scholarly journals Income Inequality and Class Divides in Parental Investments

Author(s):  
Daniel Schneider ◽  
Orestes P Hastings ◽  
Joe LaBriola

Historic increases in income inequality have coincided with widening class divides in parental investments of money and time in children. These widening class gaps are significant because parental investment is one pathway by which advantage is transmitted across generations. Using over three decades of micro-data from the Consumer Expenditure Survey and the American Heritage Time Use Survey linked to state-year measures of income inequality, we test the relationship between income inequality and class gaps in parental investment. We find robust evidence of wider class gaps in parental financial investments in children—but not parental time investments in children—when state-level income inequality is higher. We explore mechanisms that may drive the relationship between rising income inequality and widening class gaps in parental financial investments in children. This relationship is partially explained by the increasing concentration of income at the top of the income distribution in state-years with higher inequality, which gives higher-earning households more money to spend on financial investments in children. In addition, we find evidence for contextual effects of higher income inequality that reshape parental preferences toward financial investment in children differentially by class.

2018 ◽  
Vol 83 (3) ◽  
pp. 475-507 ◽  
Author(s):  
Daniel Schneider ◽  
Orestes P. Hastings ◽  
Joe LaBriola

Historic increases in income inequality have coincided with widening class divides in parental investments of money and time in children. These widening class gaps are significant because parental investment is one pathway by which advantage is transmitted across generations. Using over three decades of micro-data from the Consumer Expenditure Survey and the American Heritage Time Use Survey linked to state-year measures of income inequality, we test the relationship between income inequality and class gaps in parental investment. We find robust evidence of wider class gaps in parental financial investments in children—but not parental time investments in children—when state-level income inequality is higher. We explore mechanisms that may drive the relationship between rising income inequality and widening class gaps in parental financial investments in children. This relationship is partially explained by the increasing concentration of income at the top of the income distribution in state-years with higher inequality, which gives higher-earning households more money to spend on financial investments in children. In addition, we find evidence for contextual effects of higher income inequality that reshape parental preferences toward financial investment in children differentially by class.


2022 ◽  
pp. 000312242110699
Author(s):  
Margot I. Jackson ◽  
Daniel Schneider

Families and governments are the primary sources of investment in children, providing access to basic resources and other developmental opportunities. Recent research identifies significant class gaps in parental investments that contribute to high levels of inequality by family income and education. State-level public investments in children and families have the potential to reduce class inequality in children’s developmental environments by affecting parents’ behavior. Using newly assembled administrative data from 1998 to 2014, linked to household-level data from the Consumer Expenditure Survey, we examine how public-sector investment in income support, health, and education is associated with the private expenditures of low- and high-SES parents on developmental items for children. Are class gaps in parental investments in children narrower in contexts of higher public investment for children and families? We find that more generous public spending for children and families is associated with significantly narrower class gaps in private parental investments. Furthermore, we find that equalization is driven by bottom-up increases in low-SES households’ developmental spending in response to progressive state investments of income support and health, and by top-down decreases in high-SES households’ developmental spending in response to universal state investment in public education.


2019 ◽  
Vol 73 (4) ◽  
pp. 790-804 ◽  
Author(s):  
David Macdonald

The United States has become increasingly unequal. Income inequality has risen dramatically since the 1970s, yet public opinion toward redistribution has remained largely unchanged. This is puzzling, given Americans’ professed concern regarding, and knowledge of, rising inequality. I argue that trust in government can help to reconcile this. I combine data on state-level income inequality with survey data from the Cumulative American National Election Studies (CANES) from 1984 to 2016. I find that trust in government conditions the relationship between inequality and redistribution, with higher inequality prompting demand for government redistribution, but only among politically trustful individuals. This holds among conservatives and non-conservatives and among the affluent and non-affluent. These findings underscore the relevance of political trust in shaping attitudes toward inequality and economic redistribution and contribute to our understanding of why American public opinion has not turned in favor of redistribution during an era of rising income inequality.


