Welfare Generosity in Europe: A Multi‐level Study of Material Deprivation and Income Poverty among Disadvantaged Groups

The aim of this study is to analyze whether and to what extent welfare generosity moderates the risk of income poverty and material deprivation among disadvantaged groups, that is, people with ill health, low education and lack of employment. The data are based on the 2009 European Union Statistics on Income and Living Conditions (cross‐sectional) surveys. The analyses comprise 27 and 28 European countries, including 292,874 and 302,343 individuals between 18 and 64 years of age. Multi‐level analyses demonstrated that welfare generosity moderated the risk of both material deprivation and income poverty. With few exceptions, the risk decreased among disadvantaged groups in absolute terms. Among individuals who experienced the combinations of limiting long‐standing illness and either low education or non‐employment, the absolute inequalities in material deprivation decreased with increasing welfare generosity. Also, the absolute inequalities in income poverty among individuals who experienced the combination of limiting long‐standing illness and low education were lower in more generous welfare contexts. Results indicated lower absolute levels of both material deprivation and income poverty among disadvantaged individuals in generous welfare states. However, for material deprivation the results were more substantial and consistent than for income poverty. Taken together, these findings support the view that generous welfare states reach the worst‐off and are successful in buffering material deprivation and income poverty and, hence, in reducing social inequalities.     

Should commodity tax rates be uniform across regions in a heterogeneous country? Evidence from India

With countries increasingly adopting the Goods and Services Tax (GST) as their system of commodity taxes replacing the myriad of sales, excise and other form of indirect taxes, there is a move towards the two features that characterize the GST: uniform tax rates across items and identical tax rates across regions. When India introduced the GST in 2017, it followed several other countries in departing from the first feature but in keeping with universal practice embraced the second feature. The chief motivation of this paper is to subject this latter feature to critical scrutiny. The study examines the four GST rates in India by comparing them with counterfactual evidence based on preference based optimal commodity tax rates estimated by taking into account regional diversity in prices and spending. The benchmarking suggests that the current top GST rates (12%, 16% and 28%) are much higher than can be justified by the optimal rates. The Indian evidence is also in favor of departing from the universal practice in GST of adopting a uniform tax across items. The paper makes a methodological contribution by proposing a procedure for calculating spatial prices that can be applied to a wide basket of items. The study provides evidence on the redistributive potential of indirect taxation by showing the progressive nature of the optimal commodity taxes. The latter result is of particular significance in developing countries where indirect taxes raise the greater share of revenue and provide an important policy tool for tackling increasing inequality. The study concludes with a list of policy lessons as the country seeks to make further changes to its GST. While there is a significant literature on harmonization of indirect taxes across countries that belong to a single economic grouping such as the EU, there is no such literature between regions within a large heterogeneous country. The present study on tax harmonization between the states in India attempts to fill this gap.     

Lessons Learned: Pedagogical Tensions and Struggles with Instruction on Multiculturalism in Social Work Education Programs

While the importance of multiculturalism to social work education and practice has been extensively theorized in the social work literature, very little empirical attention has been paid to the concrete experiences of social work students within the classroom. The socializing influence of pedagogy is one aspect of the professionalization process that must be considered in addressing issues of diversity and inclusion in graduate education programs. This article addresses this gap by describing and analyzing the narratives of 15 minority graduate social work students. It examines their perception and experiences with instruction on multiculturalism with the graduate curriculum and the meaning they assign to these experiences. Their narratives illuminate the myriad ways that the curriculum excludes minority students and reproduces social inequality. Social work education has a responsibility to eliminate racism and inequality from the content of its courses and in its teaching methods. The identification of these negative socializing messages may assist educators in structuring curricular and pedagogical practices that can facilitate the academic success of all students.     

The Path to Social Work: Contextual Determinants of Career Choice among Racial/Ethnic Minority Students

While the importance of multiculturalism to social work education and practice have been extensively theorized in the social work literature, very little empirical attention has been paid to the concrete experiences of social work students with instruction on multiculturalism. The experience of students within the multicultural classroom is one aspect of the professionalization process that must be considered in addressing issues of diversity and inclusion in graduate education programs. This article addresses this gap by describing and analyzing the narratives of 15 minority graduate social work students. It examines their perception and experiences with the graduate multicultural curriculum and the meaning they assign to these experiences. Their narratives illuminate the myriad ways that the curriculum excludes minority students and reproduces social inequality. Social work education has a responsibility to eliminate racism and inequality from the content of its courses and in its teaching methodologies. The identification of these negative socializing messages may assist educators in structuring curricular and pedagogical practices that are compatible with the multiethnic groups that both serve and are served by the profession.     

