Multidimensional Racial Inequality in the United States

This paper measures racial inequalities in the US using a multidimensional ‘wellbeing’ approach that simultaneously considers the distributions of income, health and education. The primary objective is to examine trends in US wellbeing inequality with an emphasis on changes in racial composition. Data is taken from 1990 to 2007 and we observe increases in income inequality, a decline in education inequality and unchanged health inequality over the period. Taken together, these results show a slight increase in the dispersion in multidimensional wellbeing. Stratifying by racial groups shows that this increase is due to widening intra-racial inequalities while inter-racial differences remained unchanged. The method is also used to evaluate wellbeing across groups and we estimate black wellbeing to average around 76 % of whites, while persons from other races average approximately 93 %. Some other changes in composition occur through time and the results are shown to be robust to a number of changes in parametric weightings.     

Life Satisfaction Among Turkish and Moroccan Immigrants in the Netherlands: The Role of Absolute and Relative Income

In this paper we investigate the role of several socio-economic and non-economic factors such as absolute and relative income, education and religion to explain the differences of happiness levels of Turkish and Moroccan Immigrants in the Netherlands by using ordered logit model. We focus on members of the Moroccan and Turkish communities, as these are the two largest non-EU immigrant communities in the Netherlands. Our findings reveal that Moroccans, although they have lower income levels and higher unemployment rates than Turkish immigrants, their happiness level is higher than the Turkish immigrants. In order to understand this dilemma a questionnaire survey was performed to 111 Turkish and 96 Moroccan immigrants in Rotterdam, Amsterdam, Den Haag, Utrecht and Arnhem in 2010. The main purpose is to investigate how reference group’s self-reported life satisfaction is related to the level of absolute income; the level of relative income and other socio-economic factors. The main findings are that for Turkish sample relative income is significantly and negatively correlated with life satisfaction whereas, both absolute income (positively) and relative income (negatively) are significantly correlated with life satisfaction for Moroccan case.     

Development and Governance in the Ex-Soviet Union: An Empirical Inquiry

The widespread adoption of the concept of wellbeing in the social sciences literature has allowed researchers to move beyond a narrow economic focus on income and consumption as the primary measure of inequality and poverty. Although statistical measurement and analyses of wellbeing have become increasingly feasible due to the availability of rich datasets, the empirical literature on wellbeing remains deficient in a number of ways. In this paper we argue that it is necessary that empirical studies of wellbeing encompass multiple. Applying Sen’s capability approach as our theoretical model we subsequently develop a modelling framework that applies the polychoric principal component analysis (PCA) method for the calculation of objective wellbeing and wellbeing inequality using household asset, education, health and housing dimensions. Findings from our case study of Vietnam challenge previous single dimensional analyses and reveal a number of layers to our understanding of wellbeing inequality in Vietnam. We argue that our use of polychoric PCA is especially suited to the analysis of wellbeing by explicitly incorporating the analysis of both cardinal and ordinal variables and overcoming deficiencies established in the literature relating to the use of standard PCA.

     

Health Implications of Socioeconomic Characteristics,Subjective Social Status,and Perceptions of Inequality: An Empirical Study of China

This study explores how health is associated with socioeconomic status, subjective social status, and perceptions of inequality simultaneously. Two health outcomes (self-reported health and psychological distress) are examined, and the subtlety of their relationships with each of the three dimensions of inequality is probed. Data used come from a nationally representative sample survey conducted in China. Several findings emerge from empirical analyses: (1) Overall, the three dimensions of social inequality are associated with self-reported health and psychological distress net of each other and other control variables; (2) among focal socioeconomic characteristics, income and Chinese Communist Party membership are significantly associated with both health outcomes, education exhibits a robust effect on self-reported health, and rural and migrant statuses are linked to less distress; (3) subjective social status in comparisons with both socially proximal and broad referents is associated with both health outcomes, and the association with downward comparisons is more salient than with upward comparisons; and (4) perceived degree and perceived sources of inequality in society show varying relationships with the two health outcomes. These findings add to our understanding of the multidimensionality and complexity of social inequality in relation to health.     

