Fiona Greig, Chris Wheat, George Eckerd, Melissa O'Brien, Shantanu Banerjee
Using an administrative dataset covering 2 million job loss events we analyze the impact of unemployment insurance (UI) benefits on spending from 2008 to 2020. We find that during the Great Recession spending cuts after job loss were deeper than in the subsequent expansion, but in the COVID-19 recession spending increased after job loss for many, as government stimulus supported demand amid sharp declines in overall spending. Households’ tendency to spend out of income after job loss—their marginal propensity to consume (MPC)—has been fairly consistent over varying economic environments from 2008 to 2020. That said, across economic environments, there are large and consistent household-level differences in marginal propensity to consume. Specifically, following job loss, families with lower liquidity exhibit larger declines in spending in the face of income declines. In addition, Black and Latinx households cut their spending to a greater extent than White families after job loss, partially explained by their lower cash buffers and indicators of wealth. For policy, the findings suggest that countercyclical UI benefit levels are likely to be an effective means of stabilizing demand. Additional measures to target income supports with consideration to wealth inequality and racial equity can limit the welfare costs of job loss.
{"title":"Spending after Job Loss from the Great Recession through COVID-19: The Roles of Financial Health, Race, and Policy","authors":"Fiona Greig, Chris Wheat, George Eckerd, Melissa O'Brien, Shantanu Banerjee","doi":"10.2139/ssrn.3910672","DOIUrl":"https://doi.org/10.2139/ssrn.3910672","url":null,"abstract":"Using an administrative dataset covering 2 million job loss events we analyze the impact of unemployment insurance (UI) benefits on spending from 2008 to 2020. We find that during the Great Recession spending cuts after job loss were deeper than in the subsequent expansion, but in the COVID-19 recession spending increased after job loss for many, as government stimulus supported demand amid sharp declines in overall spending. Households’ tendency to spend out of income after job loss—their marginal propensity to consume (MPC)—has been fairly consistent over varying economic environments from 2008 to 2020. That said, across economic environments, there are large and consistent household-level differences in marginal propensity to consume. Specifically, following job loss, families with lower liquidity exhibit larger declines in spending in the face of income declines. In addition, Black and Latinx households cut their spending to a greater extent than White families after job loss, partially explained by their lower cash buffers and indicators of wealth. For policy, the findings suggest that countercyclical UI benefit levels are likely to be an effective means of stabilizing demand. Additional measures to target income supports with consideration to wealth inequality and racial equity can limit the welfare costs of job loss.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131025174","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}
Women homeworkers in Indonesia also resulted in double role causes women to have double workload, namely the main work that makes money and household chores such as cleaning the house, cooking and so on. This is because women cannot leave their responsibilities in the household, yet they must continue to perform their main work. Accordingly, a discussion addressing the dual burden and mechanism of division of work between men and women in the household is needed. This research was conducted with a descriptive qualitative method aimed to describe a number of issues including how consensus was performed by women homeworkers in carrying out the division of work with men and the efforts of women homeworkers to do the division of work with their husbands in the domestic sphere. The research was conducted in Malang City, East Java, Indonesia with snowball sampling techniques on 37 women. Based on the research results, it was discovered that: 1) the division of work in the public and domestic spheres for women homeworkers was flexible; 2) Men more often did the heavy household chores such as washing and drying clothes, the division of work occurred at certain times such as in the morning; 3) Within the household, the division of work between men and women took place when the woman homeworkers’ main work piled up and could not be abandoned.
