Social and Behavioral Sciences Commons^™

Hispanic Ancestry And Racial Self-Identity: Empirical Effects Of Social Norms, Patrick Leon Mason

Patrick L. Mason

This paper empirically examines the effects on own-group racial identity norms on individual Hispanic racial identification. The percentage of all regional Hispanics self-identifying as white is this study’s measure of the racial identity norm. The rise in the fraction of Hispanic population self-identifying as white discourages individual respondents from self-identifying as non-white. We also find that increases in a region’s white Hispanic identity norm decrease the probability of individual Hispanic self-identification as Latino and reduces the probability of self-identifying as black.

Notes On The Policy Seminar On Inequality And Development, Held On The 26th Of September 2014 At The Ministry Of Foreign Affairs Of Finland, J. G. A. Saviranta

Akseli Saviranta

The following document presents summarised key notes from the United Nations University – World Institute for Development Economics Research (UNU-WIDER) policy seminar titled “Inequality and Development – Trends and Policies”. This policy seminar represented a follow-up to a prior two-day conference organised earlier in the same month by the same institute, in which the author has participated as well.

Immigration And African American Wages And Employment: Critically Appraising The Empirical Evidence, Patrick Leon Mason

Patrick L. Mason

This paper critically assesses the empirical evidence on the relationship between immigration and African American employment. Studies using various methodologies and data are reviewed: natural experiments, time series, and cross-sectional studies of local labor markets and intertemporal changes in the national labor market. We find that for African Americans as a whole, immigration may have little effect on mean wages and probability of employment. However, there is some evidence that immigration may have had an adverse impact on the labor market outcomes of African Americans belonging to low education-experience groups. However, even this modest conclusion must be qualified: the literature …

Inequality And Growth: The Role Of Beliefs And Culture, Martin Strieborny

Martin Strieborny

Governments perpetually align their policies to satisfy shifts in voters' relative demand for economic growth versus social equality. Following such shifts, increases (decreases) in government interventions lower (raise) both inequality and growth. This pattern is stronger in egalitarian countries, where a culturally determined belief in luck as main source of income heterogeneity renders both equality and growth to be important policy objectives. I provide robust empirical support for this mechanism in a panel of 38 countries over the period 1964-2004. I also suggest a simple extension to the theoretical framework of Alesina and Angeletos (2005) to analytically motivate it.

Poverty In India And Its Decompositions: A Critical Appraisal Of The New Method, Durgesh C. Pathak, Srijit Mishra

Srijit Mishra

This paper has two objectives. First, it critically discusses the new method of measuring poverty. In doing so, it raises some concerns implicit in the report - (a) the need to go beyond calories to have an understanding of nutritional requirement, which could not be adequately addressed in the new method, (b) the need to incorporate expenditure on health, education and sanitation, as these are not being adequately provided by the state, which also raises serious apprehensions on whether India is a welfare state, and (c) the need to come up with multi-dimensional measures of poverty. Nevertheless, the paper contends …

How Long Will It Take To Lift One Billion People Out Of Poverty?, Martin Ravallion

Martin Ravallion

Alternative scenarios are considered for reducing by one billion the number of people living below $1.25 a day. The low-case, “pessimistic,” path to that goal would see the developing world outside China returning to its slower pace of growth and poverty reduction of the 1980s and 1990s, though with China maintaining its progress. This path would take another 50 years or more to lift one billion people out of poverty. The more optimistic path would maintain the (impressive) progress against poverty since 2000, which would instead reach the target by around 2025-30. This scenario is consistent with both linear projections …

Procedural Paper Draft. Asset Inequality Conceptual Framework And Measurement Methodology, Luis A. Villasenor

Adrián Villaseñor

No abstract provided.

Decomposing The Sources Of Earnings Inequality: Assessing The Role Of Reallocation, Julia Ingrid Lane

Julia Ingrid Lane

This paper exploits longitudinal employer-employee matched data from the U.S. Census Bureau to investigate the contribution of worker and firm reallocation to changes in earnings inequality within and across industries between 1992 and 2003. We find that factors that cannot be measured using standard cross-sectional data, including the entry and exit of firms and the sorting of workers across firms, are important sources of changes in earnings distributions over time. Our results also suggest that the dynamics driving changes in earnings inequality are heterogeneous across industries.

Linking Development And Innovation: What Does Technological Change Bring To The Society?, Evgeny A. Klochikhin

Evgeny A. Klochikhin

Recently, there has been a popular trend in academic research for paying more attention to ‘pro-poor’ policies and theoretical studies. This tradition has emerged from a broader understanding of development that includes not only economic but also social and political dimensions. Meanwhile, innovation researchers are still considering development as mere economic growth without much focus on the social impacts of technological change. This article recognizes that, despite these fundamental differences, the concepts of innovation and development have much in common and are, in fact, positively connected and mutually beneficial. This assumption has some important implications for the innovation and development …

Endogenous Constitutions, Davide Ticchi, Andrea Vindigni

Andrea Vindigni

We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of taxation. A consensual democracy redistributes resources toward a broader spectrum of social groups but also has a larger government and a higher level of taxation. We show that a consensual system turns out to be preferred by society when ex ante income inequality is relatively low, while a majoritarian system is chosen when income inequality is relatively …