Who Wants to Redistribute? An Analysis of 14 Post‐Soviet Nations

We investigate population groups' attitude regarding inequality reduction in post‐Soviet transitional countries of the Baltic, Central Asia and the Caucasus, as well as the Slavic countries and Moldova. Empirical evidence presented in this article demonstrates that despite skyrocketing inequality, erosion of social provisions and efforts to introduce an individualistic market economy ideology during the last 15 years, overall support for redistribution and welfare state efforts to counterbalance rising inequality remained strongly legitimized among citizens in all post‐Soviet countries. Nevertheless, there are differences between population groups in attitude: the older, the less educated, the poor and women express more support for redistribution; while the younger, the better educated, the rich and men tend to not support redistribution. Populations in transitional countries of the Caucasus and Central Asia that face higher inequality and less effective redistribution policies expressed a strong desire for more redistribution and more active social welfare policies.     

Analyzing Wage Differential by Gender Using an Earnings Function Approach Further Evidence from a Small Developing Economy

This study uses the primary data from Fiji to examine if gender differential with respect to wages exists and if education plays an important role in the prevalence of the wage gap in general. The results of the study indicate that the inconsistency in wages is affected by both education and gender variables. This high disparity in wages based on gender raises serious questions about the government's ability to meet the MDG targets as far as the reduction of gender inequality is concerned.     

Equality and quality in education. A comparative study of 19 countries

This contribution assesses the performance of national education systems along two important dimensions: The degree to which they help individuals develop capabilities necessary for their successful social integration (educational quality) and the degree to which they confer equal opportunities for social advancement (educational equality). It advances a new conceptualization to measure quality and equality in education and then uses it to study the relationship between institutional differentiation and these outcomes. It relies on data on final educational credentials and literacy among adults that circumvent some of the under-appreciated conceptual challenges entailed in the widespread analysis of international student assessment data.The analyses reveal a positive relationship between educational quality and equality and show that education systems with a lower degree of institutional differentiation not only provide more educational equality but are also marked by higher levels of educational quality. While the latter association is partly driven by other institutional and macro-structural factors, I demonstrate that the higher levels of educational equality in less differentiated education systems do not entail an often-assumed trade-off for lower quality.     

Multiple paths in educational transitions: A multinomial transition model with unobserved heterogeneity

In many countries educational branching points consist of more than two qualitatively different alternatives, and only some alternatives provide the opportunity of continuing into higher education. I develop a multinomial transition model for modeling the effects of family background characteristics and individual characteristics on these complex educational careers. The model controls for unobserved heterogeneity that may, if ignored, result in biased estimates. Compared to previous research, I explicitly include instrumental variables that ensure identification of the unobserved component. I apply the model to the Danish case and analyze data which covers the educational careers of a cohort of Danes born around 1954. I find that the model brings forward non-trivial heterogeneity in the influence of family background and ability on qualitatively different choice alternatives both within and across transitions. I also find that not controlling for unobserved heterogeneity leads to marked underestimation of the family background effect on both early and late transitions in the educational career.     

Investigating the organizational sources of high-wage earnings growth and rising inequality

Recent studies indicate that the growth of earnings inequality in the United States since the late 1970s reflects organizational changes in the process of earnings determination. Existing research primarily focuses on workplace changes that reduce earnings levels for middle- and low-wage workers despite the importance of high-wage gains for rising inequality. This paper investigates how organizational context affects the relationship between occupation and earnings, with a focus on high-wage occupations. The earnings associated with low-wage occupations do not vary across industry groups. By contrast, the earnings advantages associated with high-wage occupations vary across industry groups in relation to the industry’s prevalence of performance pay practices. Pay initiatives that reward individuals for company performance explain much of the inter-industry variance in managerial and professional earnings slopes. The growth of performance-based pay represents an organizational change in earnings determination that may serve as a mechanism of high-wage earnings growth and rising inequality.     

Estimating and testing generalized linear models under inequality restrictions

We consider maximum likelihood estimation and likelihood ratio tests under inequality restrictions on the parameters. A special case are order restrictions, which may appear for example in connection with effects of an ordinal qualitative covariate. Our estimation approach is based on the principle of sequential quadratic programming, where the restricted estimate is computed iteratively and a quadratic optimization problem under inequality restrictions is solved in each iteration. Testing for inequality restrictions is based on the likelihood ratio principle. Under certain regularity assumptions the likelihood ratio test statistic is asymptotically distributed like a mixture of χ², where the weights are a function of the restrictions and the information matrix. A major problem in theory is that in general there is no unique least favourable point. We present some empirical findings on finite-sample behaviour of tests and apply the methods to examples from credit scoring and dentistry.