scholarly journals How do Economic Circumstances Determine Preferences? Evidence from Long-run Panel Data

2017 ◽  
Vol 49 (4) ◽  
pp. 1381-1406 ◽  
Author(s):  
Tom O’Grady
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Intergenerational Mobility ◽  
Social Spending ◽  
Left Wing ◽  
Preferences For Redistribution ◽  
Long Run ◽  
The Family ◽  
Unemployment Risk ◽  
Empirical Tests

Preferences for redistribution and social spending are correlated with income and unemployment risk, but it is unclear how these relationships come about. I build a theory emphasizing that only large changes in economic circumstances provide the information and motivation needed for people to change their preferences. Stable long-run preferences are shaped mainly by early socialization, which includes economic and ideological influences from the family, and early labor market experiences. Enduring shocks, low intergenerational mobility and the tendency of left-wing parents to be poorer generate correlations between circumstances and preferences. Because preferences are stable, greater inequality may not increase aggregate support for redistribution. Support is found for the theory with panel data from Switzerland, using a range of empirical tests.

scholarly journals Labor Market Conditions and Partisan Voting: How Unemployment Hurts the Left

2020 ◽  
Author(s):  
Anton Brännlund
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Business Cycle ◽  
Unemployment Rate ◽  
Social Insurance ◽  
Social Spending ◽  
Left Wing ◽  
Market Conditions ◽  
Labor Market Conditions ◽  
The Business Cycle

Abstract Fluctuations in the labor market are a natural part of the business cycle, and they have attracted attention from political scientists for decades. Some scholars argue that left-wing parties benefit from rising rates of unemployment while others claim that voters rally behind conservative parties when the labor market weakens. I argue that the heterogeneous response of voters to a rise in the unemployment rate is due to differences in asset wealth. Put simply, the well-off have less need for social insurance, so they vote for conservative parties in order to put a cap on social spending when the unemployment rate rises; by contrast, asset-less voter opt for the left, with an eye to preserving their entitlements. I show with panel data from Swedish electoral districts that left-wing parties gain an electoral advantage when the local unemployment rate rises in less well-off areas, but they lose support when unemployment rises in wealthier districts.

Labor Market and Household Debt in Asia Pacific Countries: Dynamic Heterogeneous Panel Data Analysis

2019 ◽  
Vol 10 (02) ◽  
pp. 1950011 ◽  
Author(s):  
Suhal Kusairi ◽  
Suriyani Muhamad ◽  
M Musdholifah ◽  
Shu-Chen Chang
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Labor Force ◽  
Unemployment Rate ◽  
Panel Data Analysis ◽  
Housing Price ◽  
Asia Pacific ◽  
Household Debt ◽  
Dependency Ratio ◽  
Long Run

An overwhelming increase in household debt in the last decade has stirred researchers to explore the determinants of this phenomena, especially the role of the labor market. This paper comes to identify these determinants using the macro panel data from Asia Pacific countries for 1994–2016 and dynamic heterogeneous panel data analysis. The empirical results found that household consumption, housing price index, and labor force have a long-run positive relationship with household debt. In contrast, the unemployment rate and dependency ratio have a long-run negative relationship with household debt. This implies that when consumption, housing price, and labor force increase, then the household debt will increase, and when the unemployment rate and dependency ratio increase, the household debt will decrease. Also, in the short-run, public debt does affect private consumption, and it is not different among countries. The labor market, as represented by the unemployment rate, dependency ratio, and labor force, has a strong effect on the household debt in the long-run. Based on these findings, the government should pay more attention to the household debt related to property and commodity markets because they expose the short-run volatility and create problems for the long-term.

scholarly journals Η επίδραση της νόμιμης διαμονής στην κοινωνική ένταξη των μεταναστών στην Ελλάδα

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Δέσποινα Παπαδοπούλου
Keyword(s):  
Labor Market ◽  
Social Integration ◽  
Labour Market ◽  
Empirical Research ◽  
Occupational Status ◽  
Long Run ◽  
The Family ◽  
Work And Employment ◽  
Legal Immigrants

<p>This article examines how legal immigrants<br />integrate in the Greek labor market. The<br />analysis is based on the results of an<br />empirical research which was carried out in<br />three Greek cities, namely, Athens, Saloniki<br />and Ioannina, in 2006 and 2007. The research<br />took place in the framework of a research<br />programme evaluating the migrant policy in<br />Greece as an implementation of the European<br />Strategy for Employment. This article focuses<br />on the ultimate role of legitimization in the<br />processes of the immigrants’ entrance in the<br />labour market and their integration in Greek<br />society. The fi ndings show that stay permits<br />plays little infl uence or no infl uence on the<br />work and employment integration, but a<br />strong infl uence on the family re-unifi cation.<br />That is, the title of stay infl uences family<br />existence and maintenance, as well as child<br />achievement at school, but it does not help at<br />changing the occupational status or fi nding a<br />better job in the labor market. In the end, the<br />title of stay affects social integration in the<br />long run.</p>

scholarly journals ANALYSIS OF WOMEN ENTREPRENEURSHIP IN MONTENEGRO

2019 ◽  
Vol 31 (5) ◽  
pp. 1251-1257
Author(s):  
Edita Dautović ◽  
Nemša Omerhodžić ◽  
Sanja Lekić
Keyword(s):  
Economic Development ◽  
Labor Market ◽  
Labor Markets ◽  
Economic Activity ◽  
Market Position ◽  
Long Run ◽  
The Family ◽  
Employed Women ◽  
Employment Of Women ◽  
Very High

