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The Impact of COVID‐19 on Education in Latin America: Long‐Run Implications for Poverty and Inequality Review of Income and Wealth (IF 1.902) Pub Date : 2024-03-26 Jessica Bracco, Matías Ciaschi, Leonardo Gasparini, Mariana Marchionni, Guido Neidhöfer
The shock of the COVID‐19 pandemic affected the human capital formation of children and youths. As a consequence of this disruption, the pandemic is likely to imply permanent lower levels of human capital. This paper provides new evidence on the impact of COVID‐19 and school closures on education in Latin America by exploiting harmonized microdata from a large set of national household surveys carried
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The “F Words”: Why Surveying Businesses About Intangibles is so Hard Review of Income and Wealth (IF 1.902) Pub Date : 2024-03-22 Josh Martin
Understanding of the value and economic contribution of intangible assets is hampered by measurement challenges, which stem from the characteristics of intangibles and weaknesses in survey design. We characterize these challenges with four “F words”—forgotten, fuzzy, framing, and frequency. We establish these characteristics theoretically, with reference to the survey design literature. We then provide
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Intergenerational Transmission of Welfare Benefit Receipt: Evidence from Germany Review of Income and Wealth (IF 1.902) Pub Date : 2024-03-21 Regina T. Riphahn, Jennifer Feichtmayer
We study the intergenerational transmission of welfare benefit receipt in Germany. We first describe the correlation between welfare receipt experienced in the parental household and subsequent own welfare receipt of young adults. In a second step, we investigate whether the observed correlations reflect causal effects of past welfare experience. We use family fixed effects estimations and Gottschalk's
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The three I's of downward income mobility: A directional subgroup decomposable measure Review of Income and Wealth (IF 1.902) Pub Date : 2024-03-15 Elena Bárcena‐Martín, Olga Cantó
The Foster‐Greer‐Thorbecke class of indices and the TIP curve have become classical tools to measure poverty. In this paper we adapt these indices and curve to the income mobility literature and measure downward income mobility considering its three dimensions of incidence, intensity, and inequality. This strategy allows us to incorporate reference dependence, loss aversion and diminishing sensitivity
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Deflation by Expenditure Components: A Harmless Adjustment? Review of Income and Wealth (IF 1.902) Pub Date : 2024-03-12 Nicola Amendola, Giulia Mancini, Silvia Redaelli, Giovanni Vecchi
We investigate the effect that seemingly minor features of the implementation of cost‐of‐living adjustments have on the distribution of household expenditures, by developing an analytical framework that is consistent with standard consumer theory, and mindful of data limitations faced by practitioners. The main result is at odds with common sense: even when multiple price indices are available (e.g
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Inflation measurement in the presence of stockpiling and consumption smoothing Review of Income and Wealth (IF 1.902) Pub Date : 2024-02-23 Ludwig von Auer
A chained price index is said to suffer from chain drift bias if it indicates an overall price change, even though the prices and quantities in the current period have reverted back to their levels of the base period. The empirical relevance of this bias is well documented in studies that apply sub‐annual chaining to scanner data. There it is shown that stockpiling can lead to downward chain drift
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Evaluating the Distributive Incidence of Growth Using Cross‐sections and Panels Review of Income and Wealth (IF 1.902) Pub Date : 2024-02-23 Yonatan Berman, François Bourguignon
We study decennial anonymous and non‐anonymous growth incidence curves in the United States during the past 50 years. The former show income growth by quantile independent of initial incomes and are typically upward sloping, reflecting increasing inequality. The latter are conditional on initial ranks and are flat or downward sloping. This suggests distributional neutrality of growth when accounting
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Trade in services related to intangibles and the profit shifting hypothesis Review of Income and Wealth (IF 1.902) Pub Date : 2024-02-06 Nadia Accoto, Stefano Federico, Giacomo Oddo
This paper focuses on the international trade in services related to intangible assets and intellectual property products (IPP), and it explores to what extent they might be used as a channel to shift the profits of multinational firms to tax havens. Using survey data on Italian firms, we first provide a geographical and sectoral analysis of Italy's trade in IPP services. We then estimate the amount
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Inequality and Market Concentration: New Evidence from Australia Review of Income and Wealth (IF 1.902) Pub Date : 2024-01-31 Lachlan Hotchin, Andrew Leigh
