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Book part
Publication date: 20 June 2003

John Bound, Richard V Burkhauser and Austin Nichols

Using panel data from the Survey of Income and Program Participation linked to Social Security Administration disability determination records we trace the pattern of household…

Abstract

Using panel data from the Survey of Income and Program Participation linked to Social Security Administration disability determination records we trace the pattern of household income and the sources of that income from 38 months prior to 39 months following application for Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI). We find that the average applicant’s labor earnings declines dramatically beginning six months before application but the average applicant’s household income drops much less dramatically both in the months just before or just after application and over the next three years, and does so even for those denied benefits. However, we also found substantial heterogeneity in household income outcomes in both the SSDI and SSI applicant population. Our quantile regressions suggest that higher income households experience greater percentage declines in their post-application income. Such results are consistent with the lower replacement rate for higher earners established in the SSDI program and the low absolute level of protection provided to all SSI applicants regardless of income prior to application.

Details

Worker Well-Being and Public Policy
Type: Book
ISBN: 978-1-84950-213-9

Article
Publication date: 9 April 2018

Francieli Tonet Maciel and Ana Maria Hermeto C. Oliveira

The purpose of this paper is to examine the effects of changes in the relative composition and in the segmentation between formal and informal labour on earnings differentials…

Abstract

Purpose

The purpose of this paper is to examine the effects of changes in the relative composition and in the segmentation between formal and informal labour on earnings differentials among women over the last decade in Brazil.

Design/methodology/approach

The authors follow Machado and Mata’s method to decompose the changes along the earnings distribution, with correction for sample selection and using microdata from the Demographic Census of 2000 and 2010. Informal labour was divided into informal salaried labour and self-employment, and both groups were compared with the formal labour separately.

Findings

The results indicate that, in both cases, an increase in earnings differentials in the bottom of the earnings distribution due to segmentation, suggesting that the returns to formal labour have grown relatively to informal labour during the period. On the other hand, earnings differentials decrease as one moves up the earnings distribution due to the composition effect, which is stronger on the top of the distribution relatively to the bottom. Furthermore, there are compensating differentials for self-employed women above the 30th quantile, which contributed to reduce the inequality between this group and formal workers.

Originality/value

The paper contributes to a better understanding of the changes taking place in female labour, shedding some light on how they affect different points along the earnings distribution. Furthermore, the adopted approach proposes a new application for the correction of sample bias in the context of quantile regression by employing a logit multinomial, and using the Demographic Census data.

Details

International Journal of Social Economics, vol. 45 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 23 August 2012

Denisa Maria Sologon and Cathal O’Donoghue

The economic reality of the 1990s in Europe forced the labor markets to become more flexible. Using a consistent comparative dataset for 14 countries, the European Community…

Abstract

The economic reality of the 1990s in Europe forced the labor markets to become more flexible. Using a consistent comparative dataset for 14 countries, the European Community Household Panel (ECHP), we explore the degree of earnings mobility and inequality across Europe, and the role of labor market institutions in understanding the cross-national differences in earnings mobility. We study the degree of rank mobility and the degree of mobility as equalizer of long-term earnings. The country ranking in long-term earnings inequality is similar with the country ranking in annual inequality, which is a sign of limited long-term equalizing mobility within countries with higher levels of annual inequality. In long-term earnings inequality, Denmark renders the most mobile earnings distribution with the second highest equalizing effect. The only disequalizing mobility in a lifetime perspective is found in Portugal. With respect to the relationship between earnings mobility and earnings inequality, we find a significant negative association both in the short and the long run. Based on the rankings in long-term Fields mobility and long-term inequality, Denmark is expected to have the lowest lifetime earnings inequality in Europe, followed by Finland, Austria, and Belgium. The Mediterranean countries (Spain and Portugal) are expected to have the highest long-term inequality. With respect to the institutional factors that may be related to earnings mobility, we bring evidence that the deregulation in the labor and product markets, the degree of unionization, the degree of corporatism and the spending on ALMPs are positively associated with earnings mobility.