This paper discusses the position of women in labor markets in order to raise awareness of women about the significance of their contribution to one society, and to develop women's entrepreneurship in order to empower and empower women. Although many positive changes in the position of women in the labor market in the long run have been achieved in the long run, many indicators show that it is still much worse than the position of men: the rate of economic activity and employment of women is much higher, and if the better position of women is today, Women on average wait longer for work, concentration of employed women in some, typically female activities, is still very high, etc. Such a situation requires the need to consider the possibilities of expanding and opening the space for the flexibility of their employment, as women still have to adjust their responsibilities in the family and at the workplace. Non-standard forms of employment are more and more common, they are not equally desirable. Holders of economic development are entrepreneurs who manifest their quality and success by competitiveness and improvement of their market position. The term "entrepreneur" is defined as a woman who has her own business and decides about it. Entrepreneurship, by definition, is characterized by the desire to earn a profit.

scholarly journals Professional activity of women in light of the Family 500+ Program

2019 ◽  
Vol 17 (4) ◽  
pp. 214-225
Author(s):  
Monika Pasternak-Malicka
Keyword(s):  
Labor Market ◽  
Economic Activity ◽  
Professional Activity ◽  
Social Spending ◽  
Linear Regression Method ◽  
Social Expenditure ◽  
Raising Children ◽  
The Family ◽  
Family Benefits ◽  
The Impact

The article aims to assess the impact of the Family 500+ Program on women’s professional activity. The Family 500+ Program is a governmental support introduced in April 2016 and is designed to assist the families in raising children. The support is provided by monthly payment of PLN 500 for every single child in the family.The study, primarily, attempts to assess the relationship between the level of expenditure on family benefits and the employment rate, and, on the other hand, based on the surveys, to indicate whether the Program encourages women to quit from the formal labor market. The article describes the professional activity of women, the level of social spending in Poland and some selected EU countries. Based on statistical data, an attempt was made to assess the impact of social expenditure on women’s economic activity based on the linear regression method. Based on this method, it was stressed that the amount of benefit has the impact on the economic activity of women and this relationship is highly statistically significant. Fragments of own surveys from 2017 till 2019 were also presented, which suggest that the Family 500+ Program may lead to the withdrawal of women from the labor market. Respondents most often stressed the possibility of appearing reluctance to work for careers in large families. Entrepreneurs’ responses showed the discouraging effect of the Family 500+ Program (35.1% in 2019), which may contribute to a decrease in labor supply according to 16.0% of respondents.

scholarly journals Intergenerational Mobility and Preferences for Redistribution

2018 ◽  
Vol 108 (2) ◽  
pp. 521-554 ◽  
Author(s):  
Alberto Alesina ◽  
Stefanie Stantcheva ◽  
Edoardo Teso
Keyword(s):  
Social Mobility ◽  
Intergenerational Mobility ◽  
The United States ◽  
Political Polarization ◽  
Right Wing ◽  
Left Wing ◽  
The United Kingdom ◽  
Preferences For Redistribution ◽  
Cross Country ◽  
The Government

Using new cross-country survey and experimental data, we investigate how beliefs about intergenerational mobility affect preferences for redistribution in France, Italy, Sweden, the United Kingdom, and the United States. Americans are more optimistic than Europeans about social mobility. Our randomized treatment shows pessimistic information about mobility and increases support for redistribution, mostly for “equality of opportunity” policies. We find strong political polarization. Left-wing respondents are more pessimistic about mobility: their preferences for redistribution are correlated with their mobility perceptions; and they support more redistribution after seeing pessimistic information. None of this is true for right-wing respondents, possibly because they see the government as a “problem” and not as the “solution.” (JEL D63, D72, H23, H24, J31, J62)

scholarly journals LABOR MARKET DYNAMICS UNDER TECHNOLOGY SHOCKS: THE ROLE OF SUBSISTENCE CONSUMPTION

2021 ◽  
pp. 1-29
Author(s):  
Sangyup Choi ◽  
Myungkyu Shim
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Developing Economies ◽  
Structural Var ◽  
Market Dynamics ◽  
Technology Shocks ◽  
Structural Factors ◽  
Long Run ◽  
Labor Market Dynamics ◽  
Short Run

This paper establishes new stylized facts about labor market dynamics in developing economies, which are distinct from those in advanced economies, and then proposes a simple model to explain them. We first show that the response of hours worked and employment to a technology shock—identified by a structural VAR model with either short-run or long-run restrictions—is substantially smaller in developing economies. We then present compelling empirical evidence that several structural factors related to the relevance of subsistence consumption across countries can jointly account for the relative volatility of employment to output and that of consumption to output. We argue that a standard real business cycle (RBC) model augmented with subsistence consumption can explain the several salient features of business cycle fluctuations in developing economies, especially their distinct labor market dynamics under technology shocks.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

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