{"title":"Inequality, perception biases and trust.","authors":"Markus Knell, Helmut Stix","doi":"10.1007/s10888-021-09490-x","DOIUrl":"https://doi.org/10.1007/s10888-021-09490-x","url":null,"abstract":"<p><p>This paper studies the effect of income (wealth) inequality on interpersonal trust. We propose a theoretical framework that links trust, trustworthiness and inequality. The key feature is that agents do not necessarily observe the entire income distribution but base their assessment on reference groups (i.e. they might hold a biased view of reality). In this framework the negative impact of inequality on interpersonal trust is related to the individual-specific perception of inequality. This has important implications for the empirical analyses since researchers typically do not observe perceptions but only objective measures of inequality (e.g. the Gini coefficient). We show that the use of the latter is appropriate only under restrictive assumptions and in general will result in an underestimation of the true effect. An unbiased estimate of the effect of inequality on trust can be obtained with a measure of individual-specific perceptions of inequality. Survey data support our framework. Perceptions of higher inequality exert a strong negative effect on trust.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at (10.1007/s10888-021-09490-x).</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 4","pages":"801-824"},"PeriodicalIF":2.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1007/s10888-021-09490-x","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39010877","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael Dalton, Jeffrey A Groen, Mark A Loewenstein, David S Piccone, Anne E Polivka
{"title":"The K-Shaped Recovery: Examining the Diverging Fortunes of Workers in the Recovery from the COVID-19 Pandemic Using Business and Household Survey Microdata.","authors":"Michael Dalton, Jeffrey A Groen, Mark A Loewenstein, David S Piccone, Anne E Polivka","doi":"10.1007/s10888-021-09506-6","DOIUrl":"10.1007/s10888-021-09506-6","url":null,"abstract":"<p><p>This paper examines employment patterns by wage group over the course of the coronavirus pandemic in the United States using microdata from two well-known data sources from the U.S. Bureau of Labor Statistics: the Current Employment Statistics and the Current Population Survey. We find establishments paying the lowest average wages and the lowest wage workers had the steepest decline in employment and experienced the most persistent losses. We disentangle the extent to which the effect observed for low wage workers is due to these workers being concentrated within a few low wage sectors of the economy versus the pandemic affecting low wage workers in a number of sectors across the economy. Our results indicate that the experience of low wage workers is not entirely due to these workers being concentrated in low wage sectors - for many sectors, the lowest wage quintiles in that sector also has had the worst employment outcomes. From April 2020 to May 2021, between 23% and 46% of the decline in employment among the lowest wage establishments was due to within-industry changes. Another important finding is that even for those who remain employed during the pandemic, the probability of becoming part-time for economic reasons increased, especially for low-wage workers.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at 10.1007/s10888-021-09506-6.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 3","pages":"527-550"},"PeriodicalIF":3.6,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8382096/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39363428","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
André Decoster, Thomas Minten, Johannes Spinnewijn
{"title":"The Income Gradient in Mortality during the Covid-19 Crisis: Evidence from Belgium.","authors":"André Decoster, Thomas Minten, Johannes Spinnewijn","doi":"10.1007/s10888-021-09505-7","DOIUrl":"https://doi.org/10.1007/s10888-021-09505-7","url":null,"abstract":"<p><p>We use population-wide data from linked administrative registers to study the distributional pattern of mortality before and during the first wave of the Covid-19 pandemic in Belgium. Over the March-May 2020 study period, excess mortality is only found among those aged 65 and over. For this group, we find a significant negative income gradient in excess mortality, with excess deaths in the bottom income decile more than twice as high as in the top income decile for both men and women. However, given the high inequality in mortality in normal times, the income gradient in all-cause mortality is only marginally steeper during the peak of the health crisis when expressed in relative terms. Leveraging our individual-level data, we gauge the robustness of our results for other socioeconomic factors and decompose the role of individual vs. local effects. We provide direct evidence that geographic location effects on individual mortality are particularly strong during the first wave of the Covid-19 pandemic, channeling through the local number of Covid infections. This makes inference about the income gradient in excess mortality based on geographic variation misguided.