Social and Behavioral Sciences Commons^™

Degrees Of Poverty: The Relationship Between Family Income Background And The Returns To Education, Timothy J. Bartik, Brad J. Hershbein

Timothy J. Bartik

Drawing on the Panel Study of Income Dynamics, we document a startling empirical pattern: the career earnings premium from a four-year college degree (relative to a high school diploma) for persons from low-income backgrounds is considerably less than it is for those from higher-income backgrounds. For individuals whose family income in high school was above 1.85 times the poverty level, we estimate that career earnings for bachelor’s graduates are 136 percent higher than earnings for those whose education stopped at high school. However, for individuals whose family income during high school was below 1.85 times the poverty level, the career …

Degrees Of Poverty: The Relationship Between Family Income Background And The Returns To Education, Timothy J. Bartik, Brad J. Hershbein

Brad J. Hershbein

Drawing on the Panel Study of Income Dynamics, we document a startling empirical pattern: the career earnings premium from a four-year college degree (relative to a high school diploma) for persons from low-income backgrounds is considerably less than it is for those from higher-income backgrounds. For individuals whose family income in high school was above 1.85 times the poverty level, we estimate that career earnings for bachelor’s graduates are 136 percent higher than earnings for those whose education stopped at high school. However, for individuals whose family income during high school was below 1.85 times the poverty level, the career …

Inequality, Boom, And Bust: From Billionaire Capitalism To Equality And Full Employment, Howard J. Sherman, Paul Sherman

HOWARD J SHERMAN

Cats And Dogs And Humans, Poem 11/23/2015, Charles Kay Smith

Charles Kay Smith

Thoughts on science, inequality and the economy

Decomposing Ldc Inequality, Gary S. Fields

Gary S Fields

[Excerpt] At the present time, there is great interest among development economists in the problem of economic inequality in less developed countries (LDCs). Studies of the determinants of inequality follow either of two general approaches. The more traditional approach is associated with names like Kuznets (1963), Chenery and associates (1960, 1968, 1975), Adelman and Morris (1973), Ahluwalia (1976) and Chiswick (1971). These studies share a common methodology, consisting basically of looking at a cross-section of countries, and (1) measuring the degree of inequality in each, (2) measuring other characteristics of each country (e.g., level of GNP, its rate of growth, …

Changes In Poverty And Inequality In Developing Countries, Gary S. Fields

Gary S Fields

This paper presents new data on poverty, inequality, and growth in those developing countries of the world for which the requisite statistics are available. Economic growth is found generally but not always to reduce poverty. Growth, however, is found to have very little to do with income inequality. Thus the "economic laws" linking the rate of growth and the distribution of benefits receive only very tenuous empirical support here.

The Piketty Observation Against The Institutional Background: How Natural Is This Natural Tendency And What Can We Do About It?, Karl Widerquist

Karl Widerquist

Home Prices And Inequality: Singapore Versus Other 'Global Superstar Cities', S Y Phang

PHANG Sock Yong

No abstract provided.

Tourism, Development, And Inequality: The Case Of Tanzania, Abel A. Kinyondo, Riccardo Pelizzo

Abel Alfred Kinyondo

For most of the post-WWII era, scholars have attempted to understand, define, and measure development. A large and growing body of work has in fact investigated its causes and the consequences and has dissented as to whether tourism represents a proper determinant of growth and development. Yet, while scholars have started investigating the contribution that tourism can make to economic growth and development from the 1970s onward, considerably less attention has been paid to assessing whether tourism-induced growth is pro-poor or not—that is, whether tourism-induced growth and development contribute to the reduction of poverty and income inequality. Building on data …

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.

(Wp 2010-06) How Do Structural And Policy Factors Affect A Country’S Probability To Achieve The Most (Or The Least) Favorable Growth Path?, Fabrizio Carmignani, Abdur Chowdhury

Abdur R. Chowdhury

We ask which economic policies can help a country create the most favourable conditions for development. We observe that the dynamics of several development indicators can be grouped into four clusters, each cluster corresponding to a different combination of growth and changes in inequality. Based on this observation, we define four different development scenarios and use limited dependent variable regressions to study how structural and policy factors affect a country’s probability to achieve the most (or the least) favourable of these scenarios. Our results point to a comforting picture: through the choice of appropriate policies countries can effectively increase their …

The Evolution Of Poverty And Inequality In Sub-Saharan Africa Over The Period 1980-2010: What Do We (And Can We) Know Given The Data Available?, Rodrigo Garcia-Verdu

Rodrigo Garcia-Verdu

No abstract provided.

