Search results

The study aims to explore the impact of National Health Insurance Scheme (NHIS) enrolment on farm investments in a developing country setting. We classify farm investments into (1) soil and land investments and (2) hired adult labour.

This study used data on 5,883 farm households from the sixth round of the Ghana Living Standard Surveys (GLSS), which is nationally represented data at the household level. The data also includes a Labour Force Survey module. The sample frame was divided into a primary and secondary sampling unit, with interviews taking place in 1,200 enumeration areas (EAs). The estimation of impacts was carried out using ordinary least squares (OLS) estimations and addressed endogeneity concerns using propensity score matching (PSM) and instrumental variable (IV) estimators.

The study finds a strong positive association between the NHIS enrolment status of farm households and investments in agricultural land and soil health improvement. Precisely, farm households who are enroled in the health insurance system tend to invest about 32% more in soil and land improvement activities and 30% more in hired farm labour than households who are not enroled in NHIS.

The overall evidence from our study suggests that instead of high investments in fertilizer and other input subsidy programmes in Africa, sustainable smallholder agricultural investments can be achieved if concerns and issues of farmers’ health coverage are adequately addressed.

This is one of the first papers that have explored the impact of NHIS in developing countries on farm investments.

This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each parameter, and we examine how changes within these ranges can alter the outcomes of fiscal policy. In this way, we aim to highlight the importance of these parameters in the formulation and evaluation of fiscal policy.

The role of fiscal policy, its effects and multipliers continues to be a subject of intense debate in macroeconomics. Despite adopting a New Keynesian approach within a macroeconomic model, the reactions of macroeconomic variables to fiscal shocks can vary across different contexts and theoretical frameworks. This paper aims to investigate these diverse reactions by conducting a sensitivity analysis of parameters. Specifically, the study examines how key variables respond to fiscal shocks under different parameter settings. By analyzing the behavioral dynamics of these variables, this research contributes to the ongoing discussion on fiscal policy. The findings offer valuable insights to enrich the understanding of the complex relationship between fiscal shocks and macroeconomic outcomes, thus facilitating informed policy debates.

This paper aims to investigate key elements of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models. The focus is on the calibration of parameters and their impact on macroeconomic variables, such as output and inflation. The study also examines how different parameter settings affect the response of monetary policy to fiscal measures. In conclusion, this study has relied on theoretical exploration and a comprehensive review of existing literature. The parameters and their relationships have been analyzed within a robust theoretical framework, offering valuable insights for further research on how these factors influence model forecasts and inform policy recommendations derived from New Keynesian DSGE models. Moving forward, it is recommended that future work includes empirical analyses to test the reliability and effectiveness of parameter calibrations in real-world conditions. This will contribute to enhancing the accuracy and relevance of DSGE models for economic policy decision-making.

This study is motivated by the aim to provide a deeper understanding of the roles macroeconomic model parameters play concerning responses to expansionary fiscal policies and the subsequent reactions of monetary authorities. Comprehensive reviews that encompass this breadth of relationships within a single text are rare in the literature, making this work a valuable contribution to stimulating discussions on macroeconomic policies.

“The latest available cross-country data presented in the PEPPER V Report (Lowitzsch and Hashi, 2024) can be viewed by examining EFP in and of itself as an isolated subject or it can be viewed in a much wider set of contexts. Widening the lens in order to examine EFP in the context of the concentration of capital ownership and the concentration of capital income can help observers establish EFP’s span of relevance. In particular US data on capital income show that policy makers need to be aware that EFP can have an important role in narrowing the income and wealth gap for the working middle class when the concentration of capital ownership and capital income is high and when real wage growth is low.”

“Against this background, this article makes a very straightforward observation that the relevance of EFP in an economic system, in a country, and for the average employee in a country is related to the trend in the concentration of capital ownership and capital income. Interest in the idea is potentially increased or decreased by trends in real wages. Atkinson, who many consider the founder of modern wealth concentration scholarship, “focuses on the increasing share of capital incomes a source of income inequality among individuals” (Cirillo et al., 2017, p. 1). Indeed, we consider the difference between labour’s share and capital’s share to be a critically important fundamental problem of political economy. This essay asserts that when this concentration is high and real wages are flat, other things being equal, EFP may be more relevant. When the concentration of capital ownership and capital income is high, this means that ownership and income on that ownership is thinly spread in the population. When real wages are flat, this means that the rate at which fixed wages can replenish wealth is decreasing. As a result, both trends would make EFP more relevant.”

