Baby booming inequality? Demographic change and earnings inequality in Norway, 1967�C2000

In this paper, we demonstrate how age-adjusted inequality measures can be used to evaluate whether changes in inequality over time are due to changes in the age-structure. To this end, we use administrative data on earnings for every male Norwegian over the period 1967–2000. We find that the substantial rise in earnings inequality over the 1980s and into the early 1990s, is to some extent driven by the fact that the large baby boom cohorts are approaching the peak of the age–earnings profile. We further demonstrate that the impact of age-adjustments on the trend in inequality during the period 1993–2000 is highly sensitive to the method used: While the most widely used age-adjusted inequality measure indicates little change in inequality over this period, a new and improved age-adjusted measure suggests a decline in inequality.     

Does income inequality harm health? New cross-national evidence

The provocative hypothesis that income inequality harms population health has sparked a large body of research, some of which has reported strong associations between income inequality and population health. Cross-national evidence is frequently cited in support of this important hypothesis, but the hypothesis remains controversial, and the cross-national work has been criticized for several methodological shortcomings. This study replicates previous work using a larger sample (692 observations from 115 countries over the 1947-1996 period), a wider range of statistical controls, and fixed-effects models that address heterogeneity bias. The relationship between health and inequality shrinks when controls are included. In fixed-effects models that capture unmeasured heterogeneity, the association between income inequality and health disappears. The null findings hold for two measures of income inequality: the Gini coefficient and the share of income received by the poorest quintile of the population. Analysis of a sample of wealthy countries also fails to support the hypothesis.     

Immigrant groups’ income inequality within and across Italian regions

The relationship between Italian regional income inequality and the phenomenon of migration is still under current debate. Policymakers and researchers worry about the process of assimilation of the new entrants, in a country where regional disparities are strong. We provide evidence that regional income disparities apply to groups of immigrants as well as of nationals, but the most important source of inequality rests on within-immigrant group/within-region, especially for those households with the presence of women and very young children. However, if bottom incomes were to grow, inequality would not diminish, with the exception of married individuals living in the North, for no other characteristic is correlated to inequality according to the Atkinson bottom sensitive index. We show that the uneven economic development across regions then influences the distribution of immigration both in sociodemographic and economic terms.     

Spouses’ earnings association and inequality: A non-linear perspective

We analyze the association between spouses’ earnings taking account of non-linearities along both spouses’ distribution of earnings. We also document the non-linearity of the relationships between earnings and labor force participation, earnings and couple formation, and earnings and number of children. Using simulations, we then analyze how changes in spouses’ rank-dependence structure, labor force participation and couple formation contribute to the upsurge in inequality in the U.S between 1967 and 2018. We find that an increased tendency towards positive sorting contributed substantially to the rise in inequality only among dual-earner couples, while it contributed little to overall inequality across households. Temporal and distributional heterogeneity are important, as earnings association had a more substantial role in the bottom of the earnings distribution and in recent years. The decline in couple formation contributed substantially to the rise in inequality, while the increase in female labor force participation and the fertility decline had equalizing effects.

     

How much does reducing inequality matter for global poverty?

The Journal of Economic Inequality - The goals of ending extreme poverty by 2030 and working towards a more equal distribution of incomes are part of the United Nations’ Sustainable...     

What cultural hierarchy? Cultural tastes,status and inequality

Research on cultural stratification often draws on Bourdieu's misrecognition model to interpret socioeconomic gradients in cultural tastes and participation. In this model, an assumed cultural hierarchy leads individuals to adopt cultural tastes and behaviours whose status is congruent with that of their socioeconomic position (SEP). Yet, this assumed cultural hierarchy remains opaque. In this paper, we derive and test three empirical implications of the cultural hierarchy: (1) cultural activities have different status (recognition); (2) individuals in high and low SEPs have similar perceptions of the status of cultural activities (necessary condition for misrecognition); and (3) individuals prefer and engage in cultural activities whose status matches that of their SEP (status congruence). We collected survey data in Denmark and find that cultural activities differ in terms of perceived status (e.g., opera has higher perceived status than flea market), status perceptions are similar in high- and low-SEP groups and individuals prefer activities whose status matches that of their SEP. These results are consistent with the idea that a cultural hierarchy exists that sustains SEP gradients in cultural tastes and participation.     

Improvements in children’s health: Does inequality matter?

