The Financial Assimilation of an Immigrant Group: Evidence on the Use of Checking and Savings Accounts and Currency Exchanges

This article examines the determinants of financial market participation for a particular group of immigrants: Hmong refugees in Minneapolis/St. Paul, Minnesota. Our findings indicate that controlling for income and education, Hmong immigrants are less likely to have savings accounts and credit cards and are more likely to use currency exchanges, compared to randomly selected non-Hmong households living in the same neighborhoods. However, these effects are mitigated by time spent in the US. Financial assimilation appears to take 15–20 years. These findings expand our understanding of immigrant assimilation and highlight some of the complexities associated with the process of assimilation.

The economics of gay and lesbian couples: Introduction to a special issue on gay and lesbian households

This article presents a simple conceptual framework integrating three couple-related outcomes analyzed in this volume: wage differentials in earnings related to couple formation, household formation (including cohabitation and registration as Registered Domestic Partnership), and intra-household allocation of income. It also discusses some of the articles’ main findings.

An Examination of Factors Affecting Perception of Workplace Discrimination

This study investigates perceptions of workplace discrimination among racial minorities in Canada. Specifically, the study examines how objective experiences of disadvantage and expectations for equity influence racial minorities’ perceptions of discrimination. The results indicate that while both of these factors affect perceptions of discrimination, expectations for equity may be especially important. Although new immigrants are among the most disadvantaged groups in the Canadian labor market, they are less likely to perceive discrimination than longer term immigrants, who may have higher expectations for equitable treatment. Education also increases the perception of discrimination among immigrants, perhaps due to the higher expectations of educated immigrants. Lastly, objective income inequity is not found to be related to perceived discrimination.

Agreeing on more than chicken soup: Intra-household decision-making and treatment for child psychopathology

Using a large, U.S. dataset it is shown that children are more likely to receive needed mental health specialty treatment when women have greater decision-making power, as measured by an index of wife-favorable divorce laws and by the sex ratio at the time of marriage. Stratified analyses show that this effect is modified by the degree of marital conflict. Marriages characterized by high conflict conform more closely to the unified household model. The paper then presents a model of household decision-making consistent with these results that incorporates both objective determinants of bargaining power as well as the role of violent coercion in maintaining otherwise unsustainable equilibria. Implications for improving children’s access to mental health treatment are offered.

Family Financial Risk Taking When the Wife Earns More

This study investigates whether the relative bargaining power of spouses plays a role in explaining household financial risk taking. Traditional models assume that household decisions are made based on pooled resources and common preferences. In contrast, bargaining models hypothesize that household decisions depend on the relative bargaining power of spouses. According to bargaining models, if women are more risk averse, then households should exhibit less financial risk taking as the bargaining power of the wife increases. Results of an analysis of household financial risk taking in a sample of dual-earner, married households from the 2004 Survey of Consumer Finances are more consistent with decision making based on pooled resources rather than on the relative bargaining power of spouses.

Combining Stated and Revealed Preference Data to Construct an Empirical Examination of Intrahousehold Bargaining

Most analysis of intrahousehold decisions has been conducted using aggregate revealed preference data where preferences of individual agents are never observed, only the household consumption outcomes are observed. We examine household behavior in a bargaining framework by combining stated preference information from individual members of the household with revealed preference information on the household’s actual choices. The resulting model provides information on the degree to which the decision is the result of a bargaining process as well as information on the factors affecting bargaining power.