Are excessively concentrated markets inequitable as well as inefficient? We explore this issue by analyzing the degree of market concentration in the industries where Australia's wealthiest made their fortunes. Compared with the economy at large, we find that top wealth holders have tended to make their fortunes in industries with a higher-than-average degree of market concentration. Top wealth shares
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Estimating regional house price levels Review of Income and Wealth (IF 1.902) Pub Date : 2024-01-30 Pierre-Alain Pionnier, Johannes Schuffels
While quality-adjusted indices tracing the evolutions of regional house prices are increasingly available, this is less the case for data on regional house price levels. Yet, such information is fundamental to assess housing affordability and barriers to labour mobility. This article puts forward a method to compile regional house price levels that are consistent with the evolutions given by house
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Parental Expenditures of Time and Money on Children in the U.S. Review of Income and Wealth (IF 1.902) Pub Date : 2024-01-15 Leila Gautham, Nancy Folbre
How much do parents spend on children in the U.S.? While the U.S. Department of Agriculture (USDA) regularly addresses this question, it considers only money expenditures, omitting the sizeable monetary value of parental time. The 2017 and 2019 Panel Study of Income Dynamics offers a unique opportunity to provide a more complete picture. Analysis of this data reveals considerable substitutability between
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Organizational Capital, Skills and Productivity Review of Income and Wealth (IF 1.902) Pub Date : 2024-01-08 Emile Cammeraat, Lea Samek, Mariagrazia Squicciarini
This paper studies how industries' investment in organizational capital (OC) and workforce skills relate to productivity, building on OECD estimates of OC, output data from the OECD Structural Analysis (STAN) database, and skill indicators from the OECD Programme for the International Assessment of Adult Competencies (PIAAC). The paper finds that, at the industry level, workers' numeracy and Science
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Horizontal Inequalities in Africa Review of Income and Wealth (IF 1.902) Pub Date : 2024-01-06 Samuel Tetteh-Baah, Kenneth Harttgen, Rahul Lahoti, Isabel Günther
We estimate horizontal inequality across the African continent over time based on four identity cleavages—location, ethnicity, gender, and religion—and four well-being indicators—education, asset ownership, child nutrition, and under-five survival. Improvements in social indicators over the last 25 years appear to be equalizing, with a decline in most horizontal inequalities. However, most countries
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Earnings Losses and the Role of the Welfare State During the COVID-19 Pandemic: Evidence from Sweden Review of Income and Wealth (IF 1.902) Pub Date : 2023-12-11 Adrian Adermon, Lisa Laun, Patrik Lind, Martin Olsson, Jan Sauermann, Anna Sjögren
Many governments introduced temporary adjustments to counter the economic and health consequences of the COVID-19 pandemic. We study the importance of already-existing government transfers and new pandemic measures to mitigate individual income losses during the onset of the pandemic in Sweden using a difference-in-differences approach and population-wide data on monthly earnings and government transfer
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Insecurity on the Labor Market Review of Income and Wealth (IF 1.902) Pub Date : 2023-12-07 Andrew E. Clark
There is a common feeling that life has become more insecure over time. I here consider this proposition with respect to the labor market. I first discuss how labor-market insecurity might be measured, and then its potential consequences for individuals. To answer the question of “What Happened,” I then review a number of pieces of evidence regarding developments in the labor market, and perhaps surprisingly
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DOES WORKER WELL-BEING ADAPT TO A PANDEMIC? AN EVENT STUDY BASED ON HIGH-FREQUENCY PANEL DATA Review of Income and Wealth (IF 1.902) Pub Date : 2023-11-20 Julia Schmidtke, Clemens Hetschko, Ronnie Schöb, Gesine Stephan, Michael Eid, Mario Lawes
We estimate the dynamic impact of two waves of the COVID-19 pandemic on an exceptionally broad range of indicators of worker well-being. Our analyses are based on high-frequency panel data from an app-based survey of German workers and employ an event-study design with individual-specific fixed effects. We find that workers' mental health decreased substantially during the first wave of the pandemic
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Inequality in multidimensional well-being in the United States Review of Income and Wealth (IF 1.902) Pub Date : 2023-11-15 Shatakshee Dhongde, Prasanta K. Pattanaik, Yongsheng Xu
