDLAS - UNLP)
Sebastián Galiani (Washington University in St. Louis)
Guillermo Cruces (CEDLAS-UNLP and CONICET)
Pablo Acosta (World Bank, Human Development, Latin America and Caribbean Region)
URL: http://d.repec.org/n?u=RePEc:dls:wpaper:0127&r=ltv
It has been argued that a factor behind the decline in income inequality in Latin America in the 2000s was the educational upgrading of its labor force. Between 1990 and 2010, the proportion of the labor force in the region with at least secondary education increased from 40 to 60 percent. Concurrently, returns to secondary education completion fell throughout the past two decades, while the 2000s saw a reversal in the increase in the returns to tertiary education experienced in the 1990s. This paper studies the evolution of wage differentials and the trends in the supply of workers by educational level for 16 Latin American countries between 1990 and 2000. The analysis estimates the relative contribution of supply and demand factors behind recent trends in skill premia for tertiary and secondary educated workers. Supplyside factors seem to have limited explanatory power relative to demandside factors, and are only relevant to explain part of the fall in wage premia for highschool graduates. Although there is significant heterogeneity in individual country experiences, on average the trend reversal in labor demand in the 2000s can be partially attributed to the recent boom in commodity prices that could favor the unskilled (nontertiary educated) workforce, although employment patterns by sector suggest that other withinsector forces are also at play, such as technological diffusion or skill mismatches that may reduce the labor productivity of highlyeducated workers.

Labour Market Penalties of Mothers: the Role of Reconciliation Policies
Date: 2012
By: Lia Pacelli
Silvia Pasqua
Claudia Villosio
URL: http://d.repec.org/n?u=RePEc:cca:wplabo:121&r=ltv
A key issue in increasing women’s participation in productive activities is the possibility of achieving a high work-life balance, both in terms of personal wellbeing and in terms of fair career prospects. The crucial event that challenges any level of work-life balance working women achieve is motherhood. We analyse how motherhood affects women's working career, both in terms of participation and in terms of wages, compared to “non-mothers”. The country chosen for the analysis is Italy, a paradigmatic example of low participation rate, scant childcare, high wage inequality and a cultural environment that considers childcare a predominantly “female affair”. While most of the literature focuses either on wages or on participation, we consider both dimensions in a country where female participation is low, thus contributing to filling the gap in the literature of studies of this kind referred to southern European countries. We confirm that the probability of leaving employment significantly increases for new mothers (career-break job penalty); however, this is mitigated by higher job quality and human capital endowment, and by childcare accessibility. Crucially, the availability of part-time jobs reduces the probability of mothers moving out of the labour force. Furthermore, women not leaving employment after becoming mothers face a decrease in wage levels and growth compared to non-mothers, and there are no signs of this gap closing five years after childbirth (family wage gap). Again, part-time employment plays a crucial role, as the family wage gap penalty emerges only among women working full-time both before and after childbirth; a part-time job over the whole period or even only after childbirth prevents any wage gap from opening up between such working mothers and non-mothers. A decisive fact in this context is that in Italy part-time jobs are (scant but) well paid and protected, unlike most other countries.
Keywords: motherhood, part-time jobs, wage penalty, working career, reconciliation policies
JEL: J13

Employment and Distribution Effects of the Minimum Wage
Date: 2012-02
By: Fabián Slonimczyk (Higher School of Economics, Moscow)
Peter Skott (University of Massachusetts Amherst)
URL: http://d.repec.org/n?u=RePEc:ums:papers:2012-5&r=ltv
This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. We show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically relevant. The over-education rate has been increasing and our regression analysis suggests that the decrease in the minimum wage may have led to a deterioration of the employment and relative wage of low-skill workers. JEL Categories: J31, J41, J42
Keywords: Minimum wage, earnings inequality,monopsony, effeciency wage, over-education

