Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates

Tebaldi and Mohan (Journal of Development Studies 46:1047–1066, 2010) have established an empirical relationship between institutions and monetary poverty. We first, reflect their findings in the light of recent development models, debates and currents in post-2010 literature. We then re-examine their results with a non-monetary and multidimensional poverty indicator first published in 2010. Our findings confirm the negative relationship and the nexus disappears with control for average income. Hence, confirming the conclusions of the underlying study that institutions could have an indirect effect on multidimensional poverty. In other words, the poverty eradication effect of institutions is through average income as opposed to income inequality. We discuss how the findings provide insights into: (1) the Chinese model versus sustainable development; (2) debates over preferences in economic rights; (3) China’s development and outlook; (4) the Fosu conjectures and (5) Piketty’s and Kuznets’ literatures.     

Marginal Utility and Economic Development: Intrinsic Versus Extrinsic Aspirations and Subjective Well-Being Among Chinese Employees

The post-1979 economic reforms have led to impressive economic growth in China both in terms of gross domestic product and individual income. Individual well-being, however, has not increased on par with the economy (Brockmann et al. in J Happiness Stud 10(4):387–405, 2009; Easterlin et al. in Proc Natl Acad Sci 109(25):9775–9780, 2012). In the current series of studies, traditional and multilevel regression models are applied to examine the relationship between income and employee well-being. Results suggest a curvilinear relationship between income and satisfaction (both with one’s job and one’s income), supporting a diminishing marginal utility effect. Additionally, confirming a central postulate of Goal Contents Theory (GCT), individuals who espoused the importance of income (an extrinsic motive) were less satisfied with income itself. Further examining the application of GCT in a Chinese context, results suggest individuals who value extrinsic motives (i.e., money, possessions, fame) exhibit lower levels of job satisfaction, life satisfaction, and feelings of accomplishment. Finally, there is a significant multilevel effect such that between-city levels of health have a significant positive relationship with life satisfaction. These results offer organizational and policy implications related to the interaction between economic prosperity and human development.     

On the ‘Urbanness’ of Metropolitan Areas: Testing the Homogeneity Assumption, 1970–2000

In recent decades, population dynamics, have made definitions of what localities are rural or urban somewhat unclear. The vast majority of demographic work has simply used metropolitan classifications with various forms of a non-metropolitan residual (e.g., adjacent to metro versus non-adjacent). The Office of Management and Budget (OMB) periodically redefines metropolitan areas, which makes temporal comparisons difficult. In fact, some demographers have offered the idea that, due to these shifting reclassifications, the so-called “rural rebound” is a misnomer, in that non-metropolitan counties that transitioned to metropolitan status were, in fact, already more ‘urban’ than those that did not become reclassified as metropolitan (Johnson et al 2005). This argument depends largely on the assumption of homogeneity in rural or urban ‘character’ in those counties. Following arguments by others (Wilkinson 1991; Isserman 2001; Bogue 1950), we take population and land use into account to examine whether these transitional counties were more or less urban than comparable others, all at the county level for the contiguous 48 states for 1970–2000. Our results show that adjacent non-metropolitan counties that were later reclassified as metropolitan were indeed characterized by a larger population and heavier urban land cover than those not making this transition. However, the results also show that metropolitan areas were also quite heterogeneous in terms of traditionally rural activities. A discussion of the homogeneity assumption in demographers’ conceptualization of metropolitan areas is included.     

Population, population density and technological change

In a model on population and endogenous technological change, Kremer (1993) combines a short-run Malthusian scenario where income determines the population that can be sustained, with the Boserupian insight that greater population spurs technological change and can therefore lift a country out of its Malthusian trap. We show that a more realistic version of the model, which combines population and population density, allows deeper insights into these processes. The incorporation of population density also allows a superior interpretation of the empirical regularities between the level of population, population density, population growth, and economic development at aggregated and disaggregated levels.