The literature on the contributions to poverty reduction of average improvements in living standards vs. distributional changes uses only one measure of well-being – income or expenditure. Given that poverty is defined by deprivation over different dimensions, we explore the role of average improvements and distributional changes in children’s health and nutrition using the height of young children as our measure of well-being. Similar to the income literature, we find that shifts in the mean level of heights, not changes in distribution, account for most improvements in heights. Unlike the literature on income inequality, however, there is a positive association between improvements in average heights and reduced dispersion of those heights.     

The Kuznets curve of human capital inequality: 1870–2010

This paper describes the long-term global trends in education inequality since 1870. Inequality in years of schooling is shown to have mechanically decreased along with the decline in the share of illiterate people. In search of a monetary equivalent of years of schooling, we turn to Mincer (1974) human capital ineq uality. Within countries, we find evidence of an inverted U-shape curve for human capital inequality over time, namely a Kuznets curve for human capital. At the global level, the world inequality in human capital has followed a similar trajectory, first increasing from 1870 to 1970, then decreasing.     

Growth with equity: income inequality in Vietnam, 2002–14

We use the 2002 through 2014 Vietnam Household Living Standards Surveys to construct comparable measures of household income and estimates of income inequality over this high-growth period. We focus on two questions: How have benefits from growth been distributed; and do changes in the structure of the economy map into changes in inequality? We explore dimensions in which inequality may vary, notably urban versus rural, and by ethnic status. We also decompose inequality by income source to highlight key factors underlying the relatively low levels of inequality during this period. We find that agricultural opportunities played an important role in dampening inequality, but more important has been the steady development of wage-labor markets in both urban and rural areas. An important caveat to the generally rosy picture we paint is the deteriorating position of ethnic minorities. Finally, we draw comparisons with China and document key differences in their growth-inequality experiences.     

Paralympics 2012 legacy: accessible housing and disability equality or inequality?

The golden summer of sport is now over, but what is the legacy of London 2012 for disabled people? Nadia Ahmed, a disabled student, discusses the difficulties she has faced in finding accessible accommodation in London. She argues that while the Games are over, the United Kingdom still has lots of hurdles to leap when it comes to disability. The article focuses on her own personal experience of not being able to get wheelchair-accessible accommodation in Tower Hamlets, a London borough that is a close neighbour of Stratford where the Olympic and Paralympic games were held. The article raises questions about disability equality following the Paralympics.     

Spatial inequality of rural industrial development in China, 1989–1994

Rural industry, having benefited from market oriented reforms, has surpassed state owned industry and become the largest industrial sector in China since 1993. Using multiple indicators, this study reveals a highly unbalanced spatial distribution and an increase in inequality of rural industrial development. It also classifies the level of development at the provincial level from 1989 to 1994. The relationship between rural industrial development and internal and regional characteristics is analyzed by multiple regression analysis. A very high correlation between rural industrial development and regional market indicators resulted in the conclusion that rural industry is a market economic sector and its development is driven by market forces in China's dual economy. The spatial patterns of rural industrial development reflect the viable, even optimum, location patterns created by the experience of the market economy. Although government policies attempted to reduce the inequality of rural industrial development among regions, the widened gap between rich and poor in the period 1989–1994 demonstrated the strong impacts of the concentrating effects of market forces.     

Does housework matter anymore? The shifting impact of housework on economic inequality

In recent years, American women’s housework time has declined while American men’s housework time has risen. We examine how these changes have affected economic inequality in the United States. Using time-diary data from the Time Use in Economic and Social Accounts, 1975–1976 (N = 1,484) and the American Time Use Survey, 2003 (N = 5,534), we value adults’ housework using two alternative methodologies and assess its influence on households’ real access to goods and services in both years. Results suggest that housework reduces economic inequality in both years. But, between 1975–1976 and 2002–2003, overall economic inequality rose largely because of the growing wage inequality and also, in part, because of growth in housework inequality. Socio-demographic change partially inhibited the overall growth in economic inequality.

