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31. The EITC and Maternal Time Use: More Time Working and Less Time with Kids?

Author:
Jacob Bastian and Lance Lochner
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
Parents spend considerable time and resources investing in their children's development. Given evidence that the Earned Income Tax Credit (EITC) aects maternal labor supply, we investigate how the EITC aects a broad array of time-use activities, focusing on the amount and nature of time spent with children. Using 2003-2018 time-use data, we nd that federal and state EITC expansions increase maternal work time, which reduces time devoted to home production, leisure, and time with children. However, for children of all ages, almost none of the reduction comes from time devoted to investment activities, such as active learning and development activities.
Topic:
Economics, Labor Issues, Children, Women, Income Inequality, Tax Systems, Human Capital, Family, and Productivity
Political Geography:
United States

32. It takes two to tango: Labour responses to an income tax holiday in Argentina

Author:
Dario Tortarolo, Guillermo Cruces, and Victoria Castillo
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
We exploit a large, quasi-randomized, 2.5-year-long income tax holiday to identify intertemporal labor responses of high-wage earners to net wage changes. In August 2013, the Argentine government exempted a group of wage earners from the income tax for 2.5 years while leaving in place the tax on other high-wage earners. Eligibility was based on whether past wage earnings were below a fixed threshold, thus levying sharply different marginal and average tax rates—effectively 0% for workers below the threshold. Using rich population-wide administrative data and a regression discontinuity design, we estimate a precise and very small wage earnings elasticity of 0.017 for this large, salient, and temporary income tax change. Responses are larger for more flexible outcomes (overtime hours) and for more elastic groups (job switchers and managers). We also find avoidance responses from new entrants who faced no tax if their first monthly wage was below the fixed threshold. This strategic entry below the threshold to dodge taxes required coordination with employers. Our findings indicate rigidities in the labor market that require employer-employee cooperation to be overcome for wage earners to be able to respond to tax changes.
Topic:
Economics, Labor Issues, Income Inequality, and Tax Systems
Political Geography:
Argentina and Latin America

33. Status of Education and Minorities Rights in Turkey

Author:
Hasan Aydin
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
Because of a perceived existential threat to the Turkish state, the teaching of any language other than Turkish in the formal education system has historically been forbidden through targeted legislation, despite the fact that Turkey comprises many minority ethnic groups other than Turks. Guaranteeing the rights of minorities like the Kurds for native tongue education would ensure preserving the distinct identities of minorities and contribute to the resolution of the decades-long Turkish-Kurdish conflict. Potential solutions include establishing programs, hiring more qualified instructors, and encouraging pluralism and diversity in education.
Topic:
Civil Society, Education, Poverty, Minorities, Income Inequality, and Kurds
Political Geography:
Turkey and Middle East

34. Is the Future of Central America’s Growth Sustainable?

Author:
Sergio Martinez and Mauricio Garita
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
Central America is a region in the Americas with potential for higher economic growth. For the regional economy to grow in a sustainable manner in the years ahead, policymakers must act on three fronts: economic diversification, workforce upskilling, and intra-regional cooperation.
Topic:
Development, Economics, Poverty, Income Inequality, Economic Growth, and Multilateralism
Political Geography:
Latin America and Central America

