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Begin New Search Topic Inequality Publishing Institution Center for Distributive, Labor and Social Studies (CEDLAS)

11. The Evolution of Inequality of Opportunity in Germany: A Machine Learning Approach

Author:
Paolo Brunori and Guido Neidhofer
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We show that measures of inequality of opportunity (IOP) fully consistent with Roemer (1998)’s IOP theory can be straightforwardly estimated by adopting a machine learning approach, and apply our novel method to analyse the development of IOP in Germany during the last three decades. Hereby, we take advantage of information contained in 25 waves of the Socio-Economic Panel. Our analysis shows that in Germany IOP declined immediately after reunification, increased in the first decade of the century, and slightly declined again after 2010. Over the entire period, at the top of the distribution we always find individuals that resided in West-Germany before the fall of the Berlin Wall, whose fathers had a high occupational position, and whose mothers had a high educational degree. East-German residents in 1989, with low educated parents, persistently qualify at the bottom.
Topic:
Education, Inequality, Post Cold War, and Reunification
Political Geography:
Europe and Germany

12. The Risk of Automation in Argentina

Author:
Guillermo Falcone and Carlo Lombardo
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
In this paper we characterize workers’ vulnerability to automation in the near future in Argentina as a function of the exposure to routinization of the tasks that they perform and the potential automation of their occupation. In order to do that we combine (i) indicators of potential automatability by occupation and (ii) worker’s information on occupation and other labor variables. We find that the ongoing process of automation is likely to significantly affect the structure of employment. In particular, unskilled and semi-skilled workers are likely to bear a disproportionate share of the adjustment costs. Automation will probably be a more dangerous threat for equality than for overall employment.
Topic:
Science and Technology, Employment, Inequality, Job Creation, and Labor Market
Political Geography:
Argentina and South America

13. Latin American Brotherhood? Immigration and Preferences for Redistribution

Author:
Julian Martinez-Correa, Leonardo Peñaloza Pacheco, and Leonardo Gasparini
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
The effect of immigration on preferences for redistribution has been recently studied in the context of developed countries receiving migrants from poorer coun- tries with very different cultural backgrounds. In this paper we explore this issue in the context of migration across similar Latin American countries. To this aim, we exploit data at the provincial level from a large attitudinal survey (LAPOP) and match it to immigration data from different sources. We follow three approaches: first, we implement an instrumental variables approach in a cross-section of cen- suses; second we estimate fixed effects models with data from a large sample of harmonized national household surveys, and third we exploit the massive inflow of Venezuelan refugees into the border country of Colombia with an instrumental vari- ables methodology. Our results suggest a significant, negative and non-monotonic relationship between the share of immigrants at the provincial level and the sup- port for redistribution policies. This anti-redistribution effect is larger among those individuals with higher income.
Topic:
Migration, Immigration, Refugees, Inequality, and Redistribution
Political Geography:
Latin America

14. Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico

Author:
Hernan Winkler
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
Evidence about the effect of exports on welfare at the local level is scarce. Using a unique dataset of international trade and poverty maps for almost 2,000 Mexican municipalities between 2004 and 2014, the study presented in this paper provides new evidence on the impact of a significant rise in exports on poverty and inequality at the local level. The analysis implements an instrumental variable approach that combines the initial structure of exports across municipalities with global trends in exports from developing to developed countries by sector. The results show that a 10 percent increase in the ratio of exports to workers reduces income inequality measured by the Gini coefficient by 0.17 points (using a 0 to 100 scale), but no significant effects on poverty reduction or average household incomes are identified. The lack of impacts on average incomes is driven by a rise in the supply of labor at the local level because municipalities with higher export growth experienced an increase in labor force participation and attracted more net migration, particularly of unskilled workers. Therefore, while total labor incomes grew in response to an increase in exports, average labor incomes per worker did not change. Declining remittances also blunted the effect of growing exports on household incomes.
Topic:
International Trade and Finance, Migration, Poverty, Inequality, and Local
Political Geography:
North America and Mexico