Evaluating the Link Between Perceived Income Adequacy and Financial Satisfaction: A Resource Deficit Hypothesis Approach

Data from an economically and racially diverse sample (N = 258) was used to determine (a) if an association between objectively measured income and perceived income adequacy exists, (b) how well individuals assess the adequacy of their income, and (c) if a bias exists, can these estimates be used to describe a person’s overall level of financial satisfaction? Duesenberry’s (Income, saving, and the theory of consumer behavior. Harvard University Press, Cambridge, 1949) relative income hypothesis and Kyrk’s (The family in the American economy. University of Chicago Press, Chicago, 1953) resource deficit hypothesis were adopted for use as the conceptual framework for this study. A positive but modest association between objective and perceived income adequacy was noted. It was also found that individuals do not do a particularly good job of accurately assessing their income adequacy. Finally, perceived income adequacy estimation bias was found to be associated with financial satisfaction. Those who perceived their income to be deficient were less satisfied financially. Policy and practitioner implications from the study are discussed as a means for improving financial satisfaction at the individual and household level.     

Work-Life Conflict and Social Inequality in Western Europe

Recent debates on time-use suggest that there is an inverse relationship between time poverty and income poverty (Aguiar and Hurst in Q J Econ C(3):969–1006, 2007), with Hammermesh and Lee (Rev Econ Stat 89(2):374–383, 2007) suggesting much time poverty is ‘yuppie kvetch’ or ‘complaining’. Gershuny (Soc Res Int Q Soc Sci 72(2):287–314, 2005) argues that busyness is the ‘badge of honour’: being busy is now a positive, privileged position and it is high status people who work long hours and feel busy. Is this also true of work-life conflict? This paper explores the relationship between work-life tension and social inequality, as measured by social class, drawing on evidence from the European Social Survey. To what extent is work-life conflict a problem of the (comparatively) rich and privileged professional/managerial classes, and is this true across European countries? The countries selected offer a range of institutional and policy configurations to maximise variation. Using regression modelling of an index of subjective work-life conflict, we find that in all the countries under study, work-life conflict is higher among professionals than non-professionals. Part of this is explained by the fact that professionals work longer hours and experience more work pressure than other social classes, though the effect remains even after accounting for these factors. While levels of work-life conflict vary across the countries studied, country variation in class differences is modest. We consider other explanations of why professionals report higher work-life conflict and the implications of our findings for debates on social inequality.     

Absolute Income,Relative Income,and Happiness

This paper uses data from the World Values Survey to investigate how an individual’s self-reported happiness is related to (i) the level of her income in absolute terms, and (ii) the level of her income relative to other people in her country. The main findings are that (i) both absolute and relative income are positively and significantly correlated with happiness, (ii) quantitatively, changes in relative income have much larger effects on happiness than do changes in absolute income, and (iii) the effects on happiness of both absolute and relative income are small when compared to the effects several non-pecuniary factors.

Sexual dysfunction predicts depressive symptoms during the first 2 years postpartum

Background

The association between sexual function and depression has yet to be examined in a prospective cohort study with prolonged postpartum follow-up.

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.

Ability drain: size,impact, and comparison with brain drain under alternative immigration policies

Ability drain’s (AD) impact seems economically significant, with 30% of US Nobel laureates since 1906 being immigrants, and immigrants or their children founding 40% of Fortune 500 companies. Nonetheless, while brain drain (BD) and gain (BG) have been studied extensively, AD has not. I examine migration’s impact on ability (a), education (h), and productive human capital or “skill” s =s(a,?h), for source country residents and migrants under (a) the points system (PS) which accounts for h and (b) the “vetting” system (VS) which accounts for s (e.g., US H-1B program). The findings are as follows: (i) Migration reduces (raises) residents’ (migrants’) average ability, with an ambiguous (positive) impact on average education and skill, and net skill drain, SD, likelier than net BD; (ii) these effects increase with ability’s inequality or variance, are greater under VS than PS, and hurt source countries; (iii) the model and two empirical studies suggest average AD?≥?BD for educated US immigrants, with real income about twice the home country income; and (iv) SD holds for any BD and for a very small AD (7.4% of our estimate). Policy implications are provided.     

