Inequality in mobilizing online help after a negative life event: the role of education,digital skills,and capital-enhancing Internet use

Many studies have investigated inequalities in coping with stressful life events and often education is found to play a role in this (the higher educated are usually more successful in dealing with their problems in terms of well-being consequences). We examine whether something similar occurs on the Internet, whether the higher educated are more successful in mobilizing help online, and whether this is related to their digital skills and the way in which they use the Internet. With the latter, we link online coping to digital inequality research. Researchers have investigated digital inequalities with regard to skills and types of Internet use. However, we know little about the extent to which these factors translate into inequalities in resources mobilized from the Internet. This latter type of inequality is highly relevant, since it is an intermediary step between Internet use and (improved) well-being and life chances. Using a large sample of individuals living in the Netherlands, we find educational differences in the mobilization of online problem-focused coping resources, but no differences with regard to online socioemotional or disengagement coping resources. The educational inequalities in online coping are somewhat smaller than educational inequalities in offline coping, leading to remarkable consequences for social policy. Furthermore, we find a relatively complex pattern of interrelations between offline inequality (education) and different types of digital inequality (skills, usage, resources). In our conclusions we make a plea for more research on outcomes of Internet use and we discuss the implications of our findings for further research.     

The Relationship Between Life Satisfaction Among Wives and Financial Preparedness of Households in Japan

The wealth gap between the rich and poor is widening and contributing to Japan’s shrinking middle class. This study examined concerns about the future and life satisfaction and their association with household financial preparedness (e.g., savings, investments, life insurance) among married women in Japan. Double-hurdle models assessed the probability of having savings and the amount of these savings, using the sample from the 2006 Japanese Panel Survey of Consumers (n = 1,206). Supporting earlier works from several other countries, concerns about the future were positively associated with the probability of having supplemental life insurance. Moreover, life satisfaction levels were positively associated with the probabilities of having savings, investments, and supplemental life insurance and with the amount of the investments. The findings suggest economic inequalities among women could widen in the future, as those who have and are expecting to have more financial resources are more likely to be prepared for future financial needs than those who do not.     

Inequality and education decisions in developing countries

In this paper we analyze the effect of inequality on school enrollment, preferred tax rate and expenditure per student in developing countries; when parents can choose between child labor, public schooling or private schooling. We present a model in which parents make schooling decisions for their children, weighing the utility benefit of having a child with formal public or private education versus the forgone income from child labor or household work. Parents vote over the preferred tax rate to finance freely provided public education. The utility benefit of an educated child is proportional to expenditure per student, so that there is congestion in public school. We find that when parents can send their children to work or to private school, high inequality leads to exit from public education at both ends of the income distribution. Thus high inequality reduces the support for public education, leading to a low tax rate and expenditure per student. Exit from public education results in both high child labor and a large fraction of students attending private school. In fact there is a threshold level of inequality above which there is no longer support for public education. In addition we explore the implications for the design of foreign aid. The results suggest that foreign aid policies should focus on promoting school attendance rather than increasing school resources, as the later policy might be offset by a reduction in the recipient country’s fiscal effort, with little impact on outcomes.      

The Heterogeneous Impact of International Migration on Left‐behind Households: Evidence from Bangladesh

This article investigates the heterogeneous effects of international migration on the expenditure of Bangladeshi migrant households. Adopting a counterfactual framework, we estimate the impact of migration on per capita expenditure of left‐behind households according to their position in the counterfactual expenditure distribution and the length of the migration period. The effects on households’ social mobility and on inequality are also assessed. The analysis indicates that migration has a positive impact on per capita expenditure and represents an important vehicle of social mobility, but may also be a source of inequality. We also find that only a tiny share of international migrants originates from households belonging to the lowest expenditure quintile and, since most of the characteristics which seem to influence the migration decision cannot be shaped by policy interventions, our results also suggest that pro‐migration policies might not be effective in lifting those most in need out of poverty.     

Life Satisfaction Among Children in Different Family Structures: A Comparative Study of 36 Western Societies

This paper examines differences in life satisfaction among children in different family structures in 36 western, industrialised countries (n = 184 496). Children living with both biological parents reported higher levels of life satisfaction than children living with a single parent or parent–step‐parent. Children in joint physical custody reported significantly higher levels of life satisfaction than their counterparts in other types of non‐intact families. Controlling perceived family affluence, the difference between joint physical custody families and single mother or mother–stepfather families became non‐significant. Difficulties in communicating with parents were strongly associated with less life satisfaction but did not mediate the relation between family structure and life satisfaction. Children in the Nordic countries characterised by strong welfare systems reported significantly higher levels of life satisfaction in all living arrangements except in single father households. Differences in economic inequality between countries moderated the association between certain family structures, perceived family affluence and life satisfaction.     

