Do childbirth grants increase the fertility rate? Policy impacts in South Korea

In response to a low fertility rate, a number of municipalities in South Korea have been providing family benefits in the form of childbirth grants and child allowances. Using panel data for 230 municipalities that spans the years 2001–2014, this paper examines the impacts of family benefits on the fertility rate in Korea. I use the fact that different municipalities began providing the family benefits at different times to estimate the impact of family benefits on fertility rates using a difference-in-differences approach. This study finds a positive effect of family benefits on total fertility rate. Moreover, it finds little evidence of an anticipatory response within municipalities that adopted the policy. Given that a 10 million Korean won increase in family benefits is associated with a 3.5% increase in the total fertility rate, an increase in family benefits of about 44 million Korean won per child would be required to raise the total fertility rate to a safe zone above 1.5 children per woman, where population declines are gradual and easily reversed.     

Life satisfaction in China and consumption and income inequalities

This research uses nationally representative data to study how economic resources and inequalities are associated with life satisfaction of Chinese residents. We construct economic resource and inequality measures from expenditure rather than from income, after confirming that expenditure inequality is a better measure in the Chinese context. We find that economic inequalities in general are negatively associated with life satisfaction, and that this association is larger for inequalities in the lower half of the distribution than those in the upper half of the distribution. We further explore the mechanisms under which inequality can be associated with life satisfaction, and find that aspiration is potentially one important channel.     

Wealth and inheritance in Britain from 1896 to the present

Personal wealth has grown since the 1970s twice as fast in real terms as national income. Has this rise in the wealth-income ratio led to a corresponding increase in the wealth being passed on from one generation to the next? Are we returning to the levels of inheritance found in the 19th century? The aim of this paper is to construct UK evidence on the extent of the transmission of wealth in the form of estates and gifts inter vivos. It takes a long-run view of inheritance, starting from 1896, when the modern Estate Duty was introduced, and exploits the extensive estate data published over the years. Construction of a long-run time series for more than a century is challenging, and there are important limitations. The resulting time-series demonstrates the major importance of inheritance in the UK before the First World War, when the total transmitted wealth represented some 20 per cent of net national income. In the inter-war period, the total was around 15 per cent, falling to some 10 per cent after the Second World War, and then falling further to below 5 per cent in the late 1970s. Since then, there has indeed been an upturn: a rise from 4.8 per cent in 1977 to 8.2 per cent in 2006. This increase was more or less in line with the increase in personal wealth, and has to be interpreted in the light of the changing net worth of the corporate and public sectors of the economy.     

From classes to copulas: wages,capital, and top incomes

Public debates about the rise in top income shares often focus on the growing dispersion in earnings, and the soaring pay for top executives and financial-sector employees. But can the change in the marginal distribution of earnings on its own explain the rise in top income shares? Are top executives replacing capital owners in the group of top-income earners, or are we rather witnessing a fusion of top capital and top earnings? This paper proposes an extension of the copula framework and uses it for exploring the changing composition of top incomes. It illustrates that changes in top income shares can easily be decomposed into respective changes in the marginal distributions of labour and capital income and the changing association between the two types of income. An application using tax record data from Norway shows that the association between top labour and capital incomes grew stronger between 1995 and 2005 in the top half of the wage and capital income distribution, though it declined for the top 1% of capital income receivers. A gender decomposition demonstrates that the association of wage and capital incomes at the top is particularly striking for men, whilst women are largely under-represented in the top halves of the two marginal distributions.     

Banking crises in the US: the response of top income shares in a historical perspective

This paper examines the response of income concentration in the US to the occurrence of major systemic banking crises since the beginning of the twentieth century. In doing so, the paper analyzes the shape of the upper income tail as well as the national income shares accruing to different groups within the richest decile. The findings suggest that systemic banking crises reduce income concentration within the top decile of the US pre–tax and transfers income distribution, and more generally, that the effect is highly heterogeneous across different top income groups. While the richest income group loses ground, the lower half of the top decile appears to gain in relative terms. However, evidence suggests that the estimated short-term effect of market forces stemming from banking crises can be relatively small in magnitude and even temporary in nature, as it may be quickly reabsorbed. These findings lend indirect support to the idea that only substantial changes in government policies and institutional frameworks can bring about radical changes in income distribution.     

How to measure and proxy permanent income: evidence from Germany and the U.S.

