Corruption and the ‘Paradox of Redistribution’

The existing literature on the determinants of income redistribution has identified a ‘paradox’. Namely, that countries with a high degree of market income inequality redistribute little, which is in disagreement with the median voter theorem. In a first step, this paper outlines several mechanisms that explain why government corruption might be partially responsible for this ‘paradox’. In a second step, different corruption perception indices and an instrumental variable approach are used to provide empirical evidence that indicates a significant negative impact of corruption on redistribution levels for a sample of 148 developing and developed countries. This finding suggests that, next to political and need factors, government corruption explains to some extent the ‘paradox of redistribution’. This is especially true for many developing countries, given that they typically have relatively high degrees of corruption and low levels of redistribution.     

Does It Matter How We Assess Standard of Living? Evidence from Indian Slums Comparing Monetary and Multidimensional Approaches

As part of Sustainable Development Goals, the United Nations have set targets of upgrading slums and reducing poverty in all its dimensions by 2030. Policies towards improving the living conditions of slum-dwellers require proper assessment of their standard of living as well as understanding the associated characteristics. In this paper, using slum-level primary household survey data from three largest Indian cities, we, first, assess the standard of living of slum dwellers using both monetary and non-monetary approaches and then explore how various household and spatial characteristics are consistently or differently associated with both forms of assessments. We use standard monetary indicators, but to assess non-monetary standard of living, use a counting approach framework and justify the selection of specific indicators in the context of slums. Our analysis yields some interesting observations as some characteristics are differently associated with monetary and non-monetary living standards, which should affect policy designs in slums.     

What is Happening with Quality of Life Among the Oldest People in Southern European Countries? An Empirical Approach Based on the SHARE Data

Population aging in developed countries has created new challenges to improve the well-being of individuals at different age cohorts. This issue is especially significant for Southern European countries, were aging societies have worse health and less socio-economic resources. The aim of this study is to contribute to this body of literature and to estimate the effect of aging on quality of life of oldest people. This paper uses the latest available data (6th wave) from the Survey on Health, Ageing and Retirement in Europe (SHARE). Specifically, robust ordinary least squares and multilevel regressions are employed to analyse the effects of socioeconomic, health, and community factors on quality of life among the oldest population for Southern European countries. Our findings confirm the significance of several factors on life satisfaction among the oldest population in this group of countries. Moreover, we show that the determinants which are correlated with quality of life include predisposing, health, geographic area and social isolation factors.     

Immigration and internal mobility in Canada

We analyse the impact of temporary foreign workers (TFWs) and permanent immigrants on interprovincial mobility in Canada. Empirical results are analysed through the lens of a theoretical model that incorporates a job-matching framework in a migration model à la Harris and Todaro. The effect of the inflow of TFWs in interprovincial mobility is negative, substantial and significant. This is not the case for the inflow of permanent immigrants selected through the Canadian point system. The robustness of these empirical results to issues of endogeneity is assessed through a classical instrumentation approach as well as through a diff-in-diff analysis taking advantage of a pilot project facilitating the admission of TFWs in two Western provinces over the 2007–2010 period. Our paper suggests that, in general, the impact of immigration on labour market conditions depends critically on the way immigration policy is set.     

Population age structure and consumption growth: evidence from National Transfer Accounts

We assess the effects of the population age structure and the population dynamics on economic growth. Following recent research, we focus on the generational turnover effect to characterize the influence of birth and death rates, depending on the age profile of individual consumption, the extent of annuity market imperfections, and the willingness of households to shift consumption over time. Using data from the National Transfer Accounts on age profiles of consumption for a number of different countries, we assess—in a comparative way—the sign and the magnitude of the generational turnover effect and its impact on economic growth. We find considerable cross-country differences and trace them back to the underlying variation in demography and in the age structure of consumption.     

The heterogeneous impact of pension income on elderly living arrangements: evidence from China’s new rural pension scheme

This paper investigates the impact of pension income on living arrangements of the elderly. Taking advantage of a unique opportunity due to the recent establishment and expansion of the New Rural Pension Scheme in China, we explicitly address the endogeneity of pension status and pension income through a fixed-effect model with instrumental variable approach by exploiting exogenous time variation in the program implementation at county level. We find an overall positive effect of pension income on independent living as well as considerable heterogeneity. The positive income effects of the NRPS are concentrated among the elderly with adult children living nearby, of higher socio-economic status, and with better health at baseline; for other groups, the effects are insignificant. We also find that more generous programs exhibit larger effects. Our results highlight that living arrangement is multidimensional in rural China.     

The effects of school desegregation on mixed-race births

We find a strong positive raw correlation between black exposure to whites in their school district and the prevalence of later mixed-race (black-white) births, consistent with the literature on residential segregation and endogamy. However, that relationship is significantly attenuated by the addition of a few control variables, suggesting that individuals with higher propensities to have mixed-race births are more likely to live in desegregated school districts. We exploit quasi-random variation from court-ordered school desegregation to estimate causal effects of school desegregation on mixed-race childbearing, finding small to moderate effects that are largely statistically insignificant. Because the upward trend across cohorts in mixed-race childbearing was substantial, separating the effects of desegregation plans from secular cohort trends is difficult; results are sensitive to how we specify the cohort trends and to the inclusion of Chicago/Cook County in the sample. The fact that the addition of a few control variables substantially weakens the cross-sectional relationship between lower levels of school segregation and higher rates of mixed-race childbearing suggests that a substantial portion of the observed correlation is likely due to who chooses to live in places with desegregated schools. Researchers should be cautious about interpreting raw correlations between segregation—whether residential or school—and other outcomes as causal. Our results also point to the need to carefully explore specification of cohort effects in quasi-experimental designs for treatments where cumulative exposure is important.     

Do significant labor market events change who does the chores? Paid work,housework, and power in mixed-gender Australian households

We examine how men and women in mixed-gender unions change the time they allocate to housework in response to labor market promotions and terminations. Operating much like raises, such events have the potential to alter intra-household power dynamics. Using Australian panel data, we estimate couple-specific fixed effects models and find that female promotion has the strongest association with housework time allocation adjustments. These adjustments are in part attributable to concurrent changes in paid work time, but gender power relations also appear to play a role. Further results indicate that households holding more liberal gender role attitudes are more likely to adjust their housework time allocations after female promotion events. Power dynamics cannot, however, explain all the results. Supporting the sociological theory that partners may “do gender,” we find that in households with more traditional gender role attitudes, his housework time falls while hers rises when he is terminated.     

Missing time with parents: son preference among Asians in the USA

We study prevalence of son preference in families of East and South Asian origin living in the USA by investigating parental time investments in children using American Time Use Surveys. Estimates show that East and South Asian mothers spend an additional hour of quality time per day with their young (aged 0–2 years) sons than with young daughters; son preference in mothers’ time allocation declines as children get older. East and South Asian fathers’ time with young children is gender neutral. We find gender specialization in time with children aged 6–17 with fathers spending more time with sons and mothers spending more time with daughters.