35. Income Segregation and Intergenerational Mobility Across Colleges in the United States

Author:
Raj Chetty, John N. Friedman, Emmanuel Saez, Nicholas Turner, and Danny Yagan
Publication Date:
02-2020
Content Type:
Research Paper
Institution:
Watson Institute for International and Public Affairs at Brown University
Abstract:
We construct publicly available statistics on parents’ incomes and students’ earnings outcomes for each college in the U.S. using de-identified data from tax records. These statistics reveal that the degree of parental income segregation across colleges is very high, similar to that across neighborhoods. Differences in post-college earnings between children from low- and high-income families are much smaller among students who attend the same college than across colleges. Colleges with the best earnings outcomes predominantly enroll students from high-income families, although a few mid-tier public colleges have both low parent income levels and high student earnings. Linking these income data to SAT and ACT scores, we simulate how changes in the allocation of students to colleges affects segregation and intergenerational mobility. Equalizing application, admission, and matriculation rates across parental income groups conditional on test scores would reduce segregation substantially, primarily by increasing the representation of middle-class students at more selective colleges. However, it would have little impact on the fraction of low-income students at elite private colleges because there are relatively few students from low-income families with sufficiently high SAT/ACT scores. Differences in parental income distributions across colleges could be eliminated by giving low and middle-income students a sliding-scale preference in the application and admissions process similar to that implicitly given to legacy students at elite private colleges. Assuming that 80% of observational differences in students’ earnings conditional on test scores, race, and parental income are due to colleges’ causal effects – a strong assumption, but one consistent with prior work – such changes could reduce intergenerational income persistence among college students by about 25%. We conclude that changing how students are allocated to colleges could substantially reduce segregation and increase intergenerational mobility, even without changing colleges’ educational programs
Topic:
Income Inequality, Economic Inequality, Higher Education, and Economic Mobility
Political Geography:
North America and United States of America

36. The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria

Author:
Reuben Adeolu Alabi and Oshobugie Ojor Adams
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This study examined the impacts of the e-wallet fertilizer subsidy scheme on quantity of fertilizer use, crop output and yield in Nigeria. The study made use of the Nigeria General Household Survey (GHS)-Panel Datasets of 2010/2011 and 2012/2013 which contain 5,000 farming households in each of the panel. We applied relevant evaluation techniques to analyse the data. The results of the impact analysis demonstrate that the scheme has generally increased the yield, crop output and quantity of fertilizer purchase of the participating farmers by 38%, 47%, and 16%, respectively. The study concludes that increased productivity, which the scheme engenders, can help to reduce food insecurity in Nigeria. Provision of rural infrastructure, such as good road network, accessibility to mobile phones, radio, etc., will increase accessibility of the small-scale farmers to the scheme or any other similar agricultural schemes in Nigeria.
Topic:
Agriculture, Development, Economics, Income Inequality, Economic Growth, and Rural
Political Geography:
Africa and Niger

37. Unemployment and Income Distribution: Some Extensions of Shaikh’s Analysis

Author:
Walter Paternesi Meloni and Antonella Stirati
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
After the 1980s, advanced capitalist economies witnessed a significant decline of the labor share in income. Along with the conventional view, which ascribed this decline to technological factors and international trade, another line of enquiry has endorsed a ‘Political Economy’ approach to identifying several drivers of the labor share erosion. Among the latter, the role of persistent labor market slack has remained relatively unexplored. We try to fill this gap moving from a recent contribution by Anwar Shaikh, who elaborated on the relation between unemployment and changes in income distribution and in the US economy. We study this relationship by adopting a long-term approach, using two alternative measures of labor market slack (namely, the unemployment rate and the unemployment intensity, an index that incorporates the duration of unemployment). We first extend Shaikh’s method of analysis to eight mature countries, and subsequently we approach the relationship between changes in labor market slack and the (adjusted) wage share in the private sector of the economy from 1960 to 2017 with other econometric techniques. Our findings confirm the existence of a negative relationship between labor market slack and the wage share, and we find no tendency to return to a ‘normal’ unemployment rate associated with a stable wage share.
Topic:
Income Inequality, Unemployment, Labor Market, Collective Bargaining, and Wage Growth
Political Geography:
North America and United States of America

38. Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

Author:
Alina K. Bartscher, Moritz Kuhn, Moritz Schularick, and Ulrike I. Steins
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper studies the secular increase in U.S. household debt and its relation to growing income inequality and financial fragility. We exploit a new household-level dataset that covers the joint distributions of debt, income, and wealth in the United States over the past seven decades. The data show that increased borrowing by middle-class families with low income growth played a central role in rising indebtedness. Debt-to-income ratios have risen most dramatically for households between the 50th and 90th percentiles of the income distribution. While their income growth was low, middle-class families borrowed against the sizable housing wealth gains from rising home prices. Home equity borrowing accounts for about half of the increase in U.S. household debt between the 1970s and 2007. The resulting debt increase made balance sheets more sensitive to income and house price fluctuations and turned the American middle class into the epicenter of growing financial fragility.
Topic:
Debt, Finance, Income Inequality, and Economic Growth
Political Geography:
United States

