Using data on investments of fund family employees in their 401(k) plans, I show that employee flows predict fund performance up to two years. The predictive power is stronger when fund family employees are located close to fund managers, pointing to employees exploiting their proximity to managers to learn about the managers’ skill. The results are not driven by plan design, portfolio managers’ ownership, or cross-subsidization. The top quintile of funds in terms of employee flows outperforms the bottom quintile by 1.6% annually in terms of Carhart Alpha, suggesting that other investors can benefit by mimicking fund employees.
{"title":"Is Mutual Fund Family Retirement Money Smart?","authors":"Pramodkumar Yadav","doi":"10.2139/ssrn.3537650","DOIUrl":"https://doi.org/10.2139/ssrn.3537650","url":null,"abstract":"Using data on investments of fund family employees in their 401(k) plans, I show that employee flows predict fund performance up to two years. The predictive power is stronger when fund family employees are located close to fund managers, pointing to employees exploiting their proximity to managers to learn about the managers’ skill. The results are not driven by plan design, portfolio managers’ ownership, or cross-subsidization. The top quintile of funds in terms of employee flows outperforms the bottom quintile by 1.6% annually in terms of Carhart Alpha, suggesting that other investors can benefit by mimicking fund employees.","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89442006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Israeli EITC program is based on individual incomes, unlike the EITC programs in the US and the UK, which supplement low-income families' earnings according to the combined family income. Using a large administrative panel dataset of tax and benefit records, and the natural experiment created by the gradual implementation of the program, we find that the absence of interdependence between spouses' benefits curtails the negative employment effects that were found for married women in the US and the UK. We find that an increase of NIS 100 in the monthly EITC amount is associated with a reduction of 0.6 percentage points in the probability of an eligible person to stop working, and that EITC eligibility is associated on average with a reduction of 1- 1.5 percentage points in exits from employment, about 20-25 percent of the exit rate among the relevant populations. We also find that spousal collection of an EITC has no negative effect on employment, except among ultraorthodox women and young (ages 23-35) mothers to newborns (ages 0-2) that are not eligible for the EITC themselves. Finally, we find that the EITC has the largest positive effect on the employment of ultraorthodox men - a population characterized by low employment rates – and on older women (55+ years old). These findings stress the importance of EITC programs' design in balancing employment-encouragement and precise targeting of social expenditure for reducing poverty among low-income families.
{"title":"The EITC Program in Israel: Employment Effects and Evidence on the Differential Impacts of Family vs. Individual-Income Based Design","authors":"Adi Brender, M. Strawczynski","doi":"10.2139/ssrn.3777976","DOIUrl":"https://doi.org/10.2139/ssrn.3777976","url":null,"abstract":"The Israeli EITC program is based on individual incomes, unlike the EITC programs in the US and the UK, which supplement low-income families' earnings according to the combined family income. Using a large administrative panel dataset of tax and benefit records, and the natural experiment created by the gradual implementation of the program, we find that the absence of interdependence between spouses' benefits curtails the negative employment effects that were found for married women in the US and the UK. We find that an increase of NIS 100 in the monthly EITC amount is associated with a reduction of 0.6 percentage points in the probability of an eligible person to stop working, and that EITC eligibility is associated on average with a reduction of 1- 1.5 percentage points in exits from employment, about 20-25 percent of the exit rate among the relevant populations. We also find that spousal collection of an EITC has no negative effect on employment, except among ultraorthodox women and young (ages 23-35) mothers to newborns (ages 0-2) that are not eligible for the EITC themselves. Finally, we find that the EITC has the largest positive effect on the employment of ultraorthodox men - a population characterized by low employment rates – and on older women (55+ years old). These findings stress the importance of EITC programs' design in balancing employment-encouragement and precise targeting of social expenditure for reducing poverty among low-income families.","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89667174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Increasing inequality and associated egalitarian sentiments have again put redistribution on the political agenda. Support for redistribution may also be affected by altruistic and egalitarian preferences, but knowledge about the distribution of these preferences in the broader population and how they relate to political support for redistributive policies is still scarce. In this paper, we take advantage of Swiss direct democracy, where people voted several times in national plebiscites on strongly redistributive policies, to study the link between other-regarding preferences and support for redistribution in a broad sample of the Swiss population. Based on a recently developed non-parametric clustering procedure, we identify three disjunct groups of individuals with fundamentally different other-regarding preferences: (i) a large share of inequality averse people, (ii) a somewhat smaller yet still large share of people with an altruistic concern for social welfare and the worse off, and (iii) a considerable minority of primarily selfish individuals. Controlling for a large number of determinants of support for redistribution, we document that inequality aversion and altruistic concerns play an important role for redistributive voting that is particularly pronounced for above-median income earners. However, the role of these motives differs depending on the nature of redistributive proposals. Inequality aversion has large and robust effects in plebiscites that demand income reductions for the rich, while altruistic concerns play no significant role in these plebiscites.
