Median Relative Partial Income Polarization Indices: Investigating Economic Polarization in Poland During the Years 2005–2015

In recent years, more and more attention has been focused on the effects of economic growth and inequality changes on income polarization, as well as on the changes in the middle income class fraction. A significant part of the literature that deals with these issues is focused on polarization indices. However, the polarization indices proposed by researchers do not allow for an assessment of impact of the income distribution changes on the disappearance of the middle income class. Moreover, the general income polarization indices do not allow for assessment of polarization within the distinguished income classes. This study proposes a class of median relative polarization partial indices, which allows for a comprehensive assessment of the median relative polarization over time, within the distinguished income classes, as well as the impact of income distribution changes (its polarization or convergence) on the change of the middle income class fraction (its disappearance or increase). Using Social Diagnosis panel data (a study carried out by the Social Monitoring Council), the proposed new tool has been used to verify the hypothesis of whether changes in the household income distribution in Poland during the years 2005–2015 have led to income polarization within the three distinguished income groups—lower, middle and upper income classes. Empirical analysis shows that despite the lack of overall polarization of incomes in the household population, there was a convergence of incomes in the upper and lower income classes and polarization of incomes within the middle income class. It implies that the income distribution has not been petrified, and as on average individuals in the lower and upper income classes tend to reduce the distance to the median income, whereas the members of the middle income class tend to be pushed out of the middle class. Moreover, the flows of households into the middle income class were higher than the outflows from this class, resulting in economic convergence, i.e. changes in income distribution leading to an increase of the middle income class fraction.

     

Comparing relative effects of education and economic resources on infant mortality in developing countries

Research on the social determinants of health has often considered education and economic resources as separate indicators of socioeconomic status. From a policy perspective, however, it is important to understand the relative strength of the effect of these social factors on health outcomes, particularly in developing countries. It is also important to examine not only the impact of education and economic resources of individuals, but also whether community and country levels of these factors affect health outcomes. This analysis uses multilevel regression models to assess the relative effects of education and economic resources on infant mortality at the family, community, and country level using data from demographic and Health Surveys in 43 low-and lower-middle-income countries. We find strong effects for both per capita gross national income and completed secondary education at the country level, but a greater impact of education within families and communities.     

The impact of taxation on the distribution of wealth in an economy with changing population

The paper investigates into the determinants of the personal distribution of income and wealth. In an overlapping generations model all individuals are assumed to be identical except for their inherited wealth. Since life time is random the bequest of an individual and thus the inherited stock of capital of its children are stochastic variables. Taxation and social security contributions affect life cycle savings, bequests, and, eventually, the distribution of income and wealth in the society. It is shown that, in general, higher tax rates reduce distributive inequality as long as the rate of interest is exogenously given. In steady state, however, where the rate of interest is determined endogenously, increasing taxation and higher social security payments both diminish the capital labor ratio so that the rate of interest rises. If this interest effect is strong enough then it may outbalance the tendency toward more equality because higher interest rates enhance initial differences in the distribution of both income and wealth and, eventually, the inequality in the distribution of income and wealth in the society.     

Does Culture Make a Better Citizen? Exploring the Relationship Between Cultural and Civic Participation in Italy

In the last decades, policy discussions have increasingly considered participation in arts and cultural activities as a vehicle to reach broader social policy goals, such as social inclusion or active citizenship. However, convincing empirical evidence on the social impacts of arts and culture is still scarce. In particular, little attention has been given to the impact that cultural participation may have on individuals’ engagement in civil society, especially in Europe. In order to address this lack of evidence, this paper explores the connection between cultural participation and civic participation in Italy using Likert-scale data collected in the ISTAT “Aspetti della Vita Quotidiana” Survey (2014). To do so, two composite indicators—the participation in cultural life indicator and the participation in civic life indicator—have been built using an approach based on partial order theory and the concept of Average Rank. The effect of cultural participation on civic engagement has been estimated using a quantile regression model which controls for potentially cofounding factors such as education, income, age and gender. Results do confirm that participation in arts and cultural activities is highly correlated with participation in civic life. It is particularly worth noticing that at higher levels of civic participation, cultural participation has a positive and strong effect on civic engagement of people having a low educational level.