Evaluating multi-regional population projections with Taylor’s law of mean–variance scaling and its generalisation

Organisations that develop demographic projections usually propose several variants with different demographic assumptions. Existing criteria for selecting a preferred projection are mostly based on retrospective comparisons with observations, and a prospective approach is needed. In this work, we use the mean–variance scaling (spatial variance function) of human population densities to select among alternative demographic projections. We test against observed and projected Norwegian county population density using two spatial variance functions, Taylor’s law (TL) and its quadratic generalisation, and compare each function’s parameters between the historical data and six demographic projections, at two different time scales (long term: 1978–2010 vs. 2011–2040; and short term: 2006–2010 vs. 2011–2015). We find that short-term projections selected by TL agree more accurately than the other projections with the recent county density data and reflect the current high rate of international migration to and from Norway. The variance function method implemented here provides an empirical test of an ex ante approach to evaluating short-term human population projections.     

Great Expectations: The Unintended Consequences of Educational Choices

Human capital is invariably found to be an important explanatory variable of various proxies for well being (WB), i.e. income, happiness, job and life satisfaction, and health status. Nevertheless, to date few systematic efforts have been made to explain its various interconnected functions. The U-shaped age-SWB relation found in many empirical studies suggests that investigating the pattern of different measures of WB over people’s life cycles may reveal important information and provide useful insights into the principal mechanisms that connect human capital and WB. In this paper, I explore data drawn from the Survey on Household Income and Wealth (SHIW) conducted by the Bank of Italy, which is a rich source of information on people’s socioeconomic and educational backgrounds, educational and skill mismatches in the workplace, and various measures of WB such as income, happiness, job satisfaction, and health status. I adopt a novel approach based on the idea that one should look at the overall contribution of education to well being within people’s life-cycles. The tentative explanations of my empirical findings are: (a) more educated people and people with vocational educations experience wide mismatches in their aspirations and expectations early in their adult lives; (b) these mismatches are largely confined to the labour market; and (c) the curvature of the U-shaped age-happiness relationship depends on the level and type of education. The suggested interpretation of these results is that education affects both people’s expectations and the way they react to unfulfilled aspirations.     

Aspirations of Migrants and Returns to Human Capital Investment

Although there is adequate literature on the topic of state-employer collusion, this literature is barely underpinned in any theoretical framework. This article attempts to fill this theoretical lacuna by revisiting Gouldner’s (Patterns of industrial bureaucracy: a case study of modern factory administration, The Free Press, New York, 1954a) pioneering theoretical framework on patterns of bureaucracy, and extends his concept of mock bureaucracy to develop a new concept called ‘mock state bureaucracy’ to illustrate state-employer collusion in controlling workers in plants in developing third world economies. The article revisits and extends Gouldner’s (1954a) unit of analysis from the ‘firm’ level to the ‘state’ level and argues that the new concept mock state bureaucracy provides a better illustration of the state-employer collusion. The article argues that both ‘state’ and ‘employer’ are important units of analysis and they should be brought back to the centre stage of any discourse on employment relations of developing countries.     

Utilitarian tradeoff between population growth and income growth

Utilitarian social welfare functions were devised for a world with a fixed population. With endogenous population, Edgeworth conjectured that the Benthamite principle of maximizing total utility (classical utilitarianism) would lead to a larger population size and a lower standard of living than the Millian principle of maximizing per capita utility (average utilitarianism). One objection to the Benthamite criterion was that its application to a world with finite resources often implied large population size in conjunction with an embarrassingly low average standard of living. In a static environment with altruistic parents, this may not be warranted. In a growth situation, this criticism is even less likely to be supported. This paper extends the comparison of classical and average utilitarianism from a static to a dynamic and endogenously growing economy. Using a stylised endogenous growth framework, it confirms that the Benthamite population growth rate exceeds the Millian growth rate. In terms of the rate of growth of per capita income, the reverse is true. Having the standard of living often increasing under the Benthamite criterion, our results thereby depart significantly from the repugnant conclusion levelled against classical utilitarianism.We would like to thank an anonymous referee for helpful suggestions.     

