Joshua D. Bernstein, A. W. Richter, Nathaniel A. Throckmorton
{"title":"Covid-19: A View from the Labor Market","authors":"Joshua D. Bernstein, A. W. Richter, Nathaniel A. Throckmorton","doi":"10.24149/wp2010","DOIUrl":"https://doi.org/10.24149/wp2010","url":null,"abstract":"This paper examines the response of the U.S. labor market to a large and persistent job separation rate shock, motivated by the ongoing economic effects of the COVID-19 pandemic. We use nonlinear methods to analytically and numerically characterize the responses of vacancy creation and unemployment. Vacancies decline in response to the shock when firms expect persistent job destruction and the number of unemployed searching for work is low. Quantitatively, under our baseline forecast the unemployment rate peaks at 19.7%, 2 months after the shock, and takes 1 year to return to 5%. Relative to a scenario without the shock, unemployment uncertainty rises by a factor of 11. Nonlinear methods are crucial. In the linear economy, the unemployment rate “only” rises to 9.2%, vacancies increase, and uncertainty is unaffected. In both cases, the severity of the COVID-19 shock depends on the separation rate persistence.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116968575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Islamic Economy and Capitalism","authors":"A. Mirakhor, Hazik Mohamed","doi":"10.2139/ssrn.3564843","DOIUrl":"https://doi.org/10.2139/ssrn.3564843","url":null,"abstract":"There is a strong belief formed in scholarly and policy circles that contemporary capitalism is the source of many economic, social and political problems that plague the world today. This system is blamed for large inequalities between the rich and the poor, unrestrained profit-seeking without moral, ethical and social considerations, venal accumulation of income and wealth, and environmental destruction. The argument that capitalism drives innovation and attracts investment is now weakend substantially by these systemic global problems that pose existential threat to human societies. It is clear that the world cannot continue on the current trajectory and needs to harness other forms of managing its resources to create a balance between, self-love, profit motive, ambition on the one hand, and moral, ethical, social responsibility and environmental accountability, on the other. “Islamic economics” has been suggested as providing a basis for one such alternative system. However, it is argued here that the present paradigm of “Islamic economics” needs to change its orientation away from its current “Islamization of knowledge” methodology toward a paradigm more attuned to the Qur’an’s vision of society and its economy in order to provide a viable and sustainable set of solutions to human problems. A move in this direction requires consideration of elements of this vision that have not been been explored thus far in presentations of the discipline of “Islamic economics”. <br><br>This note is an exploratory consideration of one such fundamental elements derived from the Qur’an: the idea of spiritual capital — as the organizing element of effective and efficient utilization of social, human and financial capital — as a step toward initiating a paradigm shift in investigating the Qur’an’s vision of how societies should manage their resources.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"97 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123524193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Chiara Criscuolo, A. Hijzen, Cyrille Schwellnus, Wen-Hao Chen, R. Fabling, Priscilla Fialho, K. Grabska, Ryo Kambayashi, Timo Leidecker, Oskar Nordstrom Skans, Capucine Riom, D. Roth, Balazs Stadler, R. Upward, Wouter Zwysen
{"title":"Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality","authors":"Chiara Criscuolo, A. Hijzen, Cyrille Schwellnus, Wen-Hao Chen, R. Fabling, Priscilla Fialho, K. Grabska, Ryo Kambayashi, Timo Leidecker, Oskar Nordstrom Skans, Capucine Riom, D. Roth, Balazs Stadler, R. Upward, Wouter Zwysen","doi":"10.1787/52ab4e26-en","DOIUrl":"https://doi.org/10.1787/52ab4e26-en","url":null,"abstract":"In many OECD countries, low productivity growth has coincided with rising inequality. Widening wage and productivity gaps between firms may have contributed to both developments. This paper uses a new harmonised cross-country linked employer-employee dataset for 14 OECD countries to analyse the role of firms in wage inequality. The main finding is that, on average across countries, changes in the dispersion of average wages between firms explain about half of the changes in overall wage inequality. Two thirds of these changes in between-firm wage inequality are accounted for by changes in productivity-related premia that firms pay their workers above common market wages. The remaining third can be attributed to changes in workforce composition, including the sorting of high-skilled workers into high-paying firms. Over all, these results suggest that firms play an important role in explaining wage inequality as wages are driven to a significant extent by firm performance rather than being exclusively determined by workers' earnings characteristics.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134580230","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Aldama, C. Bicchieri, J. Freundt, B. Mellers, E. Peters