Understanding Material Deprivation in Europe: A Multilevel Analysis
Date: 2012-02-21
By: Christopher T. Whelan (School of Sociology and Geary Institute, University College Dublin)
Bertrand Maître (Economic and Social Research Institute, Dublin)
URL: http://d.repec.org/n?u=RePEc:ucd:wpaper:201205&r=ltv
In this paper, taking advantage of the inclusion of a special module on material deprivation in EU-SILC 2009, we provide a comparative analysis of patterns of deprivation. Our analysis identifies six relatively distinct dimensions of deprivation with generally satisfactory overall levels of reliability and mean levels of reliability across counties. Multi-level analysis based on 28 European countries reveals systematic variation across countries in the relative importance of with and between country variation. The basic deprivation dimension is the sole dimension to display a graduated pattern of variation a across countries. It also reveals the highest correlations with national and household income, the remaining deprivation dimensions and economic stress. It comes closest to capturing an underlying dimension of generalized deprivation that can provide the basis for a comparative European analysis of exclusion from customary standards of living. A multilevel analysis revealed that a range of household and household reference person socio-economic factors were related to basic deprivation and controlling for contextual differences in such factors allowed us to account for substantial proportions of both within and between country variance. The addition of macro-economic factors relating to average levels of disposable income and income inequality contributed relatively little further in the way of explanatory power. Further analysis revealed the existence of a set of significant interactions between micro socio-economic attributes and country level gross national disposable income per capita. The impact of socio-economic differentiation was significantly greater where average income levels were lower. Or, in other words, the impact of the latter was greater for more disadvantaged socio-economic groups. Our analysis supports the suggestion that an emphasis on the primary role of income inequality to the neglect of differences in absolute levels of income may be misleading in important respects.
Keywords: deprivation, economics, income, socio-economic differentiation, multi-level analysis

Trends in Tariff Reforms and Trends in the Structure of Wages
Date: 2011-10
By: Sebastián Galiani (Department of Economics, Washington University in St Louis)
Guido Porto (Development Research Group, The World Bank)
URL: http://d.repec.org/n?u=RePEc:dls:wpaper:0124&r=ltv
This paper provides new evidence on the impacts of trade reforms on wages. We first introduce a model of trade that combines a non-competitive wage setting mechanism due to unions with a factor abundance hypothesis. The predictions of the model are then econometrically investigated using Argentine data. Instead of achieving identification by comparing industrial wages before and after one episode of trade liberalization, our strategy exploits the recent historical record of policy changes adopted by Argentina: from significant protection in the early 1970s, to the first episode of liberalization during the late 1970s, then back to a slowdown of reforms during the 1980s, and finally to the second episode of liberalization in the 1990s. These swings in trade policy represent broken trends in trade reforms that we can compare with observed trends in wages and wage inequality. We use unusual historical data sets of trends in tariffs, wages, and wage inequality to examine the structure of wages in Argentina and to explore how it is affected by tariff reforms. We find that i) trade liberalization, ceteris paribus, reduces wages; ii) industry tariffs reduce the industry skill premium; iii) conditional on the structure of tariffs at the industry level, the average tariff in the economy is positively associated with the aggregate skill premium. These findings suggest that the observed trends in wage inequality in Latin America can be reconciled with the Stolper-Samuelson predictions in a model with unions.
Keywords: Trade liberalization, Stolper-Samuelson, Wage inequality, non-competitive wages and unions.
JEL: F14

The Intergenerational Transmission of Education: Evidence from Taiwanese Adoptions
Date: 2011-12
By: Hammitt, James
Liu, Jin-Tan
Tsou, Meng-Wen
URL: http://d.repec.org/n?u=RePEc:tse:wpaper:25462&r=ltv
This paper examines the causal effect of parental schooling on children’s schooling using a large sample of adoptees from Taiwan. Using birth-parents’ education to help control for selective placement of children with adoptive parents, we find that adoptees raised with more highly educated parents have higher educational attainment, measured by years of schooling and probability of university graduation. We also find evidence that adoptive father’s schooling is more important for sons’ and adoptive mother’s schooling is more important for daughters’ educational attainment. These results support the notion that family environment (nurture) is important in determining children’s educational outcomes, independent of genetic endowment.
Keywords: intergenerational transmission, education, schooling, adoption

This nep–ltv issue is ©2012 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, it must include this copyright notice. It may not be sold, or placed in something else for sale.

General information on the NEP project can be found at http://nep.repec.org/. For comments please write to the director of NEP, Marco Novarese at < director @ nep point repec point org >.

