Search results

1 – 10 of 208
To view the access options for this content please click here
Book part

Michael D. Bordo and John Landon-Lane

In this paper we investigate the relationship between loose monetary policy, low inflation, and easy bank credit and house price booms.

Abstract

Purpose

In this paper we investigate the relationship between loose monetary policy, low inflation, and easy bank credit and house price booms.

Method

Using a panel of 11 OECD countries from 1920 to 2011 we estimate a panel VAR in order to identify loose monetary policy shocks, low inflation shocks, bank credit shocks, and house price shocks.

Findings

We show that during boom periods there is a heightened impact of all three “policy” shocks with the bank credit shock playing an important role. However, when we look at individual house price boom episodes the cause of the price boom is not so clear. The evidence suggests that the house price boom that occurred in the United States during the 1990s and 2000s was not due to easy bank credit.

Research limitations/implications

Shocks from the shadow banking system are not separately identified. These are incorporated into the fourth “catch-all” shock.

Practical implications

Our evidence on housing price booms that expansionary monetary policy is a significant trigger buttresses the case for central banks following stable monetary policies based on well understood and credible rules.

Originality/value of paper

This paper uses historical evidence to evaluate the relative importance of three main causes of house price booms. Our results bring into question the commonly held view that loose bank credit was to blame for the U.S. house price bubble of the later 1990s.

Details

Macroeconomic Analysis and International Finance
Type: Book
ISBN: 978-1-78350-756-6

Keywords

To view the access options for this content please click here
Article

Magno Rogério Gomes, Marina Silva da Cunha, Solange de Cássia Inforzato de Souza and Paulo Jorge Reis Mourão

This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to…

Abstract

Purpose

This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to those who opted for occupations different from their parents, in Brazil.

Design/methodology/approach

To that end, the occupational legacy probability equation was estimated as the quantile wage equations with sample selection bias correction and the wage decomposition for Brazil from the microdata of the National Household Sample Survey (PNAD) of 2014. It was found that families have a strong influence on the process of choosing the careers of their children. The average probability of a young person following the occupational legacy of their parents was 41.63%. This percentage is different when analyzing different groups of individuals, such as being male or female, being in a traditional or single parent family, being in an income household lower or higher per capita.

Findings

The results also confirm the hypothesis that workers who tend to follow the occupational legacy have lower wages than individuals who choose other occupations and that this may cause a “poverty trap” since the lower the salary quantile, the stronger the “trap” as economically disadvantaged young people tend to follow in their parents' footsteps and to contribute to family income they face a tradeoff, opt between work or study, which ends up disrupting their education and forcing young people to entering the job market early, performing secondary occupations with lower income and arduous work, generating a “vicious cycle of poverty”.

Research limitations/implications

Given the database, we are comprised to its most recent version.

Practical implications

This is the first work on Latin American problem of occupational legacy.

Originality/value

This is the first work on Latin American problem of occupational legacy.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

To view the access options for this content please click here

Abstract

Details

Handbook of Microsimulation Modelling
Type: Book
ISBN: 978-1-78350-570-8

To view the access options for this content please click here
Book part

Esfandiar Maasoumi, Melinda Pitts and Ke Wu

We examine the cardinal gap between wage distributions of the incumbents and newly hired workers based on entropic distances which are well-defined welfare theoretic…

Abstract

We examine the cardinal gap between wage distributions of the incumbents and newly hired workers based on entropic distances which are well-defined welfare theoretic measures. Decomposition of several effects is achieved by identifying several counterfactual distributions of different groups. These go beyond the usual Oaxaca–Blinder decompositions at the (linear) conditional means. Much like quantiles, these entropic distances are well-defined inferential objects and functions whose statistical properties have recently been developed. Going beyond these strong rankings and distances, we consider weak uniform ranking of these wage outcomes based on statistical tests for stochastic dominance. The empirical analysis is focused on employees with at least 35 hours of work in the 1996–2012 monthly Current Population Survey (CPS). Among others, we find incumbent workers enjoy a better distribution of wages, but the attribution of the gap to wage inequality and human capital characteristics varies between quantiles. For instance, highly paid new workers are mainly due to human capital components, and in some years, even better wage structure.

Details

Essays in Honor of Peter C. B. Phillips
Type: Book
ISBN: 978-1-78441-183-1

Keywords

To view the access options for this content please click here
Book part

Yang Wang, Nora Lustig and Otavio Bartalotti

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that…

Abstract

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that movement in male wage distribution, focusing on the impact of education expansion on wage distribution. The Oaxaca-Blinder (OB) and Recentered Influence Function (RIF) decomposition results show that both changes in returns on skills and upgrades in the composition of work skills contribute to increases in the average wage and wages at the 10th and 50th percentiles. The shifts in returns to skills had a decreasing impact on wages at the 90th percentile and are identified as the primary force reducing wage inequality. Education expansion had an equalizing impact on wage distribution, primarily through the decline in return to education.

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

To view the access options for this content please click here
Book part

Carl Lin and Yana van der Meulen Rodgers

This study uses migrant household survey data from 2008 to 2009 to examine how parental migration decisions are associated with the nutritional status of children in rural…

Abstract

This study uses migrant household survey data from 2008 to 2009 to examine how parental migration decisions are associated with the nutritional status of children in rural and urban China. Results from instrumental variables regressions show a substantial adverse effect of children’s exposure to parental migration on height-for-age Z scores of left-behind children relative to children who migrate with their parents. Additional results from a standard Blinder–Oaxaca decomposition, a quantile decomposition, and a counterfactual distribution analysis all confirm that children who are left behind in rural villages – usually because of the oppressive hukou system – have poorer nutritional status than children who migrate with their parents, and the gaps are biggest at lower portions of the distribution.

