Found 503 article(s) for author 'Inequality'

Did declining social mobility cause Trump’s rise? In a word, no.

Did declining social mobility cause Trump’s rise? In a word, no. Filipe Campante, David Yanagizawa-Drott, December 9, 2016, Opinion, “There has been a heated debate over the role that that economic factors played in the improbable journey that took Donald Trump all the way to the presidency. “Economic anxiety” is the umbrella term that many pundits have seized on to explain what drove a substantial number of (white) working-class voters to Trump. While economic anxiety is a somewhat vague concept, a decrease in prospects for social mobility is part of the story many have in mind.Link

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Globalization and Wage Inequality

Globalization and Wage Inequality. Elhanan Helpman, December 9, 2016, Paper, “Globalization has been blamed for rising inequality in rich and poor countries. Yet the views of many protagonists in this debate are not based on evidence. To help form an evidence-based opinion, I review in this paper the theoretical and empirical literature on the relationship between globalization and wage inequality. While the initial analysis that started in the early 1990s focused on a particular mechanism that links trade to wages, subsequent studies have considered several other channels, and the quantitative assessment of the size of these influences has been carried out in multiple studies. Building on this research, I conclude that trade played an appreciable role in increasing wage inequality, but that its cumulative effect has been modest, and that globalization does not explain the preponderance of the rise in wage inequality within countries.Link

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Fixing Discrimination in Online Marketplaces

Fixing Discrimination in Online Marketplaces. Michael Luca, December 2016, Paper, “In the late 1980s, law professors Ian Ayres and Peter Siegelman set out to learn whether blacks and women got the same deals as white men when buying a new car. They trained 38 people—some white and some black, some male and some female—to negotiate a purchase using a fixed script, and uncovered disturbing differences: Across 153 dealerships, black and female buyers paid more for the same cars than white men did, with black women paying the most—on average, nearly $900 more than white men. Although the findings weren’t a surprise to most people, least of all to blacks and women, they were a compelling demonstration of just how discriminatory markets can be.Link

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The Fading American Dream: Trends in Absolute Income Mobility Since 1940

The Fading American Dream: Trends in Absolute Income Mobility Since 1940. Raj Chetty, 2016, Paper, “One of the defining features of the “American Dream” is the ideal that children have a higher standard of living than their parents. We assess whether the U.S. is living up to this ideal by estimating rates of “absolute income mobility” – the fraction of children who earn more than their parents – since 1940.Link

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Improving Opportunities for Economic Mobility

Improving Opportunities for Economic Mobility. Raj Chetty, Fall 2016, Paper, “The American dream is a complicated concept, but I’d like to distill it down to a simple statistic that we are able to measure with data: the probability that a child born to parents in the bottom fifth of the income distribution makes the leap all the way to the top fifth of the income distribution.Link

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Does Your Home Make You Wealthy?

Does Your Home Make You Wealthy? Alexandra Killewald, November 16, 2016, Paper, “Estimating the lifetime wealth consequences of homeownership is complicated by ongoing events, such as divorce or inheritance, that may shape both homeownership decisions and later-life wealth. We argue that prior research that has not accounted for these dynamic selection processes has overstated the causal effect of homeownership on wealth. Using NLSY79 data and marginal structural models, we find that each additional year of homeownership increases midlife wealth in 2008 by about $6,800, more than 25 percent less than estimates from models that do not account for dynamic selection. Hispanic and African American wealth benefits from each homeownership year are 62 percent and 48 percent as large as those of whites, respectively.” Link

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Poverty Rooted In Evictions, Lack Of Affordable Housing

Poverty Rooted In Evictions, Lack Of Affordable Housing. Matthew Desmond, November 16, 2016, Audio, “Eviction is not a condition of poverty; eviction causes poverty. That’s according to Matthew Desmond. He’s a sociologist at Harvard and he just wrote the book, “Evicted: Poverty and Profit in the American City.” In it, Desmond says poor families are more susceptible to evictions. Evictions force kids out of schools, parents from jobs and families into worse neighborhoods.Link

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Does Women’s Banking Matter for Women? Evidence from urban India

Does Women’s Banking Matter for Women? Evidence from Urban India. Rohini Pande, November 16, 2016, Paper, “In many developing countries, women are prevented to take full advantage of the benefits of living in an urban area. In India, while one of every two men participates in the labor market, it is the case just for one of every six women. In this context, it is thought that access to microfinance is key to bridge the gap and to introduce women into the labor force. This is the first project to rigorously evaluate the long term impact of increasing access to microcredit on female labor force participation. In this study, we exploit quasi-experimental variation in women access to microfinance generated by a unique expansion strategy adopted by the oldest Women Bank in the world. From 1999 onward, the “ Shri Mahil Self Employment Women Association Sahkari (SEWA) Bank” massively introduced the use of loan collection officers which dramatically reduced the transaction cost of getting a loan in Ahmedabad, urban India.Link

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On Her Account: Can Strengthening Women’s Financial Control Boost Female Labor Supply?

On Her Account: Can Strengthening Women’s Financial Control Boost Female Labor Supply? Rohini Pande, November 15, 2016, Paper, “In collaboration with the state government of Madhya Pradesh, we experimentally varied whether women’s wages from India’s public workfare program were deposited into female-owned bank accounts instead of into the male household head’s account (the status quo). This treatment increased women’s work, both in the program and in the private sector, despite no change in market wages. Treatment effects are concentrated among two groups of women: those who had not previously worked for the program and those whose husbands disapprove of women working. These results are at odds with a model of household behavior in which labor force participation decisions only depend on wages and own-preference for leisure. Instead, we argue that they are consistent with a model in which gender norms internalized by men limit women’s labor market engagement.Link

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Inequality in the Very Long Run: Malthus, Kuznets, and Ohlin

Inequality in the Very Long Run: Malthus, Kuznets, and Ohlin. Jeffrey Williamson, November 12, 2016, Paper, “What happened to the inequality of real income and wealth before, during, and after the Industrial Revolution? Just as the usual Industrial Revolution era (1750-1850) has been revised by historians of economic growth, so too the articles in this issue follow the lead of Van Zanden (1995) in opening up a new inequality history for earlier eras and other continents. Three of them offer new evidence on European wealth and income inequality movements in pre-industrial and industrial epochs. The fourth offers a new perspective on Latin American experience since the late nineteenth century, reporting a twentieth-century experience quite unlike the Great Leveling that Kuznets and others saw in Europe and the USA from World War 1 to the 1970s.Link

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