Details

Inequality, Mobility and Segregation: Essays in Honor of Jacques Silber
Type: Book
ISBN: 978-1-78190-171-7

Keywords

Book part
Publication date: 25 February 2016

Martha H. Stinson and Peter Gottschalk

We investigate the question of whether investing in a child’s development by having a parent stay at home when the child is young is correlated with the child’s adult outcomes…

Abstract

We investigate the question of whether investing in a child’s development by having a parent stay at home when the child is young is correlated with the child’s adult outcomes. Specifically, do children with stay-at-home mothers have higher adult earnings than children raised in households with a working mother? The major contribution of our study is that, unlike previous studies, we have access to rich longitudinal data that allows us to measure both the parental earnings when the child is very young and the adult earnings of the child. Our findings are consistent with previous studies that show insignificant differences between children raised by stay-at-home mothers during their early years and children with mothers working in the market. We find no impact of maternal employment during the first five years of a child’s life on earnings, employment, or mobility measures of either sons or daughters. We do find, however, that maternal employment during children’s high school years is correlated with a higher probability of employment as adults for daughters and a higher correlation between parent and daughter earnings ranks.

Details

Inequality: Causes and Consequences
Type: Book
ISBN: 978-1-78560-810-0

Keywords

Book part
Publication date: 14 August 2015

Magnus Wikström, Elena Kotyrlo and Niklas Hanes

This paper studies earnings and labor force participation of native Swedes and recent immigrants in Sweden in response to the childcare reforms of 2001 and 2002 using a…

Abstract

This paper studies earnings and labor force participation of native Swedes and recent immigrants in Sweden in response to the childcare reforms of 2001 and 2002 using a difference-in-differences approach and register-based data for the period of 1995–2009. Immigrant and native Swedish mothers are distinguished in order to study if increased accessibility to childcare might be particularly beneficial for groups facing obstacles in entering the labor market. The results show that the reforms had a positive effect on earnings and labor force participation among native mothers with preschool children. The group of immigrant mothers studied did not experience any gain in labor market outcomes as a response to the reform.

Article
Publication date: 1 May 1991

Don Bellante, Carl A. Kogut and Raul Moncarz

The effect of the relative supply of Hispanics onthe relative earnings of Blacks in US labourmarkets is examined. The data source for theempirical estimates is the March 1988…

Abstract

The effect of the relative supply of Hispanics on the relative earnings of Blacks in US labour markets is examined. The data source for the empirical estimates is the March 1988 Current Population Survey. The results support one of the key features of the Becker model of discrimination, namely, that the extent of discrimination is affected by relative supply. Results also indicated that an increase in the number of Hispanics in a local labour market will reduce the income of otherwise comparable Blacks. However, if the Black labour supply in a local labour market is sufficiently large, a given percentage increase in the relative supply of Blacks will have a more negative impact on average Black earnings than would the same percentage increase in the number of Hispanics.

Details

International Journal of Manpower, vol. 12 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 20 August 2018

Monica Puoma Lambon-Quayefio and Nkechi Srodah Owoo

The prevalence of child labour continues to feature prominently on the agenda of many sub-Saharan African countries. The problem remains critical despite existing laws and other…

Abstract

Purpose

The prevalence of child labour continues to feature prominently on the agenda of many sub-Saharan African countries. The problem remains critical despite existing laws and other legislative instruments that have been put in place to address the situation. The purpose of this paper is to examine a critical consequence of child labour, that is, its effect on future earnings and occupational choice.

Design/methodology/approach

The most recent round of the Ghana Living Standards Survey is used for this purpose. In addition to the Heckman model, the study employs propensity score and nearest neighbour matching techniques to account for the possible self-selection in engaging in child labour activities. Also, the multinomial logit model was employed to determine the choice of occupations of people who were engaged in child labour.

Findings

Results indicate that early labour market entry significantly reduces future earnings, possibly due to lower human capital accumulation. These results remain robust with different estimators. Additionally, results from the second objective show that child labour increases the odds of choosing low-skilled occupations.