Endogenous Constitutions, Davide Ticchi, Andrea Vindigni

Davide Ticchi

We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of taxation. A consensual democracy redistributes resources toward a broader spectrum of social groups but also has a larger government and a higher level of taxation. We show that a consensual system turns out to be preferred by society when ex ante income inequality is relatively low, while a majoritarian system is chosen when income inequality is relatively …

A Political Economy Perspective On Persistent Inequality, Inflation, And Redistribution, Radhika Lahiri, Shyama Ratnasiri

Radhika Lahiri

In this paper we examine the dynamics of the link between inequality and inflation from a political economy perspective. We consider a simple dynamic general equilibrium model in which agents vote over the desired inflation rate in each period, and inequality is persistent. Inflation in our model is a mechanism of redistribution, and we find that the link between inequality and inflation within any period or over time depends on institutional and preference related parameters. Furthermore, we find that differences in the initial distributions of wealth can yield a diverse set of patterns for the evolution of the inflation and …

Intra-Provincial Inequalities And Economic Growth In China, Joanna Gravier-Rymaszewska, Joanna Tyrowicz, Jacek Kochanowicz

Joanna Tyrowicz

This paper approaches the problem of inequalities in China. It is specifically focused on analyzing the effects of intra-provincial disparities on the development of the 28 mainland provinces in China. Intra-provincial inequalities, as measured by Theil index, seem positively related to growth, albeit the results are only convincing for the coastal provinces. A case by case analysis, however, suggests highly diversified patterns, including linear or an inverted u-shape for fastest growing coastal provinces and virtually no relationship for the majority of regions. The results corroborate some earlier raised questions about actual policy-making standards in China.

De La Desigualdad, Sus Determinantes Y Su Efecto En El Crecimiento, Luis A. Villasenor

Adrián Villaseñor

No abstract provided.

Are There Lessons For Africa From China’S Success Against Poverty?, Martin Ravallion

Martin Ravallion

At the outset of China’s reform period, the country had a far higher poverty rate than for Africa as a whole. Within five years that was no longer true. This paper tries to explain how China escaped from a situation in which extreme poverty persisted due to failed and unpopular policies. While acknowledging that Africa faces constraints that China did not, and that context matters, two lessons for Africa stand out. The first is the initial importance of productivity growth in smallholder agriculture, which will require both market-based incentives and public support. The second is the role played by strong …

Concerning Inequality, Technology Adoption, And Structural Change, Radhika Lahiri, Shyama Ratnasiri

Radhika Lahiri

Empirical evidence suggests that there has been a divergence over time in income distributions across countries and within countries. Furthermore, developing economies show a great deal of diversity in their growth patterns during the process of economic development. For example, some of these countries converge rapidly on the leaders, while others stagnate, or even experience reversals and declines in their growth processes. In this paper we study a simple dynamic general equilibrium model with household specific costs of technology adoption which is consistent with these stylized facts. In our model, growth is endogenous, and there are two-period lived overlapping generations …

Empirical Analysis Of Poverty And Inequality In West Virginia, Hector Addison

Hector Addison

Poverty and income inequality have attracted a lot of attention in recent literature and policy discussions. Using Ordinary Least Squares and Two stage least squares and cross sectional data for all counties in West Virginia, this study examines the determinants of poverty and income inequality and possibility of simultaneous relationship between them. Findings indicate there is a weak simultaneous relationship and income inequality is declining among aged 65 and above. Education, seen as social equalizer does not provide any evidence in reducing income inequality in West Virginia but as more and more women take up headship in families, poverty and …

China's (Uneven) Progress Against Poverty, Martin Ravallion, Shaohua Chen

Martin Ravallion

While the incidence of extreme poverty fell dramatically in China over 1980-2001, progress was uneven over time and across provinces. Rural areas accounted for the bulk of the gains to the poor, though migration to urban areas helped. Rural economic growth was far more important to national poverty reduction than urban economic growth; agriculture played a far more important role than the secondary or tertiary sources of GDP. Taxation of farmers and inflation hurt the poor; local government spending helped them in absolute terms; external trade had little short-term impact. Provinces starting with relatively high inequality saw slower progress against …

Globalization And The U.S. Labor Market, Robert C. Shelburne

Robert C. Shelburne

This paper, presented at the Eastern Economic Association in 1999, assesses the impact of globalization on the US labor market. It describes the numerous channels by which trade could have negatively impacted US wages and concludes that the current conventional wisdom that trade has not had a negative impact is not particularly robust.

In Defence Of Exploitation, Justin Schwartz

Justin Schwartz

The concept of exploitation is thought to be central to Marx's Critique of capitalism. John Roemer, an analytical (then-) Marxist economist now at Yale, attacked this idea in a series of papers and books in the 1970s-1990s, arguing that Marxists should be concerned with inequality rather than exploitation -- with distribution rather than production, precisely the opposite of what Marx urged in The Critique of the Gotha Progam.

This paper expounds and criticizes Roemer's objections and his alternative inequality based theory of exploitation, while accepting some of his criticisms. It may be viewed as a companion paper to my What's …

From Libertarianism To Egalitarianism, Justin Schwartz

Justin Schwartz

A standard natural rights argument for libertarianism is based on the labor theory of property: the idea that I own my self and my labor, and so if I "mix" my own labor with something previously unowned or to which I have a have a right, I come to own the thing with which I have mixed by labor. This initially intuitively attractive idea is at the basis of the theories of property and the role of government of John Locke and Robert Nozick. Locke saw and Nozick agreed that fairness to others requires a proviso: that I leave "enough …