Details

Health and Labor Markets
Type: Book
ISBN: 978-1-78973-861-2

Keywords

To view the access options for this content please click here
Book part

Adrian Robles and Marcos Robles

This paper argues that the assumption of a homogeneous workforce, which is implicitly invoked in the decomposition analysis of changes in welfare indicators, hides the…

Abstract

This paper argues that the assumption of a homogeneous workforce, which is implicitly invoked in the decomposition analysis of changes in welfare indicators, hides the role that schooling and its returns may have on the understanding of these changes. Using Peruvian cross-sectional data for a period of 10 years (2004–2013) and counterfactual simulations, this paper finds that the main factor contributing to poverty reduction has been individuals’ changes in labor earnings, and the role of these changes has been less important in reducing income inequality. The main driving force of reduced income inequality has been the fall in returns to education, which at the same time has been one of the important factors to constraining the period’s remarkable progress in poverty reduction and expansion of the middle class.

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

To view the access options for this content please click here
Article

Lin Xiu and Morley Gunderson

– The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

Abstract

Purpose

The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

Design/methodology/approach

The authors use the Recentered Influence Function modification of quantile regressions to estimate how the male-female pay gap varies across the pay distribution. The authors also decompose the pay gaps at different quantiles of the pay distribution into differences in endowments of wage determining characteristics and differences in the returns for the same characteristics. The analysis is based on data from the Life Histories and Social Change in Contemporary China survey.

Findings

The authors find evidence of a sticky floor (large pay gaps at the bottom of the pay distribution) and some limited and weaker evidence of a glass ceiling (large pay gaps at the top of the distribution). This pattern prevails based on the overall pay gap as well as on the adjusted or net gap that reflects differences in the pay that males and females receive when they have the same pay determining characteristics. The pattern largely reflects the coefficients or unexplained differences across the pay distribution. Factors influencing the pay gap and how they vary across the pay distribution are discussed. The variation highlights considerable heterogeneity in the Chinese labour market with respect to how pay is determined and different characteristics are rewarded, implying that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution.

Social implications

At the bottom of the pay distribution most of the lower pay of females reflects their lower returns to job tenure, experience and a greater negative effect of family responsibilities on females’ wages, and to a lesser extent their lower level of education, less likelihood of being CPP members and their concentration in lower paying occupations. At the top of the pay distribution most of their lower pay reflects their lower returns on education, job tenure and work experience, and to a lesser extent their lower levels of experience and lower likelihood of being in managerial and leadership positions.

Originality/value

The paper systematically examines the male-female pay gap and its determinants throughout the pay distribution in China, highlighting that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution and not capture the considerable heterogeneity in that labour market.

Details

International Journal of Manpower, vol. 35 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

To view the access options for this content please click here
Book part

Maurizio Bussolo, Carla Krolage, Mattia Makovec, Andreas Peichl, Marc Stöckli, Iván Torre and Christian Wittneben

European countries have the world’s most redistributive tax and transfer systems. While they have been well equipped to deal with vertical inequality – fostering…

Abstract

European countries have the world’s most redistributive tax and transfer systems. While they have been well equipped to deal with vertical inequality – fostering redistribution from the rich to the poor – less is known about their performance in dealing with horizontal inequality, that is, in redistributing across socioeconomic groups. In a context where individuals may not only care about vertical redistribution, but also about the economic situation of the specific groups they belong to, the horizontal dimension of redistribution becomes politically salient and can be a source of social tensions. The authors analyse the performance of the 28 EU countries for redistribution across (i) age groups; (ii) occupational groups; and (iii) household types over the period 2007–2014 using counterfactual simulation techniques. We find a significant degree of heterogeneity across countries: changes in the tax and transfer system have particularly hit the young and the losers of occupational change in Eastern European countries, while households with greater economic security have benefited from these changes. The findings of this study suggest that horizontal inequality is a dimension which policy-makers should take into account when reforming tax and transfer systems.

Content available
Article

Kaiming Guo, Jing Hang and Se Yan

Economic theories on structural change focus on factors such as fluctuations in relative prices and income growth. In addition, China’s reform and opening up has also been…

Abstract

Purpose

Economic theories on structural change focus on factors such as fluctuations in relative prices and income growth. In addition, China’s reform and opening up has also been accompanied by increasing openness, significant fluctuations in investment rates, and frictions in the labor market. Existing literature lacks a unified theoretical framework to assess the relative importance of all these determinants. The paper aims to discuss these issues.

Design/methodology/approach

To incorporate all of the potential determinants of China’s structural change, the authors build a two-country four-sector neoclassical growth model that embeds the multi-sector Eaton and Kortum (2002) model of international trade, complete input-output structure, non-homothetic preference and labor market frictions. The authors decompose the sectoral employment shares into six effects: the Baumol, Engel, investment, international trade, factor intensity and labor market friction effects. Using the data of Chinese economy from 1978 to 2011, the authors perform a quantitative investigation of the six determinants’ effects through the decomposition approach and counterfactual exercises.

Findings

Low-income elasticity of demand, high labor intensity, and the existence of the switching costs are the reasons for the high employment share in the agricultural sector. Technological progress, investment and international trade have comparatively less influence on the proportion difference of employment in the three sectors.

Originality/value

Therefore, to examine the impact on China’s structural change, in addition to Baumol effect and the Engel effect, it is also necessary to consider the impact of three more factors: international trade, investment and switching costs. Therefore, the authors decompose the factors that may influence China’s structural change into the Baumol, Engel, investment, international trade, factor intensity effect and switching cost effects. The authors evaluate these six effects using the decomposition approach and counterfactual exercises.

Details

China Political Economy, vol. 1 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

1 – 10 of 208