Ist Das Normalarbeitsverhältnis Noch Armutsvermeidend?

The article tests the hypothesis that welfare state retrenchment and labor market deregulation have increased poverty within the German working population using a time series of poverty ratios based on different income concepts for a period of 14 years (1991–2004). The basic assumption is that changes in the societal context (welfare state, labor market, houschold structures), besides individual risk factors, explain the development of poverty over time. Using data from the German Socio-Economic Panel Study it is shown that changing labor market conditions and tax regulations have increased poverty, and this has not been attenuated by additional income sources (welfare state, household members) or by recent changes in household composition. As a result, poverty has increased for full-time employees during the observation period, especially so in Eastern Germany.     

Welfare and adolescent sex: The effects of family history,benefit levels,and community context

To examine whether welfare serves as an incentive to early childbearing, this article explores the first steps in the process of becoming a teenage parent: risk of first voluntary sexual intercourse at an early age and, among teens having sex, contraceptive use at first intercourse. Alternative operationalizations of welfare include the AFDC benefit level in the state of residence, the ratio of the benefit level to family income, community-level welfare receipt, and family history of welfare receipt. Results do not support the hypothesis that higher welfare benefits provide an incentive that hastens sex or reduces contraceptive use. Analyses provide moderate support for a culture of poverty perspective among girls. Intergenerational welfare receipt has a borderline significant effect on the timing of first sex, and maternal welfare receipt predicts nonuse of contraception at first sex for girls. Strong support is found for a stressful life experiences perspective, in which both parental marital disruption and nonvoluntary sex predict earlier voluntary sex. Analyses were supported by a grant from the Office of Population Affairs, Department of Health and Human Services, under Grant # APR 00000959. Her research interests include teenage childbearing, family processes, public policy, and survey methodology. She received her Ph.D. from the University of Michigan. Donna Ruane Morrison is a Senior Research Associate, and her research interests include the effects of family structure and processes on the well-being of children. She received her Ph.D. in sociology from Johns Hopkins University. Dana A. Glei is a Research Analyst, and her research interests include employment, gender, and teen pregnancy and childbearing. She received her M.A. from the University of Virginia.     

ASSETS, SAVINGS AND LABOR SUPPLY

This paper examines the role of assets in labor supply functions. Although assets have frequently been used to measure the response of hours worked to non wage-related income, it is generally incorrect to include them in a labor supply equation. Using a simple life cycle model, working hours and assets are shown to be simultaneously determined by similar economic forces. Therefore, the correlation between them should not be accepted as evidence of a causal sequence from assets to market work. An empirical test of the life cycle implications for savings behavior is performed using data from the Survey of Economic Opportunity.     

The Role of Family Income in the Intergenerational Association of AFDC Receipt

Daughters from low‐income families who did not receive Aid to Families with Dependent Children (AFDC) are compared to daughters from low‐income families who did receive assistance to better account for family income in the intergenerational association of AFDC. The research models the timing of a daughter's first birth and, for those who become mothers, the number of years a daughter receives any AFDC. Women whose families received AFDC during their childhood are more likely to receive AFDC as adults relative to those women whose families did not receive AFDC. Controlling for family income in a more careful and comprehensive way than past research explains part but not all of the effects of childhood AFDC receipt. Among daughters from chronically poor families, however, parental AFDC use is not associated with additional years of AFDC participation. Although the present research cannot confirm or deny a causal role for parental welfare use, the intergenerational transmission of financial resources does explain part of the intergenerational association of welfare use.     

The Impact of Living with an Elder Parent on Adult Daughter's Labor Supply and Hours of Work

A pooled cross-sectional sample compiled from eleven years of the Panel Study of Income Dynamics is used to compare the impact of individual and household characteristics on labor supply probabilities and work hours of adult daughters in two types of households: (a) households in which adult daughters co-reside with elder parents; and (b) households in which adult daughters have living elder parents, but they do not co-reside with elder parents. Labor market entry and market work hours of co-residing daughters are impacted by both the presence and the characteristics of their elder parent. The daughter's age, race, and work experience have differential impacts on labor supply probabilities for co-residing daughters compared to those not co-residing. The daughters' work experience, non-wage income, family composition, and local unemployment rates have differential impacts on the number of hours of work in the two types of households.     