Does belief in meritocracy increase with inequality? A reconsideration for European countries

Recent research finds that higher inequality reinforces a tendency to see inequality as legitimate, via beliefs about meritocracy. That pattern appears in a cross-sectional analysis—but it is seemingly evident also in a longitudinal analysis: an increase in inequality apparently leads to a stronger perception of a meritocratic process. I reconsider that finding here via an analysis that uses (1) a different set of countries, (2) a different time-period, and (3) different measures of inequality and beliefs about meritocracy. Using data from the European Social Survey on 17 countries from 2008 to 2016, I present results that are in tension with earlier research: an increase in inequality leads people to disagree more strongly with a core meritocratic principle—that is, the idea that large differences in incomes are needed to reward talents and effort.     

Cultural capital or relative risk aversion? Two mechanisms for educational inequality compared1

In this paper we empirically examined two explanatory mechanisms for educational inequality: cultural reproduction and relative risk aversion, using survey data taken from secondary school pupils in Amsterdam. Cultural reproduction theory seeks to explain class variations in schooling by cultural differences between social classes. Relative risk aversion theory argues that educational inequalities can be understood by between-class variation in the necessity of pursuing education at branching points in order to avoid downward mobility. We showed that class variations in early demonstrated ability are for a substantial part cultural: cultural capital - measured by parental involvement in highbrow culture - affected school performance at the primary and secondary level. However, relative risk aversion - operationalized by being concerned with downward mobility - strongly affects schooling ambitions, whereas cultural capital had no effect. Thus, we conclude that 'primary effects' of social origin on schooling outcomes are manifested through cultural capital and not through relative risk aversion (in addition to other potential sources of class variations such as genetics). Relative risk aversion, and not cultural capital, affects schooling ambitions, which is relevant for our understanding of secondary effects.     

Is the relationship between inequality and growth affected by physical and human capital accumulation?

Using the latest available data and semiparametric methods, we investigate how human and physical capital accumulation affects the relationship between income inequality and subsequent economic growth. We find that higher income inequality generally reduces economic growth over the next 5-year period. Within nations possessing little human capital, this inequality-growth penalty is exacerbated by higher levels of physical capital, thus implying that as the returns to human capital rise relative to physical capital, inequality becomes more harmful to growth. This inequality-growth pattern does not hold in well educated nations.     

What is new with old? What old age teaches us about inequality and stratification

Aging is remarkably unequal. Who survives to grow old in America and the circumstances they face once there reflect durable racial, socioeconomic, and gender inequalities that structure our lives from birth. Yet within the field of social stratification and mainstream sociology proper, examinations of the rapidly growing population of older Americans are often relegated to a “gerontological” periphery. This essay posits that the failure to place aging as a core concern in stratification and inequality is a missed opportunity. We argue for the importance of reintegrating studies on the stratification of aging and explain why such a move is necessary. Specifically, we posit that (a) examining the aging population is necessary for understanding American inequality because aging is an outcome that is ubiquitous yet highly stratified; (b) aging and being seen as “old” in a youth‐focused society are stratifying processes in their own right; and (c) later life provides for analytical comparisons that are illustrative of how key mechanisms of inequality structure and stratify. After examining insights provided by a new wave of research on the aging U.S. population, we revisit the implications for understanding inequality and stratification in a graying and unequal America.     

Cultural constraints on rising income inequality: A U.S.–Japan comparison

Prior research has identified fundamental cultural and normative concepts—including wa, enryo, giri, and amae—that are typically argued to be integral to Japanese society. We advance this line of research by discussing how these traditional cultural concepts may influence labor market relations and thereby constrain the degree of income inequality in Japan relative to the U.S. Collectivist cultural attitudes are embedded in Japanese work organization, and are naturally inherited social constraints when compared to more unbridled labor market relations of the “New Economy” in the U.S. While studies of rising inequality in the U.S. and Europe consider how governmental policies impinge upon market forces in order to moderate labor market outcomes, our analysis suggests how culture may sometimes directly constrain income inequality without imposing legal regulations or instituting official programs.     

Earnings inequality and skill mismatch in the U.S.: 1973–2002

This paper shows that skill mismatch is a significant source of inequality in real earnings in the U.S. and that a substantial fraction of the increase in wage dispersion during the period 1973–2002 was due to the increase in mismatch rates and mismatch premia. In 2000–2002, surplus and deficit qualifications taken together accounted for 4.3 and 4.6% of the variance of log earnings, or around 15% of the total explained variance. The dramatic increase in over-education rates and premia accounts for around 20 and 48% of the increase in the Gini coefficient during the 30 years under analysis for males and females respectively. The surplus qualification factor is important in understanding why earnings inequality polarized in the last decades.