Inequality of opportunity in the United Kingdom, 1991–2008

We investigate the extent to which the tax-and-transfer system of the United Kingdom equalizes opportunities for income attainment among citizens. Within the framework of Roemer’s theory of Equality of Opportunity, and using individual data from the British Household Panel Survey from 1991 to 2008, we calculate the tax rates necessary to equalize opportunities for different circumstances. We provide a ranking of these circumstances by the degree to which they influence income attainment. Although pre-fisc equality of opportunity increases over time, the tax rate necessary to equalize opportunities remains higher than the observed tax rate. Only under a relatively high labour supply elasticity the observed UK tax rate fares well in equalizing opportunities for income attainment.     

The Compensating Income Variation of Social Capital

There is a small but growing literature on the determinants of social capital. Most of these studies use a measure of trust to define social capital empirically. In this paper we use three different measures of social capital: the size of the individual’s social network, the extent of their social safety net and membership of unions or associations. A second contribution to the literature is that we analyze what social capital contributes to our well-being. Based on this, we calculate the compensating income variation of social capital. We find differences in social capital when we differentiate according to individual characteristics such as education, age, place of residence, household composition and health. Household income generally has a statistically significant effect. We find a significant effect of social capital on␣life␣satisfaction. Consequently, the compensating income variation of social capital is substantial. Thanks to Tijl Woortman for his research assistance.     

A Longitudinal Analysis of Job Satisfaction During a Recession in the Netherlands

Social Indicators Research - Between 2008 and 2013, the Netherlands was confronted by a severe recession. This recession may have affected the job satisfaction of workers. Currently, little is...     

Values,Perceived Risks and Benefits,and Acceptability of Nuclear Energy

We examined how personal values and perceptions of risks and benefits are associated with the acceptability of nuclear energy (NE). A theoretical model is tested in which beliefs about the risks and benefits of NE mediate the relationship between values and acceptability. The results showed that egoistic values are positively related to the perceived benefits and acceptability of NE. In contrast, altruistic and biospheric values were positively related to the perceived risks of NE. Although it has been argued that NE may help to combat climate change through lower CO₂ emissions, these environmental benefits were not acknowledged by people with strong biospheric values. Furthermore, results confirmed that the more risks respondents perceived, the less they were inclined to accept NE. In contrast, the more a person believed that NE has beneficial consequences, the more acceptable NE was. Finally, as expected, perceived risks and benefits were found to partly mediate the relationship between personal values and acceptability. We discuss the theoretical and practical implications of these findings.     

A New Perspective on Job Lock

This paper analyses the situation when employees fail to adapt to overall job dissatisfaction. By combining the existing knowledge in economics on job lock and in psychology on employees’ feeling of being ‘stuck’ at work, the paper explains why some employees fail to adapt when dissatisfied with their job. Thus, the paper aims to expand our understanding of why some employees are job locked or are ‘stuck’ at their work even though dissatisfied. Using the British household panel survey, the possibility of falling in a job-lock state is analyzed to outline a set of factors that explain why employees differ in the way they adjust to job dissatisfaction. We divide these factors into socio-demographic features, personality attributes, type of occupation, employment conditions, type of sector, and work-related contextual features. Based on results of probit regression analysis, we provide evidence that all these group of factors can jointly predict the state of job dissatisfaction, the absence of job turnover and job lock (being ‘stuck’ at job). Moreover, our results suggest that the adaptation to job dissatisfaction could be better understood if personality attributes (such as self-esteem) are included in the analysis. Thus, this study expands our understanding of how and why employees might feel ‘stuck’ at work and fall in a state of job lock.     

College Education and Social Trust: An Evidence-Based Study on the Causal Mechanisms

This paper examines the influence of college education on social trust at the individual level. Based on the literature of trust and social trust, we hypothesize that life experience/development since adulthood and perceptions of cultural/social structures are two primary channels in the causal linkage between college education and social trust. In the first part of the empirical study econometric techniques are employed to tackle the omitted-variable problem and substantial evidence is found to confirm the positive effect of college education. In the second part contemporary information is used to examine the hypothetical mechanisms in the causal inference. That life experience is a primary channel via which college education promotes social trust fails to find support in our examination, while individual perceptions of cultural and social structures explain up to 77% of the causal effect.     