Education as a Positional Good: A Life Satisfaction Approach

In this paper we empirically investigate the direct effects of education on utility. Besides investment aspects of education, the focus is placed on its consumption component and on education positional concerns. We use data from the World Values Survey (WVS) and adopt a life satisfaction approach. First, we find that education shows a significant effect on life satisfaction independent of its effect on income, thus identifying a consumption component of education. Furthermore, given that the contribution of education to individual wellbeing might depend partly on relative position rather than absolute levels, we next study whether education can be considered as a positional good. To this end we analyse the relationship between education and life satisfaction for people in different income groups in which the reference levels of education may differ. Additionally, we control for occupational status since benefits from education could appear via occupational benefits. Our results indicate that the contribution of education to subjective wellbeing is stronger as less people attain a given level of education, thus suggesting that this contribution is partly due to positional concerns.     

Subjective Poverty and Its Relation to Objective Poverty Concepts in Hungary

The paper analyzes subjective poverty in Hungary and compares it to the objective poverty concepts. Subjective poverty is defined by examining who people consider to be poor. Based on the Easterlin paradox, the initial hypothesis states that subjective and absolute poverty concepts are highly correlated. Taking into account that Hungary is a developed country, subjective well-being is supposed to be associated not only with absolute, but also with relative deprivation. The methods of systematic data collection are used to collect data about the belief of the population. The paper concludes that low income level, Roma descent, entitlement to social supports and unemployment are the items thought to be most related to poverty by the informants. It proves that subjective poverty is a multidimensional concept. It also concludes that absolute and relative poverty thresholds coincide with the subjective one. It implies that increasing the absolute income level of individuals may not be enough to improve their subjective wellbeing as they are also concerned with their relative income position.     

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.

How Does Relative Income and Variations in Short-Run Wellbeing Affect Wellbeing in the Long Run? Empirical Evidence From China’s Korean Minority

Cognitively appraised life satisfaction is relatively stable over time and can be considered as reflecting subjective wellbeing in the long run. Affect is transitory and can be considered as reflecting subjective wellbeing in the short run. Using the Personal Wellbeing Index to measure cognitively appraised life satisfaction and the Positive and Negative Affect Schedule to measure positive and negative affect we examine how income relative to one’s comparator group and variations in short run wellbeing impact upon wellbeing in the long run. We do so for China’s Korean ethnic minority. We find that affective state has an effect on wellbeing in the long run and that a negative shock to affectivity is more persistent than a positive shock. We also find that relative income, rather than absolute income, matters for wellbeing in the long run and that the results are consistent with a status effect.     

Cultural Connection Predicts Perceptions of Financial Security for Māori

This paper examines the impact of relative income on income satisfaction with given absolute income. We conducted an experiment in China where participants earned three different levels of income according to their relative performance in a task. While the treatment group was informed about their relative income, the control group only knew their own absolute income. We found that while controlling for absolute income and other factors, information about relative income increases the satisfaction of the high-income group and reduces the satisfaction of the low-income group. Relative income may interact with individual characteristics, such as gender, to affect income satisfaction. We also found that relative income treatment significantly increases income satisfaction inequality, primarily by causing social comparisons among different income groups, which has some welfare implications.     

Using Both Objective and Subjective Indicators to Investigate the Impacts of Coal Mining on Wellbeing of Host Communities: A Case-Study in Shanxi Province,China

This paper uses both objective and subjective indicators to investigate the impacts of coal mining on the wellbeing of host communities. It also looks at the relationship between these two measurements of wellbeing. Both objective and subjective indicators show that coal mining has no obvious impact on family income, but negative impacts on air quality. Subjective wellbeing indicators also reveal the negative impacts of coal mining on water safety, inflation rate, price of necessities and income disparity. The only positive impact associated with coal mining is the improvement of housing conditions, revealed by only objective indicators. Some objective indicators are good predictors of subjective wellbeing indicators (e.g. income and air quality) using both aggregated data and individual data, others not (e.g. housing and education). The inconsistency between objective and subjective indicators might be attributed to scope issues, scale discordance etc. This paper empirically confirms both sets of indicators are needed when measuring wellbeing, and illustrates approaches to examine the relationship between objective and subjective wellbeing indicators.     

