Status Traps

In this article, we explore nonlinearities in the intergenerational mobility process using threshold regression models. We uncover evidence of threshold effects in children's outcomes based on parental education and cognitive and noncognitive skills as well as their interaction with offspring characteristics. We interpret these thresholds as organizing dynastic earning processes into “status traps.” Status traps, unlike poverty traps, are not absorbing states. Rather, they reduce the impact of favorable shocks for disadvantaged children and so inhibit upward mobility in ways not captured by linear models. Our evidence of status traps is based on three complementary datasets; that is, the PSID, the NLSY, and US administrative data at the commuting zone level, which together suggest that the threshold-like mobility behavior we observe in the data is robust for a range of outcomes and contexts.     

收入差距与流动性下降:增长效应与社会冲突效应——一个文献研究的视角

中国收入分配问题目前主要集中在收入差距扩大和收入流动性下降两个方面。正是由于城乡居民收入流动性下降,使得当前收入差距问题成为经济增长、社会稳定以及体制机制的最大挑战。从经济增长来看,收入差距已经对转变经济发展方式产生了制约和影响作用;从社会心理影响与社会冲突来看,收入差距扩大与收入流动性的下降会引发社会矛盾和社会问题,影响甚至阻碍经济稳定增长;从制度挑战方面看,收入流动性下降背后的分配不公,对于社会主义公平正义的价值观和理念产生了动摇和挑战。对此必须予以高度正视。     

From Separate Corners to Dialogue and Action

How can higher education programs engage students in building a shared commons to address inequalities and foster commitment to intergroup collaboration? Intergroup dialogue is one such possibility to provide forums for meaningful engagement among students from diverse backgrounds. Findings from field experiments at nine colleges and universities show that students in intergroup dialogues increased significantly more than counterparts in control groups and social science comparison groups in their critiques of inequality and their commitments to post-college action to redress inequalities. Further, students in intergroup dialogues rated the frequency of the core communication processes more highly than the social science comparison students. The communication processes help account for the greater increase in students’ critiques of inequality and commitment to post-college actions.     

Inequality, unemployment and growth: New measures for old controversies

This essay surveys some of the work of the University of Texas Inequality Project, a small research group that for the past decade has worked primarily to develop new measures of economic inequality, using a method based on the between-groups component of Theil’s T statistic. In this way, inequality statistics can be computed from many diverse and mundane sources of information, including regional tax collections, employment and earnings, census of manufacturing, and harmonized international industrial data sets. The rich data environment so constructed permits new analyses of patterns of economic change, by region, by sector, and by country, and broadly supports the idea that the movement of inequality is closely related to macroeconomic events at the national and the global level. I thank Ravi Kanbur for the invitation to submit this essay for consideration by the JOEI, and I thank the members of the UTIP team for comments on the draft.     

Inequality and education decisions in developing countries

In this paper we analyze the effect of inequality on school enrollment, preferred tax rate and expenditure per student in developing countries; when parents can choose between child labor, public schooling or private schooling. We present a model in which parents make schooling decisions for their children, weighing the utility benefit of having a child with formal public or private education versus the forgone income from child labor or household work. Parents vote over the preferred tax rate to finance freely provided public education. The utility benefit of an educated child is proportional to expenditure per student, so that there is congestion in public school. We find that when parents can send their children to work or to private school, high inequality leads to exit from public education at both ends of the income distribution. Thus high inequality reduces the support for public education, leading to a low tax rate and expenditure per student. Exit from public education results in both high child labor and a large fraction of students attending private school. In fact there is a threshold level of inequality above which there is no longer support for public education. In addition we explore the implications for the design of foreign aid. The results suggest that foreign aid policies should focus on promoting school attendance rather than increasing school resources, as the later policy might be offset by a reduction in the recipient country’s fiscal effort, with little impact on outcomes.      

Household wealth and the measurement of economic well-being in the United States

We analyze the level and distribution of economic well-being in the United States during the 1980s and 1990s based on the standard measure of money income and a measure in which income from wealth is calculated as the sum of lifetime annuity from nonhome wealth and imputed rental-equivalent for owner-occupied homes. Over the 1982–2000 period, median well-being increases faster when these adjustments are made than when standard money income is used. This adjustment also widens the income gap between African-Americans and whites but increases the relative well-being of the elderly. Adding imputed rent and annuities from household wealth to household income considerably increases measured inequality and the share of income from wealth in inequality. However, both measures show about the same rise in inequality over the period. We also find an increasing share of wage and salary income in our expanded definition of income among the richest 1% over the period but do not find that the “working rich” have largely replaced rentiers at the top of the economic ladder.      

Inequality of opportunity in the United Kingdom, 1991–2008

We investigate the extent to which the tax-and-transfer system of the United Kingdom equalizes opportunities for income attainment among citizens. Within the framework of Roemer’s theory of Equality of Opportunity, and using individual data from the British Household Panel Survey from 1991 to 2008, we calculate the tax rates necessary to equalize opportunities for different circumstances. We provide a ranking of these circumstances by the degree to which they influence income attainment. Although pre-fisc equality of opportunity increases over time, the tax rate necessary to equalize opportunities remains higher than the observed tax rate. Only under a relatively high labour supply elasticity the observed UK tax rate fares well in equalizing opportunities for income attainment.     

农村大龄未婚男性的婚姻困境:基于性别不平等视角的认识

大龄未婚男性的婚姻困境是在中国农村普婚制社会下长期存在的现象。文章利用全国性的专项调查、主流媒体报道和实地调查数据,从婚姻市场上的性别不平等视角来研究农村大龄男性的婚姻困境。宏观数据分析显示,用性别结构失衡来解释农村大龄男性的婚姻剥夺显得原发性因果关系不强和实证性不足,而简单地以贫困概括农村大龄男性婚姻困境的主因并没有充分考虑婚姻的本质和功能。基于性别不平等的理论视角和实证研究,认为婚姻市场上性别不平等对贫困男性婚姻困境的影响远比人口性别结构失衡的影响更为直接和重要,农村大龄男性的婚姻困境具有独立于个体内因的社会经济结构性的成因。     

Self-employment disadvantage in the working lives of blacks and females

Self-employment, regardless of its quality, offers the advantage of keeping individuals employed, thereby contributing to a continuous work history and earnings over the lifetime. But in the individual life cycle, how important is self-employment, particularly given evidence that self-employment spells tend to be of short duration? Also, to what extent does self-employment contribute to race and gender differences in lifetime employment? We use an increment-decrement life table to analyze the role of self-employment in differentiating the working lifetimes of blacks and women from those of white men. White men's average lifetime years spent in self-employment exceed black men's by as many as six years, thus accounting for nearly the entire difference between whiteand black men's lifetime years employed. White women's self-employment episodes,while almost as numerous as white men's, are shorter and less connected towage-employment episodes. Black women's self-employment episodes are bothinfrequent and of short duration.

     

More on the measurement of inequality

The article, written in 1973, examines what comparisons of income distributions can be made when Lorenz curves cross, employing the concept of third-order stochastic dominance. “More on the measurement of inequality” as reviewed by Prof. P. Lambert will appear in the Rediscovered Classics section, along with the editorial.