2021 ◽  
Author(s):  
Orestes P Hastings ◽  
Joe LaBriola

Scholars have theorized how private parental investments of money and time in children may respond differentially to the loss of the public provision of schooling during the summer, based on parental socioeconomic status (SES). Importantly, the widening of SES gaps in parental investments of money and time in children during the summer could generate SES gaps in children’s learning during the summer. We investigate the seasonality of SES gaps in parental investments of both money and time using the 1996–2018 Consumer Expenditure Survey and 2003–2019 American Time Use Survey. We find SES gaps in parental investments of both money and time during the summer and SES gaps in expenditures are larger in the summer than during non-summer months. We find little evidence that these gaps have grown substantially over time, but we do find these gaps are larger for younger school-age children than for older school-age children. This research provides new evidence regarding the link between public and parental investments in children, addresses a key mechanism underlying the debate about the summer learning gap, and provides new evidence on how parents may target investments in children towards the ages when they are most consequential.


2020 ◽  
Vol 3 (1) ◽  
pp. 1-16
Author(s):  
Dedi Junaedi ◽  
Siti Chaerijah Aurijah ◽  
Muhammad Rizal Arsyad

This study aims to explore the optimal choice of Hajj financial investment through analysis of the relationship between the prospects for gold investment, Islamic stocks and  rice agribusiness investment with the dynamics of exchange rates, inflation, BI-rate, pandemic cases and differences in policies in handling the Covid-19 pandemic. The method used is a mixed method between qualitative descriptions and quantitative analysis. The data used are primary and secondary data from January to August 2020. The analysis technique used is multiple regression with summy pandemic policy variables. The result: investing in gold, investing in Islamic stocks and investing in  rice agribusiness can become priority options for Hajj financial investments. The prospect of investing in gold is quite bright and is not statistically significantly affected by exchange rate fluctuations, inflation, BI-rate and the case of a pandemic. Sharia stock investment (ISSI and JII indices) has good prospects even though it is influenced by the dynamics of exchange rates, inflation, BI-rate and the Covid pandemic. Likewise, the investment in  rice agribusiness is considered prospective considering its greater impact on farmers and national food availability. The analysis shows that gold investment and  rice agribusiness investment have a positive correlation and tend to strengthen each other.  


2021 ◽  
pp. 089590482110156
Author(s):  
Christopher Redding

Drawing on nationally representative data from six cohorts of beginning teachers from the Schools and Staffing Survey and the National Teacher and Principal Survey, this study applies a difference-in-differences research design to examine the relationship between changes to state-level alternative certification policies and the characteristics of new teachers. The introduction of alternate routes into teaching is associated with an increase in the fraction of new teachers of color in a state and the new teachers who graduated from selective colleges. No evidence was found of a relationship with the relative share of male teachers or teachers of in-demand subjects.


2021 ◽  
pp. 000312242199668
Author(s):  
Patricia Homan ◽  
Amy Burdette

An emerging line of research has begun to document the relationship between structural sexism and health. This work shows that structural sexism—defined as systematic gender inequality in power and resources—within U.S. state-level institutions and within marriages can shape individuals’ physical health. In the present study, we use a novel dataset created by linking two nationally representative surveys (the General Social Survey and the National Congregations Study) to explore the health consequences of structural sexism within another setting: religious institutions. Although religious participation is generally associated with positive health outcomes, many religious institutions create and reinforce a high degree of structural sexism, which is harmful for health. Prior research has not reconciled these seemingly conflicting patterns. We find that among religious participants, women who attend sexist religious institutions report significantly worse self-rated health than do those who attend more inclusive congregations. Furthermore, only women who attend inclusive religious institutions exhibit a health advantage relative to non-participants. We observe marginal to no statistically significant effects among men. Our results suggest the health benefits of religious participation do not extend to groups that are systematically excluded from power and status within their religious institutions.


2021 ◽  
pp. 135406882110119
Author(s):  
Matthew Polacko

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.


2005 ◽  
Vol 4 (3-4) ◽  
pp. 261-284 ◽  
Author(s):  
Robert Andersen ◽  
Anthony Heath ◽  
David Weakliem

AbstractThis paper examines the relationship between public support for wage differentials and actual income inequality using data from the World Values Surveys. The distribution of income is more equal in nations where public opinion is more egalitarian. There is some evidence that the opinions of people with higher incomes are more influential than those of people with low incomes. Although the estimated relationship is stronger in democracies, it is present even under non-democratic governments, and the hypothesis that effects are equal cannot be rejected. We consider the possibility of reciprocal causation by means of an instrumental variables analysis, which yields no evidence that income distribution affects opinion.


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