Labor market institutions and demographic employment patterns

We study collective bargaining’s effect on relative employment for youth, women, and older individuals. Our model of collective wage setting predicts that unionization reduces employment more for groups with relatively elastic labor supply: youth, older individuals, and women. We test this implication using data from 17 Organization for Economic Cooperation and Development (OECD) countries over the 1960–1996 period. We find that time-varying indicators of unionization decrease the employment–population ratio of young and older individuals relative to the prime-aged, and of prime-aged women relative to prime-aged men, and unionization raises the unemployment rate of prime-aged women and, possibly, young men compared to prime-aged men.

Capping Kids: The Family Cap and Nonmarital Childbearing

An explicit goal of policymakers in drafting welfare reform policies was to reduce incentives for nonmarital childbearing. This paper estimates the extent to which state welfare reforms have lowered age and race-specific nonmarital fertility. Using state-level data from 1984 to 1999—a time period that includes the passage and implementation of national welfare reform—we estimate fixed effects models corrected for heteroscedasticity and autocorrelation. We find evidence that the family cap, a policy that decreases or eliminates the incremental increase in benefits for mothers who have an additional child while on welfare, is associated with a decline in nonmarital birth ratios. However, we also find that the family cap is associated with higher marital birth rates. Taken together with other research, our findings suggest evidence of policy endogeneity.

Forecasting German mortality using panel data procedures

Reliable forecasts of life expectancies are of importance for the financial stability of social security systems and the life insurance industry. A discrete-time stochastic process and a continuous-time stochastic process are proposed to model the dynamics of German mortality rates from which life expectancies are calculated. More precisely, a panel data model is utilized, which distinguishes between a common time effect and a common age effect. The model is easy to fit, yields interpretable parameters, and allows for a simple analysis of the forecast error. The main applications of the model are the forecast of mortality rates—and the resulting life expectancies—and the pricing of mortality derivatives.

Money Does not Buy Happiness: Or Does It? A Reassessment Based on the Combined Effects of Wealth,Income and Consumption

The paper uses household economic panel data from five countries—Australia, Britain, Germany, Hungary and The Netherlands—to provide a reassessment of the impact of economic well-being on happiness. The main conclusion is that happiness is considerably more affected by economic circumstances than previously believed. In all five countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income.

Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?

The focus of this paper is on a microeconomic analysis of the annual transition rate from temporary to permanent work of individual workers in Canada for the period 1999–2004. Given that a large proportion of temporary employment is involuntary, an understanding of the factors associated with the transition to permanent work may inform public policy. Factors associated with the transition, namely, human capital, household structures and labour market segmentation are analyzed using data from the Statistics Canada’s Survey of Labour and Income Dynamics (SLID) for the period 1999–2004, limited to paid workers aged 20–64 years, excluding students. Among the key factors associated with the transitions are younger age and low unemployment rates. The analysis adds to the Canadian and international literature on transitions from temporary to permanent work.

Determinants of business success: an examination of Asian-owned businesses in the USA

Using confidential microdata from the US Census Bureau, we investigate the performance of Asian-owned businesses. Using regression estimates and a special non-linear decomposition technique, we explore the role that class resources, such as financial capital and human capital, play in contributing to the relative success of Asian businesses. We find that Asian-owned businesses are more successful than white-owned businesses for two main reasons—Asian owners have high levels of human capital and their businesses have substantial start-up capital. Using detailed information on both the owner and the firm, we estimate the explanatory power of several additional factors.

Personality traits and gender-specific income expectations in Dutch higher education

In this article we examine gender differences in income expectations of students in higher education. We found quite large gender differences. Men and women differ significantly in the income they expect to earn at the top of their career. We examined how much personality traits contribute to explain gender differences in income expectations, and to what extent personality typologies can add to insights about earnings potential derived from human capital theory. The research shows that personality does affect expected income, that impact goes beyond personality’s indirect effects, which are conveyed largely through gender differences and students’ choice of study subject.

Child mortality, fertility, and human capital accumulation

This article analyzes the impact of decline in child mortality on fertility and economic growth. The study shows that the timing of mortality relative to education is crucial to implications of mortality decline. If child mortality is realized before education starts, an exogenous decline in child mortality leads to a decline in education—a finding that is opposite to those of studies that considered a decline in mortality after the cost of education has been incurred. The work also demonstrates the role of parental human capital in reducing child mortality and the causal link between rising education and declining child mortality.