     

教育投入与社会保障对城乡收入差距的联合影响

当前城乡收入差距扩大化趋势引起广泛关注。文章使用世代交叠模型研究公共教育和社会保障对收入分配的作用机制,在此基础上分析公共教育和社会保障对城乡收入差距的影响。研究发现,公共教育通过作用于教育投资、社会保障通过作用于有效家庭时间共同影响人力资本积累从而影响收入。一方面,数值模拟结果显示公共教育和社会保障的增加能够显著地增加收入;另一方面,结合中国城乡实际的实证研究结果显示,本应该起到调节和缩小城乡收入差距的公共教育和社会保障制度,并没有发挥其收入再分配的功能,反而形成了"逆向调节"的负效应,扩大了城乡收入差距,对此,文章通过理论与实证得出,缩小我国城乡人均教育投资和社会保障税率差距对缩小城乡收入差距具有重要的现实意义。     

Conditional Solidarity: Social Class,Experiences of the Economic Crisis,and Welfare Attitudes in Europe

The aftermath of the Global Financial and Economic Crisis of 2007/2008 turned out as a veritable “stress test” for European welfare states. Aiming to stabilize citizens’ living conditions and mitigate socio-economic hardship, European governments have engaged in active crisis management. Yet, the protective capacities of European welfare states vary, as does individuals’ exposure to crisis-induced social risks. Hence, the crisis has impacted countries and the members of different social classes unequally. Against this backdrop, this paper asks how Europeans’ perceptions of the personal impact of the crisis are associated with their welfare attitudes, focusing on variations between social classes and across nations. Using cross-sectional Eurobarometer survey data from 2010 for 27 European countries, I find that perceived crisis impact is associated with greater support for welfare state responsibility and redistribution. However, this association is not homogeneous but moderated by an individual’s class position as well as national economic conditions and social spending levels. More specifically, on the individual level, perceived crisis impact is associated with more favourable welfare attitudes not only among its traditional supporters—such as the working class or the unemployed—but also among its traditional opponents, notably the self-employed. Furthermore, where social spending is higher, welfare state support is less strongly related to perceived crisis impact, suggesting that more encompassing welfare states mitigate the subjective impacts of the crisis. However, redistribution appears to be slightly more contested between those affected and those not affected by the crisis under better economic conditions. Given the challenges facing welfare states across Europe, it remains to be seen how stable a basis of popular support can be formed on these grounds.     

Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation?

This study examined the savings aspect of wealth accumulation by estimating differences in financial risk tolerance and equity ownership among individual investors. Data were obtained from a proprietary dataset that collected over 15,000 risk-tolerance attitude responses between late 2007 and early 2013. Two research methodologies were utilized: cluster analysis and ANCOVA. The cluster analysis identified four investor profiles: (a) young lower-income women, (b) young unmarried men, (c) young college-educated men, and (d) older men with high income and education. Results from the ANCOVA test indicated that each cluster had significantly different levels of equity ownership, controlling for financial risk tolerance. Results provide a framework and methodology for future research on issues related to wealth inequality, investment behavior, and risk attitudes. The ability to group individuals similarly can be an important tool for researchers, policy makers, social activists, financial advisers, financial counselors, and educators when analyzing the household and macroeconomic wealth profile of United States residents.     

Social Correlates of Psychological Well-Being Among Undergraduate Students in Mysore City

This study explores the impacts of social factors on psychological well-being mainly, gender, educational levels of parents, family income, occupation of parents, and family relationships. The research methodology I employed was guided by random sampling techniques; I selected two hundred eighty students, between the ages of, 19 and 22, from both genders, and different socioeconomic and religious backgrounds. These students were selected from a total of 8 governmental and private colleges in Mysore. I prepared a structured questionnaire for gathering the demographic information and assessing relevant social factors. To measure psychological well-being, I administered Ryff’s psychological well-being scales (Ryff in J Pers Soc Psychol 57(6):1069–1081, 1989). I used frequencies, distribution, and contingency coefficient to describe the variables such as, age, gender, education, religion, income, occupation and their association with type of colleges The data were statistically tested through a one way analysis of variance (ANOVA), Post Hoc Test (Duncan’s Multiple Range Test) and a t test using (SPSS, version 16). The findings of this quantitative study reveal that there were no gender differences in relation to psychological well-being of students. Educational levels of parents, occupation, income, and family relationships impact students’ psychological well-being. This study contributes to the literature in two ways. First, my work explores multiple social factors in tandem, instead of focusing on one social factor. Second, the current study probes into better understanding of the sociological issues that are related to characteristics of psychological well-being, particularly that of young college -age women and men. This research is supported by previous studies related to the psychological well-being.     

Social costs of displacement in Louisiana after Hurricanes Katrina and Rita

Hundreds of thousands of Louisiana citizens were displaced from their homes as a result of Hurricanes Katrina and Rita. Of those displaced within Louisiana some relocated to other parishes, some to other residences within the same parish, and others were able to return to their pre-storm residence. This article draws upon data gathered by the 2006 Louisiana Health and Population Survey to examine the social costs of displacement across 18 Louisiana parishes approximately 1 year after the hurricanes. Specifically, we examine how displacement affected housing, economic, and health outcomes for individuals and families. Further, we compare the implications of two types of displacement (1) internal displacement—within-parish relocation versus (2) external displacement—relocation across parish lines. We found that the displaced had lower odds of owning their homes, living in detached housing, and retaining access to primary health care facilities. The displaced were also more likely to be unemployed and exhibit symptoms consistent with severe mental illness. The externally displaced suffered income declines. These trends are critically important for understanding both the short- and long-term ramifications of displacement after disaster. Our findings have implications for theories, policy makers, and planners considering the larger social costs of disaster and large-scale displacement.     