Neighborhood selection and the social reproduction of concentrated racial inequality

In this paper, we consider neighborhood selection as a social process central to the reproduction of racial inequality in neighborhood attainment. We formulate a multilevel model that decomposes multiple sources of stability and change in longitudinal trajectories of achieved neighborhood income among nearly 4,000 Chicago families followed for up to seven years wherever they moved in the United States. Even after we adjust for a comprehensive set of fixed and time-varying covariates, racial inequality in neighborhood attainment is replicated by movers and stayers alike. We also study the emergent consequences of mobility pathways for neighborhood-level structure. The temporal sorting by individuals of different racial and ethnic groups combines to yield a structural pattern of flows between neighborhoods that generates virtually nonoverlapping income distributions and little exchange between minority and white areas. Selection and racially shaped hierarchies are thus mutually constituted and account for an apparent equilibrium of neighborhood inequality.     

Estimating Quality of Life and Place with Location Theory: The McBucks Index

This paper explores the changes in inequality and welfare between EU regions at the NUTS 3 level over the 2003–2011 period. Changes in absolute and relative inequalities are broken down into components explaining the effects of population change, re-ranking of regions and income growth between regional per capita incomes. Each component of inequality change is further decomposed by subgroup, revealing the contributions arising from changes within subgroups and from changes between subgroups. The decomposition of the change in absolute inequality is used to develop a decomposition of the change in welfare between EU regions.     

中国城乡弱相对贫困测算及时空演变：2012—2018

相对贫困的识别和测算是瞄准贫困人口和制定减贫政策的基础,但常用于识别相对贫困人口的比例收入法和测度相对贫困程度的FGT指数在理论基础、比例设定和贫困性质方面遭到质疑。采用基于社会融入成本理论的弱相对贫困人口识别方法,及与弱相对贫困线相适应的分层可加综合贫困指数,且考虑与现阶段我国绝对贫困线衔接性及国际标准的可比性,使用2012—2018年中国家庭追踪调查(CFPS)数据估计了中国城乡收入(消费)弱相对贫困线,并测算分析了中国城乡收入(消费)弱相对贫困程度及时空演变特征。研究表明,基于弱相对贫困线构造的综合贫困指数兼顾绝对贫困和相对贫困,可以避免传统FGT指数分别测度绝对贫困和相对贫困时动态变化趋势出现分歧的问题,可更为直观地综合评估经济增长和扶贫政策的减贫效应。无论城乡,尽管不平等导致相对贫困始终处于高位水平,但绝对贫困更大的下降幅度使得中国收入(消费)弱相对贫困程度仍呈稳健下降趋势。从社会融入成本角度出发,建议未来考虑住房成本和子女养育成本,分家庭类型进一步细化弱相对贫困标准。本研究有助于进一步分类瞄准弱相对贫困人口,监测弱相对贫困程度演变并综合评估减贫效应。     

The Measurement of Non-economic Inequality in Well-Being Indices

This paper is a critical review of composite well-being indices that account for inequality. Many well-being indices build upon the idea that while income and wealth are important, they do not constitute a person’s actual quality of life. However, first of all, the analysis finds that while well-being indices aim to go “beyond GDP” and other primarily economic indicators, many of them, unfortunately, do not focus on inequality at all. Secondly, most indices which include inequality in their measurement, only account for economic inequality. Thirdly, the article finds that the most comprehensive wellbeing index in terms of inequality is the Inequality-adjusted Human Development Index which adjusts for economic, health and education inequality. This article finds that well-being indices should make further strides to ensure the capture of non-economic inequality in terms of education and health.     

Socio-Cultural Dispositions and Wellbeing of the Women Left Behind: A Case of Migrant Households in Nepal

The concept of wellbeing is gaining popularity in the study of quality of life and cultural significance of living. The paper aims to contribute to our understanding of objective and subjective wellbeing by exploring the perceptions of women left behind by out-migrating husbands on their quality of life in a transnational social field. The paper uses both qualitative and quantitative research methods. Its primary focus is on the life stories of the four women left behind by their migrant husbands, complementing by quantitative data obtained from a survey among 277 households. Taking an example from Nepal's eastern terai, the paper shows that additional income from remittances has increased the objective wellbeing of the women left behind, but it may not have increased their subjective wellbeing. Hence, it is concluded that improved objective wellbeing of a woman does not necessarily translate into her (improved) subjective wellbeing. The subjective experiences are rather complex, multi-faceted and context specific depending on the family situation, socio-cultural disposition and prior economic situation of the actors involved.     

