The effect of income on fertility among Canadian women

This study compares the fertility of three generations of immigrant women in Canada and examines whether the same set of predictors accounts for differential fertility among the three groups. The analysis of current family size of the three generations and the two age groups, 18–34 and 35–49, of currently married or cohabiting women reveals considerable variation in the effects of sociodemographic and economic variables on fertility. These variations suggest that education and religiosity are more related to the fertility of the first-generation women, religiosity is more related to the fertility of the second-generation women, and religious preference, religiosity, and expected income are more related to the fertility of the third-generation women. Whereas expected income exerts consistently significant effects on the fertility of all the three generations of younger cohorts, relative income affects the fertility only of first-generation women of younger cohorts. She earned her Ph.D. in demography from the Department of Sociology, University of Alberta. Her research interests include differential fertility and new reproductive technologies. Her publications have appeared inSocial Biology, Socio-Economic Planning Sciences, Journal of Bio-Social Science, Biology and Society, and elsewhere. Direct all correspondence to Dr. Vijaya Krishnan, 11247-79 Avenue, Edmonton, Alberta, Canada T6G 0P2.     

Household size,income and expenditure on food: The case of Cyprus

This paper addresses some of the questions raised in a debate between Deaton and Paxson, 1998, Deaton and Paxson, 2003 and Gan and Vernon (2003) in the Journal of Political Economy. At issue is what, on the basis of theory, the behaviour of households should be in relation to expenditure on food, as household size increases. One argument is that expenditure on food, per capita, should increase as household size increases, but analysis of the data gives very different results. Questions arise as to whether food is a public or private good within households, how food compares to clothing and whether there can be substitution away from food, for example towards clothing.For the purposes of addressing these and related questions in the Cyprus context, a household budget survey was undertaken, in which 625 responses were obtained. The paper describes the survey and uses the results of the survey to run regressions to identify the variables that relate significantly to expenditure on food. What we add to the discussion is the analysis of the determinants of expenditure on food in Cyprus, and the categorisation of this expenditure into food at home, take-away food, food in pubs and cafes, and food in restaurants. Our results tend to support Gan and Vernon (2003); we find, for example, that clothing is more private than food.     

The effect of student residence on food choice

This study assessed the effect of student residence on food choices and dietary practices of students enrolled in an undergraduate nutrition class at Washington State University. We compared food consumption patterns of students living on campus, off campus, and in Greek housing. We also identified differences between men and women in food consumption and dietary practices. The results suggested that students' residence and sex may influence food choice and dietary practices. Significant differences in food choice related to students' residence were found for 8 of the 27 variables included on a food frequency list. Differences in the consumption of fresh fruits and vegetables, beer, fish, unsweetened cereal, white bread, and cookies were identified. In addition, students who lived in Greek housing were found to skip meals less frequently than other students, and men were found to consume significantly more beer, sugar-sweetened soft drinks, meat, and white bread than women students. Men were also more accurate in their perception of their body weight.     

The effect of education,income inequality and merit on inequality acceptance

A large number of observational and experimental studies have explored the determinants of individual preferences for redistribution. In general, inequalities are more likely to be accepted by people of higher socioeconomic status, in richer societies and when inequalities are perceived as justifiable owing to differences in productivity. Almås et al. (2020) show that in a relatively unequal society (the United States), the highly educated accept inequality significantly more than the less educated, whereas, in a relatively equal society (Norway), the less educated accept inequality more, but not significantly more, than the highly educated. Here, we replicate this finding using data from experiments conducted in four locations across three countries all distinct from the ones studied by Almås et al. However, a closer look at the data indicates that the origin of the interaction effect varies depending on which societies one compares. Data for Norway and the United States indicate that meritocratic values among the highly educated are less prevalent in more equal societies and that this is the driver of the triple interaction effect. In contrast, in our data the interaction effects have multiple drivers.     

The causal effect of social capital on income: A new analytic strategy

This study identifies three groups of job seekers in terms of the channels used to search for jobs: the formal channel involving only official procedures to obtain a job, the informal channel using only social contacts to obtain a job, and the joint channel leveraging both social contacts and official procedures. The analysis of a national sample survey of China shows that joint channel users, due to their relatively higher level of social capital, not only make more job search attempts but also obtain higher income than formal channel users. Meanwhile, joint channel users, because of their relative advantages in both human capital and social capital, not only make more job attempts but also obtain higher income than informal channel users. The two comparisons offer a new strategy to test the causal role social capital plays in labour market success, regardless of whether social capital is exogenous or endogenous to human capital.     