Addressing multiple dimensions of gender inequality: the experience of the BRAC Gender Quality Action Learning (GQAL) programme in Bangladesh

Recent analyses have highlighted that poverty reduction in Bangladesh has been accompanied by growing inequality in society, measured by household income. This article considers what the implications are for development actors who are concerned with empowering the poor in society, and who understand poverty from a gender and women's rights perspective. We draw on experience from BRAC's work to address these issues, focusing on the Gender Quality Action Learning (GQAL) programme. A focus on women's self-employment alone does not result in challenging the structures of patriarchal inequalities. Gender inequality and its link to economic inequality needs to be much more centrally positioned than it currently is in development discourse. Currently economic empowerment is widely seen as a potential route to gender equality, but the GQAL programme shows work to challenge gender inequality is necessary as an entry-point to ensure effective economic empowerment.     

Survey mode effects on measured income inequality

We study the effect of interview modes on estimates of economic inequality which are based on survey data. We exploit variation in interview modes in the Austrian EU-SILC panel, where between 2007 and 2008 the interview mode was switched from personal interviews to telephone interviews for some but not all participants. We combine methods from the program evaluation literature with methods from the distributional decomposition literature to obtain causal estimates of the effect of interview mode on estimated inequality. We find that the interview mode has a large effect on estimated inequality, where telephone interviews lead to a larger downward bias. The effect of the mode is much smaller for robust inequality measures such as interquantile ranges, as these are not sensitive to the tails of the distribution. The magnitude of effects we find are of a similar order as the differences in many international and intertemporal comparisons of inequality.     

Healthy, educated and wealthy: A primer on the impact of public and private welfare expenditures on economic growth

In this paper, we provide first evidence of the impact of public and private expenditures in health and education on economic growth, via their influence on people's health, skills and knowledge. We consider a growth accounting framework in order to test whether countries that devote a larger amount of resources to the consumption of health and educational services experience higher growth rates. We also test whether the effects on economic growth of public expenditure in health and education differ from those of private expenditure. Our empirical analysis is based on a panel of 19 OECD countries observed between 1971 and 1998. The results are consistent with the hypothesis that health and education expenditure affects positively growth. The estimated impact is stronger for health than for education. More importantly, we find some evidence that public expenditure influences GDP growth more than private expenditure.     

Household wealth and the measurement of economic well-being in the United States

We analyze the level and distribution of economic well-being in the United States during the 1980s and 1990s based on the standard measure of money income and a measure in which income from wealth is calculated as the sum of lifetime annuity from nonhome wealth and imputed rental-equivalent for owner-occupied homes. Over the 1982–2000 period, median well-being increases faster when these adjustments are made than when standard money income is used. This adjustment also widens the income gap between African-Americans and whites but increases the relative well-being of the elderly. Adding imputed rent and annuities from household wealth to household income considerably increases measured inequality and the share of income from wealth in inequality. However, both measures show about the same rise in inequality over the period. We also find an increasing share of wage and salary income in our expanded definition of income among the richest 1% over the period but do not find that the “working rich” have largely replaced rentiers at the top of the economic ladder.      

Work–life balance/imbalance: the dominance of the middle class and the neglect of the working class

The paper was stimulated by the relative absence of the working class from work–life debates. The common conclusion from work–life studies is that work–life imbalance is largely a middle‐class problem. It is argued here that this classed assertion is a direct outcome of a particular and narrow interpretation of work–life imbalance in which time is seen to be the major cause of difficulty. Labour market time, and too much of it, dominates the conceptualization of work–life and its measurement too. This heavy focus on too much labour market time has rendered largely invisible from dominant work–life discourses the types of imbalance that are more likely to impact the working class. The paper's analysis of large UK data‐sets demonstrates a reduction in hours worked by working‐class men, more part‐time employment in working‐class occupations, and a substantial growth in levels of reported financial insecurity amongst the working classes after the 2008–9 recession. It shows too that economic‐based work–life imbalance is associated with lower levels of life satisfaction than is temporal imbalance. The paper concludes that the dominant conceptualization of work–life disregards the major work–life challenge experienced by the working class: economic precarity. The work–life balance debate needs to more fully incorporate economic‐based work–life imbalance if it is to better represent class inequalities.     

