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41. 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

42. Who Are These Bond Vigilantes Anyway? The Political Economy of Sovereign Debt Ownership in the Eurozone

Author:
Tobias Arbogast
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
This paper examines the ownership structure of eurozone public debt and the distributional consequences thereof. Through both a comparative perspective and an explorative case study of Italy, this paper asks two research questions. Firstly, it asks who holds government debt in Spain, France, Germany, and Italy. I focus in on Italy to provide, to the author’s knowledge, the first highly disaggregated view of the holding structure of public debt. Secondly, for Italy I study distributional effects by examining who benefits from the interest received on government debt. This is accomplished through an investigation of the various stakeholders associated with public debt. Results indicate that most of the public debt is held by private and public financial institutions but rarely directly by households. Both direct and indirect beneficiaries of the interest received on government bonds in Italy turn out to be largely wealthy households, reflecting the unequal ownership of wealth more generally. However, prominent public financial institutions are also significant beneficiaries, which likely ameliorates a possible regressive distributional effect of the public debt holding structure. The paper discusses the results with an eye on inequality and contributes to further study of the political economy of public debt.
Topic:
European Union, Inequality, Public Debt, Bonds, Public Finance, and Ownership
Political Geography:
Europe

43. The European Union and gender equality in research and higher education: A view from Greece

Author:
Dia Anagnostou and Natalia-Rozalia Avlona
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy paper provides an overview of the state of things in the European Union (EU) in the area of gender equality in science, research and higher education, and reviews the EU’s efforts over the last twenty years to develop a comprehensive policy of gender mainstreaming in this area. Even though equality between women and men is a core value that is enshrined in the European Treaties and a large body of related legislation exists, there are persistent gender disparities in academia and scientific research. This paper examines how the EU’s normative and policy guidelines are designed and have evolved over time to tackle such persisting disparities, particularly as these are manifested in the obstacles that prevent women from advancing in the high ranks of the scientific and academic profession. These disparities are noticeably evidenced in the case of Greece, where despite a permissive constitutional frame and existing legislation, the political will, initiative and resources to promote gender equality in research and academic have been thoroughly lacking. By reviewing the Greek legal framework regarding gender equality and relevant policy documents on research and higher education, this paper identifies the implementation gaps and suggests possible tools to address the gender imbalances in Greek research and university structures.
Topic:
Gender Issues, Science and Technology, European Union, and Inequality
Political Geography:
Europe

44. A geographically fair EU industrial strategy

Author:
Marta Pilati
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
The industrial transformation towards a more sustainable, technological and knowledge-intensive economy can bring prosperity to the EU, but also bears the risk of increasing disparities among the EU territories. On the one hand, some regions are more fit to benefit from these changes. On the other, economic activity, especially one that is knowledge- and innovation-intensive, tends to spatially cluster in areas that are already more advanced. Productivity, innovation, skills and thriving firms will increasingly concentrate in a few wealthy areas, while the less prosperous are excluded from the gains. The current debate on an EU industrial policy overlooks this issue of inequality and instead focuses on competitiveness vis-à-vis global competitors, key technologies and achieving sustainability commitments. While this is important, the focus on the technological frontier, international trade and knowledge-intensive production could create unintended negative consequences due to the lack of an explicit goal for even development and inclusive industrial transition. In this Policy Brief, Policy Analyst Marta Pilati argues that the EU industrial strategy should be centred on the issue of inequality. This can be achieved by challenging misconceived assumptions, critically evaluating past and future policies, and designing measures that target all EU regions and successfully bring them along the transformation.
Topic:
Science and Technology, European Union, Inequality, Trade, and Industry
Political Geography:
Europe

45. The Impact of Income Inequality on Household Indebtedness in Euro Area Countries

Author:
Stefan Jestl
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the impact of income inequality on consumption-related household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest a positive impact of income inequality on consumption-related household indebtedness in a small sample of countries. We further employ a multilevel regression model to also take country’s macroeconomic characteristics into account, such as credit market and welfare state design. In this setting, we find an overall positive impact of income inequality on consumption-related household indebtedness.
Topic:
Economics, Inequality, Economic Inequality, and Macroeconomics
Political Geography:
Europe

46. Is the Future of Foreign Policy Feminist?

Author:
Lyric Thompson and Rachel Clement
Publication Date:
08-2019
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
In 2014, Sweden’s Foreign Minister Margot Wallström took the worldby storm when she launched the world’s first explicitly feminist foreign policy. The new policy would be a way of doing things differently in Sweden’s international affairs, organizing its approach to diplomacy, development, and defense under a 3 Rs framework of women’s rights, resources, and representation, the latter of which this journal issue seeks to explore.
Topic:
Foreign Policy, Diplomacy, Women, Inequality, and Feminism
Political Geography:
Europe, United Nations, Sweden, and Global Focus

