Partial Identification of Economic Mobility: With an Application to the United States

Abstract

The economic mobility of individuals and households is of fundamental interest. While many measures of economic mobility exist, reliance on transition matrices remains pervasive due to simplicity and ease of interpretation. However, estimation of transition matrices is complicated by the well-acknowledged problem of measurement error in self-reported and even administrative data. Existing methods of addressing measurement error are complex, rely on numerous strong assumptions, and often require data from more than two periods. In this article, we investigate what can be learned about economic mobility as measured via transition matrices while formally accounting for measurement error in a reasonably transparent manner. To do so, we develop a nonparametric partial identification approach to bound transition probabilities under various assumptions on the measurement error and mobility processes. This approach is applied to panel data from the United States to explore short-run mobility before and after the Great Recession.     

Compensation or competition: Bias in immigrants' access to active labour market measures

Whether participation in active labour market programmes (ALMPs) pushes individuals back into employment depends on the programme's characteristics. On the basis of encompassing registry data that allow us to control for usually unobserved employability, we find evidence of a systematic access bias whereby jobcentre caseworkers in Switzerland assign unemployed persons to activation measures based on a competition logic that is mainly driven by an economic rationale and the jobcentre's performance evaluation. This practice seems problematic because it results in an overrepresentation of immigrants in measures with little efficacy rather than in measures that could compensate for employability disadvantages. Conversely, Swiss citizens are more likely to enter beneficial human-capital-intensive measures. It is plausible that this discrepancy in programme participation amplifies the general labour market disadvantages of immigrants.     

Social policy and embedded evaluation: Assessing the impact of a food insecurity project in the United Kingdom

Social policy making needs to involve robust evaluation to assess its impact. In this article, a social policy intervention focused on tackling food insecurity amongst vulnerable people is examined and the benefits and challenges of using an embedded approach to evaluation are considered. Food insecurity is defined as not always having the economic, social, and physical resources to ensure a sufficient supply of nutritionally appropriate food. Evidence suggests that food insecurity in the United Kingdom is increasing in the context of long-term poverty, austerity, insecure employment, rising living costs, low pay, and cuts to welfare and public services. An embedded evaluation was conducted involving interviews with the intervention participants and observations of a series of cooking and food budgeting classes. The findings suggest that the classes had a positive impact on many of the participants, who felt more confident about cooking and valued the shared experience. However, given the acute problems facing many of the participants including long-term poverty, policies aimed at tackling food insecurity need to go beyond cooking and food budgeting skills. The embedded evaluation approach contributed towards the overall impact of the intervention by providing insights that led to changes as part of an iterative process during the intervention rather than in the form of a final report after its completion. An embedded evaluation-based approach can be resource intensive, and the role of the evaluators can present challenges, but it can help to bridge the gap between intervention design, delivery, and social change.     

Changes in preschool children’s social engagement positively predict changes in social competence: A three‐year longitudinal study of portuguese children

To test the hypothesis that social engagement is a foundational aspect of other peer social competence indicators during early childhood, 160 Portuguese preschool children (“3‐year‐olds”) were observed at least in two different school years, using a battery of validated social competence assessments based on direct observations and child interviews. Multilevel growth models tested whether social engagement predicted initial values and linear changes in the other social competence indicators. Results were consistent with the hypothesis, insofar as both initial values and changes in social engagement significantly predicted initial values and changes in other social competence indicators. Additionally, the number of children's reciprocated friendships was also predicted by social engagement. These results are discussed from the perspectives of conceptual frameworks that consider individual differences in social competence during early childhood as a consequence of attachment histories and/or emotional competence.     

The multicriteria selection of products in technological diversification strategies: an application to the Spanish automotive industry based on AHP

The economic recession, the dynamism and complexity of the markets and the generalised globalisation of the world economy have forced many companies to rethink and reorganise their industrial strategies. Through identifying and taking advantage of the key technologies of a company, this work presents a new and original methodology for dealing with a general technological diversification process. The methodology, which includes an innovative cognitive perspective and its corresponding decisional tool (decision support system) has been used to select the best product in a process of technological diversification that, along with the key technologies, identifies the sub-levels consonant to the sub-technologies and applications to sectors and products. The multicriteria selection tool employed in the proposed methodology, based on the analytic hierarchy process, allows the integration of multiple scenarios, actors and criteria, both tangible and intangible. The methodology has been applied to a case study in the Spanish automotive auxiliary sector.     