Race,Ethnicity, and Underemployment in Nonmetropolitan America: A 30‐Year Profile*

Abstract Historically, rural racial and ethnic minorities have been among the most economically disadvantaged groups in the United States. Key to understanding economic deprivation is employment hardship, trends in which serve as a benchmark for progress toward racial and ethnic equality. We conceptualize employment hardship as underemployment, which goes beyond unemployment to include discouraged workers, involuntary part‐time workers, and the working poor. Analyzing data from the March Current Population Surveys of 1968 through 1998, we find that (1) there are large and persistent racial and ethnic inequalities in underemployment prevalence; (2) these disadvantages are explained only partially by other predictors of underemployment; (3) nonmetropolitan (nonmetro) minorities are more likely than either all metropolitan (metro) or central‐city minorities to be underemployed; (4) black‐white inequality has held steady overall, though it has declined markedly in nonmetro areas; and (5) Hispanic‐white inequality has increased; this trend, however, is restricted to metro areas, central cities in particular.     

Inequality,ethnic diversity,and redistribution

Seminal political economy models from Meltzer and Richard, among others, theorize that, in democracies, more inequality should lead to more redistribution. Most country-level empirical studies find weak support for this prediction. This paper makes two contributions to this debate. First, I identify some of the key shortcomings of previous tests and provide a new empirical analysis that corrects for these limitations. Using a dataset covering 89 developed and developing democracies, I find that inequality is associated with more redistribution. Second, I show that inequality’s effect on redistribution is weaker in democracies in which the poor – defined as the people with income below the median – are divided along ethnic lines than in those in which they are ethnically unified. Taken together, these results suggest that although economic inequality increases redistribution, the magnitude of the relationship is conditional on how inequality interacts with other social cleavages, such as ethnicity.     

Growth,Inequality and Poverty in Emerging and Transition Economies

This paper aims to explore the quality of economic growth in a sample of 50 emerging and transition economies (ETEs), which are countries experiencing a process of fast growth and institutional change. Economic growth during 1995–2006 is regressed against poverty, inequality and human development variables using OLS cross-country regression models. The main findings are that growth did not reduce poverty and income inequality worsened too. On the one hand, economic growth occurred despite the worsening of income inequality. However, this result does not identify a “U-shaped” Kuznets curve because even after a consistent period of growth, inequality did not decrease and it remained at higher levels. Only countries with higher education levels and public expenditure in strategic dimensions seem to escape from this trap. On the other hand, growth occurred at the expense of an important human development variable i.e., life expectancy, and of an important indicator of democracy, i.e., voice and accountability.     

Who gets to look nice and who gets to play? Effects of child gender on household expenditures

We examine the relationship between a child’s gender and family expenditure using data from the Polish Household Budget Survey. Having a first-born daughter as compared with a first-born son increases the level of household expenditures on child and adult female clothing, and it reduces spending on games, toys and hobbies. This could be a reflection of a pure gender bias on behalf of the parents or a reflection of gender complementarities between parents’ and children’s expenditures. We find no robust evidence on gender differences in educational investment, measured by kindergarten expenditure. The analysed expenditure patterns suggest a so-far unexamined role of gender in child development. Parents in Poland seem to pay more attention to how girls look and favour boys with respect to activities and play, which could have consequences in adult life and contribute to sustaining gender inequalities and stereotypes.     

Immigrants working with co‐ethnics: Who are they and how do they fare?

Participation in ethnic economies has been regarded as an alternative avenue of economic adaptation for immigrants and minorities in major immigrant‐receiving countries. This study examines one important dimension of ethnic economies: co‐ethnic concentration at the workplace. Using a large national representative sample from Statistics Canada’s 2002 Ethnic Diversity Survey, this study addresses four questions: (1) what is the level of co‐ethnic concentration at the workplace for Canada’s minority groups? (2) How do workers who share the same ethnicity with most of their co‐workers differ from other workers in socio‐demographic characteristics? (3) Is higher level of co‐ethnic concentration at the workplace associated with lower earnings? (4) Is higher level of co‐ethnic concentration at the workplace associated with higher levels of life satisfaction? The results show that only a small proportion of immigrants and the Canadian‐born work in ethnically homogeneous settings. In Canada’s eight largest metropolitan areas about 10 per cent of non‐British/French immigrants share a same ethnic origin with the majority of their co‐workers. The level is as high as 20 per cent among Chinese immigrants and 18 per cent among Portuguese immigrants. Among Canadian‐born minority groups, the level of co‐ethnic workplace concentration is about half the level for immigrants. Immigrant workers in ethnically concentrated settings have much lower educational levels and proficiency in English/French. Immigrant men who work mostly with co‐ethnics on average earn about 33 per cent less than workers with few or none co‐ethnic coworkers. About two thirds of this gap is attributable to differences in demographic and job characteristics. Meanwhile, immigrant workers in ethnically homogenous settings are less likely to report low levels of life satisfaction than other immigrant workers. Among the Canadian‐born, co‐ethnic concentration is not consistently associated with earnings and life satisfaction.     