39. A New Chapter in Algeria’s Tumultuous Politics

Author:
Daniel Zisenwine
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
The Algerian government’s recent referendum on new constitutional amendments was heralded as the start of a new political era. The referendum, symbolically held on November 1, the day Algeria’s armed struggle for independence from France commenced in 1954, was publicized under the official slogan “November 1954 Liberation; November 2020 Change”. The vote was intended to address the grievances expressed by the Hirak protest movement, which throughout 2019 staged swelling weekly protests demanding sweeping changes in the country’s political system. But the vote fell far short of the government’s expectations. Largely boycotted by Hirak supporters, voter turnout was very low (23.4 percent). Overshadowing the referendum was the news that Algeria’s president, ʿAbd al-Majid Tebboune, had been transferred several days earlier to a hospital in Germany, allegedly for “medical checkups,” but was later reported to have been infected with the COVID-19 virus. At the time of this writing, Tebboune remains in Germany. Although he has reportedly recovered from his illness, looming questions about his condition and ability to resume his duties, along with a potential power vacuum continue to overshadow Algerian politics. These events have been further compounded by the impact of the coronavirus pandemic on Algeria, and the government’s difficulty in responding to the crisis. Algeria’s economy has been battered by the outbreak and other factors, including plummeting oil prices, which affect a major export commodity and an important income source. All of these challenges add new features to Algeria’s tumultuous political history, and highlight the growing volatility that could further affect domestic stability.
Topic:
Politics, Reform, Income Inequality, Economy, and COVID-19
Political Geography:
Algeria and North Africa

40. Beijing+25: Accelerating Progress for Women and Girls

Author:
Peace and Security (GIWPS) Georgetown Institute for Women and Jeni Klugman
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Georgetown Institute for Women, Peace and Security (GIWPS)
Abstract:
Beijing+25: Accelerating Progress for Women and Girls is a roadmap to advance global gender equality authored by the Georgetown Institute for Women, Peace, and Security (GIWPS), with support from The Rockefeller Foundation and in collaboration with Secretary Hillary Rodham Clinton. Marking the 25th anniversary of the United Nations Fourth World Conference on Women, which took place in Beijing, China in 1995, the new report builds upon the original Beijing Declaration and Platform for Action. Since 1995, there have been some important gains for women and girls, including parity in education in many countries, far fewer deaths in childbirth, more women elected to parliament and leadership positions in government and business, and reduced discrimination under the law. Yet major inequalities have persisted, only to be exacerbated by the COVID-19 pandemic. Part I of the report documents serious challenges such as the stagnation of women’s income and wages, discrimination depriving women of fair wages, and how women still carry the burden of unpaid work at home. Violence against women also remains a global scourge, and women remain largely excluded from decision-making in governments (from local to the highest levels), in peace negotiations, and in corporate leadership. With this as the backdrop, Part II provides a deeper dive into five key areas for progress including: (1) changing problematic gender norms; (2) enforcing and resourcing policies that promote equality; (3) countering growing backlash to gender equality; (4) fostering inclusive democracy and climate justice; and (5) harnessing technology as a means to promote women’s economic empowerment and protection from violence. Part III proposes a course of action to leverage multiple actors—from civil society and youth, male allies and traditional authorities, through to the business community and multilateral agencies. When taken together, they not only accelerate progress for women and girls, but also build a better world for all. The report was written by a GIWPS team led by Dr. Jeni Klugman, Managing Director of GIWPS.
Topic:
Civil Society, Science and Technology, United Nations, Women, Inequality, Income Inequality, Economy, Youth, COVID-19, Girls, Empowerment, and Gender
Political Geography:
Global Focus