Space,Context, and Human Capital: A Micro–Macro Perspective on the Social Environment and Financial Literacy in Later Life

Despite a large body of literature documenting the association between individual characteristics and financial literacy, our understanding of the impact of macro-environmental conditions on individual financial literacy remains limited, particularly in later life. Drawing from a micro–macro perspective on the social environment and individual processes, we examined the extent to which three state-level contextual characteristics were associated with individual financial literacy: tertiary educational attainment, poverty prevalence, and Internet penetration. We utilized data from the Understanding America Study for adults aged 50 years or older to assess financial literacy and data from the American Community Survey to evaluate contextual conditions. Cross-sectional multilevel regression models were used to examine the hypothesized effects. We found that state-level poverty prevalence was negatively associated with individual financial literacy, while state-level Internet penetration was positively associated with individual financial literacy, over and above individual characteristics known to impact financial literacy. No association was found between state-level educational attainment and individual financial literacy after controlling for respondents’ own education. Findings suggest that the social environment may condition older adults’ financial literacy through exposure to opportunities that promote knowledge acquisition. Interventions to enhance older adults’ financial literacy may benefit from targeted approaches that take into account the environmental characteristics of their locations of residence.

     

Discussing Measures of Financial Inclusion for the Main Euro Area Countries

Since financial inclusion has become a policy target in many countries, properly measuring it is crucial. Usual indexes of financial inclusion include inappropriate variables and don’t take into account other relevant aspects, thus misrepresenting the phenomenon. In this work we focus on the diffusion of electronic cards, generally not included in the usual indexes of financial inclusion notwithstanding they provide alternatives to usual saving practices and allow less costly transactions across larger markets and wider geographic areas. We show that, taking these instruments into account, the comparative valuation of the degree of financial inclusion between the main euro area countries changes substantially. We also employ survey data to analyze cross-country differences in the degree of financial inclusion and the distribution of multidimensional deprivations of specific sub-groups of populations.

     

Cross-National Variation in Individual Life Satisfaction: Effects of National Wealth, Human Development, and Environmental Conditions

This study adds to the literature on subjective well-being and life satisfaction by exploring variation in individual life satisfaction across countries. Understanding whether and how individual life satisfaction varies across countries is important because if the goal of development is to increase well-being, we must identify the causes of well-being in different national and regional contexts. Using hierarchical linear modeling techniques, I test the hypothesis that individual well-being does vary across countries, and that national wealth, human development and environmental conditions explain this variation. I also test whether the effects of individual characteristics on life satisfaction (including age, marital status, education, income, employment status, and sex) vary across countries, and which country level characteristics explain these variations. Using individual level data from the World Values Survey, I find that there is significant variation in life satisfaction across countries. There is also significant variation in the slopes of individual predictors of life satisfaction across countries and regions. Regional differences in the effects of individual characteristics on life satisfaction explain most of the between country variation in life satisfaction. This indicates that universal development indicators may not adequately reflect differences in life satisfaction across countries, and that development measurements should better reflect regional differences.

A Multidimensional Approach to Precarious Employment Among Young Workers in EU-28 Countries

This article uses a new multidimensional indicator to measure precariousness among young workers across all EU-28 countries. This indicator measures both the incidence and intensity of precariousness. The analysis has involved five dimensions: wages, type of contract, type of working day, disempowerment, and job insecurity. Our database is the European Union Labour Force Survey for the period 2009–2016. The main indication of precariousness is low wages. We find high rates of precariousness for Mediterranean countries (because of low wages and temporary contracts), Denmark (low wages), and the Netherlands (expansion of involuntary part-time jobs). Central European countries have moderate rates, and most Continental and Eastern countries have low rates. We also find that a higher level of education is related to a lower probability of having a precarious job. Finally, we find a greater probability of having a precarious job among women in most countries, and non-statistically significant differences by country of birth.