From Casual Work to Economic Security: The Case of British Columbia

Analysis of casual work in British Columbia is an important issue given that the increase in casual work has been greater in this province than in other provinces in Canada and given that the labour market has been substantially deregulated since 2001. In this paper, we analyse how individuals’ casual employment status affects their economic security based on a specially designed survey undertaken by the authors. We follow the ILO’s classification of the dimensions of economic security but, based on our findings, add a further dimension—Time security—As being of particular importance to casual workers. On the basis of these results, we analyse the policy interventions that might be necessary to increase the economic security of casual workers, policies which we suggest can best be conceptualized as providing a “security quilt”.

Measuring longevity achievements under welfare interdependencies: a case for joint life expectancy indicators

Whereas period life expectancy constitutes an intuitive indicator of the survival conditions prevailing at a particular period, this paper argues that, given the existence of welfare interdependencies, that widespread indicator is nonetheless an incomplete measure of the longevity achievements relevant for human well-being. The central importance of coexistence for human-beings implies that usual life expectancy measures should be complemented by joint life expectancy indicators, which measure the average coexistence time under particular survival conditions. After a study of the theoretical foundations of ‘single’ and ‘joint’ life expectancy indicators, it is shown that joint life expectancy measures tend to enrich significantly the comparison of longevity achievements across countries and periods. Moreover, the introduction of joint life expectancy indicators—as a complement to conventional life expectancy measures—into multi-variable indexes such as the United Nations’ HDI is also shown to affect international rankings of standards of living to a non negligible extent.

Transportation and Migrant Adjustment in Georgia

Access to transportation is critical for functioning in modern American society, and minorities disproportionately lack access to transportation. Latinos in Georgia—most of whom are newcomers to this country—are considerably less likely than non-Latino whites to drive alone to and from work because they do not live in households with a car available for personal use. We propose that this factor, along with limited access to alternative modes of transportation, impedes the ability of Georgia’s newest Latino residents to adjust to their new environment. In this study, we examine the impact of limited transportation options on the adjustment experience of recent Latino migrants to Georgia. We document how lack of personal transportation lends itself to a number of social problems including inability to obtain different work or to take advantage of opportunities for advancement. For Latinos who are both recent migrants to Georgia and recent immigrants to the United States, lack of transportation creates an adjustment “bottleneck,” whereby various paths to adaptation are simultaneously impeded. We argue that improving access to driver’s licenses, pedestrian infrastructure, and, in some places, public transportation should be a policy priority for states adjusting to recent influxes of Latino migrants.

Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?

The 1994–2000 waves of the European Community Household Panel are used to study the earnings of immigrants as compared to native workers in 15 European countries. At the time of arrival, there is a significant negative partial effect of foreign birth on individual earnings compared to the native born in the destination of around 40%. These differences vary across origins and destinations and by gender. Immigrant earnings catch-up to those of the native born after around 18 years in the destination. Schooling matters more for earnings for women, whereas, language skills are relatively more important for men.

The nonlinear behavior of competition: the impact of talent compression on competition

The competitiveness of a firm is intimately related to the productivity of its components. The distribution of profits should then be highly correlated with the distribution of productivity—the more equal distribution of productivity the more equal distribution of rents. To assess this argument, the present paper examines the time series behavior of competition within Major League Baseball. The above logic would suggest that the reason for the improvement in the competitive balance in MLB is a more equal distribution of playing talent. In the end, the improvement appears to be driven by increased player homogeneity rather than institutional changes.

Social Capital and Community Heterogeneity

Recent findings indicate that more pronounced community heterogeneity is associated with lower levels of social capital. These studies, however, concentrate on specific aspects in which people differ (such as income inequality or ethnic diversity). In the present paper, we introduce the number of parties in the local party system as a more encompassing measure of community heterogeneity. This builds on the argument that the number of relevant socio-economic cleavages in the population (i.e. heterogeneity) determines the level of party system fragmentation. Using data on 307 Flemish municipalities, we find that municipalities with a more heterogeneous population indeed have lower levels of social capital. Hence, our study endorses—and generalizes—previous results linking community heterogeneity to lower levels of social capital.

Temporary Work and Insecurity in Britain: A Problem Solved?