{"title":"Perceptions of Autonomy, Inequality, and Fairness","authors":"A. Aldama, C. Bicchieri, J. Freundt, B. Mellers, E. Peters","doi":"10.2139/ssrn.3557311","DOIUrl":"https://doi.org/10.2139/ssrn.3557311","url":null,"abstract":"Several studies have demonstrated that income inequality has risen since the 1960s. Other studies have found that people underestimate the extent of the inequality. Reasons for these mis-perceptions include over-reliance on one’s own local environment and ideologically-motivated reasoning. We propose a novel mechanism to account for the mis-perceptions of income inequality. We posit that the degree to which people believe that they have control over their lives, their perceived autonomy, is related to: \u0000 \u0000(1) the belief that inequality is low and, furthermore, \u0000 \u0000(2) the belief that these inequalities are fair. \u0000 \u0000Using a representative sample of 3,427 Americans, we find evidence to support these hypotheses.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123807438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Desigualdade (até entre discursos e dados) (Inequality (Even in Speeches and Data))","authors":"José Afonso, Abreu, T. F. R.","doi":"10.2139/ssrn.3553840","DOIUrl":"https://doi.org/10.2139/ssrn.3553840","url":null,"abstract":"Portuguese Abstract: A reforma tributaria esta no debate nacional de novo, mas, desta vez, se passou a discutir tambem a questao da desigualdade do atual sistema. Enquanto no passado essas duas questoes so se juntavam em (poucos) estudos academicos. Ha agora uma oportunidade impar para se voltar mais aos levantamentos e as leituras dos dados tributarios. Isso permite avaliar outros aspectos sobre a concentracao da renda para alem dos tradicionalmente baseados em declaracoes domiciliares e registros de emprego – ate porque cada vez menos emprego e sinonimo de trabalho. Sem contar que ninguem quer desperdicar tanto tempo e esforco politico com projetos que se apoiem apenas em discursos com nenhum ou pouco respaldo dos dados. \u0000 \u0000English Abstract: Tax reform is in the debate national again, but this time if also started to discuss the issue inequality of the current system While in the past these two issues only joined in (few) studies academics.There is now an opportunity odd to turn more to surveys and data readings tax. This allows you to evaluate other aspects of income concentration in addition to those traditionally based on household statements and employment records - not least because less and less employment is synonymous of work.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126756458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Comparison of Living Standards across the United States of America","authors":"Elena Falcettoni, Vegard M. Nygaard","doi":"10.2139/ssrn.3539893","DOIUrl":"https://doi.org/10.2139/ssrn.3539893","url":null,"abstract":"We use an expected utility model to examine how living standards, or welfare, vary across the U.S. and how each state’s welfare has evolved over time. Our welfare measure accounts for cross-state variations in mortality, consumption, education, leisure, and inequality. We find that average living standards differ considerably across states. This is robust to allowing for endogenous interstate migration and to including housing in the model, and holds even when computing welfare conditional on education, gender, and race. Although states experienced heterogeneous welfare growth rates between 1999 and 2015 (ranging from 1.68 to 3.73 percent per year), there is no evidence of convergence in welfare levels, including during the sub-periods preceding and following the Great Recession. Whereas the level of real per-capita income is a good indicator of the level of welfare across states (correlation=0.75), the growth rate of real per-capita income is a poor proxy for the growth rate in welfare (correlation=0.42). Our welfare decomposition analysis can help identify what policies are likely to be most effective at increasing average living standards in the United States.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125430434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Entrepreneurship and Income Distribution Dynamics: Why is the Income Share of Top Income Earners Acyclical Over the Business Cycle?","authors":"Noh-Sun Kwark, Eunseong Ma","doi":"10.2139/ssrn.3552422","DOIUrl":"https://doi.org/10.2139/ssrn.3552422","url":null,"abstract":"The U.S. economy shows a contrasting difference in cyclical properties between low- and highincome groups. Income shares of the bottom three income quintiles are procyclical, while those of the next 35 percent are countercyclical. However, the income share of the very top five percent income group is acyclical over the business cycle. This study attempts to explain the cyclical behavior of the income distribution over the business cycle, particularly focusing on the top five percent income earners’ share, using a heterogeneous agent model featuring a choice to become an entrepreneur. The model economy successfully reproduces the acyclical behavior of the income share of the top five percent income earners as well as the overall cyclicality of income shares of the income groups. In an economic expansion, relatively more people in the low income groups newly begin employment as workers, which raises the income shares of the bottom three quintiles and lowers the income shares of the top two quintiles, while at the top, relatively more people become entrepreneurs, which offsets the decline in the income share of the high-income earners from the workers’ side.