{"title":"Treasuring Career from Home: The Sustainability of Women Homeworkers and Household Divisions","authors":"Anggaunitakiranantika Anggaunitakiranantika","doi":"10.31219/osf.io/b3tmf","DOIUrl":"https://doi.org/10.31219/osf.io/b3tmf","url":null,"abstract":"Women homeworkers in Indonesia also resulted in double role causes women to have double workload, namely the main work that makes money and household chores such as cleaning the house, cooking and so on. This is because women cannot leave their responsibilities in the household, yet they must continue to perform their main work. Accordingly, a discussion addressing the dual burden and mechanism of division of work between men and women in the household is needed. This research was conducted with a descriptive qualitative method aimed to describe a number of issues including how consensus was performed by women homeworkers in carrying out the division of work with men and the efforts of women homeworkers to do the division of work with their husbands in the domestic sphere. The research was conducted in Malang City, East Java, Indonesia with snowball sampling techniques on 37 women. Based on the research results, it was discovered that: 1) the division of work in the public and domestic spheres for women homeworkers was flexible; 2) Men more often did the heavy household chores such as washing and drying clothes, the division of work occurred at certain times such as in the morning; 3) Within the household, the division of work between men and women took place when the woman homeworkers’ main work piled up and could not be abandoned.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130575659","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}
Gender differences in competitiveness have been hypothesized as a potential explanation for gender differences in education and labor market outcomes. Central to the literature is whether differences in preferences for competition are innate or learned. I study this question in the Nandi society in Kenya. A distinct aspect of this society is the cultural institution of "female husbands." In Nandi custom, the property of a woman's house (the "house property") can only be transmitted to male heirs, and so inheritance flows through mothers to the sons. As not every woman gives birth to a male heir, the Nandi solution to sustain the family lineage is for the heirless woman to become the "female husband" to a younger woman. A woman who marries another woman for this purpose has to undergo an "inversion ceremony" to change into a man. This biological woman, now socially male, becomes a "husband" to a younger female and a "father" to the younger woman's children, whose sons become the heirs of her house. Taking advantage of this unique separation of biological and social roles holding constant the same society, I conduct competitiveness experiments. Similar to the extant evidence from experiments in Western cultures, I find that Nandi men opt to compete at roughly twice the rate as Nandi women. Importantly, however, female husbands (socially males but biologically females) choose to compete at basically the same rate as males, and thus around twice as often as females. These results provide novel support for the argument that social norms, family roles and endogenous preference formation are crucially linked to differences in competitiveness.
{"title":"Nandi Female Husbands","authors":"Ignacio Palacios-Huerta","doi":"10.2139/ssrn.3899091","DOIUrl":"https://doi.org/10.2139/ssrn.3899091","url":null,"abstract":"Gender differences in competitiveness have been hypothesized as a potential explanation for gender differences in education and labor market outcomes. Central to the literature is whether differences in preferences for competition are innate or learned. I study this question in the Nandi society in Kenya. A distinct aspect of this society is the cultural institution of \"female husbands.\" In Nandi custom, the property of a woman's house (the \"house property\") can only be transmitted to male heirs, and so inheritance flows through mothers to the sons. As not every woman gives birth to a male heir, the Nandi solution to sustain the family lineage is for the heirless woman to become the \"female husband\" to a younger woman. A woman who marries another woman for this purpose has to undergo an \"inversion ceremony\" to change into a man. This biological woman, now socially male, becomes a \"husband\" to a younger female and a \"father\" to the younger woman's children, whose sons become the heirs of her house. Taking advantage of this unique separation of biological and social roles holding constant the same society, I conduct competitiveness experiments. Similar to the extant evidence from experiments in Western cultures, I find that Nandi men opt to compete at roughly twice the rate as Nandi women. Importantly, however, female husbands (socially males but biologically females) choose to compete at basically the same rate as males, and thus around twice as often as females. These results provide novel support for the argument that social norms, family roles and endogenous preference formation are crucially linked to differences in competitiveness.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129609041","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}
We present the first study of the high school-to-work transition for American Millennial males and females. Using data from the PSID Transition to Adulthood from 2005-2011, we estimate two versions of the Burdett and Mortensen (1998) model, one with an exogenous productivity distribution and one that endogenizes productivity. We compare our Millennial results to those of Generation X for males and find a substantial decline in search efficiencies for white males with convergence to black males. We also find convergence in search patterns for Millennial males and females leaving less room for search to explain the gender wage gap. Finally, we show the labor market deteriorated substantially for both males and females who graduated from high school during the Great Recession.