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Hitchcock on Happiness

http://www.openculture.com/2012/03/hitchcock_on_happiness.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+OpenCulture+%28Open+Culture%29

Monday, March 12, 2012

NEP: New Economics Papers Unemployment, Inequality and Poverty Issue date: 2012-03-08


NEP: New Economics Papers Unemployment, Inequality and Poverty Issue date: 2012-03-08 
Monday, March 12, 2012

NEP: New Economics Papers
Unemployment, Inequality and Poverty

Edited by: Maximo Rossi
Universidad de la Republica


To subscribe/unsubscribe follow this link 

http://lists.repec.org/mailman/options/nep-ltv

In this issue we have:


The Rise and Fall of Income Inequality in Mexico: 1989-2010
Raymundo M. Campos-Vazquez; Gerardo Esquivel; Nora Lustig

Social Policies and the Fall in Inequality in Brazil: Achievements and Challenges
Pedro H. G. Ferreira de Souza

Poverty, Inequality and Social Policies in Brazil, 1995-2009
Pedro H. G. Ferreira de Souza

Genes, Economics and Happiness
Nicholas A. Christakis; Jan-Emmanuel De Neve; James H. Fowler; Bruno S. Frey

Happiness as a Driver of Risk-Avoiding Behavior
Jan-Emmanuel De Neve; Robert J. B. Goudie; Sach Mukherjee; Andrew J. Oswald; Stephen Wu

Reforming an Insider-Outsider Labor Market: The Spanish Experience
Bentolila, Samuel; Jimeno, Juan Francisco.; Dolado, Juan José

Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover
Cahuc, Pierre; Charlot, Olivier; Malherbet, Franck

Total Work and Gender: Facts and Possible Explanations
Michael Burda; Daniel S. Hamermesh; Philippe Weil

Toward an Understanding of Why People Discriminate: Evidence from a Series of Natural Field Experiments
Uri Gneezy; John List; Michael K. Price

Contents.

The Rise and Fall of Income Inequality in Mexico: 1989-2010
Date: 2012-01
By: Raymundo M. Campos-Vazquez (El Colegio de México)
Gerardo Esquivel (El Colegio de México)
Nora Lustig (Tulane University)
URL: http://d.repec.org/n?u=RePEc:emx:ceedoc:2012-04&r=ltv
Inequality in Mexico rose between 1989 and 1994 and declined between 1994 and 2010. We examine the role of market forces (demand and supply of labour by skill), institutional factors (minimum wages and unionization rate), and public policy (cash transfers) in explaining changes in inequality. We apply the ‘re-centered influence function’ method to decompose changes in hourly wages into characteristics and returns. The main driver is changes in returns. Returns rose (1989-1994) due to institutional factors and labor demand. Returns declined (1994-2006) due to changes in supply and --to a lesser extent--in demand; institutional factors were not relevant. Government transfers contributed to the decline in inequality, especially after 2000.
Keywords: inequality, wages, disposable income, labor markets, Mexico
JEL: D31

Social Policies and the Fall in Inequality in Brazil: Achievements and Challenges
Date: 2012-02
By: Pedro H. G. Ferreira de Souza (Institute for Applied Economic Research (IPEA))
URL: http://d.repec.org/n?u=RePEc:ipc:opager:135&r=ltv
By the end of the first decade of the 21st century, the most usual international depiction of Brazil is that of a burgeoning, upcoming country. Although in many ways frankly exaggerated, this marks a stark contrast with a not-so-distant past. This turnaround has had a lot to do with favourable international circumstances, but it also owes a lot to extensive reforms that made possible something that was almost unprecedented in Brazil: pro-poor growth. (?)
Keywords: Social Policies and the Fall in Inequality in Brazil: Achievements and Challenges

Poverty, Inequality and Social Policies in Brazil, 1995-2009
Date: 2012-02
By: Pedro H. G. Ferreira de Souza (Institute for Applied Economic Research (IPEA))
URL: http://d.repec.org/n?u=RePEc:ipc:wpaper:87&r=ltv
Since the mid-1990s, Brazil has undergone extensive reforms that have finally reversed the dismaying economic performance of the 1980s. In particular, poverty and inequality indicators have improved dramatically, especially since the late-2000s. This paper provides an overview of such recent trends and discusses the role played by four major government interventions: public education, the minimum wage law, Social Security pensions and Social Assistance transfers. Additionally, available data sets and methods for policy evaluation are also discussed. (?)
Keywords: Poverty, Inequality and Social Policies in Brazil, 1995-2009