Who gets custody?

Changes in the living arrangements of children have implications for social policy and children’s well-being. Understanding who gets custody on divorce—mother, father, or both sharing custody—can also inform our understanding of family organization and the merits of alternative theories of marriage and divorce. We examine physical-custody outcomes among recent Wisconsin divorces in an effort to understand the factors associated with shared custody as well as mother-sole custody and father-sole custody. Although mother-sole custody remains the dominant arrangement, shared custody has increased over a nine-year period. We find that the probability of shared custody increases with parent’s income. Prior marital history. parents’ ages, the age and gender of children, and the legal process also have an impact on the probability of shared custody. In contrast to shared custody, the probability of father-sole custody decreases with parent’s income, while the relationship with other significant factors is generally similar. The notable exception is that, unlike shared custody, we find no evidence for an increase over time in the probability of father-sole custody. We also find that when the father has a higher proportion of the Couple’s total income, both shared custody and father-sole custody are more likely.     

Life domain statisfactions and personal social integration

Data from a sample of northwestern Wisconsin residents were analyzed to identify the contribution of specific life domain satisfactions to the prediction of satisfaction with social integration. The results show the dominant impact of family satisfaction across the sample and its sub-populations of age, sex and income. The contribution of satisfactions with spare time activities and organizational involvement is also fairly uniform over the various groups. The impact of satisfactions with work, spiritual life and the remaining domains, on the other hand, is highly selective for different subpopulations. The results support the hypothesis of greater family and community centeredness among the lower income individuals and the elderly, and of the greater impact of organizational involvement, spare time activities and national affairs on the high income individuals. The differential impact of some of the resource and consumption domains across the subpopulations underlines the prominence of alternate consumption orientations and different resource instrumentalities for attaining the feelings of social integration.     

Individual Income Inequality and Its Drivers in Indonesia: A Theil Decomposition Reassessment

This article employs a Theil decomposition analysis to examine various dimensions of income inequality, using the 2007 Indonesian Family Life Survey. The empirical strategy is based on the individual-level income data—instead of group means as in the existing literature—and thus accounts for within-group dispersion of individual incomes. The decomposition exercise reveals that income inequality across education levels constitutes about 13 % of total income inequality. The urban–rural and interprovincial dimensions individually explain 6.0–6.5 %, but the contribution of income inequality by genders appears to be negligible. The findings highlight educational reform as an effective redistributive policy.     

Polarization or “Squeezed Middle” in the Great Recession?: A Comparative European Analysis of the Distribution of Economic Stress

This paper analyses variation in the impact of the Great Recession on economic stress across income classes for a range of advanced European countries. Our analysis shows Iceland, Ireland and Greece to be quite distinctive in terms of increases in their multidimensional income, material deprivation and economic stress profiles. Between 2008 and 2012 these countries moved from being predictably located within anticipated welfare regimes to becoming clear outliers. For this set of counties, each of which was exposed to different but severe forms of economic shock, trends in income class polarisation versus middle class squeeze were variable. Each exhibited substantial increases in levels of economic stress. However, changes in the pattern of income class differentiation were somewhat different. In Iceland a form of middle class squeeze was observed. For Ireland income class polarization did not exclude middle class squeeze. Greece came closest to fitting the polarization profile. Changes in the distribution of household equivalent income had no effect on stress levels once the impact of material deprivation was taken into account. Changes in levels of material deprivation played a significant role in accounting for changing stress levels but only for the three lowest income classes. These findings bring out the extent to which the impact of the Great Recession on the distribution of economic stress across classes varied even among the hardest-hit countries. They also serve to highlight the advantages of a multidimensional approach that goes beyond reliance on income in seeking to understand the impact of such shocks.     

Divorce as risky behavior

Given that divorce often represents a high-stakes income gamble, we ask how individual levels of risk tolerance affect the decision to divorce. We extend the orthodox divorce model by assuming that individuals are risk averse, that marriage is risky, and that divorce is even riskier. The model predicts that conditional on the expected gains to marriage and divorce, the probability of divorce increases with relative risk tolerance because risk averse individuals require compensation for the additional risk that is inherent in divorce. To implement the model empirically, we use data for first-married women and men from the 1979 National Longitudinal Survey of Youth to estimate a probit model of divorce in which a measure of risk tolerance is among the covariates. The estimates reveal that a 1-point increase in risk tolerance raises the predicted probability of divorce by 4.3% for a representative man and by 11.4% for a representative woman. These findings are consistent with the notion that divorce entails a greater income gamble for women than for men.     