{"title":"The Millennials' Transition from School to Work","authors":"Yy Wong","doi":"10.2139/ssrn.3910074","DOIUrl":"https://doi.org/10.2139/ssrn.3910074","url":null,"abstract":"We present the first study of the high school-to-work transition for American Millennial males and females. Using data from the PSID Transition to Adulthood from 2005-2011, we estimate two versions of the Burdett and Mortensen (1998) model, one with an exogenous productivity distribution and one that endogenizes productivity. We compare our Millennial results to those of Generation X for males and find a substantial decline in search efficiencies for white males with convergence to black males. We also find convergence in search patterns for Millennial males and females leaving less room for search to explain the gender wage gap. Finally, we show the labor market deteriorated substantially for both males and females who graduated from high school during the Great Recession.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128073455","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}
Spanish Abstract: En Colombia hay 2,7 millones de jóvenes entre 14 y 28 años que no estudian ni trabajan (NINIS), lo que representa una problemática social y económica, en la medida en que se desaprovechan las potenciales capacidades productivas de la población, pero también evidencia las limitaciones de una sociedad que no ofrece suficientes oportunidades. Esta situación se explica por una amalgama de factores estructurales, institucionales e individuales. El objetivo de este documento es analizar los determinantes microeconómicos (personales y del hogar) que inciden en la situación de los jóvenes NINIS en Colombia. Para ello, se presenta un análisis descriptivo de los NINIS y sus hogares, y se estiman modelos econométricos de variable dependiente limitada. Los principales resultados muestran que la situación tiene un importante sesgo de género afectando negativamente a las mujeres, garantizar mayores niveles educativos contribuye a una notable reducción de la inactividad de los jóvenes, pero su efecto es limitado sobre el desempleo, además, menor desempleo y mayores niveles de educación de los padres del hogar reduce considerablemente la probabilidad de que los jóvenes sean NINIS. English Abstract: Colombia has 2.7 million of young people between 14 and 28 years that are not in employment, education or training. It means a huge social and economic problem, because capabilities of population are not being used properly, but it also shows the limitation of a society that does not offer enough opportunities. That situation is the consequence of multiple structural, institutional, and individual aspects. The purpose of this article is to analyze the microeconomic determinants (personal and household characteristics) that influence the condition of youth NEET in Colombia. To do so, a descriptive analysis is shown and some econometric models with categorical dependent variables are estimated. The primary results are the level of NEET has a gender bias, negatively affecting women; higher education levels reduce the inactivity of young people but its effect on unemployment is lower; besides, the likelihood of being NEET for young would decline substantially if their parents were not unemployed and they had more years of education.
{"title":"Los jóvenes que no estudian ni trabajan (NINIS) en Colombia (Youth not in Employment, Education or Training (NEET) In Colombia)","authors":"Roberto Sánchez Torres","doi":"10.2139/ssrn.3874011","DOIUrl":"https://doi.org/10.2139/ssrn.3874011","url":null,"abstract":"Spanish Abstract: En Colombia hay 2,7 millones de jóvenes entre 14 y 28 años que no estudian ni trabajan (NINIS), lo que representa una problemática social y económica, en la medida en que se desaprovechan las potenciales capacidades productivas de la población, pero también evidencia las limitaciones de una sociedad que no ofrece suficientes oportunidades. Esta situación se explica por una amalgama de factores estructurales, institucionales e individuales. El objetivo de este documento es analizar los determinantes microeconómicos (personales y del hogar) que inciden en la situación de los jóvenes NINIS en Colombia. Para ello, se presenta un análisis descriptivo de los NINIS y sus hogares, y se estiman modelos econométricos de variable dependiente limitada. Los principales resultados muestran que la situación tiene un importante sesgo de género afectando negativamente a las mujeres, garantizar mayores niveles educativos contribuye a una notable reducción de la inactividad de los jóvenes, pero su efecto es limitado sobre el desempleo, además, menor desempleo y mayores niveles de educación de los padres del hogar reduce considerablemente la probabilidad de que los jóvenes sean NINIS. English Abstract: Colombia has 2.7 million of young people between 14 and 28 years that are not in employment, education or training. It means a huge social and economic problem, because capabilities of population are not being used properly, but it also shows the limitation of a society that does not offer enough opportunities. That situation is the consequence of multiple structural, institutional, and individual aspects. The purpose of this article is to analyze the microeconomic determinants (personal and household characteristics) that influence the condition of youth NEET in Colombia. To do so, a descriptive analysis is shown and some econometric models with categorical dependent variables are estimated. The primary results are the level of NEET has a gender bias, negatively affecting women; higher education levels reduce the inactivity of young people but its effect on unemployment is lower; besides, the likelihood of being NEET for young would decline substantially if their parents were not unemployed and they had more years of education.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133298258","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}
This paper investigates the effect of robot adoption on the accumulation of human capital in the US. Using a simple theoretical framework, we illustrate how advances in automation are expanding the share of individuals who enroll in college, as college-educated workers are less exposed to the adverse effects of new technologies. We test this prediction empirically exploiting exogenous variation in the adoption of robots across local labor markets between 1993 and 2007. Our results show that robot exposure has increased substantially enrollment rates in post-secondary education institutions: for every three workers that have been displaced by automation, one individual enrolls in college. Most students are enrolling in two-year public institutions, since they are more accessible and rapidly provide workers with the necessary skills to be competitive in the labor market. There is no evidence, though, that automation is affecting students' commitment to complete their studies. Nevertheless, we observe a shift in completions towards more applied fields, such as computer science and engineering, which are likely to be the main source of job creation in the years to come due to their complementary role to the new technologies.