In this paper we provide a framework to measure an individual's multidimensional well-being and discuss two approaches to measuring inequality in multidimensional well-being. The framework is used to study inequality in multidimensional well-being in the United States in the last decade. Using data from the Current Population Survey on three well-being indicators, namely, income, health, and education
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A Decomposition of Economic Vulnerability Among Indigenous and Non-Indigenous Adults in Canada Review of Income and Wealth (IF 1.902) Pub Date : 2023-11-08 Barry Watson, Angela Daley
Using the 2004–2007 and 2008–2011 panels of the Canadian Survey of Labour and Income Dynamics, we examine earnings and employment disparities between Indigenous and non-Indigenous adults. While an income gap exists and tends not to significantly change over time, taxes and transfers reduce it by almost 40 percent. Further, the gap is generally largest at the bottom of the income distribution. The explained
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Homoploutia: Top Labor and Capital Incomes in the United States, 1950–2020 Review of Income and Wealth (IF 1.902) Pub Date : 2023-10-03 Yonatan Berman, Branko Milanovic
Homoploutia describes the situation in which the same people are rich in the space of capital and labor income. We combine survey and administrative data to document the evolution of homoploutia in the United States since 1950. In 1950, 10 percent of top decile capital-income earners were also in the top decile of labor income. Today, this indicator is 30 percent. This makes the traditional division
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The Sky and the Stratosphere: Wealth Concentration in India During the Last (Lost) Decade Review of Income and Wealth (IF 1.902) Pub Date : 2023-10-03 Ishan Anand, Rishabh Kumar
This paper provides new and improved estimates of wealth concentration in India during 2012–2018. Official surveys show a decline in wealth inequality and mean wealth per adult for the first time in three decades. We argue that although these wealth surveys are meant to be nationally representative, they underestimate the upper tail of the Indian wealth distribution—top wealth levels appear orders
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THE 0.0003 PERCENT: SHORT-RUN DYNAMICS OF EXTREME WEALTH IN AMERICA Review of Income and Wealth (IF 1.902) Pub Date : 2023-09-29 Arsh Singh, Nirvikar Singh
This paper examines short-run dynamics and changing sources of wealth among the Forbes 400 annual list of wealthiest individuals in the United States, before and after the 2008–2009 financial crisis. We analyze the interaction of growth of wealth with education, age, and being self-made versus inheriting wealth. We find evidence of conditional convergence of wealth within the group. The wealth of the
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Is the Housing Market an Inequality Generator? Review of Income and Wealth (IF 1.902) Pub Date : 2023-08-11 Terje Eggum, Erling Røed Larsen
We study inequality generated by capital gains in the housing market by exploiting two countrywide data sources in Norway: a registry of housing units and a database of transactions. We identify and follow all individuals in six birth cohorts in Norway, who were owners on January 1, 2007, and on January 1, 2019, and estimate the sum of their actual and potential capital gains from their owned and sold
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MEASURING VULNERABILITY TO MULTIDIMENSIONAL POVERTY IN LATIN AMERICA Review of Income and Wealth (IF 1.902) Pub Date : 2023-08-02 Mauricio Gallardo, María Emma Santos, Pablo Villatoro, Vicky Pizarro
In this paper, we perform estimates of vulnerability to multidimensional poverty for 17 Latin American countries at three points of time: 2005/2006, 2012, and 2017. We use a Multidimensional Bayesian Network Classifier model to estimate the conditional probability of being multidimensionally poor and then we use these probabilities and the standard downside semi-deviation as the risk parameter to identify
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Accounting for Non-Marketed capital Review of Income and Wealth (IF 1.902) Pub Date : 2023-07-25 Robert D. Cairns, Graham A. Davis
Intangible capital is a key input to production that is distinct from tangible capital. Most forms of tangible and intangible capital have observable, pecuniary values. Their complement is non-marketed capital. This paper studies non-marketed capital from the points of view of an investor contemplating investing in a project and of a manager running the project. At the point of investment, an apparent
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Intangible capital and productivity divergence Review of Income and Wealth (IF 1.902) Pub Date : 2023-07-23 Marie Le Mouel, Alexander Schiersch
Understanding the causes of the slowdown in aggregate productivity growth is key to maintaining the competitiveness of advanced economies and ensuring long-term economic prosperity. This paper provides evidence that investment in intangible capital, despite having a positive effect on productivity at the micro level, is a driver of the weak productivity performance at the aggregate level as it amplifies
