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161. What Happens to Wage Elasticities When We Strip Playometrics? Revisiting Married Women Labour Supply Model

Author:
Duo Qin, Sophie van Huellen, and Qing-Chao Wang
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper sheds new light on the well-known phenomenon of dwindling wage elasticities for married women in the US over the recent decades. Results of a novel model experiment approach via sample data ordering unveil considerable heterogeneity across different wage groups. Yet surprisingly constant wage elasticity estimates are revealed within certain wage groups over time as well as across two widely used US data sources, the Current Population Survey (CPS) and the Panel Study of Income Dynamics (PSID). These findings refute the assumed presence of a single-valued aggregate wage elasticity for working wives. Although women’s responsiveness to wages remains largely unchanged over time, we find that the composition of working women into different wage groups has changed considerably, resulting in decreasing wage elasticity estimates at the aggregate level. All these findings were methodologically impossible to acquire had we not dismantled and discarded the stereotyped endogeneity-backed instrumental variable route, which hitherto blocked the way towards sample data ordering.
Topic:
Gender Issues, Labor Issues, Inequality, Discrimination, and Wage Growth
Political Geography:
Global Focus

162. A Note on Credit Allocation, Income Distribution, and the Circuit of Capital (pdf)

Author:
Paulo dos Santos
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This note considers the relationship between credit allocation and the aggregate, class distribution of income in the Circuit of Capital. Production and consumption credit inject means of purchase in different locations in the monetary circuits of capitalist reproduction. On the basis of comparative-dynamic analysis of the properties of steady-state evolutions, the note shows that production credit increases the wage share in total income, while consumption credit increases profit shares. These findings hold in general for any evolution in which sectoral revenue- elasticities of outlays measure less than unity. The note also motivates a new endogenous approach to the aggregate distribution of income, and offers new analytical tools facilitating work based on demand-constrained models of the Circuit of Capital.
Topic:
Inequality, Income Inequality, Economic Theory, Credit, and Capital
Political Geography:
Global Focus

163. Say on Pay Laws, Executive Compensation, CEO Pay Slice, and Firm Value Around the World

Author:
Ricardo Correa and Uger Lel
Publication Date:
07-2013
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Using a sample of about 90,000 observations from 38 countries over the 2001-2012 period, we provide three novel findings regarding say on pay (SoP) laws. First, we find robust evidence that SoP laws reduce CEO pay growth rates at firms. Second, such laws decrease the portion of total top management pay captured by CEOs. Firm values are higher following SoP laws in part because of this reduction in managerial pay inequality. Third, mandatory SoP laws only affect the CEO pay growth rates whereas advisory SoP laws influence various aspects of executive pay policies. These results are robust to instrumental variable estimation and nearest neighbor matching methods.
Topic:
Labor Issues, Inequality, Leadership, and Business
Political Geography:
Global Focus

164. Good and Bad News on Global Development

Author:
Dani Rodrik
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
MIT Center for International Studies
Abstract:
Istart with some good news, because there is, I think, a lot of good news in the world of development. Then I want to present what I think is essentially a paradox. The paradox, to put it very crudely, is that while economic development is working, development policy is not. Let me start with the good news. If you look at the total number of people who live on below $1 a day and look at the trend, between 1981 and 2001, what you see is basically that there are now roughly 400 million fewer people who live below the $1-a-day line. So there actually has been not just a relative reduction in the number of the absolute poor; there has actually been an absolute reduction in the number of the absolute poor. This is in a period when, of course, the population of the developing world has increased quite significantly. In terms of the somewhat higher poverty line, which is the $2-a-day line, the number of poor people below that threshold has actually increased somewhat, but it is still the case that relative to the population of the developing world, it has come down. That is basically good news. In this period, there has been, in fact, significant poverty reduction around the world. But if you look at where that has come from, it is also the case that much of it has actu- ally been localized. China alone accounts for the full 400 million-person reduction in absolute poverty when measured by the $1-a-day line. If you take China out, basically, in the rest of the world, some countries have had an increased number of poor people, others have had a decline.
Topic:
Development, Poverty, Inequality, and Population Growth
Political Geography:
Global Focus

165. Inequality and Suicide Rates: A Cross-Country Study

Author:
Antonio Rodríguez Andrés
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper tests whether economic inequality is related to suicide mortality. Using an unbalanced panel of 40 countries for the period 1947-2001 allows us to control for the effect of unobserved factors that may have an impact on suicide rates. Our results indicate that there is a statistically insignificant positive effect of inequality on the incidence of suicide. The latter result seems to be robust to a number of specification issues explored in a sensitivity analysis. Our results also suggest that female labour participation has a significant positive effect on the total (males and female) suicide rates, supporting the sociological argument that the role conflict dominates more than the role expansion. Contrary to the total and male suicide rates findings, the fertility rate matters in explaining female suicide rates. Finally, in contrast to previous studies, suicide rates were not sensitive to income levels, divorce rates and alcohol consumption.
Topic:
Economics, Inequality, Public Health, Data, and Suicide
Political Geography:
Global Focus

166. The Political Economy of Distributional Equity in Comparative Perspective

Author:
Kwan S. Kim
Publication Date:
03-1996
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Growing income inequality within a country is caused by socioeconomic factors and inadequate government policies and ultimately leads to social and political instabilities. The ideology of supply-side economics in the United States and the United Kingdom during the 1980s, for instance, induced policies of inequality which were then perceived as a way to stimulate economic growth. The demise of East European socialism since the late 1980s also led many developing countries to pursue market reforms as a way to resuscitate their moribund economies. There is evidence, however, to indicate that the distribution of income in these countries is becoming more unequal with attendant and frequently grave social and political consequences.
Topic:
Development, Political Economy, Poverty, Inequality, and Economic Growth
Political Geography:
United Kingdom, Global Focus, and United States of America

167. Changes in the International Distribution of Income

Author:
Herbert Stocker
Publication Date:
07-1996
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper attempts to assess the extent of income inequality among nations and the development of international inequality over the last three decades. After a brief introductory discussion of changes in the economic policies of industrialized countries towards poor countries and corresponding changes in the attitudes of economists, the author goes on to give an impression of the actual state of the international income distribution and mention some general problems of such comparisons. In the third section he computes an inequality index to describe the development of the international income distribution over time and presents some decompositions. The fourth section investigates the robustness of the results, and the fifth section presents an extension to world-wide inequality and reflects briefly on the significance of the results.
Topic:
Development, Poverty, Labor Issues, Inequality, Economic Growth, and Income
Political Geography:
Global Focus