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"294 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132648030","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Evolution in Quality Thinking: A Revisit","authors":"U. Raju, Dr Pratap Reddy Sunkepally","doi":"10.2139/ssrn.3549127","DOIUrl":"https://doi.org/10.2139/ssrn.3549127","url":null,"abstract":"Quality thinking has been there as a human endeavor ever since humans started thinking of ways and means of satisfying their (primordial) needs. The search for better things and better ways of accomplishing tasks has always been on their agenda and probably this ‘quality thinking’ propelled human civilization to progress. The authors attempt to trace this evolutionary history of quality thinking to unravel the layers underlying this phenomenon. In the area of managerial thinking, the thinking domain spans over profit thinking, product thinking, process thinking, employee thinking, and customer thinking. Within the spatial thinking process itself, the spread is across inside thinking, inside-out thinking, outside thinking, outside-in thinking, standards thinking, and best-practices thinking. Over the dimension of enterprise value chain, the thinking process spans across input thinking, output thinking, output-input thinking, outcome thinking, and input-output-outcome thinking. The thinking process meanders over scale thinking, scope thinking, pace thinking, and lean thinking in respect of enterprise parameter thinking. An understanding of the aforementioned typology of quality thinking enables us to delve deep into diverse aspects of quality thinking. It is the inexorable integration of the four-way quality thinking that would catapult an organization up on the ladder of world-class quality thinking. The paper addresses these core concerns in quality thinking, and qualitatively charts and captures enterprises on quality thinking map.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124217517","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Fair-Minded Rich and Healthy? (Youth) Unemployment, Inequality and Fairness Concerns in Preferences for Redistribution","authors":"Stephanie Armbruster","doi":"10.2139/ssrn.3553821","DOIUrl":"https://doi.org/10.2139/ssrn.3553821","url":null,"abstract":"Do rising inequality and youth unemployment aect preferences for redistribution? Using country-level European survey data from 2002 to 2015, I show that changes in market inequality and the rise of (youth) unemployment increase preferences for redistribution. The ndings are supported by the respondents' fairness concerns. Estimated effects exhibit substantial heterogeneity. There is systematic variation among fairness concerns with respect to income and health, which are triggered by market income inequality and (youth) unemployment. The preferences of the relatively rich and healthy are more responsive to the level of inequality and youth unemployment. At very high youth unemployment rates, even the rich might be in favor of redistribution. Results suggest that \"income-and health- dependent fairness concerns\" exist.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131117462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Public Debt and Wealth Inequality","authors":"Moustafa Chatzouz","doi":"10.2139/ssrn.3531199","DOIUrl":"https://doi.org/10.2139/ssrn.3531199","url":null,"abstract":"Fiscal interventions in the form of higher public debt depend on whether an economy is dynamically efficient or not, and thus on the tax burden of public debt. The consequence of such policy to wealth inequality is, however, largely unknown. This paper assesses the implications of public debt for wealth inequality using a stylized Diamond model. I find that public debt distributes wealth more unequally with particularly sever effects to wealth inequality. The findings can extend to a highly progressive tax system or when real interest rates are low. The increase in the after-tax wage inequality that is driven by the general equilibrium effects of public debt is the key factor explaining these results. The redistribution of resources across generations only comes to reinforce this latter effect by raising the bequest motive of the rich. The crowd-out of physical capital by public debt is the most important aspect behind the textit{qualitative} and textit{quantitative} implications of public debt on wealth inequality.","PeriodicalId":448175,"journal":{"name":"Comparative Political Economy: Comparative Capitalism eJournal","volume":"363 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116054652","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}