Social Influence,Risk and Benefit Perceptions,and the Acceptability of Risky Energy Technologies: An Explanatory Model of Nuclear Power Versus Shale Gas

Risky energy technologies are often controversial and debates around them are polarized; in such debates public acceptability is key. Research on public acceptability has emphasized the importance of intrapersonal factors but has largely neglected the influence of interpersonal factors. In an online survey (N = 948) with a representative sample of the United Kingdom, we therefore integrate interpersonal factors (i.e., social influence as measured by social networks) with two risky energy technologies that differ in familiarity (nuclear power vs. shale gas) to examine how these factors explain risk and benefit perceptions and public acceptability. Findings show that benefit perceptions are key in explaining acceptability judgments. However, risk perceptions are more important when people are less familiar with the energy technology. Social network factors affect perceived risks and benefits associated with risky energy technology, hereby indirectly helping to form one's acceptability judgment toward the technology. This effect seems to be present regardless of the perceived familiarity with the energy technology. By integrating interpersonal with intrapersonal factors in an explanatory model, we show how the current “risk–benefit acceptability” model used in risk research can be further developed to advance the current understanding of acceptability formation.     

Personal probabilities of probabilities

By definition, the subjective probability distribution of a random event is revealed by the (‘rational’) subject's choice between bets — a view expressed by F. Ramsey, B. De Finetti, L. J. Savage and traceable to E. Borel and, it can be argued, to T. Bayes. Since hypotheses are not observable events, no bet can be made, and paid off, on a hypothesis. The subjective probability distribution of hypotheses (or of a parameter, as in the current ‘Bayesian’ statistical literature) is therefore a figure of speech, an ‘as if’, justifiable in the limit. Given a long sequence of previous observations, the subjective posterior probabilities of events still to be observed are derived by using a mathematical expression that would approximate the subjective probability distribution of hypotheses, if these could be bet on. This position was taken by most, but not all, respondents to a ‘Round Robin’ initiated by J. Marschak after M. H. De-Groot's talk on Stopping Rules presented at the UCLA Interdisciplinary Colloquium on Mathematics in Behavioral Sciences. Other participants: K. Borch, H. Chernoif, R. Dorfman, W. Edwards, T. S. Ferguson, G. Graves, K. Miyasawa, P. Randolph, L. J. Savage, R. Schlaifer, R. L. Winkler. Attention is also drawn to K. Borch's article in this issue.     

Consequences of effect size heterogeneity for meta-analysis: a Monte Carlo study

In this article we use Monte Carlo analysis to assess the small sample behaviour of the OLS, the weighted least squares (WLS) and the mixed effects meta-estimators under several types of effect size heterogeneity, using the bias, the mean squared error and the size and power of the statistical tests as performance indicators. Specifically, we analyse the consequences of heterogeneity in effect size precision (heteroskedasticity) and of two types of random effect size variation, one where the variation holds for the entire sample, and one where only a subset of the sample of studies is affected. Our results show that the mixed effects estimator is to be preferred to the other two estimators in the first two situations, but that WLS outperforms OLS and mixed effects in the third situation. Our findings therefore show that, under circumstances that are quite common in practice, using the mixed effects estimator may be suboptimal and that the use of WLS is preferable.     

Once an outsider,always an outsider? The accessibility of the Dutch rural housing market among locals and non-locals

One of the most pressing questions in the rural gentrification literature is whether rural residents face difficulties in finding a home within their locality due to the influx of more wealthy newcomers. In this paper, we investigate the extent to which intended local movers and intended non-local movers have realised their rural residential preferences in their preferred municipality. We perform multilevel multinomial logistic regression analysis on data from two housing surveys for the Netherlands that are enriched with register data from the longitudinal Social Statistical Database (SSD). Our results show that, despite of their lower income, intended local movers are more likely to find homes within their preferred rural location than are intended non-local movers. Intended non-local movers move more often to a location other than that initially preferred, with urbanites facing a higher likelihood to move to an urban area. The findings suggest that ties to the residential environment are more important in successfully finding housing in one's preferred rural location than are financial resources.