     

Gates to retirement and gender differences: Macroeconomic conditions,job satisfaction,and age

ABSTRACT

The different pathways out of the labor force have been the focus of many recent studies, yet not enough scholarly attention has been paid to the effect of country-level, individual, and job characteristics and their potentially different influence across genders. The current article examines the relationships between retirement decisions and macroeconomic conditions, personal characteristics, and job satisfaction, while focusing on gender differences. Data came from 16,337 respondents in 13 European countries that participated in the Survey of Health, Ageing and Retirement in Europe (SHARE). We find that the relative importance of macroeconomic conditions and job satisfaction differs by gender.     

Explaining Cross-Country Differences in Attitudes Towards Immigration in the EU-15

In this paper, we use data from the first two rounds of the European Social Survey to analyze the extent to which differences in average attitudes towards immigration across the EU-15 countries may be explained by differences in socioeconomic characteristics and individually perceived consequences of immigration, using an extension of a decomposition technique developed by Fairlie (2005). We find that despite the significant effects of socioeconomic characteristics on attitudes, differences in the distributions of these characteristics can only explain a modest share of the cross-country variation in average attitudes. A larger part can be explained by differences in perceived consequences of immigration, but the main part is still left unexplained. Apart from providing useful input for policy makers working in the area of immigration policy, this raises a number of questions for further research for which the ESS data can be successfully applied.

Healthy,Wealthy, Wise,and Happy? Assessing Age Differences in Evaluative and Emotional Well-Being Among Mature Adults from Five Low- and Middle-Income Countries

This study assesses the relationship between age and two dimensions of subjective well-being—evaluative and emotional—among mature adults from five low-and middle-income countries. We use data from the World Health Organization’s Study on Global AGEing and Adult Health to contrast the associations of age with subjective well-being when controlling only for gender with the corresponding partial associations when including a richer set of covariates. Adjusting only for gender, we find negative associations of age with evaluative well-being, while the corresponding age gradients for emotional well-being are relatively flat. By contrast, adjusting for further socio-demographic factors results in positive associations of age with both evaluative and emotional well-being. Oaxaca-Blinder decompositions allow us to explore the roles of two factors to account for any unadjusted age differences in subjective well-being: age-group differences in individual characteristics and life circumstances, and age-specific associations of individual characteristics and life circumstances with subjective well-being. While adverse circumstances such as poor health and low income contribute to lower levels of evaluative well-being among older adults, age per se is—ceteris paribus—positively associated with subjective well-being. Even in poorer countries, older age does not need to be a time of low subjective well-being. Policies aimed at preserving income and limiting or compensating old-age disability appear to be key for maintaining subjective well-being among older adults.

     

A Cross-National Analysis of Lifespan Inequality, 1950–2015: Examining the Distribution of Mortality Within Countries

Cross-national health research devotes considerable attention to lifespan and survival rate disparities that are found between countries. However, the distribution of mortality across the world is shaped mostly by what happens within countries. We address this striking gap in the literature by modeling length-of-life inequality for individual nation-states. We use life tables from the United Nation’s (2015) World Population Prospects to estimate inequality levels for 200 countries across 13 waves between 1950 and 2015. We find that lifespan inequality is steadily declining across the world, but that each country’s level of inequality, and the rate at which it declines, vary considerably. Our models account for more than 90% of the longitudinal and cross-sectional variation in country-level lifespan inequality during the 1990–2015 period. Maternal mortality is the strongest predictor in our model, while disease prevalence, access to safe water, and health interventions figure prominently, as well. Gross domestic product per capita shows the expected curvilinear association with lifespan inequality, while primary education (both overall enrollment and gender equity in enrollment), external debt, and migration also play critical roles in shaping health outcomes. By contrast, the distribution of political and economic resources (i.e., democracy and income inequality) is less important.

     

Trajectories of Employment Gaps of Refugees and Other Migrants: Evidence from Austria

This paper analyzes the labor market integration of non-European refugees originating from middle- and low-income countries for the period of 2009–2018 in Austria. We assess their probability of being employed relative to Austrian natives and compare it with that of other non-European migrants and European refugees and other immigrants from low- and middle-income non-EU countries. We draw on a register-based panel dataset covering the complete labor market careers of all individuals residing in Austria. We control for macrolevel explanatory variables (e.g., the labor market situation at the time and the place of settlement) and individual characteristics. The analysis shows that initial refugee employment gaps relative to natives are large in the first years, when labor market access is difficult. After a period of 7 years, the unconditional gap between refugees and natives declines to 30 percentage points, similar to that of other migrants, but the gap is still decreasing. After controlling for a set of explanatory variables, the conditional gap amounts to only 10 percentage points at that time. Moreover, our analysis provides insights into differences in employment gaps across population subgroups of immigrant groups and natives by gender, age, education level, and types of employment.