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at 10.1007/s10888-021-09505-7.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 3","pages":"551-570"},"PeriodicalIF":2.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8390079/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39372924","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Which workers bear the burden of social distancing?","authors":"Simon Mongey, Laura Pilossoph, Alexander Weinberg","doi":"10.1007/s10888-021-09487-6","DOIUrl":"10.1007/s10888-021-09487-6","url":null,"abstract":"<p><p>Using data from O<sup>∗</sup>NET, we construct two measures of an occupation's potential exposure to social distancing measures: (i) the ability to conduct that job from home and (ii) the degree of physical proximity to others the job requires. After validating these measures with comparable measures from ATUS as well as realized work-from-home rates during the pandemic, we employ the measures to study the characteristics of workers in these types of jobs. Our results show that workers in low-work-from-home and high-physical-proximity jobs are more economically vulnerable across various measures constructed from the CPS and PSID: they are less educated, of lower income, have fewer liquid assets relative to income, and are more likely renters. Consistent with the idea that high physical proximity or low work-from-home occupations were more exposed to the Coronavirus shock, we show that the types of workers predicted to be employed in them experienced greater declines in employment during the pandemic. We conclude by comparing the aggregate employment losses in these occupations to their employment losses in the 2008 recession, and find evidence that these occupations were disproportionately exposed to the pandemic shock, and not just comprised of more cyclically sensitive workers.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at 10.1007/s10888-021-09487-6.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 3","pages":"509-526"},"PeriodicalIF":3.6,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8328128/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39290498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kerstin Bruckmeier, Andreas Peichl, Martin Popp, Jürgen Wiemers, Timo Wollmershäuser
{"title":"Distributional effects of macroeconomic shocks in real-time: A novel method applied to the COVID-19 crisis in Germany.","authors":"Kerstin Bruckmeier, Andreas Peichl, Martin Popp, Jürgen Wiemers, Timo Wollmershäuser","doi":"10.1007/s10888-021-09489-4","DOIUrl":"https://doi.org/10.1007/s10888-021-09489-4","url":null,"abstract":"<p><p>The highly dynamic nature of the COVID-19 crisis poses an unprecedented challenge to policy makers around the world to take appropriate income-stabilizing countermeasures. To properly design such policy measures, it is important to quantify their effects in real-time. However, data on the relevant outcomes at the micro level is usually only available with considerable time lags. In this paper, we propose a novel method to assess the distributional consequences of macroeconomic shocks and policy responses in real-time and provide the first application to Germany in the context of the COVID-19 pandemic. Specifically, our approach combines different economic models estimated on firm- and household-level data: a VAR-model for output expectations, a structural labor demand model, and a tax-benefit microsimulation model. Our findings show that as of September 2020 the COVID-19 shock translates into a noticeable reduction in gross labor income across the entire income distribution. However, the tax benefit system and discretionary policy responses to the crisis act as important income stabilizers, since the effect on the distribution of disposable household incomes turns progressive: the bottom two deciles actually gain income, the middle deciles are hardly affected, and only the upper deciles lose income.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at 10.1007/s10888-021-09489-4.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 3","pages":"459-487"},"PeriodicalIF":2.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8452132/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39453718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intergenerational transmission of lockdown consequences: prognosis of the longer-run persistence of COVID-19 in Latin America.","authors":"Guido Neidhöfer, Nora Lustig, Mariano Tommasi","doi":"10.1007/s10888-021-09501-x","DOIUrl":"10.1007/s10888-021-09501-x","url":null,"abstract":"<p><p>The shock on human capital caused by COVID-19 is likely to have long lasting consequences, especially for children of low-educated families. Applying a counterfactual exercise we project the effects of school closures and other lockdown policies on the intergenerational persistence of education in 17 Latin American countries. First, we retrieve detailed information on school lockdowns and on the policies enacted to support education from home in each country. Then, we use these information to estimate the potential impact of the pandemic on schooling, high school completion, and intergenerational associations. In addition, we account for educational disruptions related to household income shocks. Our findings show that, despite that mitigation policies were able to partly reduce instructional losses in some countries, the educational attainment of the most vulnerable could be seriously affected. In particular, the likelihood of children from low educated families to attain a secondary schooling degree could fall substantially.