The conceptual model suggested for this article asserts that the relevance of EFP can be viewed as a function of narrowing income and wealth options for the working middle class when the concentration of capital ownership and capital income is high and when real wage growth is low. Does this relevance change across economic systems? There is no question that the future understanding of these issues requires adding metrics to the statistical methodologies of different regions and countries and adding to existing reports and analyses that focus on both the dynamics of and trends in capital income (property income in the EU) and on the EUR and USD value of EFP at the mean and at the median for different income levels of the population

This article presents – for the first time – a society-wide measure of the impact of EFP on one economy, namely, the US For further research, it makes sense to build on the comparable data available on the distribution of capital ownership and have similar research on the distribution of capital income for both the EU and the US along with measures of the EUR and USD values of EFP.

This study aims to investigate the relationship between Kosovo remittances, migration and labor force participation and seeks to uncover how migration and remittances, often considered separately, interact to shape labor market outcomes across gender, age and education groups.

To analyze the relationship between remittances, migration and labor force participation, this study leverages multivariate probit (mvprobit) to rectify the endogeneity issue intrinsic from remittances and migration. Utilizing this robust methodological approach allows us to circumvent the limitations traditionally associated with biprobit analysis. The research is grounded in empirical evidence from the Millennium Century Corporation survey in Kosovo.

The findings indicate that remittances and migration are pivotal determinants in shaping the contours of labor force participation, particularly influencing disparities across gender, age and educational attainment. Further, this study unearthed intriguing evidence suggesting the disincentivizing effect of remittances on labor force participation, alongside the potentially disruptive influence of prospective migration plans.

The novelty of this work lies not only in the context-specific insights it provides into the socio-economic fabric of Kosovo—an area that has hitherto received limited scholarly attention—but also in its methodological innovation. The simultaneous application of mvprobit technique provides a nuanced approach to tackle the inherent endogeneity issue, thereby pushing the methodological frontiers of the field.

This case study focuses on an alternative minimum-security model, the Safety Income (SI) Model, representing a nuanced departure from both established policies and UBI. StI is a welfare system that supplements households earning below the standard median income with 50% of the difference between the standard median and their current earnings. The quantitative case study presents the set-up of SI and assesses the cost of its implementation in South Korea. By employing a computable general equilibrium model method, the study compares the impacts of SI, UBI and the existing scheme in South Korea on income disparities, labor market outcomes and Gross Domestic Product.

In the past decade, the Universal Basic Income (UBI) concept has gained international significant traction as a potential remedy for poverty and inequality. However, the practical implications of UBI implementation remain under extensive debate. It is unclear if UBI is an effective model for poverty alleviation.

The analyses show that SI outperforms the other two welfare systems across all studied economic indicators. SI demonstrates more substantial reductions in income inequality compared with UBI and the existing scheme, minimal impact on unemployment rates compared with other schemes and a relatively modest decrease in GDP, making it a more favorable choice for South Korea when developing the minimum-security system within the specified budget constraint.

This research contributes to the discourse surrounding basic income, economic security, poverty alleviation and inclusive social policies.

This study investigates the effect of business cycles on school enrollment in Turkey. During recessions, school enrollment might increase as opportunity cost of schooling declines, yet it might also decrease because of reduced income households have for education. Which effect dominates depends on the context. We empirically explore this in a context displaying canonical features of developing countries.

Using the Turkish Household Labor Force Survey data for a period covering the Great Recession, we estimate the effect of unemployment rate separately for enrollments in general and vocational high schools and in undergraduate programs. To understand the cyclicality, we use a probit model with the regional and time variations in unemployment rates. We also build a simple theoretical model of work-schooling choice to interpret the findings.

We find that the likelihood of enrolling in general high schools and undergraduate programs declines with higher adult unemployment rates, but the likelihood of enrollment in vocational high schools increases. Confronting these empirical findings with the theoretical model suggests that the major factor in enrollment cyclicality in Turkey is how parental resources allocated to education change during recessions by schooling type.

Our finding of pro-cyclical enrollment in academically oriented programs is in contrast with counter-cyclicality documented for similar programs in developed countries, which highlights the importance of income related factors in developing-country contexts. Our heterogeneous findings for general and vocational high schools are also novel.

Employees facing challenges in their careers – i.e. female, migrant, elderly and lower-educated employees – might expect job searches to have a low likelihood of success and might therefore more often stay in unsatisfactory positions. The goal of this study is to discover inequalities in job mobility for these employees.