     

Levels of urbanization in the world’s countries: testing consistency of estimates based on national definitions

Estimates of urbanization levels for all countries, as published in the United Nations World Urbanization Prospects, are not comparable across countries because they are based on national definitions of urbanization, which vary greatly across countries. We construct alternative estimates of urbanization that are comparable across countries, to use these estimates to point out definitional problems or outlying countries with interesting urban characteristics. The alternative estimates are constructed using variables that are associated with urbanization, as well as a categorical variable that summarizes the urban definition used in the country. We find that among the 181 countries included in the analysis, 21 % have a restrictive definition, and 31 % a generous definition of urbanization. In 2000, the difference between the alternative estimate and the UN estimate was more than 10 % for 67 countries. An examination of six countries with surprisingly low or high reported levels of urbanization, as compared the alternative estimates, highlights issues with the plausibility of the official estimate. We conclude that comparison of urbanization estimates across countries should be treated with care, given the wide range of definitions used. To produce more informative estimates of urbanization, several countries would need to clarify or rethink their definition of urban.     

A comparative analysis of immigrant skills and their utilization in Australia,Canada, and the USA

We compare literacy test scores and their impact on wage and employment outcomes of Australian, Canadian, and the US immigrants. Overall, we find little to distinguish the skills of immigrants to these three countries, although there is some indication of gains at the lower end of the distribution among Australian immigrants arriving after the mid-1990s. Relative immigrant wage returns to literacy are, however, substantially higher in the USA, which we argue reflects language-skill complementarities, as opposed to more efficient skill utilization or unobserved productivity characteristics.     

Education and the Non-financial Employment Commitment in Times of Economic Recession Among the Youth

In this paper, we study the non-financial employment commitment using the so-called “lottery question”, which asks if you would continue working if you won the lottery. This is the first study that reports results using data from a Southern-European country and this is done both before and 3 years into the recession following the financial crisis of 2008. We find that the willingness to continue working in Spain is shockingly lower than in previous research done in other countries. Additionally, we find two important moderators of the non-financial employment commitment at the individual level. The willingness to work increases by education level and it is negatively correlated with the time spent searching for jobs. We find some regional effects, but in general, we do not find that the non-financial employment commitment is higher during the financial recession.     

Financial Literacy Overconfidence and Stock Market Participation

Stock market participation is considered as an indicator of consumer financial well-being. This study examined the association between financial literacy overconfidence and stock market participation. Financial literacy overconfidence was measured by the difference between an individual’s subjective and objective financial literacy scores. Data from the 2012 Chinese Survey of Consumer Finance was analyzed. The results showed that financial literacy overconfidence is positively correlated with stock market participation. On the other hand, under-confidence is negatively correlated to stock market participation. This study contributes to the existing literature by relating a unique factor, financial literacy overconfidence, to stock market participation.     

The Rise and Prominence of Skip-Generation Households in Lower- and Middle-Income Countries

Investigations into changes in household formations across lower- and middle-income countries (LMICs) rarely consider skip-generation households. Yet, demographic, social, and economic forces increasingly encourage skip-generation household formations. We examine trends and changes in the prevalence of skip-generation households from 1990 to 2016, examining households, adults aged 60+, and children under 15, across 49 countries using household roster data from Demographic and Health Surveys. Analysis takes place in stages, first describing trends in skip-generation households across countries and next providing explanatory analyses using multilevel modeling to assess whether, and the degree to which, country-level characteristics like AIDS mortality and female labor force participation explain trends in the probability that a household is, or that an individual resides in, a skip-generation household. Results indicate extensive increases in skip-generation households in many LMICs, although there is also variation. The increases and variations are not well-explained by the country-level characteristics in our models, suggesting other underlying reasons for the rise and prominence of skip-generation households across LMICs.     