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Reference Groups and Relative Effects on Well-Being Review of Income and Wealth (IF 1.902) Pub Date : 2023-07-20 Laura Kudrna
Economic growth may not improve society if people compare their achievements to others in relative ways that detract from well-being. But who are these others and what economic dimensions matter? This research applied a p-value ranking approach from genetics research to tackle the issue of reference group selection. Data from over 30,000 British and American adults were analyzed in nearly 800 multi-level
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Warning: Some transaction prices can be detrimental to your house price index Review of Income and Wealth (IF 1.902) Pub Date : 2023-07-11 Robert J. Hill, Norbert Pfeifer, Miriam Steurer, Radoslaw Trojanek
There is a broad consensus in international statistical organizations such as Eurostat and the International Monetary Fund that house price indices (HPIs) should be constructed using transaction data. We show here how transaction data for new-built properties can undermine the timeliness of hedonic HPIs when new-built properties are pre-sold during the planning or building stage, but entered into deed
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Estimating the Distribution of Household Wealth: Methods for Adjusting Survey Data Estimates Using National Accounts and Rich List Data Review of Income and Wealth (IF 1.902) Pub Date : 2023-07-11 Michele Cantarella, Andrea Neri, Maria Giovanna Ranalli
Income and wealth surveys are usually affected by unit non-response and reporting errors, which contribute to a mismatch with macroeconomic figures from national accounts. In this paper, we develop a novel allocation method to address these two issues simultaneously, when only limited external information is available. The proposed approach combines information from a power law (Pareto) model with
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Is Ireland the most intangible intensive economy in Europe? A growth accounting perspective Review of Income and Wealth (IF 1.902) Pub Date : 2023-06-26 Ilias Kostarakos, Kieran McQuinn, Petros Varthalitis
Assessing the contribution of intangible investment to growth is a challenging and complex task for any country. However, it has become increasingly difficult to determine both the exact magnitude of economic performance and its composition in the case of the Irish economy. This is mainly due to the impact of certain distortionary transactions by a select number of multinationals operating in the Irish
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Mortgage prepayments and tax-exempted intergenerational transfers: from rich parents to rich children? Review of Income and Wealth (IF 1.902) Pub Date : 2023-06-07 Yue Li, Mauro Mastrogiacomo
The Dutch government implemented two changes to the taxation of intergenerational transfers aimed at mortgage down payments and prepayments. We identify the effects of these tax exemptions on prepayments and inter vivos transfers separately by taking advantage of the changes in policy design. The policy changes resulted in two expansions of tax-exempt transfers, which increased the probability of receiving
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Safe at Last? Late Effects of a Mass Immunization Campaign on Households' Economic Insecurity Review of Income and Wealth (IF 1.902) Pub Date : 2023-05-29 Alessandro Belmonte, Harry Pickard
We study the effects of receiving immunization from COVID-19 on households' economic insecurity. To provide causal estimates we use a fuzzy regression discontinuity design which takes advantage of the UK's immunization plan. The plan was primarily based on age, granting differential eligibility to proximate cohorts. Our estimated local average treatment effect indicates that the share of households
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Income sources, intrahousehold allocation and individual poverty Review of Income and Wealth (IF 1.902) Pub Date : 2023-05-03 Olivier Bargain
Policies aimed at redistributing to the most vulnerable individuals must consider inequality within households as much as between households. In that spirit, many cash transfers are targeted at women rather than men. Tax legislations can also contain specific gender provisions that treat men and women differently. Whether these policies operate some intrahousehold redistribution, or are defeated by
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Land Allocation Policy and Income Inequality: Evidence From Vietnam Review of Income and Wealth (IF 1.902) Pub Date : 2023-04-17 Jinjing Li, Thi Bich Tran, Hai Anh La, Mai Xuan Thi Nguyen
Vietnam has experienced a major land policy reform in recent decades, relaxing the previously imposed restrictions on land transfer and accumulation. This paper investigates the relationship between this agricultural land reform and changes in income inequality using a microdata-based decomposition framework. Results show that agricultural land reform is one of the most important drivers of income
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Earnings, Cohort Effects, and Inter-Generational Inequality: Evidence From the Luxembourg Income Study Review of Income and Wealth (IF 1.902) Pub Date : 2023-04-04 Michael Freedman
