Fulfilment of basic needs from a subjective point of view in rural Guatemala

Guardiola J, García‐Muñoz T. Fulfilment of basic needs from a subjective point of view in rural Guatemala Int J Soc Welfare 2011: 20: 393–403 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and the International Journal of Social Welfare. The study of subjective wellbeing in developing countries is a relatively new field of research, but interest is increasing among researchers. A few decades ago, techniques such as the basic needs approach were applied in order to understand development. The basic needs framework has recently been used to define and monitor the Millennium Development Goals. However, it is limited when it comes to defining the content of basic needs and determining to what extent they are being satisfied, which leaves this decision to an external authority other than the individual. In this article, we estimated how certain indicators and assets have influenced the perception of basic needs in a rural area of Guatemala using a data set containing 369 interviews with Mayan households. The results allowed us to identify the characteristics or assets that influence the perception of basic needs, leaving the decision as to the Mayan people themselves as to whether their basic needs are being met.     

The mandatory private pension pillar in Hungary: An obituary

In 1998, the left‐of‐centre government of Hungary carved out a second‐pillar mandatory private pension scheme from the original mono‐pillar public system. Participation in the two‐pillar system was optional for those who were already working, but mandatory for new entrants to the workforce. About 50 per cent of the workforce joined the second pillar voluntarily and another 25 per cent were mandated to do so by law between 1999 and 2010. The second pillar has not improved the financial stability of the social security system. Moreover, the international financial and economic crisis has highlighted the transition costs that are associated with moving, even if only partially, to a system of pre‐funding. In 2010, the conservative government de facto “nationalized” the second pillar, and it is to use part of the accumulated pension capital to reduce Hungary's excessive public debt and annual budget deficit and to compensate for income tax reductions.     

Cooperative Institutions and Inequality in the OECD: Bringing the Firm Back In*

Objective. To examine the relationship between firm‐level cooperation, inequality, and redistribution in 18 advanced industrialized democracies. Methods. The relationships are investigated using multiple regression analyses of institutional, political, and economic variables. Results. Multilevel models reveal that contrary to neocorporatism, firm‐level cooperative ties have significant inegalitarian effects, particularly in the distribution of pretax, pretransfer market income. The effects, however, are also felt in the distribution of posttax, posttransfer income. Conclusion. By paying attention to the effect of firm‐level cooperation, the study sheds new light on inequality in the OECD as a result of both market‐based and nonmarket coordination.     

Cross‐Border Earnings of U.S. Natives Along the U.S.‐Mexico Border*

Objective. This study explores whether the earnings of U.S.‐born cross‐border workers differ from those of their U.S.‐employed counterparts. We also analyze whether the cross‐border/non‐cross‐border wage differential changed during the 1990s—a decade when U.S.‐Mexico trade intensified and the maquiladora industry expanded. Methods. Employing decennial U.S. Census data from 1990 and 2000, this article estimates earnings functions and uses wage decomposition analysis to study changes in the earnings of U.S.‐born Hispanic and non‐Hispanic cross‐border workers. Results. The number of U.S.‐native cross‐border workers, while relatively small, increased significantly between 1990 and 2000, as did their earnings. A closer examination reveals that this cross‐border earnings premium only developed among non‐Hispanics. Conclusions. These findings indicate that some U.S. natives find lucrative employment opportunities on the Mexican side of the border, which might be diminished by additional restrictions for U.S.‐born residents to easily cross back and forth into Mexico.     

Interpretation of the coefficient of determination of an ANOVA model as a measure of polarization

In this paper, it is demonstrated that coefficient of determination of an ANOVA linear model provides a measure of polarization. Taking as the starting point the link between polarization and dispersion, we reformulate the measure of polarization of Zhang and Kanbur using the decomposition of the variance instead of the decomposition of the Theil index. We show that the proposed measure is equivalent to the coefficient of determination of an ANOVA linear model that explains, for example, the income of the households as a function of any population characteristic such as education, gender, occupation, etc. This result provides an alternative way to analyse polarization by sub-populations characteristics and at the same time allows us to compare sub-populations via the estimated coefficients of the ANOVA model.     