Religion,Religiosity, and the Attitudes Toward Homosexuality—A Multilevel Analysis of 79 Countries

Although attitudes toward homosexuality have become more liberal, particularly in industrialized Western countries, there is still a great deal of variance in terms of worldwide levels of homonegativity. Using data from the two most recent waves of the World Values Survey (1999–2004, 2005–2009), this article seeks to explain this variance by means of a multilevel analysis of 79 countries. We include characteristics on the individual level, as age or gender, as well as aggregate variables linked to specificities of the nation-states. In particular, we focus on the religious denomination of a person and her religiosity to explain her attitude toward homosexuality. We find clear differences in levels of homonegativity among the followers of the individual religions.     

Change of Housing Inequality in Urban China and Its Decomposition: 1989–2011

Housing inequality is a common phenomenon all over the world but also demonstrate discrepant tinctures across different countries. Using the data from the China Health and Nutrition Surveys, we depict a comprehensive, dynamic, and complex picture of housing inequality in urban China from 1989 to 2011, with household as the unit of analysis. Analytic results from calculation of housing Gini coefficients and delineation of housing Lorenz curves suggest that the trend of housing space inequality was steady with a somewhat increase, while that of housing wealth inequality has firstly decreased and then increased. Through further decomposition on the change of housing inequality with a pioneering use of MM decomposition method, we find that the change of the composition of household characteristics only could explain few about the change of housing inequality, while the classification mechanism formed by returns from household characteristics plays a key role in both the change of housing space inequality and that of housing wealth inequality.

     

Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.

     

Gender gaps in early educational achievement

This paper analyzes the source of the gender gap in third-grade numeracy and reading. We adopt an Oaxaca-Blinder approach and decompose the gender gap in educational achievement into endowment and response components. Our estimation relies on unusually rich panel data from the Longitudinal Survey of Australian Children in which information on child development reported by parents and teachers is linked to each child’s results on a national, standardized achievement test. We find that girls in low- and middle-socio-economic-status (SES) families have an advantage in reading, while boys in high-SES families have an advantage in numeracy. Girls score higher on their third-grade reading tests in large part because they were more ready for school at age 4 and had better teacher-assessed literacy skills in kindergarten. Boys’ advantage in numeracy occurs because they achieve higher numeracy test scores than girls with the same education-related characteristics.     

Decomposing Trends in Child Obesity

We unravel the absolute level and relative prominence of two demographic processes that are relevant for childhood obesity, and that will ultimately determine the long-term course and pace of change in child obesity rates. We leverage data from the National Health and Nutrition Examination Survey to decompose change in child obesity from 1971 to 2012. We partition change into that attributable to (1) healthier, more nutritionally and economically advantaged cohorts in the population being replaced by cohorts of children who are less advantaged (between-cohort change), and (2) the health habits, nutrition, and social and economic circumstances of all cohorts of children worsening over time (within-cohort change). The rise in obesity among children aged 2 to 19 years is solely due to intracohort change driven by variation in food security composition and in the diet of the population over time. Child obesity in the population rose largely because of individual increases in weight status that are broadly distributed across age and cohort groups. Smaller but significant cohort replacement effects slightly attenuated these intracohort change effects over the study period, leading to a more gradual increase in obesity. Our results provide some reasons for optimism. Given that population estimates of child obesity rose because the typical member of all cohorts became heavier over time at all stages of the early life course, successful policy and health interventions that focus on changing health habits across all ages and generations have the potential to quickly slow or reverse the upward trend in child obesity.

     

Do the elderly reduce housing equity? An international comparison

We explore the pattern of elderly homeownership using 60 microeconomic surveys on about 300,000 individuals residing in 15 OECD countries. In all countries, the survey is repeated over time, permitting construction of an international dataset of repeated cross-sectional data. We find that ownership rates decline considerably after age 60. However, a large part of the decline depends on cohort effects. Adjusting for them, we find that ownership rates start falling after age 70 and reach a percentage point per year decline after age 75. We find that differences across country ownership trajectories are correlated with indicators measuring market regulation degree.