Settlement policies and the economic success of immigrants

Many countries use settlement policies to direct the inflow of immigrants away from immigrant dense areas. We evaluate a reform of Swedish immigration policy that featured the dispersion of refugee immigrants, but also a change in the approach to labor market integration. We focus on how immigrants fared because of the policy. The evaluation indicates that immigrants experienced substantial long run losses. The bulk of the effect stems from a common component that affected immigrants regardless of location. We interpret the common component as being related to a shift in policy focus, from labor market assimilation to income support.All correspondence to Per-Anders Edin. We thank two anonymous referees, Magnus Löfström, seminar participants at the Institute for Labour Market Policy Evaluation (IFAU), Uppsala University, Stockholm University, the Swedish Institute for Social Research (SOFI), the Research Institute of Industrial Economics (IUI), and the CEPR conference on Marginal Labour Markets in Metropolitan Areas for valuable comments and Lisa Fredriksson for expert data assistance. We are also grateful to Sven Hjelmskog, Roland Jansson, Stig Kattilakoski, Christina Lindblom, Anders Nilsson, Kristina Sterne, and Lena Axelsson of the Immigration Board, and Anna Gralberg of the Ministry of Culture, who generously found time to answer our questions. This research has been partly financed through a grant from the Swedish Council for Work Life Research (RALF). Responsible editor: Christoph M. Schmidt.     

Premium differentiation in the Unemployment Insurance system and the demand for labor

We simulate the effect of the introduction of premium differentiation (experience rating) in the Dutch Unemployment Insurance system on the demand for labor for a variety of sectors in the Dutch economy. For the simulations we use the Bentolila and Bertola (1990) framework as a point of departure. In the simulations, the introduction of experience rating is modeled as expenditure neutral: in the absence of premium differentiation the cost of financing UI is modeled as a wage tax (independent of the number of workers fired by the firm), whereas in the presence of experience rating this cost is attributed to firing cost (affected by the firing action). Thus, the introduction of experience rating results in a shift from wage cost to firing cost. Following the political debate on the issue in the Netherlands, we assume that the introduction of experience rating does neither lead to a change in tax rates paid by workers nor to a change in eligibility rules or replacement rates of benefit claimants. Specific attention is paid to the distinction between young and old workers . In the model, labor adjustment costs (hiring and firing costs) are linear. The model allows for uncertainty in the business cycle.All correspondence to Hans Bloemen. Responsible editor: Alessandro Cigno     

Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers

This paper compares results from the empirical literature on internal labor markets with outcomes from analyzing personnel data of the Dutch aircraft manufacturer Fokker. It sheds light on differences in the functioning of internal labor markets between periods of workforce growth and decline. Despite substantial variation in individual wages, careers are important as wages are strongly related to job levels. Promotion rates fall and demotion rates rise when the firm enters the stage of demise. Vertical and lateral job mobility are important in internal labor market careers as they stimulate wage growth and reduce the lay-off risk.     

Regional fertility trends in Mozambique

This article increases our knowledge of Mozambique's demography by assessing the nature and magnitude of fertility decline, using the 1980 and 1997 censuses and the 1997 Demographic and Health Survey. Several robust methods, including P/F ratios from census and birth history data, the own-children procedure (census data), and estimates of censored parity progression ratios (adjusted for truncation bias) are used to identify fertility trends. Regional differences in fertility trends are discussed in the light of the proximate determinants of fertility. Fertility decline has started in Mozambique but the magnitude of the decline differs among the three administrative regions in the country. In Southern Region the fertility decline is well established, while in Northern and Central regions the decline is still incipient.     

The Time-Pressure Illusion: Discretionary Time vs. Free Time

People’s welfare is a function of both time and money. People can – and, it is said, increasingly do – suffer time-poverty as well as money-poverty. It is undeniably true that people feel increasingly time pressured, particularly in dual-earner households. But much of the time devoted to paid and unpaid tasks is over and above that which is strictly necessary. In that sense, much of the time pressure that people feel is discretionary and of their own making. Using data from the 1992 Australian Time Use Survey, this paper demonstrates that the magnitude of this ‘time-pressure illusion’ varies across population groups, being least among lone parents and greatest among the childless and two-earner couples.     