Originality/value

In Ghana, the negative consequences of child labour on educational attainment have been well documented. Less, if at all, studied are the long-term consequences of child labour, particularly on future economic status.

Details

International Journal of Social Economics, vol. 45 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 17 March 2010

Daniel T. Hall

Purpose – We investigate the outcomes of public sector charity provision, which relies on income redistribution. Increasing the level of redistribution can result in an…

Abstract

Purpose – We investigate the outcomes of public sector charity provision, which relies on income redistribution. Increasing the level of redistribution can result in an efficiency-equality tradeoff. We investigate whether the efficiency-equality tradeoff can be explained by lowered work incentives.

Methodology – The chapter uses the methodology of laboratory experiments. We remove the administration costs of redistribution to see if a significant source of the tradeoff can be explained by lower work incentives.

Findings – We find a significant efficiency-equality tradeoff between low- and high-tax groups explained by lowered work incentives. Labor supply decisions are motivated by strategic and cooperative preferences which vary the size of the tradeoff.

Limitations – Our analysis is limited to measuring the size and distribution of labor income. We discuss avenues such as allowing for crowding out and volunteerism, to further explore the impact of public sector charity provision.

Practical and social implications – Charity can be provided by the public, private, and independent sector. The public sector must redistribute income to provide charity, which leads to an efficiency-equality tradeoff. This calls for a reconsideration of increasing dependence on public sector charity provision.

Originality – The efficiency-equality tradeoff traditionally focuses on the labor supply response to taxation. We allow subjects to respond to how their taxes are being used as well. Subjects are also given feedback on whether they are net taxpayers into redistribution or net recipients from it.

Details

Charity with Choice
Type: Book
ISBN: 978-1-84950-768-4

Book part
Publication date: 23 August 2012

Andrea Brandolini, Alfonso Rosolia and Roberto Torrini

This chapter studies the distribution of labour earnings among employees within the EU using data from Wave 2007-1 of the EU-SILC. The ranking of countries by median full-time…

Abstract

This chapter studies the distribution of labour earnings among employees within the EU using data from Wave 2007-1 of the EU-SILC. The ranking of countries by median full-time equivalent monthly gross earnings shows Eastern European nations at the bottom and Luxembourg at the top; earnings differences are sizeable, both across and within countries. Taking the euro area and the EU-25 as a whole, inequality is higher when earnings are measured in euro at market exchange rates than at purchasing power parities. Unsurprisingly, the wage distribution is narrower in the euro area than in the EU-25, which includes the poorer Eastern European countries joining the Union in 2004. The higher inequality observed for the EU-25 is largely attributable to between-country differences, which in turn reflect differences in returns to individual attributes more than in workforce composition.

Details

Inequality, Mobility and Segregation: Essays in Honor of Jacques Silber
Type: Book
ISBN: 978-1-78190-171-7

Keywords

Article
Publication date: 1 December 2002

Ami R. Moore and Foster K. Amey

This article analyses the earnings attainment of male African immigrants in the United States. Using OLS regression and data from the 1990 Census of Population and Housing, we…

Abstract

This article analyses the earnings attainment of male African immigrants in the United States. Using OLS regression and data from the 1990 Census of Population and Housing, we identified the determinants of annual earnings attainment of male African immigrants and examined them by country of origin. We also assessed the impact of skill transferability via ability to speak English on such earnings. Results showed that the process of earnings attainment of African immigrants vary by country of origin. For example, while educational attainment is a significant predictor of annual earnings for only Kenyan and South African immigrants, duration of stay in the United States is significant for immigrants from Cape Verde. Overall, the pay‐offs of college education are higher for South African immigrants than it is for the other groups. Non‐Anglophone immigrants begin with a disadvantage relative to their English‐speaking counterparts. However, this disadvantage is eroded by the length of stay in the US, ability to speak English, and other job‐related characteristics.

Details

Equal Opportunities International, vol. 21 no. 8
Type: Research Article
ISSN: 0261-0159

Keywords

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