Predicting the effect of disability on employment status and income

Research shows that participation in employment contributes to life satisfaction for persons with disabilities [18]. Title I of the Americans with Disabilities Act (ADA) sought to prohibit discrimination against persons with disabilities in the workplace, however, the ADA's effectiveness remains controversial. This research utilizes data from the disability supplement of the 2000 Behavioral Risk Factor Surveillance System to examine the impact of disability status on predicting employment status and income. Confounding variables such as gender, age, educational level, race and marital/parental status are examined regarding their influence on results. Results from analysis utilizing zero-order correlation, linear and logistic regression analysis techniques revealed that disability status has a significant predictive effect on inability to work. Furthermore, results continue to show that despite legislation, the higher the level of disability, the lower the employment status (those employed for wages) and income. Finally, disability status, coupled with being female or decreased educational level, consistently shows significance in predicting lower employment status and income than men or non-minorities with disabilities. Future research opportunities and policy implications are discussed with regard to the results presented.     

The impact of macroeconomic conditions on income inequality

This paper analyzes the relationship between macroeconomic factors and the income distribution using data on equivalized disposable household income from the United Kingdom for 1961–99. We argue in favour of fitting a parametric functional form to the income distribution for each year, and then modeling the time series of model parameters in terms of the macroeconomic factors, as this better allows us to take into account non-stationarity in the time series. Estimates from models that relate income distribution parameters to cyclical variables in first differences (to account for non-stationarity) suggest that neither inflation nor unemployment have significant effects on income inequality. Compared to the commonly-used method of modelling the income shares directly, our approach indicates that there was no clear cut relationship between macroeconomic factors and the UK income distribution during the last third of the twentieth century.     

The sensitivity of income polarization

This study looks at polarization and its components’ sensitivity to assumptions about equivalence scales, income definition, ethical income distribution parameters, and the income accounting period. A representative sample of Danish individual incomes from 1984 to 2002 is utilised. Results show that polarization has increased over time, regardless of the applied measure, when the last part of the period is compared to the first part of the period; primary causes being increased inequality (alienation) and faster income growth among high incomes relative to those in the middle of the distribution. Increasing the accounting period confirms the reduction in inequality found for shorter periods, but polarization is virtually unchanged, because income group identification increases. Applying different equivalence scales does not change polarization ranking for different years, but identification ranks are affected. The welfare state considerably reduces income polarization and inequality, but at the expense of some more identification.      

The impact of income inequality on values and attitudes

Scholars in several social science disciplines scholars have argued from their respective disciplinary perspectives that income inequality has a considerable impact on economic and social performance of a nation. This essay investigates the possible impact of income inequality on 290 values and attitudes in forty industrial nations from an economic perspective. The results show that inequality has a significant impact on values and attitudes especially concerning religion and the family.     

The impact of AIDS on income and human capital

This paper studies the impact of HIV/AIDS on per capita income and education. It explores two channels on how HIV/AIDS affects income that have not been sufficiently stressed by previous literature: the reduction of the incentives to stay in school due to shorter expected longevity and the reduction in productivity of experienced workers. In the model, individuals live for three periods, may get infected in the second period, and with some probability die of AIDS before reaching the third period of their lives. Parents care for the welfare of the future generations so that they will maximize lifetime utility of their dynasty. The simulations predict that the most affected countries in Sub-Saharan Africa in the future will be, on average, 30% poorer than they would be without AIDS. Schooling will decline in some cases by 40%. These figures are dramatically reduced with widespread medical treatment, as it increases the survival probability and productivity of infected individuals.     

The effects of income inequality and income level on mortality vary by population size in Texas counties

OBJECTIVES: This study uses the counties of Texas to empirically test the predictions of Wilkinson's theory on the role of income and inequality in explaining health differentials in populations. Wilkinson predicts (1) that health is affected more by income inequality than average income in areas with large population, and (2) that health is affected more by average income than income inequality in areas with small population. We investigate how large the population of a unit must be for income inequality within the unit to affect mortality. METHODS: Measures of income inequality were computed from the 1990 U.S. census data and mortality was computed from Vital Statistics data. Poisson regressions estimated the age-adjusted relative risk of the top quintile relative to the bottom quintile for equality and for income among selections of Texas counties based on population size. County ethnic composition, educational level, and health care access were controlled for. RESULTS: Among counties with populations greater than 150,000, the risk of death was lower in counties with more equal income distribution than in counties with less equal income distribution. Among counties with population less than 150,000, median income affected relative risk in counties with less than 30 percent Hispanics, but not in those with more than 30 percent Hispanics. CONCLUSIONS: This study provides some support for the predictions of Wilkinson's theory.     