Correction to: Horizontal Inequality and Data Challenges

Inequality and social exclusion receive considerable contemporary policy attention. In the field of international development, inequality—both vertical (between individuals and households) and horizontal (between groups)—is a core concern in the 2030 Agenda for Sustainable Development. Despite considerable attention to horizontal inequality in both research and policy, there are notable gaps and weaknesses in our empirical knowledge about how it manifests within and across countries and over time. This has implications not only for the rigour with which we can build and test theories in this area, but also for informing policy, monitoring trends, and evaluating the impact of interventions. This article probes what more can be learned from existing survey and census data to address empirical gaps. It argues that key methodological, conceptual, and—in particular—political issues pose persistent challenges for such survey and census data on topics relating to ‘ethnicity’ broadly defined. These challenges imply not only real limits in the so-called data revolution for sustainable development, but also risks to ‘evidence-based’ policy making in this area when it relies too heavily on quantitative data. This article serves also as the introductory and framing paper for this special issue.

     

The relationship between income and subjective well-being: Relative or absolute?

Although it appears that income and subjective well-being correlate in within-country studies (Diener, 1984), a debate has focused on whether this relationship is relative (Easterlin, 1974) or absolute (Veenhoven, 1988, 1991). The absolute argument advanced by Veenhoven states that income helps individuals meet certain universal needs and therefore that income, at least at lower levels, is a cause of subjective well-being. The relativity argument is based on the idea that the impact of income or other resources depends on changeable standards such as those derived from expectancies, habituation levels, and social comparisons. Two studies which empirically examine these positions are presented: one based on 18 032 college studies in 39 countries, and one based on 10 year longitudinal data in a probability sample of 4 942 American adults. Modest but significant correlations were found in the U.S. between income and well-being, but the cross-country correlations were larger. No evidence for the influence of relative standards on income was found: (1) Incomechange did not produce effects beyond the effect of income level per se, (2) African-Americans and the poorly educated did not derive greater happiness from specific levels of income, (3) Income produced the same levels of happiness in poorer and richer areas of the U.S., and (4) Affluence correlated with subjective well-being both across countries and within the U.S. Income appeared to produce lesser increases in subjective well-being at higher income levels in the U.S., but this pattern was not evident across countries. Conceptual and empirical questions about the universal needs position are noted. Suggestions for further explorations of the relativistic position are offered.     

Income and inequality as determinants of mortality: An international cross-section analysis

This paper analyses the effects of income and income distribution on mortality. The likely relation between income and mortality for individuals is discussed, and implications for the determinants of mortality at the community level inferred. Measures of income inequality are likely to be related to mortality on aggregate data because of the non-linearity of income effects. An international cross-section analysis is then undertaken in which different measures of income and income distribution are investigated as determinants of mortality, with life expectancy at birth and age five, and infant mortality taken as measures of the dependent variable. It is found that income distribution is consistently and strongly related to mortality; in a relatively inegalitarian country life expectancy may be between five and ten years lower than in a more egalitarian country.     

Toward a general theory of fertility: A causal modeling approach

A general theory of fertility is derived hypothesizing that the demand for children is primarily an outcome of social psychological processes within the family, subject to certain socioeconomic constraints. Two broad social psychological processes are posited as determinants of fertility. The first suggests that the attitudes or tastes of family members influence the demand for children. The second maintains that the nature of the husband-wife interaction (in terms of power, conflict, decision making, and marital satisfaction) determines family size. Socioeconomic variables, in the form of the normative social structure and social stratification, and economic constraints, such as income and price, are hypothesized to influence fertility through their impact on social psychological processes within the family. The overall theory is tested on two independent samples—one in Ankara, Turkey, the second in Mexico City, Mexico—using a structural equation methodology.     

East Asian Newly Industrializing Countries: Economic Growth and Quality of Life

The world is much impressed by the rapid economic development of four Asian Tigers – Hong Kong, Singapore, South Korea and Taiwan. However, it has often been taken for granted by many people that their social development is equally satisfactory. In order to investigate whether this belief is true or not, this paper looks at the levels of social development these countries have attained. Various measures of their quality of life will be assessed. Specifically, poverty, income distribution and environmental degradation are discussed. Despite their economic success, this study has found that most tigers are plagued by problems of poverty, increasing income disparities and environmental degradation. Further, social expenditures of these countries have been too limited to eliminate or impact on these problems.