Research suggests that inequalities between generations are most pronounced in the conservative European welfare states. However, it is likely that across all advanced capitalist societies superior earnings opportunities and steady employment are pursued at a later age due to secular labor market trends. In this paper, I examine the variation in generational inequalities across different regimes using
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Inequality Measurement and The Rich: Why Inequality Increased More Than We Thought Review of Income and Wealth (IF 1.902) Pub Date : 2023-03-06 Frank A. Cowell, Emmanuel Flachaire
To compare income and wealth distributions and to assess the effects of policy that affect those distributions require reliable inequality-measurement tools. However, commonly used inequality measures such as the Gini coefficient have an apparently counter-intuitive property: income growth among the rich may actually reduce measured inequality. We show that there are just two inequality measures that
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An Examination of Public Income Redistribution Review of Income and Wealth (IF 1.902) Pub Date : 2023-02-14 Jacob Nielsen Arendt, Mads Lybech Christensen
This study examines the extent of public income redistribution in a Scandinavian welfare state. We confirm previous findings where the redistributive effect of cash transfers is larger than that of in-kind transfers, indirect taxes, and collective consumption, but their difference depends substantially on common methodological choices. First, we apply administrative data to identify actual use of in-kind
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A bivariate relative poverty line for leisure time and income poverty: Detecting intersectional differences using distributional copulas Review of Income and Wealth (IF 1.902) Pub Date : 2023-02-14 Franziska Dorn, Rosalba Radice, Giampiero Marra, Thomas Kneib
Empirical research on poverty today often goes beyond a focus on income to consider other dimensions of well-being. However, relatively few multidimensional poverty measures explicitly consider time-use, despite its particular relevance to women's double burden of paid and unpaid work. We construct a bivariate relative poverty line between income and leisure, based on their joint distribution in the
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Wealth in Latin America: Evidence from Chile, Colombia, Mexico and Uruguay Review of Income and Wealth (IF 1.902) Pub Date : 2023-01-26 Néstor Gandelman, Rodrigo Lluberas
Drawing on recently-available microdata from financial surveys, this paper presents harmonized indicators for household wealth, its components, and its determinants in four Latin American countries (Chile, Colombia, Mexico and Uruguay), using Spain as a comparison benchmark. The paper analyzes the relationship between wealth indicators and sociodemographic characteristics of household heads (age, education
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Care Data Infrastructure: A U.S. Case Study Review of Income and Wealth (IF 1.902) Pub Date : 2023-01-11 Nancy Folbre
This essay emphasizes the need to critically evaluate sources of survey data available to assess interactions between paid and unpaid care provision, including the extent of substitutability between unpaid work time and money expenditures. While it focuses on the U.S., it provides a framework for analysis of data infrastructure in other countries that could facilitate international comparisons and
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The Well-Being Cost of Inflation Inequalities Review of Income and Wealth (IF 1.902) Pub Date : 2023-01-03 Alberto Prati
In terms of well-being, how costly is inflation? To answer this question, empirical evaluations have typically studied average inflation rates at the national level, thus disregarding the role of inflation inequalities within a country. In this article, we relax the assumptions that heterogeneous consumers face homogeneous inflation rates, and study the correlation between price changes and self-reported
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Healthy, Wealthy, and Happy: The Joint Role of Health and Income in Explaining Global Life Satisfaction Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-25 Marina Selini Katsaiti, Joanna Kopinska, Vincenzo Atella
Based on Gallup World Poll data, we explore the heterogeneous evolution of income, health, and well-being within world population subgroups identified according to country, gender, age, and education, offering an integrated approach with wide geographical coverage. We provide novel evidence on the global “winners” and “losers” in life satisfaction between 2009 and 2018, showing that individuals located
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Do the Retired Elderly in Europe Decumulate Their Wealth? The Importance of Bequest Motives, Precautionary Saving, Public Pensions, and Homeownership Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-22 Charles Yuji Horioka, Luigi Ventura