Male Entry into the Labor Force: Estimates of Occupational Rewards and Labor Market Discrimination*

Causal models of initial occupational rewards for black and white males are developed from the responses of first-year workers in the National Longitudinal Surveys of Labor Market Experience. A comparison of the black and white models shows that while blacks have experienced considerable upward mobility, their income and prestige remain far behind their white counterparts. Two explanations for this racial gap are indicated by the data: (1) blacks begin work with lower levels of key background variables, and (2) racial discrimination in the labor market. Our measurement of racial discrimination in labor market entry accounts for only a small proportion of the gap between black and white levels of rewards; and when compared with earlier research, the data indicate a national trend of decreasing racial discrimination in the labor market.     

Extracting a revised labor supply theory from Becker's model of the household

Conflicting assumptions about labor supply behavior lie at the nexus of ideological and theoretical debates regarding the reality of involuntary unemployment, the efficacy of Keynesian macro-policy, and the appropriate nature of welfare policy. This can in part be attributed to the fact that orthodox theory is effectively predicated upon describing the behavior of individuals whose level of affluence enables them to voluntarily withhold their labor from the market. Ironically, a means of resolution appears if we extend Gary Becker's utility producing model of the household to recognize two latent behavioral concerns: (1) the ‘need’ of households for money income in order to produce utility, and (2) the presence of work activity in the home. The resulting generalized labor supply model extends Becker's analysis to explicitly encompass both the behavior of the affluent, and the behavior of the poor who need to work in order to sustain their existence.     

Income taxation and the allocation of market labor

The allocation of work effort within the market economy will be unaffected by taxation if all returns from labor market activity are taxed equally. However, if the earnings from certain types of market employment are taxed at relatively lower rates, labor will shift into these areas until after-tax earnings are equal across all types of employment. This paper presents evidence suggesting that income taxation induces labor to move from high- to low-tax geographic areas and from wage and salaried jobs into self-employment activities. By affecting the allocation of market labor, the income tax generates a welfare loss in addition to that resulting from the tax’s effect on total work effort.     

Lessons from the past,directions for the future

The authors provide a retrospective look at time use research since the turn of the century by identifying shortcomings in previous attempts at measuring time allocation patterns and in the models used to examine time use by individuals and households. Suggestions are offered for improving measurement in future empirical work. Fruitful areas for future time use research are identified.Her research interests include family time use, consumer decision making, adoption, and family policy.His research interests include parental child care and the effects of technical change on time use patterns.Her research interests include valuation of unpaid work in national income accounts.Her research interests include family time use and patterns in time use.     

WELFARE IMPACT OF A BAN ON CHILD LABOR

This article presents a new rationale for imposing restrictions on child labor. In a standard overlapping generation model where parental altruism results in transfers that children allocate to consumption and education, the Nash‐Cournot equilibrium results in suboptimal levels of parental transfers and does not maximize the average level of utility of currently living agents. A ban on child labor decreases children's income and generates an increase in parental transfers bringing their levels closer to the optimum, raising children's welfare as well as average welfare in the short run and in the long run. Moreover, the inability to work allows children to allocate more time to education, and it leads to an increase in human capital. Besides, to increase transfers, parents decrease savings and hence physical capital accumulation. When prices are flexible, these effects diminish the positive welfare impact of the ban on child labor. (JEL D91, E21)     

The demand for leisure time in the presence of constrained work hours

This article presents a labor supply model designed to address situations of overemployment or underemployment in the labor market. Previous labor supply models have taken the possibility of work hour constraints into consideration but typically assumed that the existence of fixed work hours only influenced the decision of labor force participation. This ignores situations in which individuals choose to be employed at fixed-hour jobs even though these jobs do not offer the desired work hours.     

Welfare analysis and redistributive policies

Applied welfare analyses of redistributive systems nowadays benefit from powerful tax-benefit microsimulation programs combined with administrative data. Arguably, most of the distributional studies of that kind focus on social welfare defined as a function – typically inequality or poverty indices – of household equivalized income. In parallel, economic research has made considerable progress in the measurement of welfare along several dimensions. Distinct but related branches of the literature have attempted (i) to model different behavior (in a way that matter for incidence and redistribution of tax-benefit policies), (ii) to go beyond income, (iii) to better define and estimate equivalence scales, (iv) to open the household black box and measure welfare at the individual level. I suggest a general framework to critically review these streams of literatures and to discuss whether recent advances in each of these fields have been or could be readily operationalized in welfare analyses and policy simulations.     

