Education and Life Satisfaction in Relation to the Probability of Social Trust: a Conceptual Framework and Empirical Analysis

We employ cross-sectional microdata from 2010 through 2012 collected by the Italian National Institute of Statistics to investigate the proposed conceptual framework regarding the joint relationship between education, life satisfaction and the probability of social trust. The analysis has been carried out using two alternative specifications of the logit model: parametric and semiparametric. Our findings suggest that (a) both modelling methods that we utilise yield consistent results in terms of the positive effects of education and life satisfaction on social trust; (b) for unsatisfied individuals, social trust is generally low and largely unresponsive to the individual’s education level, whereas for ‘sufficiently satisfied’ individuals, social trust increases strongly with education; (c) there are some gender differences in the joint relationship between education, life satisfaction and social trust and (d) the parametric approach tends to mask some interesting patterns that are captured by the semiparametric specification. This finding implies that the parametric approach leads to a biased interpretation of the results, with an apparent failure of some of the assumptions made in the conceptual framework.     

Data-driven Kriging models based on FANOVA-decomposition

Kriging models have been widely used in computer experiments for the analysis of time-consuming computer codes. Based on kernels, they are flexible and can be tuned to many situations. In this paper, we construct kernels that reproduce the computer code complexity by mimicking its interaction structure. While the standard tensor-product kernel implicitly assumes that all interactions are active, the new kernels are suited for a general interaction structure, and will take advantage of the absence of interaction between some inputs. The methodology is twofold. First, the interaction structure is estimated from the data, using a first initial standard Kriging model, and represented by a so-called FANOVA graph. New FANOVA-based sensitivity indices are introduced to detect active interactions. Then this graph is used to derive the form of the kernel, and the corresponding Kriging model is estimated by maximum likelihood. The performance of the overall procedure is illustrated by several 3-dimensional and 6-dimensional simulated and real examples. A substantial improvement is observed when the computer code has a relatively high level of complexity.     

Dynamic Reflections of Crimes,Quasi Democracy and Misery Index in Pakistan

Massive increase in crimes has coexisted with rising inflation and high unemployment for the last couple of decades especially during democratic governments in Pakistan. In this paper, we explore the relationship between crime rate, misery index and democracy in Pakistan from 1975 to 2013. Granger causality test proposed the unidirectional causality running from misery index to crime rate in Pakistan. Estimating the crime function via Pasaran’s conditional error correction model, we found the significant long run equilibrium relationship between Okun’s misery index and crime rate which implies that rising inflation and unemployment rate are the major driving forces towards increasing crime rates in Pakistan. Finally, empirical evidence from Okun’s misery index suggested that people are three times more miserable in quasi democratic periods than that of dictatorship. The Barrow’s misery index model verifies that people are twice worsening in quasi democratic periods. Likewise, reported crimes are nearly twice during quasi democracy than quasi dictatorship. The crime model provided the evidence that people during quasi democratic governments are more likely tending towards crime as compared to quasi dictatorship during the study period in Pakistan. This implicitly advocates the fact that half hearted efforts and ill structured apparatus of democracy can augment the tendency of crime and misery rather than solution of such concerns of the economy.     

Heterogeneity,school-effects and the North/South achievement gap in Italian secondary education: evidence from a three-level mixed model

With the aim of assessing the extent of the differences in the context of Italian educational system, the paper applies multilevel modeling to a new administrative dataset, containing detailed information for more than 500,000 students at grade 6 in the year 2011/2012, provided by the Italian Institute for the Evaluation of Educational System. Data are grouped by classes, schools and geographical areas. Different models for each area are fitted, in order to properly address the heteroscedasticity of the phenomenon. The results show that it is possible to estimate statistically significant “school effects”, i.e., the positive/negative association of attending a specific school and the student’s test score, after a case-mix adjustment. Therefore, the paper’s most important message is that school effects are different in terms of magnitude and types in the three geographical macro areas (Northern, Central and Southern Italy) and are dependent on specific students’ and schools’ characteristics.     