Immediate and Longer-Term Connections Between Support and Stress in Pregnant/Parenting and Non-Pregnant/Non-Parenting Adolescents

Despite the substantial amount of literature focusing on social support for pregnant and parenting adolescents, few studies have directly examined the relationships among stress and social support across their transition to parenting. The present study investigates the nature of the relationship between stress and support both before and after the birth of the baby. Two groups of adolescent females (one group facing parenthood and one not) completed measures of support and stress across a 7-month period (N = 231) to coincide with the transition to parenthood. In general, support and stress were negatively related when measured concurrently and positively related over time for parenting adolescents but not the non-parenting group. Understanding how long social support impacts stress will enable practitioners to identify when best to provide interventions for pregnant and parenting adolescents.     

Sick building syndrome and perceived indoor environmental quality: A survey of apartment buildings in Hong Kong

The outbreak of a highly communicable disease, SARS, in Asia in 2003 has revealed the health risk of living in a high-density environment. To show the important connection between human health and environmental quality, this study surveys the prevalence of sick building syndrome (SBS) among apartment residents and their evaluation of indoor environmental quality (IEQ). Based on a sample of 748 households living in Hong Kong, two interesting findings are revealed: (1) nasal discomfort was the commonest home-related SBS symptom despite the absence of any central ventilation system in apartment buildings; (2) noise, rather than ventilation, was the major IEQ problem perceived by residents. Our statistical analysis further showed that residents with SBS symptoms were less satisfied with their IEQ than those without. That is, despite a positive evaluation of specific IEQ criteria with respect to the building residents lived in, if they reported feeling SBS related symptoms, the overall IEQ evaluation of their building could still be negative. This perception bias gives rise to a sample selection problem in measuring perceived IEQ, which has implications on housing management practices and the formulation of a healthy housing policy.     

Mapping Invasive Species Risks with Stochastic Models: A Cross-Border United States-Canada Application for Sirex noctilio Fabricius

Nonindigenous species have caused significant impacts to North American forests despite past and present international phytosanitary efforts. Though broadly acknowledged, the risks of pest invasions are difficult to quantify as they involve interactions between many factors that operate across a range of spatial and temporal scales: the transmission of invading organisms via various pathways, their spread and establishment in new environments. Our study presents a stochastic simulation approach to quantify these risks and associated uncertainties through time in a unified fashion. We outline this approach with an example of a forest pest recently detected in North America, Sirex noctilio Fabricius. We simulate new potential entries of S. noctilio as a stochastic process, based on recent volumes of marine shipments of commodities from countries where S. noctilio is established, as well as the broad dynamics of foreign marine imports. The results are then linked with a spatial model that simulates the spread of S. noctilio within the geographical distribution of its hosts (pines) while incorporating existing knowledge about its behavior in North American landscapes. Through replications, this approach yields a spatial representation of S. noctilio risks and uncertainties in a single integrated product. The approach should also be appealing to decisionmakers, since it accounts for projected flows of commodities that may serve as conduits for pest entry. Our 30-year forecasts indicate high establishment probability in Ontario, Quebec, and the northeastern United States, but further southward expansion of S. noctilio is uncertain, ultimately depending on the impact of recent international treatment standards for wood packing materials.     

Do taboo trade-offs explain the difficulty in valuing health and social interventions?

Persistent anomalies in the results of willingness to pay studies, despite improvements in measurement technique, challenge the assumption in economics that all sources of value are commensurable. Two sources of incommensurability have been identified: interdimensional incommensurability, which refers to the cognitive difficulty that people encounter when trying to assign a monetary value to health; and constitutive incommensurability, which arises when some forms of trade-off are regarded as ‘taboo’. In this paper we explore whether the notion of taboo trade-offs might explain some of the difficulties experienced in health-related willingness to pay studies.     

Cultural filtering in the hiring process and its relationship to welfare reform

In this paper, we perform an initial, exploratory analysis to determine whether firms use “cultural filters” as indirect and direct proxies for human capital when screening potential applicants for employment opportunities. Using data collected from three counties in Washington State, we find that these filters do, indeed, influence hiring decisions. As a result, it may be advantageous for policy makers to consider restructuring welfare policies to account for the effects of these cultural filters.