State TANF Time Limit and Work Sanction Stringencies and Long-Term Trajectories of Welfare Use,Labor Supply,and Income

While the 1996 welfare reform increased employment and reduced the participation of the Temporary Assistance for Needy Families (TANF) program immediately after its inception, little is known about the extent to which the reform and stringencies of time limit and work sanction policy features have impacted individuals in the long term. This study used the Survey of Income and Program Participation 1996, 2001, and 2004 panels (1996–2007) and a difference-in-difference-in-difference design to follow low-skilled single mothers’ trajectories of welfare use, labor supply, and income for 10 years after the welfare reform and compare how these trajectories differ by stringencies of state work sanction and time limit policies. The findings indicate that welfare reform had sustained impacts on reducing welfare use (TANF and the Supplemental Nutrition Assistance Program [SNAP] program) and increasing employment. Stringent work sanction and time limit policies were associated with lower TANF participation rates in the long term, but only short time limit policies were associated with reduced SNAP participation. Neither stringent policy feature increased employment nor income. The differential effects by race were also examined and discussed.

     

Racial wage differentials among young adults: Evidence from the 1990s

This study seeks to decompose wage differentials between black and white male young adults into those related to labor market discrimination and those resulting from human capital endowments. The importance of testing for significant differences in wage equations before conducting decomposition analysis is emphasized. Study results demonstrate that ignoring correction for the sample selection bias resulting from black-white differences in the probability of being employed would lead to an underestimation of the size of wage differentials. The study also shows that the results of models based on different assumptions regarding the nondiscriminatory wage structure might lead to different conclusions pertinent to the extent of labor market discrimination. Implications for public policy development are discussed. His current research interests include consumption economics, income distribution, and international comparative analyses of households' resources allocation. He received his Ph.D. from the University of Missouri at Columbia. Her current research interests include family financial distribution and wellbeing and individual and family resource management. She received her Ph.D. from Iowa State University.     

Work patterns and marital status change

The impact of marital status changes on the lives of adults and children has increased importance as marriage, divorce, and remarriage have become more frequent patterns of family composition change. These events can often be predicted by the family members involved so that they may be accompanied by changes in labor market activity prior to the events themselves. The study reported here uses panel data to examine the labor market activity changes that precede marital status changes. Women who become divorced increase hours of work in the year or two before the divorce occurs, and women who become remarried decrease hours of work in the year of the remarriage and thereafter. For men there seems to be little change in labor supply during these years. However, hours of housework for men do seem to change.This research has been supported by the United States Department of Agriculture through the New York Agricultural Experiment Station under Southern Regional Project S-206. The data utilized in this work were made available in part by the Inter-University Consortium for Political and Social Research. The data were originally collected by James N. Morgan, et al. The contents of this article do not necessarily reflect the view of the Inter-University Consortium or the institutions with which the researchers are affiliated. We wish to especially thank Robert Avery for his helpful comments throughout this research and Veronica Abel for her able research assistance.Jennifer L. Gerner is Associate Professor, Department of Consumer Economics and Housing, 137 Martha Van Rensselaer Hall, Cornell University, Ithaca, NY 14853. Her research interests include the economics of the family and family organization. She received her Ph.D. from the University of Wisconsin. Catherine Phillips Montalto is a Ph.D. candidate in the Department of Consumer Economics and Housing, Cornell University, Ithaca, NY 14853. Her research interests include the economic behavior of households. W. Keith Bryant is Professor and Chair of the Department of Consumer Economics and Housing, 117D Martha Van Rensselaer, Cornell University, Ithaca, NY 14853. He received his Ph.D. from Michigan State University.     