We use microdata on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. We find that less than half of the retired elderly in Europe are decumulating their wealth and that the average wealth accumulation rate of the retired elderly in Europe is positive though relatively
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Rising top-income persistence in Australia: Evidence from income tax data Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-20 Nicolas Hérault, Dean Hyslop, Stephen P. Jenkins, Roger Wilkins
Using income tax administrative data for Australia, we examine levels and trends in the persistence in top-income group membership, focusing on the top 1 percent. Top-income persistence increased markedly between 1991 and 2018, with most of the increase occurring in the mid-2000s and early 2010s. In the mid- to late-2010s, Australian top-income persistence rates were near the top of the range of tax-data
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Generalizing the Stochastic Approach to Price Indexes Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-13 Adam Gorajek
I show that conventional price index formulas and time-dummy hedonic regression techniques all consistently estimate growth parameters in the same generalized model of product pricing. I then use that result to make two points. First, the “stochastic approach” is not a helpful tool for choosing price index formulas, because in its complete form it can justify any of them. Second, the literature uses
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The Effect of Labor's Bargaining Power on Wealth Inequality in the UK, USA, And France Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-13 Ben Tippet, Özlem Onaran, Rafael Wildauer
This paper analyses the determinants of wealth inequality, measured as the share of wealth owned by the top 1 percent wealthiest individuals. We find that labor's bargaining power is a significant and important determinant of top wealth shares. Using a semi-structural vector autoregression (SVAR) model for the period 1970–2019, we estimate that shocks to labor's bargaining power explain 32 percent
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The Role of Banks in Shaping Income Inequality: A Within-Country Study Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-13 Paolo Coccorese, Roberto Dell'Anno
This paper investigates the role of banks in shaping income inequality. We extend the current literature on the banking–inequality nexus by examining a sample of 103 Italian provinces for the period 2000–2018. We find that a higher banking development decreases income inequality. From a methodological viewpoint, we aim to contribute to the current literature by both adjusting the index of income inequality
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Retrospective Computations of Price Index Numbers: Theory and Application Review of Income and Wealth (IF 1.902) Pub Date : 2022-12-04 Ludwig von Auer, Alena Shumskikh
Due to outdated weighting information, a Laspeyres-based consumer price index (CPI) is prone to accumulating upward bias. Therefore, the present study introduces and examines simple and transparent revision approaches that retrospectively address the source of the bias. They provide a consistent long-run time series of the CPI and require no additional information. Furthermore, a coherent decomposition
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Subjective Inheritance Expectations and Economic Outcomes Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-28 Stefania Basiglio, Maria Cristina Rossi, Arthur van Soest
In this paper we investigate whether and to what extent inheritance expectations act as a driver of economic choices. We use survey data that are representative of the Dutch adult population with a specific module on subjective probabilities on receiving an inheritance and its amount in the next 10 years. We analyze whether the expected inheritance acts as a deterrent to saving. Results suggest that
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Upper and Lower Bound Estimates of Inequality of Opportunity: A Cross-National Comparison for Europe Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-20 Rafael Carranza
I provide lower and upper bound estimates of inequality of opportunity (IOp) for 32 European countries, between 2005 and 2019. Lower bound estimates use machine learning methods to address sampling variability. Upper bound estimates use longitudinal data to capture all-time invariant factors. Across all years and countries, lower bound estimates of IOp account from 6 percent to 60 percent of total
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Intergenerational wealth transmission in Great Britain Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-18 Paul Gregg, Ricky Kanabar
We document the intergenerational wealth transmission between adult offspring and their parent's using the Wealth and Assets Survey for Great Britain. We estimate an intergenerational wealth elasticity of 0.4 and Rank-Rank elasticity of 0.3 and find intergenerational wealth transmission for individuals in their 60s is lower than for those currently aged in their 30s and early 40s, though rank based
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The Intergenerational Effects of Recessions Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-17 Diana Alessandrini, Bharat Diwakar