{"title":"Automation and Human Capital Adjustment: The Effect of Robots on College Enrollment","authors":"Giuseppe Di Giacomo, Benjamin Lerch","doi":"10.2139/ssrn.3920935","DOIUrl":"https://doi.org/10.2139/ssrn.3920935","url":null,"abstract":"This paper investigates the effect of robot adoption on the accumulation of human capital in the US. Using a simple theoretical framework, we illustrate how advances in automation are expanding the share of individuals who enroll in college, as college-educated workers are less exposed to the adverse effects of new technologies. We test this prediction empirically exploiting exogenous variation in the adoption of robots across local labor markets between 1993 and 2007. Our results show that robot exposure has increased substantially enrollment rates in post-secondary education institutions: for every three workers that have been displaced by automation, one individual enrolls in college. Most students are enrolling in two-year public institutions, since they are more accessible and rapidly provide workers with the necessary skills to be competitive in the labor market. There is no evidence, though, that automation is affecting students' commitment to complete their studies. Nevertheless, we observe a shift in completions towards more applied fields, such as computer science and engineering, which are likely to be the main source of job creation in the years to come due to their complementary role to the new technologies.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"114 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117254416","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}
We study whether female-headed local governments in Spain are more likely to engage in gender sensitive policies such as long-term care support, pre-schooling, or work and family-life balancing services. Using a fuzzy regression discontinuity design estimated on the set of mixed electoral races, we find no evidence of female mayors being more likely to implement these policies at the local level. We do find evidence of differences between parties in the probability of implementing these policies, suggesting that the gender of the politician is less important than their partisan or ideological position when it comes to these policy levers.
{"title":"Do Female Leaders Promote Gender-Sensitive Policies?","authors":"Andrés Gago, Felipe Carozzi","doi":"10.2139/ssrn.3716566","DOIUrl":"https://doi.org/10.2139/ssrn.3716566","url":null,"abstract":"We study whether female-headed local governments in Spain are more likely to engage in gender sensitive policies such as long-term care support, pre-schooling, or work and family-life balancing services. Using a fuzzy regression discontinuity design estimated on the set of mixed electoral races, we find no evidence of female mayors being more likely to implement these policies at the local level. We do find evidence of differences between parties in the probability of implementing these policies, suggesting that the gender of the politician is less important than their partisan or ideological position when it comes to these policy levers.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131050634","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}
Can we determine the poverty levels of the population aged 65 and over without considering their assets? How much can we reduce poverty rates among older adults if their assets are liquidated? To answer these questions, we investigate poverty rates among older adults relatively by taking residential property into account using an actuarial method applied to a public reverse mortgage program. We use unique data collated by merging the Survey of Household Finances and Living Conditions by Statistics Korea and data on spouse information. We find that public reverse mortgage programs increase disposable income by approximately 20% on average for the population aged 65 and over, and the improvement is more effective in the low-income quintiles. Due to the income enhancement from reverse mortgages, poverty rates among older adults reduce significantly to about 31%, while it is 41% without the liquation of home equity. Therefore, the current poverty rate among older adults following the OECD standard may overestimate the poverty rate for people aged 65 and over and misguides the direction of welfare policies, and misuses government budgets for older adults.