47. Comparing Global Trends in Multidimensional and Income Poverty and Assessing Horizontal Inequalities

Author:
Francesco Burchi, Daniele Malerba, Nicole Rippin, and Claudio E. Montenegro
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The 2030 Agenda has provided new impetus to two facets of the struggle for poverty alleviation, which is a central goal of the international development community. First, poverty is no longer viewed strictly in monetary terms, but rather as a multidimensional phenomenon. Second, the need to reduce poverty for different social groups and not just at the aggregate, national level is explicitly recognised. Against this background, this paper has three objectives: (1) to analyse the trends in multidimensional poverty in low- and middle-income countries, (2) to explore rural-urban differences in poverty over time, and (3) to assess the validity of the claim that there has been a feminisation of poverty. The analysis relies on a new indicator of multidimensional poverty, the Global Correlation Sensitive Poverty Index (G-CSPI), that incorporates three key components: education, employment and health. The G-CSPI has several methodological advantages over existing measures, including that it is an individual rather than a household-level measure of poverty, which is crucial for gender-disaggregated analysis. Regarding aggregate trends, this paper shows that both income poverty and multidimensional poverty fell between 2000 and 2012. However, the decline in (extreme) income poverty in percentage terms was twice as large as the decline in multidimensional poverty. There is significant heterogeneity in the results across regions. Multidimensional poverty declined the most in Asia, converging towards the relatively low levels of Latin America and Europe, while sub-Saharan Africa’s slow progress further distanced it from other regions. These findings point to the existence of poverty traps and indicate that more efforts are needed to eradicate poverty. Regarding the urban-rural comparison, our analysis shows that poverty is predominantly a rural phenomenon: the rural G-CSPI was more than four times the urban G-CSPI. This difference remained nearly constant over time. As for the third objective, we find no gender bias in 2000 at the global level. This contrasts with the claim made in 1995 in Beijing that 70 per cent of the poor were women. However, we find that multidimensional poverty declined more among men (-18.5 per cent from 2000) than women (-15 per cent), indicating a process of feminisation of poverty. This was triggered by the decline in employment poverty, which was much slower among women. As most existing studies conclude that there was no evidence of the feminisation of poverty, this finding is new to the literature.
Topic:
Gender Issues, Poverty, Inequality, Urban, and Rural
Political Geography:
Africa, Europe, Latin America, and Global Focus

48. Economic Mobility across Generations: Old versus New EU Member States

Author:
Roy van der Weide, Ambar Narayan, and Mario Negre
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
A country where an individual’s chances of success depend little on the socio-economic success of his or her parents is said to be a country with high relative intergenerational mobility. A government’s motivation for seeking to improve mobility is arguably two-fold. There is a fairness argument and an economic efficiency argument. When mobility is low, it means that individuals are not operating on a level playing field. The odds of someone born to parents from the bottom of their generation will be stacked against him or her. This is not only unfair but also leads to a waste of human capital, as talented individuals may not be given the opportunity to reach their full potential. Reducing this inefficiency will raise the stock of human capital and thereby stimulate economic growth. Since the waste of human capital tends to be concentrated toward the bottom of the distribution, the growth brought about by mobility-promoting policy interventions tends to be of an inclusive nature, in line with the spirit of Sustainable Development Goal (SDG) 10 on reducing inequality. For large parts of the world’s population, individual education is still too closely tied to the education of one’s parents, and there is a clear divide between the high-income and developing world. The patterns observed globally are also observed within Europe. Intergenerational mobility (or equality of opportunity) is visibly lower in the new member states (i.e. Eastern Europe), where national incomes are lower. Raising investment in the human capital of poor children towards levels that are more comparable to the investment received by children from richer families will curb the importance of parental background in determining an individual’s human capital. Countries at any stage of development can raise intergenerational mobility by investing more to equalise opportunities. The evidence strongly suggests that public interventions are more likely to increase mobility when: a) public investments are sufficiently large, b) are targeted to benefit disadvantaged families/ neighbourhoods, c) focus on early childhood, and d) when there is a low degree of political power captured by the rich.
Topic:
Education, Children, Inequality, Family, and Economic Mobility
Political Geography:
Europe, Global Focus, and European Union

49. Shifting Global Politics and the Middle East

Author:
Marc Lynch and Amaney Jamal
Publication Date:
03-2019
Content Type:
Research Paper
Institution:
Project on Middle East Political Science (POMEPS)
Abstract:
What is the current structure of international relations, and how does this shape the politics of the Middle East? For decades, the answer was clear: international structure was unipolar, and American predominance shaped the alliance choices of both its allies and its adversaries. In recent years, this clarity has been overtaken by confusion. American primacy has perhaps declined, or at least shifted in its application, but no rival power has yet risen to take its place. How has this perceived change in global structure affected regional politics in the Middle East? In October 2018, POMEPS, Princeton University’s Bobst Center, and the American University of Beirut brought together nearly two dozen scholars from the United States, Europe and the Middle East at AUB to discuss the impact of shifting global structure on regional dynamics. This collection features sixteen essays ranging across diverse perspectives on the evolving relationship between the global and the regional. Taken together, they offer a fascinating window into the relationship between the global and the regional, and the implications for contemporary regional politics.
Topic:
International Relations, Security, Diplomacy, Politics, Poverty, Power Politics, European Union, Partnerships, Inequality, Brexit, Arab Spring, Alliance, Conflict, Transatlantic Relations, Donald Trump, and Regional Power
Political Geography:
China, Europe, Middle East, Yemen, Saudi Arabia, Syria, North America, United States of America, and Gulf Nations

50. Involuntary migration, inequality, and integration: National and subnational influences

Author:
Rachel M. Gisselquist
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Across the world, we observe different experiences in terms of inequality between migrant and ‘host-country’ populations. What factors contribute to such variation? What policies and programmes facilitate ‘better’ economic integration? This paper, and the broader collection of studies that it frames, speaks to these questions through focused comparative consideration of two migrant populations (Vietnamese and Afghan) in four Western countries (Canada, Germany, the UK, and the US). It pays particular attention to involuntary migrants who fled conflict in their home regions beginning in the 1970s. The paper builds in particular on the literature on segmented assimilation theory, exploring new linkages with work on horizontal inequality, to highlight the role of five key sets of factors in such variation: governmental policies and institutions; labour market reception; existing co-ethnic communities; human capital and socioeconomic characteristics; and social cohesion or ‘groupness’.
Topic:
Migration, Inequality, Displacement, and Economic Integration
Political Geography:
Afghanistan, United Kingdom, Europe, South Asia, Canada, Vietnam, Germany, North America, Southeast Asia, and United States of America