Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

This paper estimates the extent of intergenerational income mobility in Japan among sons and daughters born between 1935 and 1975. Our estimates rely on a two-sample instrumental variables approach using representative data from the Japanese Social Stratification and Mobility surveys, collected between 1965 and 2005. Father’s income is predicted on the basis of a rich set of variables, and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters in Japan lies around 0.35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades.     

Overeducation and the skills of UK graduates

Summary.  During the early 1990s the proportion of a cohort entering higher education in the UK doubled over a short period of time. The paper investigates the effect of the expansion on graduates' early labour market attainment, focusing on overeducation. We define overeducation by combining occupation codes and a self-reported measure for the appropriateness of the match between qualification and the job. We therefore define three groups of graduates: matched, apparently overeducated and genuinely overeducated. This measure is well correlated with alternative definitions of overeducation. Comparing pre- and post-expansion cohorts of graduates, we find with this measure that the proportion of overeducated graduates has doubled, even though overeducation wage penalties have remained stable. We do not find that type of institution affects the probability of genuine overeducation. Apparently overeducated graduates are mostly indistinguishable from matched graduates, whereas genuinely overeducated graduates principally lack non-academic skills and suffer a large wage penalty. Individual unobserved heterogeneity differs between the three groups of graduates but controlling for it does not alter these conclusions.     

Does Uncertainty of Firing Costs Reduce Hirings?

This paper examines hiring decision under uncertainty of firing costs. We extend the labor demand problem of the firm to account for a random shock that hits the firing cost function. We also consider recursive preferences for the employer in order to separate risk aversion from intertemporal substitution. We find that a rise of the variance of the shock decreases hiring investment if and only if the intertemporal elasticity of substitution is greater than one. The risk aversion parameter does not determine the sign of the uncertainty effect but only its magnitude.     

Dynamic Impacts of a Catastrophic Production Event: The Foot‐and‐Mouth Disease Case

In foot‐and‐mouth disease (FMD) free countries, the occurrence of an FMD outbreak is a rare event with potentially large economic losses. We explore the dynamic effects of an FMD outbreak on market variables and economic surplus taking into account the largely neglected issue of farm bankruptcy. Simulations are performed on a stylized agricultural economy, which is a net exporter before the outbreak. We find complex dynamic market effects when the farm credit market suffers from information imperfections leading to farm closure. Welfare effects are also dramatically altered. Domestic consumers may lose in the long run from an FMD outbreak because domestic supply contracts. On the other hand, farmers able to resist this event may ultimately gain. Our analysis also shows that these effects are not monotone, making any efficient policy response to this catastrophic event quite challenging.     

Family size and optimal income taxation

This paper studies the role of family size in the design of optimal income taxation. We consider a second best setting where the government observes the number of children and the income of the parents but not their productivity. With a linear tax schedule the marginal tax rate is shown to decrease with the number of children, while the relationship between the demogrant and family size appears to be ambiguous. With two ability levels, optimal non-linear income tax implies zero marginal tax rates for the higher ability parents; low ability parents have positive marginal tax rates that decrease with family size. Received: 4 September 2000/Accepted: 17 May 2001     

The diverse nature of living apart together relationships: an Italy–France comparison

This paper contributes to the ongoing debate on the nature of living apart together (LAT) relationships by focusing on two contrasting family settings: France and Italy. First, we corroborate the view that being “single” in residential terms does not mean being “without a partner” in relationship terms. To assume otherwise would be an erroneous characterisation of more than one quarter of the individuals in both countries. Second, our findings cannot be reconciled with any notion of a simple, uniform, and uni-directional view of LAT relationships. In Italy, LAT relationships are popular in the early phases of the life course, when young adults must often face difficult economic situations as well as social pressure to marry. In France, LAT relationships are more the result of a conscious choice, especially in later phases of the life course. We discuss these results in light of the second demographic transition narrative.     

HDDA: DataSifter: statistical obfuscation of electronic health records and other sensitive datasets

There are no practical and effective mechanisms to share high-dimensional data including sensitive information in various fields like health financial intelligence or socioeconomics without compromising either the utility of the data or exposing private personal or secure organizational information. Excessive scrambling or encoding of the information makes it less useful for modelling or analytical processing. Insufficient preprocessing may compromise sensitive information and introduce a substantial risk for re-identification of individuals by various stratification techniques. To address this problem, we developed a novel statistical obfuscation method (DataSifter) for on-the-fly de-identification of structured and unstructured sensitive high-dimensional data such as clinical data from electronic health records (EHR). DataSifter provides complete administrative control over the balance between risk of data re-identification and preservation of the data information. Simulation results suggest that DataSifter can provide privacy protection while maintaining data utility for different types of outcomes of interest. The application of DataSifter on a large autism dataset provides a realistic demonstration of its promise practical applications.