Permanent income (PI) is an enduring concept in the social sciences and is highly relevant to the study of inequality. Nevertheless, there has been insufficient progress in measuring PI. We calculate a novel measure of PI with the German Socio-Economic Panel (SOEP) and U.S. Panel Study of Income Dynamics (PSID). Advancing beyond prior approaches, we define PI as the logged average of 20+ years of post-tax and post-transfer (“post-fisc”) real equivalized household income. We then assess how well various household- and individual-based measures of economic resources proxy PI. In both datasets, post-fisc household income is the best proxy. One random year of post-fisc household income explains about half of the variation in PI, and 2–5 years explain the vast majority of the variation. One year of post-fisc HH income even predicts PI better than 20+ years of individual labor market earnings or long-term net worth. By contrast, earnings, wealth, occupation, and class are weaker and less cross-nationally reliable proxies for PI. We also present strategies for proxying PI when HH post-fisc income data are unavailable, and show how post-fisc HH income proxies PI over the life cycle. In sum, we develop a novel approach to PI, systematically assess proxies for PI, and inform the measurement of economic resources more generally.     

Fragmentierung sozialer Zugehörigkeit in Unternehmen durch Ökonomisierung

This article focuses on unintended consequences of internal-marketisation strategies on employees’ social belonging to companies. By the example of two case studies, it shows that internal marketisation may foster a fragmentation of social belonging, specifically reflected by established-outsider figurations within the workforce. Moreover, case-study results highlight the importance of “third actors”, e.?g. management, for the fragmentation of social belonging at company level. Therefore, competence building of third actors is required to prevent or effectively deal with fragmentation of social belonging at company level.     

Bindung(en) in der Arbeitswelt

Vanishing or decreasing attachment is an indicator for changes within a work-oriented society. This particularly affects employment and our organizational commitment as well as bonds that are established in the context of professional relationships. This text provides a comparative analysis of two attachment-theoretical approaches that have developed simultaneously but independently from one another: commitment research into organizational psychology on the one hand and attachment theory based on developmental psychology on the other. Both are to be examined for their potential, their theoretical and empirical response to current dynamics in the world of work.     

Effects of physical,virtual reality-based,and brain exercise on physical,cognition, and preference in older persons: a randomized controlled trial

Background

Physical exercise (PE), virtual reality-based exercise (VRE), and brain exercise (BE) can influence physical and cognitive conditions in older persons. However, it is not known which of the three types of exercises provide the best effects on physical and cognitive status, and which exercise is preferred by older persons. This study compared the effects of PE, VRE, and BE on balance, muscle strength, cognition, and fall concern. In addition, exercise effort perception and contentment in older persons was evaluated.

Methods

Eighty-four older persons (n?=?84) were randomly selected for PE, VRE, BE, and control groups. The exercise groups received 8-week training, whereas the control group did not. Balance was assessed by Berg Balance Scale (BBS) and Timed Up and Go test (TUG), muscle strength by 5 Times Sit to Stand (5TSTS) and left and right hand grip strength (HGS), cognition by Montreal Cognitive Assessment (MoCA) and Timed Up and Go test Cognition (TUG-cog), fall concern by Fall Efficacy Scale International (FES-I), exercise effort perception by Borg category ratio scale (Borg CR-10), and exercise contentment by a questionnaire.

Results

After exercise, PE significantly enhanced TUG and 5TSTS to a greater extent than VRE (TUG; p?=?0.004, 5TSTS; p?=?0.027) and BE (TUG; p?=?0,012, 5TSTS; p?<?0.001). VRE significantly improved MoCA (p?<?0.001) and FES-I (p?=?0.036) compared to PE, and 5TSTS (p?<?0.001) and FES-I (p?=?0.011) were improved relative to BE. MoCA was significantly enhanced by BE compared to PE (p?<?0.001) and both MoCA and TUG-cog were improved compared to VRE (p?=?0.04). PE and VRE significantly (p < 0.001) increased Borg CR-10 in all exercise sessions, whereas BE showed a significant improvement (p?< 0.001) in the first 4 sessions. Participants had a significantly greater satisfaction with BE than controls (p?=?0.006), and enjoyed VRE and BE more than PE (p?< 0.001). Subjects in all exercise groups exhibited benefits compared to the control group (p?< 0.001).

Conclusions

PE provided the best results in physical tests, VRE produced measurable improvements in physical and cognition scores, while BE enhanced cognition ability in older persons. Older persons preferred VRE and BE compared to PE. Both exercises are suggested to older persons to improve physical and cognitive conditions.