Economic Theories of Low-Wage Work

This article examines economic theories of the low-wage labor market to increase understanding of economic inequality and poverty in the United States, particularly related to the labor market. On the one hand, neoclassical, labor monopsony, and Harris-Todaro models explain how minimum wage policies are related to supply and demand of labor, human capital, employment, and unemployment. On the other hand, the efficiency wage model, the dual labor market theory, and technology development and globalization account for the causes of the wage differentials. This article includes a conceptual map that illustrates the interrelationships between these economic theories of low-wage work.     

Poor People in Poor Places: Local Opportunity Structures and Household Poverty*

Abstract Accounts of poverty generally fall into either “individualist” or “structuralist” camps. Often these are seen as irreconcilable and incompatible competing perspectives. This paper integrates individualist and structuralist accounts of poverty by examining the relationship between “person poverty” and “place poverty” in nonmetropolitan and metropolitan labor markets, using a multilevel framework. I fashion a general model of poverty production and allocation, drawing on the labor market ecology perspective. After a discussion of this perspective, I develop a multilevel framework for analyzing data from the 1990 Census PUMS‐L sample, STF‐3c, and other sources to show how compositional and contextual factors affect households' likelihoods of being in poverty. These multilevel models also allow us to estimate the degree to which labor market conditions influence the magnitude of household labor supply characteristics. Results suggest that both compositional and contextual factors contribute to the metro‐nonmetro difference in poverty rates, and that the effects of employment vary in accordance with labor market characteristics.     

The effect of child support on the labor supply of custodial mothers participating in TANF

Child support is a critical source of income, especially for the growing proportion of children born to unmarried mothers. Current social policy supports custodial parent employment (e.g., the Earned Income Tax Credit [EITC] and other work supports have largely taken the place of an entitlement to cash assistance for single mothers of young children). Given many single mothers' limited earnings potential, child support from noncustodial fathers is also important. This raises questions about the effects of child support on custodial mothers' labor supply, and whether policies that increase child support receipt will thereby discourage mothers' employment. This paper addresses these questions, taking advantage of data from a statewide randomized experiment conducted in Wisconsin. Unlike previous nonexperimental research, we do not find any negative effect of child support on the likelihood to work for pay or the number of hours worked in a given week. Recent U.S. social welfare policies have focused on increasing both custodial mothers' child support collections and their labor supply. The results suggest that these may be compatible policies; the absence of a negative labor supply effect strengthens the potential antipoverty effectiveness of child support.     

The Labor Supply of Female Heads of Household: Comparisons With Male Heads and Wives*

This paper compares a model of labor supply for female heads of household, male heads, and wives. Not only have female-headed households increased significantly as a proportion of all households in recent years, but these households are also more likely to be in poverty than are other households. Yet, the determinants of labor supply for this increasingly important demographic group still are largely unknown. Analyses are performed on a sample of employed female and male heads and wives from the 1976 Survey of Income and Education. We examine the effects of wages, unearned income, number of children, and several other variables on hours worked per year, allowing for race interactions. We find that female heads and wives are similar in the effects of wages on their labor supply, while female and male heads are similar in the positive effect of children. We conclude that although financial need, as evidenced by low wages and children, increases female heads’labor supply, employment in more advantaged, non-female dominated jobs and core industries is needed to promote their full participation in the labor force.     

Die Vereinbarkeitsfrage für Männer: Welche Auswirkungen haben Elternzeiten und Teilzeitarbeit auf die Stundenlöhne von Vätern?Work-family reconciliation for men: Do parental leave and part-time work affect fathers’ hourly wages?

As previous research shows, many German fathers would like to spend more time with their children, but long working hours often restrict their opportunities to do so. Parental leave and part-time work could help fathers to reconcile work and family. Yet, labor market theories predict that using such family-friendly policies may lead to wage penalties. Hence, many fathers decide against using such policies because they fear that parental leave or part-time work will lead to financial penalties and career disadvantages. This article evaluates this concern by empirically examining the effect of parental leave and part-time work on fathers’ hourly wages. Using data from the German Socio-Economic Panel (SOEP) 1991–2013 and Families in Germany (FiD) 2010–2013, results from fixed-effects regression analyses show that part-time work is associated with wage penalties, but parental leave is not – irrespective of whether fathers only took the two months fathers’ quota or longer parental leaves. The results hence indicate that the German parental leave legislation enables fathers to spend more time with their children while protecting them from wage penalties at work.