Longitudinal Factor Analysis of Public Expenditure Composition and Human Development in Brazil After the 1988 Constitution

The way public policies are managed in Brazil has changed since the 1988 Federal Constitution. This study aimed to identify how changes in the structure of public expenditure composition at Brazilian federal states influenced local human development in these states. The states’ public expenditures were categorized according to their nature as spending indices whereas human development was measured through a human development index (HD). To verify the relationships between these variables, an accounting-social theoretical model was created and estimated through latent growth modeling (LGM). The LGM measurement period comprised five administration cycles of the Brazilian states (1988–2011). Variables were measured on data of the second year of state government term; their mean initial values and growth rates were recorded. Results show that, influenced by policies of centralized regulation promoted by the federal government, only the social spending growth rates had statistically significant effect on the human development growth rate, although not considered of great magnitude. Among mean initial values, the most significant was that of minimum spending (SIm), which denotes the direct impact of the Fiscal Accountability Law [Lei de Responsabilidade Fiscal, in Portuguese] on human development improvements. The mean initial value of economic spending also showed a positive and significant effect on HD growth rate.     

Regional Differences in the Gender Wage Gap in Spain

This study examines regional differences in the gender wage gap in Spain using matched employer–employee microdata, two different econometric decomposition methods and panel data techniques. Our findings suggest that Spain shows a significant regional heterogeneity in the size of the raw gap, roughly comparable to cross-country differences observed in the European context. The results from the decomposition analysis show that although the bulk of the gender wage gap in Spanish regions is due to differences in the endowments of productive characteristics between males and females there is still a substantial part of the gap that remains unexplained. The analysis of the causes behind the variation of both, the raw and the unexplained gender wage gap by region highlights that several economic, institutional and demographic elements identified in previous studies analysing international differences in the gender wage gap are also relevant to explain regional differences in the gender wage gap in Spain.     

Welfare State Development,Individual Deprivations and Income Inequality: A Cross-Country Analysis in Latin America and the Caribbean

Several scholars have confirmed the role that the welfare state (WS) plays in reducing poverty, promoting equality and ensuring the common wellbeing. One of the limitations of the scholarship has been the conceptualization and operationalization of the WS and poverty as one-dimensional variables. The purpose of this paper is to examine the relationship between welfare state development, single-dimensions deprivations and income inequality in Latin America and the Caribbean, before and after controlling for demographic and cyclical factors. The WS is operationalized as a one-dimensional variable, but also taking into account its multidimensional nature. Three individual deprivations suffered by people on poverty and two income inequality indicators are used as dependent variables. Three pooled time-series cross-section regression analyses with panel-corrected standard errors models were carried out on 18 countries in the region around 2000, 2005 and 2010. This paper shows that the development of social-welfare programs and institutions seems to be an effective way of tackling individual deprivations suffered by people on poverty in the region. On the other hand, the WS development didn’t appear to be effective to reduce income inequality. The outcomes of welfare institutions appear to be the pivotal dimension to reduce income inequality and income deprivations in the region.     

The Comparative Inclusive Human Development of Globalisation in Africa

This study examines the impact of globalisation on inclusive human development in 51 African countries for the period 1996–2011 with particular emphasis on income levels (low income vs. middle income), legal origins (English common law vs. French civil law), resource wealth (oil-rich vs. oil-poor), landlockedness (landlocked vs. unlandlocked), religious domination (Christianity vs. Islam) and political stability (stable vs. unstable). The empirical evidence is based on instrumental variable panel Fixed effects and Tobit regressions in order to control for the unobserved heterogeneity and limited range in the dependent variable. Political, economic, social and general globalisation variables are used. Six main hypotheses are investigated. The findings broadly show that middle income, English common law, oil-poor, unlandlocked, Christian-oriented and politically-stable countries are associated with comparatively higher levels of globalisation-driven inclusive human development. Puzzling findings are elucidated and policy implications discussed.     

Child Benefit Portfolios Across OECD Countries

Current research on the cross-national pattern of investment in child benefits mostly adopts the total resources approach and the model family method. The total resources approach conducts a broad comparison of the aggregate expenditure of different types of child benefit across countries. The model family method adds sophistication by comparing the values of child benefit packages of different countries, which combines different levels of spending in each type of child benefit, based on different family types with certain assumed characteristics. To complement the existing approaches, this study uses cluster analysis to classify countries into groups of similar investment strategies by simultaneously counting the different types and levels of child benefits of all countries. The findings show that four types of child benefit investment portfolio, namely Active, Moderate, Conservative, and Minimal, can be identified across OECD countries. While some studies have focused on the effects of individual types of child benefit on child outcomes, little is known about the effects of child benefits as a whole. The pattern of child benefits as investment portfolios could serve as a basis facilitating further investigation into its relationship with child outcomes. Preliminary findings indicate that child poverty, health, and satisfaction with school life differ significantly across investment portfolios, especially Active Investment outperforms Minimal Investment consistently.     

Skills Heterogeneity Among Graduate Workers: Real and Apparent Overeducation in the Spanish Labor Market

This paper takes account of skills heterogeneity among workers with a higher education degree and proposes a new measure to differentiate between real and apparent overeducation based on the level of cognitive skills actually achieved by the individuals. This proposal is applied to the study of the wage effects of overeducation in the Spanish labor market using data from PIAAC. The results suggest that between a quarter and a half of the graduate workers who appear to be overeducated in the Spanish labor market could be considered as being only apparently overeducated since they show a lower level of skills than that corresponding to their educational level or, alternatively, a level of cognitive skills which is commensurate with their job. Different returns are found for each group of overeducated individuals both when compared with adequately educated peers within a similar level of education (with greater wage penalties for apparently overeducated workers) and when the comparison is done with well-matched co-workers doing a similar job (with a wage premium for real overeducation but no significant returns for apparently overeducated workers). These different returns by skill levels beyond what overeducation measures implies that the market distinguishes between education and skills and that educational attainment per se does not perfectly align with acquired skills, meaning that traditional measures of overeducation would overstate the actual level of skills mismatch in the labor market.     