The Wealth of Nations and the Happiness of Nations: Why “Accounting” Matters

We review income-happiness research in light of competing theoretical frameworks, unit of analysis, and methodological issues. Within-countries, absolute income is weakly related to happiness, comparison effects depend on the measure utilized, and income change and perceived income produce inconsistent findings. Across countries, absolute income is a stronger predictor of happiness, different comparison effects are significant, income change results are predominantly positive, and the financial-life satisfaction relationship is more robust.     

Income and “Outcomes” for Elderly: DO the Poor have A Poorer Life?

The objective of this paper is to analyze the relationship between income and living conditions and well-being of elderly. The best from two worlds is used for this purpose: a Danish survey covering 1440 elderly aged 72 and 77 from 1997, connected to reliable register information on income, 1988–1996. Indicators of physical activity, social and solitary activities, social contact, functional capability, loneliness and psychological well-being are constructed from the survey. Ordered logistic models are estimated controlling for demographics, education, previous occupation and whether the elderly are still working. It is found that elderly with low income levels have poorer functional capability, lower physical activity and poorer psychological well-being whereas social contact and social activities show no relationship with income. The relationship with income vanishes for solitary activities and loneliness when adding control variables. Having established that robust relations exist between income and some measures of well-being of elderly, we turn to an investigation of causality. Simultaneous models are estimated to assess whether the income relationship can be causally interpreted for functional capability and physical activity. The results show that it cannot be rejected that the income effects are causal, although care should be taken when interpreting results. We finally address our findings in the light of current and future changes regarding the size and economic well-being of the elderly population.     

Self-Efficacy,Pulmonary Function,Perceived Health and Global Quality of Life of Cystic Fibrosis Patients

This study examined the extent that pulmonary function is related to perceived health status and global quality of life in adults suffering from cystic fibrosis, and the extent that self-efficacy modifies these relationships. Our sample comprised 86 adults (48% female; mean age, 29 years; age range, 18–54 years) with cystic fibrosis, recruited from the Norwegian Competence Centre for Cystic Fibrosis (83% response rate). Both subjective data on psychosocial aspects of living with cystic fibrosis, and objective data on pulmonary function (FEV1%) were assessed. Psychosocial aspects were assessed by a questionnaire that included St George’s Respiratory Questionnaire (perceived health status), the Generalized Self-Efficacy Scale (perceived self-efficacy), and the Quality of Life Scale (global quality of life). We found that self-efficacy is an additional factor explaining health status and global quality of life. Pulmonary function is important for health status, but not for global quality of life, for which perceived self-efficacy and health status are the most significant variables. These results show that self-efficacy is as important as pulmonary function for the perceived health status and global quality of life of patients. These valuable findings should be considered in the treatment and care of adult patients suffering from cystic fibrosis.     

Stability of environment and of insect populations

Summary The abundance of moths was monitored with light-traps in two sites in southern Bohemia, České Budějovice for 22 years and in Černiš for 9 years. In these sites, that are vastly different in environmental stability and predictability, stability of insect populations was studied. The amplitude of fluctuations in abundance of the insect populations, as measured by the coefficient of variation (CV), varied a great deal between species so that there was a large overlap between the two sites. Nevertheless there was a highly significant tendency for species at Černiš, the more stable site, to have smaller values of CV, i.e., to be less fluctuating. Also in species co-occurring in the two sites, the CV at Černiš tended to be smaller. Trends in abundance of individual species over time, both increases and decreases, were common in both sites and did not differ between habitats. Environmental stability begets insect population stability in terms of the amplitude of the fluctuations, but trends in time occur irrespective of stability of the habitat.