American Inequality, A Prose/Poem 3/2/2014, Charles Smith

Charles Kay Smith

Science has made possible an increased productivity that creates an economic surplus--science continually teaches us how to do more with less resources. Why should the fruits of science be enjoyed only by the rich, since most of the innovations of science and technology have been funded or subsidized by citizen taxes. If the added productivity of science were shared among all citizens instead of only the 1%, poverty and homelessness could be ended.

La Economía Política De La Desigualdad De Ingreso En Chile, 1850-2009, Javier E. Rodríguez Weber

Javier E. Rodríguez Weber

This dissertation studies the relationship between income inequality and the development process, considered as the sum of economic, social and political changes produced over time. It does so using the case of Chile between 1850 and 2009. Its goals are to describe the tendencies in income distribution over time, and also to explain, signalling their causes and some of their consequences. In the empirical area, the main contributions of the dissertation are the estimates of historical series of salaries, wages, and different measures of income distribution –Gini index, Theil, labour share and the income of the top 1%. To make …

The Effect Of School Finance Reforms On The Distribution Of Spending, Academic Achievement, And Adult Outcomes, C. Kirabo Jackson, Rucker C. Johnson, Claudia Persico

C. Kirabo Jackson

Since the Coleman report, many have questioned whether public school spending affects student outcomes. The school finance reforms that began in the early 1970s and accelerated in the 1980s caused dramatic changes to the structure of K–12 education spending in the US. To study the effect of these school-finance-reform-induced changes in public school spending on long-run adult outcomes, we link school spending and school finance reform data to detailed, nationally-representative data on children born between 1955 and 1985 and followed through 2011. We use the timing of the passage of court-mandated reforms, and their associated type of funding formula change, …

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.

“Consumption And Redistributive Politics: The Effect Of Credit And China.”, Basak Kus

BASAK KUS

No abstract provided.

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 …

Power, Luck And Ideology In A Model Of Executive, Peter Skott

Peter Skott

The microprocessor and related technologies have transformed corporate and industry structure; applied in a neo‐liberal environment, the technologies have had profound effects on the relative power of different groups. Skott and Guy (2007) and Guy and Skott (2008) formalized one aspect of this process of power‐biased technical change: firms' increased ability to monitor low‐paid employees and the resulting changes in inequality and employment at the low end of the income distribution. This paper addresses power biases and income inequality at the high end. Increasing firm‐level financial volatility has intensified the agency problem and increased the power of corporate executives. These …

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 …

Financialization And Income Inequality In Oecd Countries: 1995-2007, Basak Kus

BASAK KUS

No abstract provided.

Social Spending, Taxes And Income Redistribution In Uruguay, Maximo Rossi, Nora Lustig, Marisa Bucheli, Florencia Amabile

Maximo Rossi

How much redistribution does Uruguay accomplish through social spending and taxes? How progressive are revenue collection and social spending? A standard fiscal incidence analysis shows that Uruguay achieves a nontrivial reduction in inequality and poverty when all taxes and transfers are combined. In comparison with other five countries in Latin America, it ranks first (poverty reduction) and second (inequality reduction), and first in terms of poverty reduction effectiveness and third in terms of overall (including ransfers in kind) inequality reduction effectiveness. Direct taxes are progressive and indirect taxes are regressive. Social spending on direct transfers, contributory pensions, education and health …

Estimating Guard Labor, Arjun Jayadev

Arjun Jayadev

As a background paper to Jayadev and Bowles (2006), this paper provides details on our measure of guard labor as we measure these in labor units. Data from the United States indicate a significant increase in its extent in the U.S. over the period 1890 to the present. Cross-national comparisons show a significant statistical association between income inequality and the fraction of the labor force that is constituted by guard labor, as well as with measures of political legitimacy (inversely) and political conflict.

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 …

Nine Out Of Ten. The "Losers" In Italy's Long Crisis. Changes In Income Distribution, Effects Of Policies, Rise In Inequality, Mario Pianta

Mario Pianta

Emulation, Inequality, And Work Hours: Was Thorsten Veblen Right?, Samuel Bowles, Yongjin Park

Samuel Bowles

We investigate Veblen effects on work hours, namely the way that a desire to emulate the consumption standards of the rich induces longer work hours among the rest. Consistent with our model of these asymmetric social comparisons, greater inequality predicts longer work hours in ten OECD countries over the period 1963-1998. The country fixed effects estimates of the impact of inequality on hours are large, robust, and cannot be explained by conventional incentive effects. In the presence of Veblen effects, a social welfare optimum cannot be implemented by a flat tax on consumption but may be accomplished by progressive consumption …