On the parameters of Zenga distribution

In 2010 Zenga introduced a new three-parameter model for distributions by size that can be used to represent income, wealth, financial and actuarial variables. This paper proposes a summary of its main properties, followed by a focus on the interpretation of the parameters in terms of inequality. The scale parameter μ is equal to the expectation, and it does not affect the inequality, while the two shape parameters α and θ are inverse and direct inequality indicators respectively. This result is obtained through stochastic orders based on inequality curves. A procedure to generate a random sample from Zenga distribution is also proposed. The second part of this article looks at the parameter estimation. Analytical solution of method of moments is obtained. This result is used as a starting point of numerical procedures to obtain maximum likelihood estimates both on ungrouped and grouped data. In the application, three empirical income distributions are considered and the aforementioned estimates are evaluated. A comparison with other well-known models is provided, by the evaluation of three goodness-of-fit indexes.     

Efficient M-estimators with auxiliary information

This paper introduces a new class of M-estimators based on generalised empirical likelihood (GEL) estimation with some auxiliary information available in the sample. The resulting class of estimators is efficient in the sense that it achieves the same asymptotic lower bound as that of the efficient generalised method of moment (GMM) estimator with the same auxiliary information. The paper also shows that in case of smooth estimating equations the proposed estimators enjoy a small second order bias property compared to both efficient GMM and full GEL estimators. Analytical formulae to obtain bias corrected estimators are also provided. Simulations show that with correctly specified auxiliary information the proposed estimators and in particular those based on empirical likelihood outperform standard M and efficient GMM estimators both in terms of finite sample bias and efficiency. On the other hand with moderately misspecified auxiliary information estimators based on the nonparametric tilting method are typically characterised by the best finite sample properties.     

Education,inequality and electoral participation

In comparative terms, Italian electoral turnout has been very high since 1946. However, during the five elections from 1994 to 2008, turnout dropped more steeply than it did over the previous 12 elections from 1946 to 1992. The difference between maximum turnout in the early 1950s and the 2008 election was about 12%, and most of this decline (8%) occurred in the period 1992–2008. This paper finds robust evidence that individual and contextual social inequalities have been key factors in the recent fall of turnout. In particular our results clearly suggest that contextual social inequality lowers the turnout of less-educated voters and leaves it unaffected among high-educated ones. The recent decline in turnout may therefore be indicative of an important shift towards more unequal political participation. These findings are consistent with data showing that the post-1994 parties performed very poorly as mobilisation agencies compared with the old parties. Indeed, according to Franklin (2004), turnout trends can be effectively explained by changes in institutional rules and by the degree of electoral competitiveness. This paper suggests that, in order to explain turnout trends, the interactive effects of social and individual inequality should also be considered.     

Strings of Adulthood: A Sequence Analysis of Young British Women’s Work-Family Trajectories

Employment, union formation and childbearing are central processes within young individuals’ transition to adulthood. These processes interact in highly complex ways, and they shape actual life-course trajectories that may be seen as a conceptual unit. In this article we use a methodology to cluster life-course experiences, where all three processes are embedded explicitly, in order to study young women’s trajectories in Great Britain. Drawing on a sample from the British Household Panel Survey (BHPS), we define life-courses as sequences on a monthly time scale and we apply optimal matching analysis to compute dissimilarities between individuals. We then use standard clustering algorithms and we identify nine distinctive groups of women. Our results are then shown using a new representation of clusters and interpreted in the light of the existing socio-demographic literature on the dynamic work-family link.     

Violations of betweenness and choice shifts in groups

In decision theory, the betweenness axiom postulates that a decision maker who chooses an alternative A over another alternative B must also choose any probability mixture of A and B over B itself and can never choose a probability mixture of A and B over A itself. The betweenness axiom is a weaker version of the independence axiom of expected utility theory. Numerous empirical studies documented systematic violations of the betweenness axiom in revealed individual choice under uncertainty. This paper shows that these systematic violations can be linked to another behavioral regularity—choice shifts in a group decision making. Choice shifts are observed if an individual faces the same decision problem but makes a different choice when deciding alone and in a group.