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Full-Text Articles in Income Distribution

Adverse Life Events And Intergenerational Transfers, Jessamyn Schaller, Chase Eck Oct 2019

Adverse Life Events And Intergenerational Transfers, Jessamyn Schaller, Chase Eck

Upjohn Institute Working Papers

While there has been broad interest in the direct effects of major life events on older households that experience them, little attention has been paid to the intergenerational transmission of those effects— how negative shocks in parents’ households affect the outcomes of their adult children—or to the role that grown children play in helping their parents recover from adverse events. We use regression and event study approaches to examine within-family changes in monetary transfers and informal care following wealth loss, involuntary job displacement, spousal death, and health shocks in retirement-aged households. We find that giving to adult children is responsive …


The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald, Eric Nilsson Jun 2016

The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald, Eric Nilsson

Upjohn Institute Working Papers

We analyze the price pass-through effect of the minimum wage and use the results to provide insight into the competitive structure of low-wage labor markets. Using monthly price series, we find that the pass-through effect is entirely concentrated on the month that the minimum wage change goes into effect, and is much smaller than what the canonical literature has found. We then discuss why our results differ from that literature, noting the impact of series interpolation in generating most of the previous results. We then use the variation in the size of the minimum wage change to evaluate the competitive …


Wage Insurance As A Policy Option In The United States, Stephen A. Wandner Jan 2016

Wage Insurance As A Policy Option In The United States, Stephen A. Wandner

Upjohn Institute Working Papers

Wage insurance is a program that attempts to help permanently displaced workers transition to employment rapidly, effectively, and equitably. Because displaced workers have been found to suffer substantial earnings losses when they become reemployed, a wage insurance program provides a temporary wage supplement that partially reduces the wage loss experienced by targeted, newly reemployed workers. While participating workers receive a “wage supplement,” the program is called “wage insurance” because of its design as a social insurance program rather than an income transfer program. This paper provides a discussion of the development of wage insurance as a policy option in the …


The Rise Of Domestic Outsourcing And The Evolution Of The German Wage Structure, Deborah Goldschmidt, Johannes Schmieder Sep 2015

The Rise Of Domestic Outsourcing And The Evolution Of The German Wage Structure, Deborah Goldschmidt, Johannes Schmieder

Upjohn Institute Working Papers

The nature of the relationship between employers and employees has been changing over the last three decades, with firms increasingly relying on contractors, temp agencies, and franchises rather than hiring employees directly. We investigate the impact of this transformation on the wage structure by following jobs that are moved outside of the boundary of lead employers to contracting firms. For this end we develop a new method for identifying outsourcing of food, cleaning, security, and logistics services in administrative data using the universe of social security records in Germany. We document a dramatic growth of domestic outsourcing in Germany since …


The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra Jun 2015

The Effect Of The Earned Income Tax Credit In The District Of Columbia On Poverty And Income Dynamics, Bradley L. Hardy, Daniel Muhammad, Rhucha Samudra

Upjohn Institute Working Papers

Using unique longitudinal administrative tax panel data for the District of Columbia (DC), we assess the combined effect of the DC supplemental earned income tax credit (EITC) and the federal EITC on poverty and income dynamics within Washington, DC, from 2001 to 2011. The EITC in DC merits investigation, as the DC supplement to the federal credit is the largest in the nation. The supplemental DC EITC was enacted in 2000, and has been expanded from 10 percent of the federal credit in 2001 to 40 percent as of 2009. To implement the study, we estimate least squares models with …


Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford Mar 2015

Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford

Upjohn Institute Working Papers

This paper addresses the question of how a minimum wage increase affects the wages of low-wage workers. Most studies assume that there is a simple mechanical increase in the wage for workers earning a wage between the old and the new minimum wage, with some studies allowing for spillovers to workers with wages just above this range. Rather than assume that the wages of these workers would have remained constant, this paper estimates how a minimum wage increase impacts a low-wage worker’s wage relative to the wage the worker would have if there had been no minimum wage increase. The …


Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West Jan 2015

Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West

Upjohn Institute Working Papers

The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels. We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. These effects are most pronounced for younger workers and in …


The Effect Of Minimum Wages On The Employment And Earnings Of South Africa's Domestic Service Workers, Tom Hertz Aug 2005

The Effect Of Minimum Wages On The Employment And Earnings Of South Africa's Domestic Service Workers, Tom Hertz

Upjohn Institute Working Papers

Minimum wages have been in place for South Africa's one million domestic service workers since November of 2002. Using data from seven waves of the Labour Force Survey, this paper documents that the real wages, average monthly earnings, and total earnings of all employed domestic workers have risen since the regulations came into effect, while hours of work per week and employment have fallen. Each of these outcomes can be linked econometrically to the arrival of the minimum wage regulations. The overall estimated elasticities suggest that the regulations should have reduced poverty somewhat for domestic workers, although this last conclusion …


Thinking About Local Living Wage Requirements, Timothy J. Bartik Mar 2002

Thinking About Local Living Wage Requirements, Timothy J. Bartik

Upjohn Institute Working Papers

This paper reviews what we currently know about the benefits and costs of different varieties of a "living wage": a local government requirement, now adopted by over 50 local governments, for wages above the federal minimum imposed on employers with some financial link to the local government. The review includes economic theory, empirical research on local labor markets, and empirical research on the living wage. The paper concludes that moderate living wage requirements applied to the local government's own employees, and contractors' and grantees' employees who are funded by the local government, may do more good than harm. Excessive living …


Earnings Inequality In Germany, Katharine G. Abraham, Susan N. Houseman Nov 1993

Earnings Inequality In Germany, Katharine G. Abraham, Susan N. Houseman

Upjohn Institute Working Papers

Recent studies have documented the growth of earnings inequality in the United States during the 1980s. In contrast to these studies' findings, our analysis of micro data for the former West Germany yields virtually no evidence of growth in earnings inequality over the same period. Between 1978 and 1988, a reduction in the dispersion of earnings among workers in the bottom half of the earnings distribution led to a narrowing of the overall dispersion of earnings in Germany. Earnings differentials across education and age groups remained roughly stable, and there was no general widening of earnings differentials within either education …