Temporary workers in Britain experience lower job quality. However, the proportion of employees on temporary contracts has fallen since a decade ago to just 5.5% in 2005. There have also been qualitative improvements. Many temporary workers now fall under the protection of the Fixed Term Employees’ (Prevention of Less Favourable Treatment) Regulations 2002, and the relative pay of fixed-term contract workers has since improved. In contrast, the subsequent fortunes of seasonal and casual workers with short contracts have been mixed. Furthermore, the Act excludes agency workers, and the paper calls for additional legislative action to ensure fair treatment for this group.

From Casual Work to Economic Security; The Paradoxical Case of Self-Employment

The term “casual work” is not well defined in the literature and can include a diversity of types of employment. In this paper, we first present an introduction and definition of concepts related to job security and economic insecurity. Second, a view on the main labour market transformations, their causes and impacts, with more accent on self-employment. We will then reflect on policy issues and on how social policies can impact on job security, and this is where we will introduce the new Québec parental leave regime, which is a welcome effort to alleviate insecurity and economic difficulty for self-employed parents, taking gender into account. We will conclude by considerations on the importance of economic security and the policies which could support this, in a context where many stress the fact that “boundaryless” or “nomadic” careers are the way of the future and that workers should simply adapt to this new context.

Political instability, gender discrimination, and population growth in developing countries

This paper introduces gender discrimination and population growth into a model of political economy. The government keeps up the military for the sake of political instability in the country. It is shown that if the risk of internal conflicts is high, then the government needs a bigger military and a larger supply of young men for it. The government is then willing to boost population growth by keeping women outside the production (e.g. neglecting their education or restricting their movement). Some empirical evidence on the interdependence of political instability, population growth, and gender discrimination is provided.

The Effects of Questionnaire Translation on Demographic Data and Analysis

The collection of demographic data in developing and, increasingly, developed countries often requires the translation of a survey instrument. This article addresses the implications for data and analysis of two of the most common modes of translation. The first, the officially sanctioned—though not empirically verified—method, involves the pre-fieldwork production of a standardized translation of the template questionnaire into all or most languages in which interviews are expected to be conducted. The second, rarely acknowledged in the literature but quite common in the field, occurs where there is a mismatch between the language of the questionnaire available to the interviewer and the language in which the actual interview is conducted. In this case, it is up to the interviewer to translate from the language of the questionnaire to the language of the interview. Using the 1998 Kenya DHS, in which 23% of interviews were translated in this non-standardized manner, we explore the effects of the two translation modes on three indicators of measurement error and on estimated multivariate relations. In general we find that the effects of non-standardized translation on univariate statistics—including higher-order variance structures—are rather moderate. The effects become magnified, however, when multivariate analysis is used. This suggests that the advantages of—and also costs associated with—standardized translation depend on the ultimate purposes of data collection.

Life Goals Matter to Happiness: A Revision of Set-Point Theory

Using data from the long-running German Socio-Economic Panel Survey (SOEP), this paper provides evidence that life goals matter substantially to subjective well-being (SWB). Non-zero sum goals, which include commitment to family, friends and social and political involvement, promote life satisfaction. Zero sum goals, including commitment to career success and material gains, appear detrimental to life satisfaction. Finding that conscious life goals matter can potentially make an important contribution to SWB theory. The most widely accepted theory—set-point or dynamic equilibrium theory—essentially claims that set-points are near-automatic consequences of hereditary characteristics, including personality traits. Life goals play no role in these theories and major life events are viewed as having only a transitory effect. The SOEP panel data show that, over a 15–20 year period, non-trivial minorities record substantial changes in their set-points. This paper shows linkages between these changes and (a) the personality traits of extraversion, neuroticism and internal locus of control and (b) choice of life goals.

Avowed Happiness in Confucian Asia: Ascertaining its Distribution,Patterns, and Sources

This study reviewed three philosophical accounts of happiness, and then tested those accounts with the Asiabarometer surveys conducted in six Confucian societies during the summer of 2006. Statistical analyses of these surveys reveal that East Asians tend to experience happiness to a greater extent when they experience enjoyment together with achievement and/or satisfaction. The preponderance of such multi-dimensional conceptions in all those societies poses a direct challenge to a single dimensional account of happiness in the West. The analyses also reveal that positive assessments of interpersonal relationships matter more than the amount of knowledge or wealth in living a happy life in Confucian societies.

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