Welfare State Development,Individual Deprivations and Income Inequality: A Cross-Country Analysis in Latin America and the Caribbean

Several scholars have confirmed the role that the welfare state (WS) plays in reducing poverty, promoting equality and ensuring the common wellbeing. One of the limitations of the scholarship has been the conceptualization and operationalization of the WS and poverty as one-dimensional variables. The purpose of this paper is to examine the relationship between welfare state development, single-dimensions deprivations and income inequality in Latin America and the Caribbean, before and after controlling for demographic and cyclical factors. The WS is operationalized as a one-dimensional variable, but also taking into account its multidimensional nature. Three individual deprivations suffered by people on poverty and two income inequality indicators are used as dependent variables. Three pooled time-series cross-section regression analyses with panel-corrected standard errors models were carried out on 18 countries in the region around 2000, 2005 and 2010. This paper shows that the development of social-welfare programs and institutions seems to be an effective way of tackling individual deprivations suffered by people on poverty in the region. On the other hand, the WS development didn’t appear to be effective to reduce income inequality. The outcomes of welfare institutions appear to be the pivotal dimension to reduce income inequality and income deprivations in the region.     

The impact of income inequality on self-rated general health: Evidence from a cross-national study

Previous studies report a strong negative association between income inequality and population health at the aggregate level. However, it is still in hot debate whether this ecological association indicates a genuine, causal effect of income inequality on health, as asserted by the Wilkinson hypothesis, or it simply reflects a nonlinear effect of individual income on health, as suggested by the absolute income hypothesis. Drawing data from the 2005 round of the World Values Survey, I analyze the relationship between individual income, income inequality, and self-rated general health in a multilevel framework. Results show no independent detrimental effect of country income inequality on individual self-rated general health. In contrast, self-rated general health is strongly associated with absolute material conditions both at the individual and at the country level. Therefore, this study gives more evidence to the absolute income hypothesis, i.e., the strong ecological association between income inequality and population health is more likely a reflection of the nonlinear effect of individual income on health rather than a genuine effect of income inequality.     

Poverty,Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in 1993 to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country. As a result, poverty has a very strong racial dimension with poverty concentrated among the African population. In addition, poverty is much higher in rural areas, and particularly high in the former homelands. Poverty among female-headed households and among children is also higher than average. Moreover, poverty is closely related to poor education and lack of employment. The poor suffer from lack of access to education, quality health care, basic infrastructure, transport, are heavily indebted, have little access to productive resources, and are heavily dependent on remittances and social transfers, particularly social pensions and disability grants. The paper uses an income-based definition of poverty for most of the analysis. In addition, it develops a broad-based index of deprivation including income, employment, wealth, access to services, health, education, and perceptions of satisfaction as its components. While on average the two indicators correspond fairly closely, the income poverty measure misses a considerable number of people who are severely deprived in many of the non-income measures of well-being. This group of severely deprived not identified by the income poverty measure consists predominantly of Africans living in rural areas, concentrated particularly in the province of KwaZulu/Natal.     

Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003

The expansion of higher education in Taiwan starting from the late 1980s has successfully raised the average level of education. Using the concept of the education Gini, we find that the educational inequality declined as average schooling rose during the period of 1976–2003. The impacts of a rising average schooling and a declining educational inequality are also tested empirically in this paper. The evidence supports that a higher level of average schooling will generate a lower income inequality. On the other hand, a lower educational inequality, as measured by education Gini coefficient, will also cause a lower income inequality. Skill-biased technological change that shifts the labor demand from unskilled workers toward skilled workers is the most likely cause for the rising income inequality in Taiwan. However, the trend of rising income inequality could be reversed due to possible future over-education and unemployment in the labor market.     

受教育程度与城镇居民收入不平等—基于基尼系数的分解研究

基于2008年中国综合社会调查的数据,本文运用基尼系数分解的方法研究城镇居民受教育程度对收入不平等的影响。基于回归的不平等分解研究发现受教育程度是导致城镇居民职业收入不平等的最主要因素。对基尼系数的亚组分解研究发现受教育程度不同的人群之闻的收入不平等对总体收入不平等的贡献率为8.65％,城镇居民职业收入不平等主要表现为各个受教育程度人群内部的收入不平等。分地区来看,中西部地区受教育程度较低的人群其组内差距的贡献率要远高于东部地区。实证研究的结果表明,提供平等的受教育机会、缩小受教育程度的不平等、加大对中西部地区义务教育的投入可以有效缩小收入不平等。