The impact of deferring retirement age on retirement income adequacy

UPDATE OF RSPM-POST-65 RETIREMENT AGES: The EBRI Retirement Security Projection Model (RSPM) was developed in 2003 to provide an assessment of national retirement income prospects. The 2011 version of RSPM adds a new feature that allows households to defer retirement age past age 65 in an attempt to determine whether retirement age deferral is indeed sufficiently valuable to mitigate retirement income adequacy problems for most households (assuming the worker is physically able to continue working and that there continues to be a suitable demand for his or her skills). The answer, unfortunately, is not always "yes," even if retirement age is deferred into the 80s. LOWEST-INCOME LEVELS, 50-50 CHANCE OF ADEQUACY: RSPM baseline results indicate that the lowest preretirement income quartile would need to defer retirement age to 84 before 90 percent of the households would have a 50 percent probability of success. Although a significant portion of the improvement takes place in the first four years after age 65, the improvement tends to level off in the early 70s before picking up in the late 70s and early 80s. Households in higher preretirement income quartiles start at a much higher level, and therefore have less improvement in terms of additional households reaching a 50 percent success rate as retirement age is deferred for these households. LOWEST-INCOME LEVELS, HIGHER CHANCES OF ADEQUACY: If the success rate is moved to a threshold of 70 percent, only 2 out of 5 households in the lowest-income quartile will attain retirement income adequacy even if they defer retirement age to 84. Increasing the threshold to 80 percent reduces the number of lowest preretirement income quartile households that can satisfy this standard at a retirement age of 84 to approximately 1 out of 7. IMPORTANCE OF DEFINED CONTRIBUTION RETIREMENT PLANS: One of the factors that makes a major difference in the percentage of households satisfying the retirement income adequacy thresholds at any retirement age is whether the worker is still participating in a defined contribution plan after age 65. This factor results in at least a 10 percentage point difference in the majority of the retirement age/income combinations investigated. FACTORING IN RETIREMENT HEALTH COSTS: Another factor that has a tremendous impact on the value of deferring retirement age is whether stochastic post-retirement health care costs are excluded (or the stochastic nature is ignored). For the lowest preretirement income quartile, the value of deferral (in terms of percentage of additional households that will meet the threshold by deferring retirement age from 65 to 84) decreases from 16.0 percent to 3.8 percent by excluding these costs. The highest preretirement income quartile experiences a similar decrease, from 12.8 percent to 2.6 percent.     

Long-run trends in top income shares: The role of income and population growth

This paper studies the sensitivity of long-run trends in top income shares to differences in top-share measures. While the standard measure fixes a share of the population, we define alternatives that allow variation in both incomes and size of the top group based on defining absolute income thresholds. In an application to United States data, we find that top income share trends over the past century vary somewhat depending on the measure used. Allowing top groups to increase in size after 1980 along with overall economic growth results in a larger increase of top income shares. The historical drops before WWII are sensitive to the choice of income deflator: using GDP inflates interwar top income shares but using CPI deflates them. Altogether, these results recommend using complementary approaches to defining top income groups when measuring long-term top income share trends.

     

The effects of income source,context, and income level on tax compliance decisions in a dynamic experiment

This study employs a laboratory experiment to explore the joint effect of income source (earned versus endowed) and decision context (tax versus nontax) on tax compliance behavior. During the experiment, subjects faced various income levels and made multiple reporting decisions. The results indicate that overall compliance is not significantly affected by the interaction of income source and context. However, this joint effect influences the relationship between income level and compliance and how compliance behavior evolves over time. In both cases, the treatment group with earned income in a tax context displays behavior that is distinct from the other three groups.     

The impact of unionization on labor’s share of income

This study examines the effect of unions on labor’s share of income. Because economic conditions within each industry are important in addressing this issue, this analysis incorporates a more disaggregated approach than has been previously used. Cross-sectional data for the 1950s — a period of more stable unionization — permit an examination of the long-run effect of wage increases on labor’s share. The empirical analysis suggests that higher labor prices have no long-run impact on labor’s share in manufacturing.     

Assessing the effect of changes in housing costs on food insecurity

In this paper, we examine whether changes in housing costs lead to changes in rates of food insecurity for economically vulnerable families. We use data on a national, longitudinal sample of young families with children merged with data on housing (rental) costs at the state, metropolitan statistical area, and county levels (2001–2003). Focusing on families near or at the poverty level and using household fixed effects, we demonstrate that increased housing costs over this time period have indeed increased rates of food insecurity. Our preferred results suggest that a $500 increase in yearly rental costs is associated with nearly a 3% increase in food-insecurity rates (10% relative increase). We show that our measure of rental costs seems to affect only the food insecurity of renters and not that of poor low-income home owners, suggesting the validity of our methods and robustness of the findings. We also look at selected subgroups (e.g., food stamp recipients, individuals receiving housing subsidies) and find few differences in the effects of housing cost increases on food insecurity.     

The influence of earnings on income distribution in the United States

This article discusses whether the so called “skill-biased technological change” hypothesis is able to explain the individual earnings inequality in the U.S. during the period 1968–2000. Using the statistic information supplied by the Census Bureau and the Bureau of Labor Statistics, the article analyzes the earnings evolution, explaining the reasons why earnings inequality has increased, and the relation of this increase with the household income distribution. The main conclusions are the following: (a) changes on labor productivity are not the main cause of the increase in earnings’ inequality, and (b) this earnings’ inequality is not the only reason for the increase of the households’ income inequality.