The Case of Cubans: Racial Inequality in U.S. Homeownership and Home Values

Prior research finds that human capital may explain racial housing inequality, whereas others note the historical role that race played in creating unequal housing conditions. This study uses the case of Cubans in the United States to examine whether human capital explains Black–White housing inequalities, or if they are a result of nativity/cohort differences—a proxy for the federal policies that supported Cubans’ economic and social incorporation. Using pooled data from the American Community Survey, I examine how human capital characteristics and nativity/migration cohorts shape odds of homeownership and predicted home values among Cubans. Extended analyses using decomposition methods find that although human capital characteristics are important, they play a smaller role in explaining Black–White differences in homeownership and home values. Indicative of the changing structure of racial stratification in the United States, results reveal substantial inequality among the oldest of Cuban immigrants and U.S.‐born Cubans, despite a trend toward declining inequality among recent arrivals. Supported by the literature of systemic racism, the case of Cubans shows how human capital explanations do not sufficiently explain racial housing inequalities and how the future of racial stratification is one of inter‐ and intra‐ethnic group inequality.     

GENDER,MORTALITY, AND CORPOREAL INEQUALITY

Most previous empirical analyses of gender inequality have focused on modern economic indicators such as income. The advancement of theory on gender stratification requires detailed analysis of indicators with greater endurance and prevalence in world-historical terms. Sex mortality differentials are presented as cross-cultural indicators of corporeal gender inequality, defined as differential access to basic bodily resources for life and health. Indeed, mortality differentials represent a more fundamental form of gender inequality, in that women first must be alive before they may be denied access to other resources such as equal pay. Analysis of United Nations and World Bank data on developed and developing countries evidence the importance of ecological, economic, and familial explanations in determining corporeal gender inequality. Women's familial roles are found to be more important for gender inequalities in death at younger ages, and women's economic roles are more important for death at older ages. Implications of the results for mortality decline and gender stratification theory are discussed.     

ENVIRONMENTALISM,STIMULUS, AND INEQUALITY REDUCTION THROUGH INDUSTRIAL POLICY: DID CASH FOR CLUNKERS ACHIEVE THE TRIFECTA?

The 2009 American Cash for Clunkers program, which subsidized consumers who scrapped old vehicles and purchased new vehicles, was promoted by appealing to multiple constituencies. We evaluate the policy and alternatives according to its stated goals: emissions reductions, economic stimulus, and reducing inequality. We calibrate a dynamic partial equilibrium portfolio model to match consumer expenditure data from 1998 to 2011 focusing on heterogeneity across cars and trucks. We find the program generated $0.17 in environmental benefits, $0.28 in consumer surplus, and $0.31 in net discounted additional spending per subsidy dollar. Since subsidies largely went to middle-income infra-marginal consumers, the program exacerbated consumption inequality. We evaluate alternative policy designs and find no policy which simultaneously improves all outcomes. (JEL H23, L52, L92, D63)     

Income distribution and financial satisfaction between spouses in Europe

The article analyses the distribution of income between spouses and the consequences for their financial satisfaction within different welfare regimes. We find that the financial satisfaction of husbands declines and that the financial satisfaction of wives increases the more a wife earns relative to her husband. However, the relationships are often of an inversed U-shaped form for both sexes, with men achieving the highest satisfaction at an earlier stage than women. Within the Scandinavian welfare state regime this optimal distribution is found closer to the actual income distribution than in the continental European and liberal regimes, and in the southern European regime the optimal distribution is far from being achieved.     

How do changes in income,employment and health insurance affect family mental health spending?

Using eight two-year panels from the Medical Expenditure Panel Survey data for the period 2004 to 2012, we examine the effect of economic shocks on mental health spending by families with children. Estimating two-part expenditure models within the correlated random effects framework, we find that employment shocks have a greater impact on mental health spending than do income or health insurance shocks. Our estimates reveal that employment gains are associated with a lower likelihood of family mental health services utilization. By contrast employment losses are positively related to an increase in total family mental health. We do not detect a link between economic shocks and mental health spending on behalf of fathers.