Several studies analyze the contemporaneous effects of recessions on individuals and their children. This paper shows that recessions also affect future offspring, not born yet. By linking fathers and offspring from the Panel Study of Income Dynamics, we find that a percentage-point increase in the national unemployment rate experienced by men between ages 16 and 20 reduces their future offspring's
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Underreporting of Top Incomes and Inequality: A Comparison of Correction Methods using Simulations and Linked Survey and Tax Data Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-11 Emmanuel Flachaire, Nora Lustig, Andrea Vigorito
Household surveys do not capture incomes at the top of the distribution well. This yields biased inequality measures. We compare the performance of the reweighting and replacing methods to address top incomes underreporting in surveys using information from tax records. The biggest challenge is that the true threshold above which underreporting occurs is unknown. Relying on simulation, we construct
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Big Data and Official Statistics† Review of Income and Wealth (IF 1.902) Pub Date : 2022-10-02 Katharine G. Abraham
The infrastructure and methods for developed countries' economic statistics, largely established in the mid-20th century, rest almost entirely on survey and administrative data. The increasing difficulty of obtaining survey responses threatens the sustainability of this model. Meanwhile, users of economic data are demanding ever more timely and granular information. “Big data” originally created for
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Erratum Review of Income and Wealth (IF 1.902) Pub Date : 2022-09-26
In the article Abanokova, Lokshin and Dang (2022), the order of the authors was incorrect in the published version. The correct order of authors is: Kseniya Abanokova, Hai-Anh H. Dang and Michael Lokshin.
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Dispersion in Dispersion: Measuring Establishment-Level Differences in Productivity Review of Income and Wealth (IF 1.902) Pub Date : 2022-09-26 Cindy Cunningham, Lucia Foster, Cheryl Grim, John Haltiwanger, Sabrina Wulff Pabilonia, Jay Stewart, Zoltan Wolf
We describe new experimental productivity dispersion statistics, Dispersion Statistics on Productivity (DiSP), jointly produced by the Bureau of Labor Statistics (BLS) and the Census Bureau, that complement the official BLS industry-level productivity statistics. The BLS has a long history of producing industry-level productivity statistics, which represent the average establishment-level productivity
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Trading gains: terms-of-trade and real-exchange-rate effects Review of Income and Wealth (IF 1.902) Pub Date : 2022-08-31 Ulrich Kohli
This paper considers alternative measures of a country's trading gains, i.e., the extra income that it earns (or loses) as the result of changes in the relative prices relevant for international trade, and which makes up the difference between real gross domestic product (GDP) and real gross domestic income (GDI). Looking at both the Laspeyres and the Törnqvist aggregation, we show that the trading
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An Index Approach to Measuring Product Differentiation: A Hedonic Analysis of Airfares Review of Income and Wealth (IF 1.902) Pub Date : 2022-08-31 Charles Howell, Emili Grifell-Tatjé
The main objective of this paper is to introduce an Allen-type index of differentiation based on cost functions. With this index, we create an economic measure of product differentiation that quantifies differences between products. Applied research has some generally accepted economic measures, for example, the Herfindahl–Hirschman Index for market concentration, or the Gini coefficient for inequality
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Measurement of diverse, irreversible capital Review of Income and Wealth (IF 1.902) Pub Date : 2022-08-28 Robert D. Cairns
This paper revisits capital measurement through a microeconomic analysis of a simple project consisting of diverse types of irreversibly invested capital. Capital is aggregated using the numeraire. Thus, the proposed method of measurement is a form of accounting. It associates all types of capital in a common framework. Under certainty, user cost and depreciation take internal accounting values that
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Has Canada's 21st-Century Grand Gender Convergence Stalled? Male and Female Income and Human Resource Stock Distributions Viewed Through an Equal Opportunity Lens Review of Income and Wealth (IF 1.902) Pub Date : 2022-08-16 Gordon Anderson
The increasing similarity of male and female labor market roles in advanced economies over the past 50 years, dubbed the “Grand Gender Convergence” by Goldin (2014), appears to have stalled. Given commonality of preferences for work and human resource acquisition across the gender divide, women and men with similar human resources and efforts should have similar income distributions in a non-discriminatory