Identity,Belonging and Intentions to Leave of First and 1.5 Generation FSU Immigrants in Israel

Recent studies examining immigrant intentions to leave the host country have focused on return migration to the origin country (De Haas and Fokkema in Demogr Res 25:755–782, 2011; De Haas et al. in J Int Migr Integr 16(2):415–429, 2015). The current study examines immigrant intentions to leave the host country, but not necessarily to return to the homeland. The predictive model, which focuses on immigrant subjective identity, was tested through a survey of 338 first and 1.5 generation Former Soviet Union (FSU) immigrants in Israel, who applied to a prominent NGO to obtain proof of their Jewishness. These individuals are from the largest recent immigrant group in Israel, and are highly represented among the young adult (aged 25–40) immigrants leaving Israel. The findings indicate that contrary to our expectations, Israeli local identity did not have a significant effect on the immigrants’ intentions to leave Israel. By contrast, Jewish identity and level of religiosity did play a significant role in attenuating the immigrant’s tendency to leave. This paper highlights the complex relationship between ethnic identities and religiosity among immigrants in general, and in Israel in particular.     

Climbing up the Social Ladders: Identity, Relative Income, and Subjective Well-being

This study incorporates the concept of identity to explain the relationship between relative income and subjective well-being. Based upon the theoretical framework of an identity model developed by Akerlof and Kranton Q J Econ 115:715–753, (2000), the empirical findings of this study suggest that an increase in relative income leads to a gain in positional identity and therefore raises the level of subjective well-being. This approach extends our understanding about the connection between positional concern and subjective well-being and explains the importance of social comparison in shaping individuals’ preferences and tastes. People are concerned about their relative income as it represents a positional identity of social status, dependent upon ideals and norms derived from the interactions between an individual and others within a society.     

Towards a Theory of Medium Term Life Satisfaction: Similar Results for Australia,Britain and Germany

We analyse the Life Satisfaction trajectories of respondents in three long-running, national panel surveys: the Household, Income and Labour Dynamics Australia Survey (HILDA), the British Household Panel Survey (BHPS) and the German Socio-Economic Panel (SOEP). Previous research has shown that substantial minorities of respondents in all three countries recorded long term changes in LS (Fujita and Diener in J Personal Soc Psychol 88:158–64, 2005; Headey in Soc Indic Res 76:312–317, 2006; Headey et al. in Proc Natl Acad Sci 107:17922–7926, 2010; Headey et al. Soc Indic Res 112:725–48, 2013). In a recent SIR paper based on the German data (Headey and Muffels in Soc Indic Res, 2015. doi: 10.1007/s11205-015-1146-8), we showed graphs of LS trajectories which suggested—and subsequent statistical analysis confirmed—that respondents typically spend multiple consecutive years above and, in other periods, below their own long term mean level of LS. Here we extend the analysis to Australia and Britain, showing that results replicate in two more Western countries. It appears that most people go through relatively happy periods of life, and relatively unhappy periods. The evidence runs counter to set-point theory which views adult LS as stable, except for short term fluctuations due to life events. In the second half of the paper we try to contribute to a theory of medium term life satisfaction. We estimate structural equation models with two-way causation between LS and variables usually treated as causes of LS, including health, social support, frequency of social activities, and satisfaction with one’s work, partner and family life. In all three countries we find that there are positive feedback loops between these variables and LS, which partly account for extended periods of high or low LS. The two-way causation models are based on a modified concept of ‘Granger-causation’ (Granger in Econometrica 37(3):424–38, 1969). The main intuition behind Granger-causation is that if x can be shown to be statistically significantly related to y in a model which includes multiple lags of y, then it can be inferred that x is one cause of y.     