{"title":"Other-Regarding Preferences and Redistributive Politics","authors":"Thomas Epper, E. Fehr, Julien Senn","doi":"10.2139/ssrn.3526809","DOIUrl":"https://doi.org/10.2139/ssrn.3526809","url":null,"abstract":"Increasing inequality and associated egalitarian sentiments have again put redistribution on the political agenda. Support for redistribution may also be affected by altruistic and egalitarian preferences, but knowledge about the distribution of these preferences in the broader population and how they relate to political support for redistributive policies is still scarce. In this paper, we take advantage of Swiss direct democracy, where people voted several times in national plebiscites on strongly redistributive policies, to study the link between other-regarding preferences and support for redistribution in a broad sample of the Swiss population. Based on a recently developed non-parametric clustering procedure, we identify three disjunct groups of individuals with fundamentally different other-regarding preferences: (i) a large share of inequality averse people, (ii) a somewhat smaller yet still large share of people with an altruistic concern for social welfare and the worse off, and (iii) a considerable minority of primarily selfish individuals. Controlling for a large number of determinants of support for redistribution, we document that inequality aversion and altruistic concerns play an important role for redistributive voting that is particularly pronounced for above-median income earners. However, the role of these motives differs depending on the nature of redistributive proposals. Inequality aversion has large and robust effects in plebiscites that demand income reductions for the rich, while altruistic concerns play no significant role in these plebiscites.","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"33 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86770918","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rent-to-income ratios have risen over the past two decades with large increases at the bottom of the income distribution, prompting concern about a housing affordability crisis. This paper uses minimum wage changes as a natural experiment to study the relationship between housing demand & policies affecting low-wage households. If their housing demand is relatively inelastic, an increase in income will causally decrease rent-to-income ratios. The results suggest a 10% increase in minimum wages increases income for affected households by 1.9%, increases housing consumption by 0.5%, and decreases rent-to-income ratios by 1.4%. These estimates suggest that housing demand is fairly income inelastic, and preferences over housing demand are non-homothetic. In a modeling exercise, this paper suggests that homothetic models may not match housing demand behavior and may underestimate welfare gains to low-wage households.
{"title":"Housing Demand & Affordability for Low-Wage Households: Evidence from Minimum Wage Changes","authors":"Samuel Hughes","doi":"10.2139/ssrn.3541813","DOIUrl":"https://doi.org/10.2139/ssrn.3541813","url":null,"abstract":"Rent-to-income ratios have risen over the past two decades with large increases at the bottom of the income distribution, prompting concern about a housing affordability crisis. This paper uses minimum wage changes as a natural experiment to study the relationship between housing demand & policies affecting low-wage households. If their housing demand is relatively inelastic, an increase in income will causally decrease rent-to-income ratios. The results suggest a 10% increase in minimum wages increases income for affected households by 1.9%, increases housing consumption by 0.5%, and decreases rent-to-income ratios by 1.4%. These estimates suggest that housing demand is fairly income inelastic, and preferences over housing demand are non-homothetic. In a modeling exercise, this paper suggests that homothetic models may not match housing demand behavior and may underestimate welfare gains to low-wage households.","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"29 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74397233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A comparative inspection of the rules of cross-border pension taxation across member countries of the Organization of Economic Cooperation and Development (OECD) shows that the existing pattern is extremely diverse and inconsistent and generates unfair outcomes for individuals and for countries. This article argues that this double fairness dilemma cannot be solved within the current network of double taxation treaties. Instead, it proposes a new approach for the taxation of old-age pensions in a world of high and increasing cross-border mobility of workers and pensioners. The article demonstrates that a coordinated move to frontloaded pension taxation would pave the way for an international pension tax order that eliminates the double fairness dilemma. An additional innovative element of frontloaded pension taxation is presented: the separation of individual tax assessment and tax payment, which may help curb political opposition against frontloaded pension taxation and smooth transitional effects after its introduction (JEL codes: H24, H55, H87, and F22).
