A timely measure of unemployment

Conventional unemployment statistics have two dimensions—size and date. Population-at-risk unemployment rates add a third dimension—time. They are unlikely to revolutionise our picture of the nature of unemployment, says Ray Thomas . But they do give a more accurate and comprehensive picture than existing measures, and provide new insights into old problems, such as indicating the importance of statistics of entrants in helping to explain geographical variation in unemployment.     

The behavioural and welfare implications of housing demand under rationing

This study examines on United Kingdom budget data the sensitivity of policy and welfare conclusions to the introduction of quantity constraint on Housing demand within a utility consistent framework. The paper proposes a rationed demographic demand system, based on extension of the idea of virtual price, and presents evidence that such a model could prove useful in the precise estimation of equivalence scales on budget data with limited price variation. The demand parameter estimates and their welfare implications are quite sensitive to the introduction of rationed demand. Unlike in previous studies, the rationed demand system fails to reject linear preferences.I am grateful to Arie Kapteyn and an anonymous referee for helpful written comments on an earlier version. I also thank seminar participants at the Second Annual Congress of the European Society of Population Economics at the University of Mannheim, West Germany in June 1988, at the University of NSW and Melbourne in Australia, and Victoria University of Wellington in New Zealand for useful discussions. I retain responsibility for all errors that remain.     

Ropes course training for youth in a rural setting: “At first I thought it was going to be boring ...”

Outdoor structured activities, such as Ropes Challenge Courses, are typically utilized as interventions for youth coming from urban settings. Evaluation of such programs is scanty at best. In this instance, the course experience is used as a prevention tool for high risk youth in a remote, rural setting of high unemployment, alcohol problems, and low income. The authors discuss the effectiveness of this approach, and the intended and unintended consequences for the rural community at large. The evaluation design relies on extensive qualitative methodology as well as quantitative methods to capture the unique nature of this rural project.     

The role of demographic and economic characteristics of twelve member states of the European Union in the diversity of state support for families

"This study is based upon an international dataset comparing state support for families in fifteen countries (of which twelve are member states of the European Union).... Using multiple regression analysis, the levels of state support are explained by the principal parameters used for setting the levels of benefit, and by the demographic and economic characteristics of the countries concerned....[Results suggest] that the economic convergence of the member states is likely to promote greater similarity in their systems of state welfare support for families." (EXCERPT)     

Analysis of child labour in Peru and Pakistan: A comparative study

This paper analyses child labour participation and its key determinants using data sets from Peru and Pakistan. The results include tests of the ‘Luxury’ and ‘Substitution’ hypotheses that play key roles in recent studies on child labour and child schooling. The results reject both hypotheses in the context of child labour in Pakistan and suggest that income and related variables do not have the expected negative effect on children's work input. Rising wages of adult female labour in Pakistan, and falling adult male wage in Peru lead to increased participation of children in the labour market. The results on the combined country data formally establish the presence of strong individual country effects in the estimated regressions. For example, ceteris paribus, a Peruvian child is more likely to experience schooling than a Pakistani child. However, both countries agree on the positive role that adult female education and infrastructure investment in basic amenities can play in discouraging child labour and encouraging child schooling. Received: 24 August 1998/Accepted: 10 March 1999     

M-quantile models with application to poverty mapping

Over the last decade there has been growing demand for estimates of population characteristics at small area level. Unfortunately, cost constraints in the design of sample surveys lead to small sample sizes within these areas and as a result direct estimation, using only the survey data, is inappropriate since it yields estimates with unacceptable levels of precision. Small area models are designed to tackle the small sample size problem. The most popular class of models for small area estimation is random effects models that include random area effects to account for between area variations. However, such models also depend on strong distributional assumptions, require a formal specification of the random part of the model and do not easily allow for outlier robust inference. An alternative approach to small area estimation that is based on the use of M-quantile models was recently proposed by Chambers and Tzavidis (Biometrika 93(2):255–268, 2006) and Tzavidis and Chambers (Robust prediction of small area means and distributions. Working paper, 2007). Unlike traditional random effects models, M-quantile models do not depend on strong distributional assumption and automatically provide outlier robust inference. In this paper we illustrate for the first time how M-quantile models can be practically employed for deriving small area estimates of poverty and inequality. The methodology we propose improves the traditional poverty mapping methods in the following ways: (a) it enables the estimation of the distribution function of the study variable within the small area of interest both under an M-quantile and a random effects model, (b) it provides analytical, instead of empirical, estimation of the mean squared error of the M-quantile small area mean estimates and (c) it employs a robust to outliers estimation method. The methodology is applied to data from the 2002 Living Standards Measurement Survey (LSMS) in Albania for estimating (a) district level estimates of the incidence of poverty in Albania, (b) district level inequality measures and (c) the distribution function of household per-capita consumption expenditure in each district. Small area estimates of poverty and inequality show that the poorest Albanian districts are in the mountainous regions (north and north east) with the wealthiest districts, which are also linked with high levels of inequality, in the coastal (south west) and southern part of country. We discuss the practical advantages of our methodology and note the consistency of our results with results from previous studies. We further demonstrate the usefulness of the M-quantile estimation framework through design-based simulations based on two realistic survey data sets containing small area information and show that the M-quantile approach may be preferable when the aim is to estimate the small area distribution function.     

Poverty and Self‐Control

We argue that poverty can perpetuate itself by undermining the capacity for self‐control. In line with a distinguished psychological literature, we consider modes of self‐control that involve the self‐imposed use of contingent punishments and rewards. We study settings in which consumers with quasi‐hyperbolic preferences confront an otherwise standard intertemporal allocation problem with credit constraints. Our main result demonstrates that low initial assets can limit self‐control, trapping people in poverty, while individuals with high initial assets can accumulate indefinitely. Thus, even temporary policies that initiate accumulation among the poor may be effective. We examine implications concerning the effect of access to credit on saving, the demand for commitment devices, the design of financial accounts to promote accumulation, and the variation of the marginal propensity to consume across income from different sources. We also explore the nature of optimal self‐control, demonstrating that it has a simple and behaviorally plausible structure that is immune to self‐renegotiation.