Estimating Recent Local Impacts of Sea-Level Rise on Current Real-Estate Losses: A Housing Market Case Study in Miami-Dade,Florida

Sea-Level Rise (SLR) Projections from the National Oceanic and Atmospheric Administration (NOAA) and the U.S. Army Corp of Engineers (USACE) indicate increasing, and imminent, risk to coastal communities from tidal flooding and hurricane storm surge. Building on recent research related to the potential demographic impacts of such changes (Hauer et al. 2016, in Nat Clim Chang 3:802–806, 2017; Neumann et al. 2015; Curtis and Schneider in Popul Environ 33:28–54, 2011), localized flooding projections in the Miami Beach area (Wdowinski et al. in Ocean Coast Manag 126:1–8, 2016) and projected economic losses associated with this rise in projected SLR (Fu et al. Ocean Coast Manag 133:11–17, 2016); this research investigates the accrued current cost, in terms of real-estate dollars lost, due to recurrent tidal flooding and projected increases of flooding in Miami-Dade County. Most directly related to this line of research, Keenan et al. (2018) have recently produced results indicating that Climate Gentrification is taking place in Miami, FL with higher elevations in flood prone areas appreciating at a higher rate. In that vein of thinking, we seek to answer a question posed by such research: What is the actual accrued loss to sea-level rise over the recent past? To answer this question, we replicate well-documented estimation methods by combining publicly available sea-level rise projections, tide gauge trends, and property lot elevation data to identify areas regularly at risk of flooding. Combining recent patterns of flooding inundation with future forecasts, we find that properties projected to be inundated with tidal flooding in 2032 have lost $3.08 each year on each square foot of living area, and properties near roads that will be inundated with tidal flooding in 2032 have lost $3.71 each year on each square foot of living area. These effects total over $465 million in lost real-estate market value between 2005 and 2016 in the Miami-Dade area.     

Resolution of the Happiness–Income Paradox

It is widely believed that happiness is strongly correlated with wealth and income, but according to the happiness–income paradox, this is not always true. The paradox predicates that there is a strong positive correlation between income and happiness nationally, but the correlation is essentially absent in international comparisons, or in a long-term longitudinal comparison. This paradox has been widely debated among economists and the controversy has persisted for several decades. In this article, the happiness–income paradox is explained in terms of ecological correlation due to spatial aggregation or data-grouping, change of reference classes, and confounding variables. The controversy is resolved when ecological correlations and third-variable effects are accounted for. At the individual level, happiness and income are correlated positively, but not as strongly as many believe. In international comparisons, happiness and income are, in general, quite strongly correlated as well, contrary to what Easterlin (Nations and households in economic growth: essays in honor of Moses Abramovitz, Academic Press, New York, 1974) claimed and similar to what others have found, but for different reasons. Long-term comparison is also related to ecological correlation, but it is related to the change of reference classes as well.     

Measuring Community Economic Resilience in Australia: Estimates of Recent Levels and Trends

We measure changes in community economic resilience (CER) across geo-locations in Australia between 2006 and 2011, a time span characterised by major natural and economic shocks. We build an index of potential CER that captures communities’ stocks of human, social, natural, physical and financial capitals, levels of economic diversity and accessibility to service centres. Using Census data and the ARIA index, we resort to principal component analysis to generate CER indexes at statistical area level 1, which is our community proxy. Our analysis of index values provides a number of useful insights. First, there was a statistically significant improvement over time in the overall CER index in all states and regions. Second, our CER measures improved at a different pace across regions and states while their rank remained mostly unchanged. Third, CER improved over time in social and physical capital and accessibility terms, but declined in human, natural, financial capital and diversity terms. Fourth, communities with a high economic diversity level reported higher capital stock except for natural capital, and communities with a low accessibility level had lower capital stock except for social and natural capital. Finally, CER has a long-term positive association with household income.