{"title":"Frontloaded Income Taxation of Old-Age Pensions: For Efficiency and Fairness in a World of International Labor Mobility","authors":"B. Genser, R. Holzmann","doi":"10.1093/CESIFO/IFZ017","DOIUrl":"https://doi.org/10.1093/CESIFO/IFZ017","url":null,"abstract":"\u0000 A comparative inspection of the rules of cross-border pension taxation across member countries of the Organization of Economic Cooperation and Development (OECD) shows that the existing pattern is extremely diverse and inconsistent and generates unfair outcomes for individuals and for countries. This article argues that this double fairness dilemma cannot be solved within the current network of double taxation treaties. Instead, it proposes a new approach for the taxation of old-age pensions in a world of high and increasing cross-border mobility of workers and pensioners. The article demonstrates that a coordinated move to frontloaded pension taxation would pave the way for an international pension tax order that eliminates the double fairness dilemma. An additional innovative element of frontloaded pension taxation is presented: the separation of individual tax assessment and tax payment, which may help curb political opposition against frontloaded pension taxation and smooth transitional effects after its introduction (JEL codes: H24, H55, H87, and F22).","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81976205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-01DOI: 10.15855/SWP.2020.47.3.181
Chun, Miae, Jung Hyun Kim
{"title":"Did the introduction of the Basic Pension affect the labor force participation of the Korean elderly","authors":"Chun, Miae, Jung Hyun Kim","doi":"10.15855/SWP.2020.47.3.181","DOIUrl":"https://doi.org/10.15855/SWP.2020.47.3.181","url":null,"abstract":"","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"2 1","pages":"181-203"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75539732","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-01DOI: 10.15855/SWP.2020.47.2.143
이지완
{"title":"Effect of childcare subsidy expansion on women’s labor supply","authors":"이지완","doi":"10.15855/SWP.2020.47.2.143","DOIUrl":"https://doi.org/10.15855/SWP.2020.47.2.143","url":null,"abstract":"","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"57 1","pages":"143-174"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84445299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-01DOI: 10.15855/SWP.2020.47.4.89
Jung hee Lee
{"title":"A Study on the Care Management Experiences of the Social Workers - Focusing on Public-private Partnerships -","authors":"Jung hee Lee","doi":"10.15855/SWP.2020.47.4.89","DOIUrl":"https://doi.org/10.15855/SWP.2020.47.4.89","url":null,"abstract":"","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"97 1","pages":"89-118"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81363639","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-01DOI: 10.15855/SWP.2020.47.4.33
J. Kim
{"title":"Social Support Effects on Life Satisfaction of Women with Disabilities - Focusing on Mediating Effects of Depression -","authors":"J. Kim","doi":"10.15855/SWP.2020.47.4.33","DOIUrl":"https://doi.org/10.15855/SWP.2020.47.4.33","url":null,"abstract":"","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"22 1","pages":"33-58"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91076522","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-01DOI: 10.15855/SWP.2020.47.1.51
S. Cho, Kyungmi Lee
{"title":"Analyzing competitiveness of Social Economy policies in Seoul -Applying a Multidimensional Competency Framework (MCF)-","authors":"S. Cho, Kyungmi Lee","doi":"10.15855/SWP.2020.47.1.51","DOIUrl":"https://doi.org/10.15855/SWP.2020.47.1.51","url":null,"abstract":"","PeriodicalId":10619,"journal":{"name":"Comparative Political Economy: Social Welfare Policy eJournal","volume":"25 1","pages":"51-83"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86643094","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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