The Paradox of Integration: Work-Integration Social Enterprises (WISE) and Productivist Welfare Regime in Hong Kong

After the Asian Financial Crisis, the government of Hong Kong embraced the model of work-integration social enterprise (WISE) to sustain its facilitative and productivist welfare regime. Using the WISE of Pro-Love for marginalized women as a case study, the article examines the meaning of employment and social disadvantage in the organization. The ethnographic data reveal that while the WISE encourages women to participate in the paid labor market, it constructs employment in the social enterprise as part-time jobs for supplementary family income, restricts the extension of social networks for the female workers, and reinforces the cultural stereotypes of marginalized women. The study reflects on the mechanisms of the project of WISE in the welfare contexts of Hong Kong, and argues that programs targeted at labor participation cannot be automatically translated into reduction of exclusion in other domains. Long-term planning, policy coordination, and social advocacy are necessary to achieve social integration.     

The psychometric and empirical properties of measures of risk preferences

We examine the psychometric and empirical properties of some commonly used survey-based measures of risk preferences in a population-based sample of 11,000 twins. Using a model that provides a general framework for making inferences about the component of measured risk attitudes that is not due to measurement error, we show that measurement-error adjustment leads to substantially larger estimates of the predictive power of risk attitudes, of the size of the gender gap, and of the magnitude of the sibling correlation. Risk attitudes are predictive of investment decisions, entrepreneurship, and drinking and smoking behaviors; are robustly associated with cognitive ability and personality; and our estimates are often larger than those in the literature. Our results highlight the importance of adjusting for measurement error across a wide range of empirical settings.     

Quantifying Economic Dependency

In this paper we compare several types of economic dependency ratios for a selection of European countries. These dependency ratios take into account not only the demographic structure of the population, but also the differences in age-specific economic behaviour such as labour market activity, income and consumption as well as age-specific public transfers. In selected simulations where we combine patterns of age-specific economic behaviour and transfers with population projections, we show that in all countries population ageing would lead to a pronounced increase in dependency ratios if present age-specific patterns were not to change. Our analysis of cross-country differences in economic dependency demonstrates that these differences are driven by both differences in age-specific economic behaviour and in the age composition of the populations. The choice of which dependency ratio to use in a specific policy context is determined by the nature of the question to be answered. The comparison of our various dependency ratios across countries gives insights into which strategies might be effective in mitigating the expected increase in economic dependency due to demographic change.     

Human Development and National Culture: A Multivariate Exploration

We examine the relationship between different aspects of human development and Hofstede’s six dimensions of national culture. Using multivariate regression and canonical correlation analysis, we show that all the dimensions of national culture except masculinity have a significant impact on human development, and that the overall strength of the association between the two groups of variables is a high positive one. In general, the direction of the influence of the national culture variables on economic growth differs from the manner they influence other variables, which reinforces the fact that economic growth does not always translate into true people-centred development. Furthermore, the national culture dimensions do not explain much of the variation in a number of health indicators.     

International Migration,Remittances Inflow and Household Welfare: An Intra Village Comparison from Pakistan

This study explores the financial costs, time involved in migration and benefits at household level. A household survey has been conducted to investigate about characteristics of migrants, transaction costs and sources of financing by which overseas migration is financed. Results of PSM technique explored that overseas migration conveys worthwhile benefits as measured by their total expenditures, food expenditures, non-food expenditures, clothing expenditures, expenditures on pots and pans, expenditures on vehicles and saving levels. Establishment of technical training institutions, creation of micro-finance institutions and enhancing their functioning as well as sensitization about ‘Pakistan Remittance Initiative’ would be some of the policy options in order to tackle with the problem.     

Konfundierte Ergebnisse durch ein zu stark beschränktes Design?

Recently C. Czymara and A. Schmidt-Catran published in this journal (KZfSS 2016 (2)) a factorial Survey-Experiment to contribute to the current debate on the inflow of refugees in Germany. The authors concluded from their Survey-Experiment that in particular highly qualified immigrants who show little culture distance should get accepted in Germany, while for instance Muslim immigrants would be more strongly rejected. In this comment it is argued that authors’ results probably suffered from a strong confounder bias. The employed experimental design also allows for a lot of alternative interpretations. Therefore, readers of the original article or further users of the data should be more cautious when interpreting the results.