Modeling Comprehensive Dispersion of the Administrative Villages and Its Association with Economic Poverty: A Case Study from Poverty-Stricken Mountainous County,China

Identifying the dispersion of the administrative villages is one of prerequisites for the rational allocation of sources and services during implementing “Entire-Village Advancement” poverty alleviation strategy of China. From the perspective of an administrative village scale, this paper develops a methodology serving the construction of a comprehensive dispersion evaluation model and the examination of the relationship between dispersion and economic poverty. Specially, we develops an village-level comprehensive dispersion evaluation model that is presented in two forms of Euclidean Dispersion Index (EDI) versus Dispersion Composite Index (DCI), using spatial statistical analysis to examine the comprehensive dispersion of the administrative village and its association with the Net Income of Village Residents (NIVR) under different geographic and socioeconomic conditions. The case study in Neixiang County of China shows that, DCI is more rational and objective than EDI for scoring details of the village’s dispersion, especially in the mountainous area; DCI has a more significant spatial autocorrelation and a more significantly negative relationship to NIVR than EDI; the negative correlation between DCI and NIVR is obviously stronger in mountainous area than that in the hill and plain area; The closer to the economic circle, the higher NIVR vs. the lower DCI. Which not only provides new perspective and way to deal with dispersion, but also helps guide policies for effective poverty interventions.     

Analyzing the Effects of Negative and Non-negative Values on Income Inequality: Evidence from the Survey of Household Income and Wealth of the Bank of Italy (2012)

Generally, inequality indices play a basic role in the analysis of welfare economics, also appearing as technical tools applied to income data. A good deal of findings in this research field is provided by the Gini coefficient, typically used for non-negative income values. Even if negative income is often an unfamiliar concept, its presence in real surveys may lead to difficulty in applying the classical Gini-based inequality measures, as they lie outside their standard ranges. In this paper, the more general issue of negative values is considered and a reformulation of the main Gini-based inequality measures adjusted for the problem of negative values is adopted with the purpose of providing theoretical extensions for the income decomposition approach by both income sources and area components. Investigations about the related inferential issues, conducted thorough simulation studies based on resampling techniques, highlight how the traditional approach of removing negative income values may yield different results in terms of inequality estimation, proving that the proposed approach, based on preserving negative values, is the more appropriate practice to follow to avoid the loss of data that really provide a coherent picture of the inequality condition.     

Explaining Accessibility and Satisfaction Related to Healthcare: A Mixed-Methods Approach

Accessibility and satisfaction related to healthcare services are conceived as multidimensional concepts. These concepts can be studied using objective and subjective measures. In this study, we created two indices: a composite healthcare accessibility index (CHCA) and a composite healthcare satisfaction index (CHCS). To calculate the CHCA index we used three indicators based on three components of multidimensional healthcare accessibility: availability, acceptability and accessibility. In the indicator based on the component of accessibility, we included an innovative perceived time-decay parameter. The three indicators of the CHCA index were weighted through the application of a principal components analysis. To calculate the CHCS index, we used three indicators: the waiting time after the patient arrives at the healthcare service, the quality of the healthcare, and the healthcare service supply. These three indicators making up the CHCA index were weighted by applying an analytical hierarchy process. Three kinds of regressions were subsequently applied in order to explain the CHCA and CHCS indices: namely the Linear Least Squares, Ordinal Logistic, and Random Forests regressions. In these regressions, we used different independent social and health-related variables. These variables represented the predisposing, enabling, and need factors of people´s behaviors related to healthcare. All the calculations were applied to a study area: the city of Quito, Ecuador. Results showed that there are health-related inequalities in regard to healthcare accessibility and healthcare satisfaction in our study area. We also identified specific social factors that explained the indices developed. The present work is a mixed-methods approach to evaluate multidimensional healthcare accessibility and healthcare satisfaction, incorporating a pluralistic perspective, as well as a multidisciplinary framework. The results obtained can also be considered as tools for healthcare and urban planners, for more integrative social analyses that can improve the quality of life in urban residents.     

Assessing Changes in Household Socioeconomic Status in Rural South Africa, 2001–2013: A Distributional Analysis Using Household Asset Indicators

Understanding the distribution of socioeconomic status (SES) and its temporal dynamics within a population is critical to ensure that policies and interventions adequately and equitably contribute to the well-being and life chances of all individuals. This study assesses the dynamics of SES in a typical rural South African setting over the period 2001–2013 using data on household assets from the Agincourt Health and Demographic Surveillance System. Three SES indices, an absolute index, principal component analysis index and multiple correspondence analysis index, are constructed from the household asset indicators. Relative distribution methods are then applied to the indices to assess changes over time in the distribution of SES with special focus on location and shape shifts. Results show that the proportion of households that own assets associated with greater modern wealth has substantially increased over time. In addition, relative distributions in all three indices show that the median SES index value has shifted up and the distribution has become less polarized and is converging towards the middle. However, the convergence is larger from the upper tail than from the lower tail, which suggests that the improvement in SES has been slower for poorer households. The results also show persistent ethnic differences in SES with households of former Mozambican refugees being at a disadvantage. From a methodological perspective, the study findings demonstrate the comparability of the easy-to-compute absolute index to other SES indices constructed using more advanced statistical techniques in assessing household SES.