We rely on a large sample of Dutch public sector employees (N = 30,709) and study whether employees with challenges in their careers are hampered in translating job dissatisfaction into job searches. Additionally, we assess whether this is due to their perceptions of labor market alternatives.

Findings show that non-Western migrant, elderly and lower-educated employees are less likely to act on job dissatisfaction than their advantaged counterparts, whereas women are more likely than men to do so. Additionally, we find that although they perceive labor market opportunities as limited, this does not affect their propensity to search for different jobs.

This paper is novel in discovering inequalities in job mobility by analyzing whether employees facing challenges in their careers are less likely to act on job dissatisfaction and therefore more likely to remain in unsatisfactory positions.

The Covid-19 pandemic appears to have engendered heterogeneous effects on individuals’ labour market prospects. This paper focuses on two possible sources of a heterogeneous exposition to labour market risks associated with the pandemic outbreak: the routine task content of the job and the teleworkability. To evaluate whether these dimensions played a crucial role in amplifying employment and wage gaps among workers, we focus on the case of Italy, the first EU country hit by Covid-19.

Investigating the actual effect of the pandemic on workers employed in jobs with a different degree of teleworkability and routinization, using real microdata, is currently unfeasible. This is because longitudinal datasets collecting annual earnings and the detailed information about occupations needed to capture a job’s routine task content and teleworkability are not presently available. To simulate changes in the wage distribution for the year 2020, we have employed a static microsimulation model. This model is built on data from the Statistics on Income and Living Conditions (IT-SILC) survey, which has been enriched with administrative data and aligned with monthly observed labour market dynamics by industries and regions.

We measure the degree of job teleworkability and routinization with the teleworkability index (TWA) built by Sostero et al. (2020) and the routine-task-intensity index (RTI) developed by Cirillo et al. (2021), respectively. We find that RTI and TWA are negatively and positively associated with wages, respectively, and they are correlated with higher (respectively lower) risks of a large labour income drop due to the pandemic. Our evidence suggests that labour market risks related to the pandemic – and the associated new types of earnings inequality that may derive – are shaped by various factors (including TWA and RTI) instead of by a single dimension. However, differences in income drop risks for workers in jobs with varying degrees of teleworkability and routinization largely reduce when income support measures are considered, thus suggesting that the redistributive effect of the emergency measures implemented by the Italian government was rather effective.

No studies have so far investigated the effect of the pandemic on workers employed in jobs with a different degree of routinization and teleworkability in Italy. We thus investigate whether income drop risks in Italy in 2020 – before and after income support measures – differed among workers whose jobs are characterized by a different degree of RTI and TWA.

This study aims to assess the household food insecurity in Malaysia during the initial phase of the movement control order (MCO) to provide insights into the prevalence and predictors of food insecurity in this context.

The research used an online cross-sectional survey between March 28 and April 28, 2020. The study collected data from the Radimer/Cornell Hunger Scale and a food insecurity instrument. Analytical tools included chi-square and logistic regression models.

Of the 411 participating households, 54.3% were food-secure, while 45.7% experienced varying food insecurity. Among these, 29.9% reported mild hunger-associated food insecurity, 8.5% experienced individual food insecurity and 7.3% reported child hunger. The study identified predictors for food insecurity, including household income, as those with total income of < RM 2,300 had 13 times greater odds (odds ratio [OR] 13.8; confidence interval [CI] 5.9–32.1; p < 0.001) than those with income of RM 5,600, marital status as divorced (OR 4.4; 95% CI 1.0–19.9; p-value = 0.05) or married (OR 1.04; 95% CI 0.52–2.1) compared to those who are single. Self-employed respondents had three times greater odds of living in a household experiencing food insecurity (OR 3.58; 95% CI 1.6–7.7; p-value = 0.001) than those in the private sector (OR 1.48; 95% CI 0.85–2.61) or experiencing job loss (OR 1.39; 95% CI 0.62–3.1) compared with those who reported being in full-time government employment.

This study acknowledged limitations, such as not considering various dimensions of food insecurity, such as coping strategies, nutritional support, diet quality and well-being, due to the complexity of the issue.

The study underscores the importance of targeted support for vulnerable groups and fostering collaborative efforts to address household food insecurity during crises like the MCOs.

The research offers insights into how to address household food insecurity and its impact on society.

It identifies predictors, quantifies increased odds and emphasizes the necessity of targeted policies and collaborative approaches for fostering resilient recovery and promoting well-being in vulnerable populations.