</p><p><strong>Supplementary information: </strong>The online version contains supplementary material available at 10.1007/s10888-021-09501-x.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 3","pages":"571-598"},"PeriodicalIF":3.6,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8325400/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39290073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael Dalton, Jeffrey A Groen, Mark A Loewenstein, David S Piccone, Anne E Polivka
{"title":"Correction to: The K-Shaped Recovery: Examining the Diverging Fortunes of Workers in the Recovery from the COVID-19 Pandemic Using Business and Household Survey Microdata.","authors":"Michael Dalton, Jeffrey A Groen, Mark A Loewenstein, David S Piccone, Anne E Polivka","doi":"10.1007/s10888-021-09513-7","DOIUrl":"https://doi.org/10.1007/s10888-021-09513-7","url":null,"abstract":"<p><p>[This corrects the article DOI: 10.1007/s10888-021-09506-6.].</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"19 4","pages":"895-896"},"PeriodicalIF":2.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8492453/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"39527032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Sologon, C. O’Donoghue, Iryna Kyzyma, Jinjing Li, Jules Linden, R. Wagener
{"title":"The COVID-19 resilience of a continental welfare regime - nowcasting the distributional impact of the crisis","authors":"D. Sologon, C. O’Donoghue, Iryna Kyzyma, Jinjing Li, Jules Linden, R. Wagener","doi":"10.2139/SSRN.3842851","DOIUrl":"https://doi.org/10.2139/SSRN.3842851","url":null,"abstract":"We evaluate the COVID-19 resilience of a Continental welfare regime by nowcasting the implications of the shock and its associated policy responses on the distribution of household incomes over the whole of 2020. Our approach relies on a dynamic microsimulation modelling that combines a household income generation model estimated on the latest EU-SILC wave with novel nowcasting techniques to calibrate the simulations using external macro controls which reflect the macroeconomic climate during the crisis. We focus on Luxembourg, a country that introduced minor tweaks to the existing tax-benefit system, which has a strong social insurance focus that gave certainty during the crisis. We find the system was well-equipped ahead of the crisis to cushion household incomes against job losses. The income-support policy changes were effective in cushioning household incomes and mitigating an increase in income inequality, allowing average household disposable income and inequality levels to bounce back to pre-crisis levels in the last quarter of 2020. The share of labour incomes dropped, but was compensated by an increase in benefits, reflecting the cushioning effect of the transfer system. Overall market incomes dropped and became more unequal. Their disequalizing evolution was matched by an increase in redistribution, driven by an increase in the generosity of benefits and larger access to benefits. The nowcasting model is a “near” real-time analysis and decision support tool to monitor the recovery, scalable to other countries with high applicability for policymakers.","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"20 1","pages":"777 - 809"},"PeriodicalIF":2.4,"publicationDate":"2020-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41718915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christoph Lakner, D. Mahler, M. Negre, Espen B. Prydz
{"title":"How much does reducing inequality matter for global poverty?","authors":"Christoph Lakner, D. Mahler, M. Negre, Espen B. Prydz","doi":"10.1007/s10888-021-09510-w","DOIUrl":"https://doi.org/10.1007/s10888-021-09510-w","url":null,"abstract":"","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"20 1","pages":"559 - 585"},"PeriodicalIF":2.4,"publicationDate":"2019-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43325100","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Ethnic and racial disparities in saving behavior","authors":"Mariela Dal Borgo","doi":"10.1007/s10888-018-9400-3","DOIUrl":"https://doi.org/10.1007/s10888-018-9400-3","url":null,"abstract":"","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"17 1","pages":"253 - 283"},"PeriodicalIF":2.4,"publicationDate":"2018-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1007/s10888-018-9400-3","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"52638002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}