A Bayesian analysis of the Conway–Maxwell–Poisson cure rate model

The purpose of this paper is to develop a Bayesian analysis for the right-censored survival data when immune or cured individuals may be present in the population from which the data is taken. In our approach the number of competing causes of the event of interest follows the Conway–Maxwell–Poisson distribution which generalizes the Poisson distribution. Markov chain Monte Carlo (MCMC) methods are used to develop a Bayesian procedure for the proposed model. Also, some discussions on the model selection and an illustration with a real data set are considered.     

Longitudinal Analysis of the Domains of Satisfaction Before and After Disability: Evidence from the German Socio-Economic Panel

The aim of this paper is to analyse the effect of the onset of disability on life satisfaction and five different domains of satisfaction (health, household income, housing, job, leisure) for German individuals. Particular attention is paid to examining whether individuals can adapt to disability over time before and after its onset in terms of satisfaction. Using longitudinal data from the German Socio-Economic Panel (GSOEP) for the period 1984?C2008, we estimate an innovative fixed-effects model on life satisfaction and each domain of satisfaction for working-age males (aged 21?C58), which allows us to estimate lag and lead effects and thus to test the anticipation and adaptation hypotheses. Although individual obtain complete adaptation to disability in terms of global life satisfaction (5?years after the onset), this adaptation is not complete in all domains of satisfaction. For example, despite the fact that the levels of health satisfaction drop as the individual becomes disabled, after the onset it increases but the levels are lower than those reached before the onset. In contrast, the adaptation is especially faster in the terms of leisure satisfaction (3?years after the onset), household income and housing satisfaction (5?years after the onset in both cases). Our results support the findings obtained in other psychological studies that conclude that the domain of disability extends far beyond health related concerns to encompass the person??s well-being definition of self and social position. Finally, these findings may help policy makers and government to promote social and economic measures and actions lead to increase the scores of global well-being and specific domains of satisfaction of this collective.     

The stochastic component in choice and regression to the mean

In this article, we illustrate experimentally an important consequence of the stochastic component in choice behaviour which has not been acknowledged so far. Namely, its potential to produce ‘regression to the mean’ (RTM) effects. We employ a novel approach to individual choice under risk, based on repeated multiple-lottery choices (i.e. choices among many lotteries), to show how the high degree of stochastic variability present in individual decisions can distort crucially certain results through RTM effects. We demonstrate the point in the context of a social comparison experiment.     

Centralized inventory in a farming community

A centralized inventory problem is a situation in which several agents face individual inventory problems and make an agreement to coordinate their orders with the objective of reducing costs. In this paper we identify a centralized inventory problem arising in a farming community in northwestern Spain, model the problem using two alternative approaches, find the optimal inventory policies for both models, and propose allocation rules for sharing the optimal costs in this context.     

Modeling Risk‐Related Knowledge in Tunneling Projects

Knowledge on failure events and their associated factors, gained from past construction projects, is regarded as potentially extremely useful in risk management. However, a number of circumstances are constraining its wider use. Such knowledge is usually scarce, seldom documented, and even unavailable when it is required. Further, there exists a lack of proven methods to integrate and analyze it in a cost‐effective way. This article addresses possible options to overcome these difficulties. Focusing on limited but critical potential failure events, the article demonstrates how knowledge on a number of important potential failure events in tunnel works can be integrated. The problem of unavailable or incomplete information was addressed by gathering judgments from a group of experts. The elicited expert knowledge consisted of failure scenarios and associated probabilistic information. This information was integrated using Bayesian belief‐networks‐based models that were first customized in order to deal with the expected divergence in judgments caused by epistemic uncertainty of risks. The work described in the article shows that the developed models that integrate risk‐related knowledge provide guidance as to the use of specific remedial measures.