Earnings,Effort, and Work Flexibility of Self-Employed Women and Men: The Case of St. Croix County,Wisconsin

Data collected on self-employed women and men in one county allow examination of work effort, housework effort, housework hours, and preference for flexible work on earnings. Regressions indicate housework effort of self-employed women contributes to their lower earnings. Housework hours do not supporting the view women select self-employment to find flexible work. Housework hours do reduce the earnings of self-employed men, which could reflect their stronger commitment to housework combined with less flexible work. A Oaxaca decomposition suggests less tenure and greater housework effort are important contributors to lower earnings of self-employed women. Ranges that measure earnings may contribute to the insignificance of work effort, normalized work effort, and preference for flexible work hours. (J16, J23)

The Relative Earnings of Contingent Faculty in Higher Education

Part-time and full-time non-tenure-track faculty currently represent almost half of all faculty in U.S. higher education, yet little is known about their earnings relative to traditional tenure-track faculty. I find that full-time non-tenure-track faculty earn approximately 26% less per hour from their academic institution and 18% less in total earnings from all sources per hour than comparable tenure-track assistant professors. Part-time non-tenure-track faculty earn 64% less per hour from their institution, but only 1% less in total earnings per hour, than tenure-track assistant professors.

Training,Technological Changes,and Displacement

By matching industry/occupation data on training to displaced worker data from the Current Population Surveys, this paper analyzes why many older workers were displaced by technological changes in the 1990s, and why these workers incurred large earnings losses. When technological changes depreciate the existing stock of firm-specific human capital, older workers who receive higher wages from the sharing arrangement of the returns to investment in firm-specific human capital are dismissed as firms find it unprofitable to retain them. These displaced workers have higher predisplacement wages with steeper wage–tenure profiles, and hence incur larger earnings losses after displacement than other displaced workers.

Who cares and how much: exploring the determinants of co-residential informal care

The importance of informal care provided inside the household (co-residential care) is widely acknowledged in policy circles. However, the factors that determine the likelihood and scale of provision are not fully understood. A two-part model (2PM) is used to investigate both participation and levels of provision. Random effects dynamic panel specifications are employed. Results show that co-residential informal care competes with other time demanding activities, such as childcare and employment. Wealthier individuals are less likely to be caregivers, whereas wealthier households have a higher tendency towards caregiving. Evidence of both substitution and complementarity is found between formal and informal care. Informal care and health status are significantly related, with carers more likely to report worse General Health Questionnaire scores than non-carers. Finally, significant dynamic effects are observed with the continuance of the provision of informal care being more likely than the initiation of such activity, while heavy commitment in the past increases the hours provided in the current period.

Earnings Differentials of Seafarers

I investigate the earnings differentials among union and nonunion seafarers, across seafarer occupations, and with respective to other transport operatives. The empirical results suggest that the union and nonunion weekly earnings of captains/mates are comparable, and the union earnings gap for sailors/deckhands is positive. The union (nonunion) weekly earnings of captains/mates are 14.7 (30.5) percent greater than those of sailors/deckhands; the union weekly earnings of captains/mates (sailors/deckhands) are 12.6% greater (9.5% less) than those of truck drivers; and the nonunion weekly earnings of captains/mates (sailors/deckhands) are 33.0% greater (6.2% less) than those of truck drivers. The sailor/deckhand and truck driver earnings differentials are contrary to the general belief that the earnings of truck drivers are less than those of other operative occupations involved in transporting intermodal cargo.

Marriage,partnership and sexual orientation: a study of British university academics and administrators

Using a unique data source on marital status, partnership and sexual orientation of academics and administrators at British universities, we estimate the impact of personal relationships upon earnings for men and women. While university data cover a relatively homogeneous group of workers, the two sides of the university are very different, with administrative jobs being more like the general job market in the economy. We find a large and significant married male premium, but only on the administrative side of the university. There is no female marriage premium, and no partnership return to gay men or to either heterosexual or homosexual women.

Why do families actually pool their income? Evidence from Denmark

This paper analyzes income-pooling by using a unique Danish data set that includes questions on income pooling among 1,696 couples. The analyses show that most Danish households use some kind of income pooling and that the proportion of income pooled varies considerably according to individual characteristics (age, education, occupation, past partners, upbringing) and household characteristics (household income, duration of marriage, location of residence and the existence of public goods, including children). However, when all variables are evaluated in a common model, the duration of marriage and the existence of children predominantly affect the likelihood of income pooling.