{"title":"Does Home Equity Liquidation Reduce the Poverty Rate of Older Adults? Evidence from South Korea","authors":"In-hong Baek, Sanha Noh","doi":"10.2139/ssrn.3802230","DOIUrl":"https://doi.org/10.2139/ssrn.3802230","url":null,"abstract":"Can we determine the poverty levels of the population aged 65 and over without considering their assets? How much can we reduce poverty rates among older adults if their assets are liquidated? To answer these questions, we investigate poverty rates among older adults relatively by taking residential property into account using an actuarial method applied to a public reverse mortgage program. We use unique data collated by merging the Survey of Household Finances and Living Conditions by Statistics Korea and data on spouse information. We find that public reverse mortgage programs increase disposable income by approximately 20% on average for the population aged 65 and over, and the improvement is more effective in the low-income quintiles. Due to the income enhancement from reverse mortgages, poverty rates among older adults reduce significantly to about 31%, while it is 41% without the liquation of home equity. Therefore, the current poverty rate among older adults following the OECD standard may overestimate the poverty rate for people aged 65 and over and misguides the direction of welfare policies, and misuses government budgets for older adults.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129501735","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}
In this commentary we are using raw statistical data to tell the story of how the COVID-19 pandemic impacted employment prospects of women in the United States. However, this is not a story focusing on healthcare, but is more about the extrinsic principles and market forces that impact employment and livelihood.
{"title":"The COVID-19 Employment Prospects of Women","authors":"Gohar Sedrakyan","doi":"10.2139/ssrn.3880024","DOIUrl":"https://doi.org/10.2139/ssrn.3880024","url":null,"abstract":"In this commentary we are using raw statistical data to tell the story of how the COVID-19 pandemic impacted employment prospects of women in the United States. However, this is not a story focusing on healthcare, but is more about the extrinsic principles and market forces that impact employment and livelihood.","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121726500","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}
Using administrative data, we provide an extensive characterization of labor earnings dynamics in Norway. Some of our findings are as follows: (i) Norway has not been immune to the increase in top earnings inequality seen in other countries, (ii) the earnings distribution compresses in the bottom 90% over the life cycle but expands in the top 10%, and (iii) the earnings growth distribution is left‐skewed and leptokurtic, and the extent of these nonnormalities varies with age and past income. Linking individuals to their parents, we also investigate the intergenerational transmission of income dynamics. We find that children of high‐income, high‐wealth fathers enjoy steeper income growth over the life cycle and face more volatile but more positively skewed income changes, suggesting that they are more likely to pursue high‐return, high‐risk careers. Income growth for children of poorer fathers is more gradual and more left skewed, displaying higher left tail risk. Furthermore, the income dynamics of fathers and children are strongly correlated: children of fathers with steeper life‐cycle income growth, more volatile incomes, or higher downside risk also have income streams of similar properties. These findings shed new light on the determinants of intergenerational mobility.
{"title":"Earnings Dynamics and Its Intergenerational Transmission: Evidence from Norway","authors":"Elin Halvorsen, Serdar Ozkan, Sergio C. Salgado","doi":"10.2139/ssrn.3789289","DOIUrl":"https://doi.org/10.2139/ssrn.3789289","url":null,"abstract":"Using administrative data, we provide an extensive characterization of labor earnings dynamics in Norway. Some of our findings are as follows: (i) Norway has not been immune to the increase in top earnings inequality seen in other countries, (ii) the earnings distribution compresses in the bottom 90% over the life cycle but expands in the top 10%, and (iii) the earnings growth distribution is left‐skewed and leptokurtic, and the extent of these nonnormalities varies with age and past income.\u0000 Linking individuals to their parents, we also investigate the intergenerational transmission of income \u0000 dynamics. We find that children of high‐income, high‐wealth fathers enjoy steeper income growth over the life cycle and face more volatile but more positively skewed income changes, suggesting that they are more likely to pursue high‐return, high‐risk careers. Income growth for children of poorer fathers is more gradual and more left skewed, displaying higher left tail risk. Furthermore, the income dynamics of fathers and children are strongly correlated: children of fathers with steeper life‐cycle income growth, more volatile incomes, or higher downside risk also have income streams of similar properties. These findings shed new light on the determinants of intergenerational mobility.\u0000","PeriodicalId":149805,"journal":{"name":"Labor: Demographics & Economics of the Family eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129261060","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：