Genes, Economics and Happiness
Date: 2012-02
By: Nicholas A. Christakis
Jan-Emmanuel De Neve
James H. Fowler
Bruno S. Frey
URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1127&r=ltv
A major finding from research into the sources of subjective well-being is that individuals exhibit a "baseline" level of happiness. We explore the influence of genetic variation by employing a twin design and genetic association study. We first show that about 33% of the variation in happiness is explained by genes. Next, using two independent data sources, we present evidence that individuals with a transcriptionally more efficient version of the serotonin transporter gene (SLC6A4) report significantly higher levels of life satisfaction. These results are the first to identify a specific gene that is associated with happiness and suggest that behavioral models benefit from integrating genetic variation.
Keywords: wellbeing, socio-demographics, happiness, genetics, life satisfaction
JEL: A12

Happiness as a Driver of Risk-Avoiding Behavior
Date: 2012-02
By: Jan-Emmanuel De Neve
Robert J. B. Goudie
Sach Mukherjee
Andrew J. Oswald
Stephen Wu
URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1126&r=ltv
Most governments try to discourage their citizens from taking extreme risks with their health and lives. Yet, for reasons not understood, many people continue to do so. We suggest a new approach to this longstanding question. First, we show that expected-utility theory predicts that 'happier' people will be less attracted to risky behaviors. Second, using BRFSS data on seatbelt use in a sample of 300,000 Americans, we document evidence strongly consistent with that prediction. Our result is demonstrated with various methodological approaches, including Bayesian model-selection and instrumental-variable estimation (based on unhappiness caused by widowhood). Third, using data on road accidents from the Add Health data set, we find strongly corroborative longitudinal evidence. These results suggest that government policy may need to address the underlying happiness of individuals rather than focus on behavioural symptoms.
Keywords: subjective well-being, risky behaviors, effects of well-being, rational carelessness

Reforming an Insider-Outsider Labor Market: The Spanish Experience
Date: 2012-01
By: Bentolila, Samuel
Jimeno, Juan Francisco.
Dolado, Juan José
URL: http://d.repec.org/n?u=RePEc:fda:fdaddt:2012-01&r=ltv
This paper presents a case study on reforming a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case. We show how a dual market, with permanent and temporary employees makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labor reforms, the political economy equilibrium has not allowed them to be transformational enough.

Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover
Date: 2012-02
By: Cahuc, Pierre (Ecole Polytechnique, Paris)
Charlot, Olivier (University of Cergy-Pontoise)
Malherbet, Franck (University of Rouen)
URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp6365&r=ltv
This paper provides a simple model which explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into permanent and temporary jobs observed in Continental European countries. We show that the stringency of legal constraints on the termination of permanent jobs has a strong positive impact on the turnover of temporary jobs. We also find that job protection has very small effects on total employment but induces large substitution of temporary jobs for permanent jobs which significantly reduces aggregate production.
Keywords: temporary jobs, employment protection legislation
JEL: J63

Total Work and Gender: Facts and Possible Explanations
Date: 2012-02
By: Michael Burda
Daniel S. Hamermesh
Philippe Weil
URL: http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2012-007&r=ltv
Time-diary data from 27 countries show a negative relationship between real GDP per capita and female-male differences in total work time—work for pay and work at home. In rich non-Catholic countries on four continents men and women do about the same average amount of total work. Survey results demonstrate, however, that labor economists, macroeconomists, sociologists and the general public believe that women work more. The widespread average equality does not arise from gender differences in the price of time, from intra-family bargaining or from spousal complementarity. Several theories, including ones based on social norms, might explain these findings and are consistent with cross-national evidence from the World Values Surveys and sets of microeconomic data from Australia and Germany.
Keywords: time use, gender differences, household production, paid work
JEL: J22
Toward an Understanding of Why People 

Discriminate: Evidence from a Series of Natural Field Experiments
Date: 2012-02
By: Uri Gneezy
John List
Michael K. Price
URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:17855&r=ltv
Social scientists have presented evidence that suggests discrimination is ubiquitous: women, nonwhites, and the elderly have been found to be the target of discriminatory behavior across several labor and product markets. Scholars have been less successful at pinpointing the underlying motives for such discriminatory patterns. We employ a series of field experiments across several market and agent types to examine the nature and extent of discrimination. Our exploration includes examining discrimination based on gender, age, sexual orientation, race, and disability. Using data from more than 3000 individual transactions, we find evidence of discrimination in each market. Interestingly, we find that when the discriminator believes the object of discrimination is controllable, any observed discrimination is motivated by animus. When the object of discrimination is not due to choice, the evidence suggests that statistical discrimination is the underlying reason for the disparate behavior.
JEL: C93

This nep–ltv issue is ©2012 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, it must include this copyright notice. It may not be sold, or placed in something else for sale.

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