The response of household parental investment to child endowments

The theoretical and empirical literature on parental investment focuses on whether child-specific parental investments reinforce or compensate for a child’s initial endowments. However, many parental investments, such as neighborhood quality and family size and structure, are shared wholly or in part among all children in a household. The empirical results of this paper imply that such household parental investments compensate for low endowments, as proxied by low birth weight.

The distribution of financial well-being and income within the household

In this paper we consider the issue of the intra-household distribution of welfare directly using a survey measure of self-perceived economic well-being. We develop a theoretical model of satisfaction within the household for couples. In the empirical analysis we find that husbands and wives often report different levels of financial satisfaction. The most important correlate of relative satisfaction within the household is found to be relative income. This is a direct confirmation of the previously implicit findings and is predicted by our theoretical model.

Poverty and its persistence: a comparison of natives and immigrants in Sweden

This paper analyzes poverty and its persistence in Sweden using a large panel with detailed income information obtained from tax registers. As opposed to many commonly used household panels, the features of the data utilized in this paper allow us to study native-immigrant differences in poverty. We use a hazard rate model based on multiple spells that accounts for unobserved heterogeneity and endogenous initial conditions. The empirical results suggest that there is negative duration dependence in both exit and entry hazard rates. Moreover, the transition rates are significantly affected by immigrant status, educational attainment, labor market conditions, age, and family status.

Economic Status of Older Asians in the United States

Data from the 5-percent Census 2000 Public Use Microdata were utilized to examine the economic status of six Asian-only groups in the United States aged 65 and older. Japanese Americans’ economic status emulated that of older Whites; whereas, older Korean and Vietnamese economic status more closely resembled that of older Blacks. Regression results indicated that education, household size, and duration of immigration were significantly and positively related to household income for most of the Asian-only groups, supporting the theory that human capital, structural barriers, and acculturation all play a role in determination of household income for older Asian Americans.

Household Debt and Marital Instability: Evidence from the Korean Labor and Income Panel Study

Korean society has recently experienced rapid increases in household debt and divorce rates. This study investigates whether household debt and debt ratios lower marital stability and increase the probability of divorce among Korean families. Six-year panels from the Korean Labor and Income Panel Study (KLIPS) household surveys were used for analysis. The effect of household debt upon the probability of divorce was estimated through pooled and population-averaged Logit models. The results suggest that household financial strain measured by the amount of household debt and the debt-to-income ratios does not significantly affect the probability of divorce. This finding contradicts the widespread notion that households’ excessive borrowing has been partially responsible for the recent increase in divorce rates in Korea.

The Impact of Privatization on the Earnings of Restructured Workers: Evidence From the Oil Industry

We study the long-term impact of job displacement from a big state owned enterprise as a result of its privatization in a developing country. Our results suggest large reductions in earnings, which persist throughout the years. However, we also find that the displaced worker’s post-displacement earnings are in line with competitive market wages, and unrelated to sector of employment or to tenure losses, indicating that the long-term reduction in earnings as a result of displacement because of privatization can be traced to the loss of wage rents. Our results indicate that job displacement in SOEs may have very large redistributive implications for the workers involved but that this loss does not necessarily reflect the loss of specific human capital associated to these jobs.

The potential of a couples approach to employment assistance: results of a nonexperimental evaluation

We present findings from a nonexperimental evaluation of an employment program in which both partners in young, low-income, primarily African-American couples simultaneously participated. Mothers participating in the couples program had larger immediate gains in employment and earnings and decreases in TANF receipt following their exit from the program relative to mothers who received employment assistance as individuals. Fathers showed similar although weaker results. These immediate benefits appeared to be driven by higher rates of program completion among couples’ participants. Couples in which both partners completed the program experienced the largest quarterly earnings gains, and couples with greater earnings’ gains were more likely to still be together one year after the program ended. Mothers’ earnings gains eroded in the two years following program completion and many reported new pregnancies and problems with child care. We suggest directions for future programs and encourage future studies to consider the range of mechanisms associated with a couples focus, including potential motivational benefits and unintended consequences.