Found 504 article(s) in category 'Q3: Inequality?'

WHAT SHOULD WE DO ABOUT INEQUALITY?

Inequality has been rising both within and between countries in recent years. The posts collected here define the different dimensions of inequality and how they manifest, examine its causes, and discuss the extent to which we should be worried. In addition to diagnosing the problem, the posts offer policy options to address it.

Urbanization and its Discontents

Urbanization and its Discontents. Edward Glaeser, March 2020, Paper, “American cities have experienced a remarkable renaissance over the past 40 years, but in recent years, cities have experienced considerable discontent. Anger about high housing prices and gentrification has led to protests. The urban wage premium appears to have disappeared for less skilled workers. The cities of the developing world are growing particularly rapidly, but in those places, the downsides of density are acute. In this essay, I review the causes of urban discontent and present a unified explanation for this unhappiness. Urban resurgence represents private sector success, and the public sector typically only catches up to urban change with a considerable lag. Moreover, as urban machines have been replaced by governments that are more accountable to empowered residents, urban governments do more to protect insiders and less to enable growth. The power of insiders can be seen in the regulatory limits on new construction and new businesses, the slow pace of school reform and the unwillingness to embrace congestion pricing.Link

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Relative Income Deprivation and All-Cause Mortality in Japan: Do Life Priorities Matter?

Relative Income Deprivation and All-Cause Mortality in Japan: Do Life Priorities Matter? Ichiro Kawachi, March 17, 2020, Paper, “Relative deprivation (RD) is proposed to affect health through psychosocial stress stemming from upward social comparisons. This study hypothesized that prioritizing values, such as social engagement and personal growth (as opposed to prioritizing work), would inoculate against the toxic effects of upward social comparisons.Link

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Majority decision and Condorcet winners

Majority decision and Condorcet winners. Amartya Sen, March 2, 2020, Paper, “Journal Description – Social Choice and Welfare explores all aspects, both normative and positive, of welfare economics, collective choice, and strategic interaction. Topics include but are not limited to: preference aggregation, welfare criteria, fairness, justice and equity, rights, inequality and poverty measurement, voting and elections, political games, coalition formation, public goods, mechanism design, networks, matching, optimal taxation, cost-benefit analysis, computational social choice, judgement aggregation, market design, behavioral welfare economics, subjective well-being studies and experimental investigations related to social choice and voting. As such, the journal is inter-disciplinary and cuts across the boundaries of economics, political science, philosophy, and mathematics. Articles on choice and order theory that include results that can be applied to the above topics are also included in the journal. While it emphasizes theory, the journal also publishes empirical work in the subject area reflecting cross-fertilizing between theoretical and empirical research. Readers will find original research articles, surveys, and book reviews. (NO SUMMARY AVAILABLE, Article citation is – Sen, A. Majority decision and Condorcet winners. Soc Choice Welf (2020).Link

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Philosophical Foundations of the Law of Equity

Philosophical Foundations of the Law of Equity. Henry Smith, 2020, Book, “Identifies key questions and issues underlying the law of Equity, including the legal, philosophical and moral senses of equity, the nature of rights, and the relationship between law and morality
Offers a major contribution to an ongoing debate about the study of the law of Equity which informs large areas of private law. Contributions by a leading team of established Equity and Private Law scholars that offer a variety of topics and perspectives. A key text for both students and scholars interested in the law of Equity.” Link

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The Determinants of Income Segregation and Intergenerational Mobility: Using Test Scores to Measure Undermatching

The Determinants of Income Segregation and Intergenerational Mobility: Using Test Scores to Measure Undermatching. Raj Chetty, February 18, 2020, Paper, “We analyze how changes in the allocation of students to colleges would affect segregation by parental income across colleges and intergenerational mobility in the United States. We do so by linking data from tax records on parents’ incomes and students’ earnings outcomes for each college to data on students’ SAT and ACT scores. We find that equalizing application, admission, and matriculation rates across parental income groups conditional on test scores would reduce segregation substantially, primarily by increasing the representation of middle-class students at more selective colleges. However, it would have little impact on the fraction of low-income students at elite private colleges because there are relatively few students from low-income families with sufficiently high SAT/ACT scores. Differences in parental income distributions across colleges could be eliminated by giving low and middle-income students a sliding-scale preference in the application and admissions process similar to that implicitly given to legacy students at elite private colleges. Assuming that 80% of observational differences in students’ earnings conditional on test scores, race, and parental income are due to colleges’ causal effects — a strong assumption, but one consistent with prior work — such changes could reduce intergenerational income persistence among college students by about 25%. We conclude that changing how students are allocated to colleges could substantially reduce segregation and increase intergenerational mobility, even without changing colleges’ educational programs.Link

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Corporate Leadership and Creditor Recovery Rates: Evidence from Executive Gender

Corporate Leadership and Creditor Recovery Rates: Evidence from Executive Gender. Anywhere Sikochi, February 16, 2020, Paper, “We examine the relationship between the gender of executives and corporate creditor recovery rates. Using 2,288 defaulted debt instruments, we find that female executives are associated with higher creditor recovery rates. Our findings are robust to tests that correct for potential self-selection inherent in studies of executive gender. We find evidence suggesting that conservatism in financial reporting and risk taking are potential channels through which gender affects creditor recovery rates. In additional tests, we find that the effects of executive gender persists across default types and the 2008 global financial crisis. We also show that gender diversity on the board does not moderate the effect of executive gender.Link

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Advance Market Commitments: Insights from Theory and Experience

Advance Market Commitments: Insights from Theory and Experience. Michael Kremer, February 9, 2020, Paper, “Ten years ago, donors committed $1.5 billion to a pilot Advance Market Commitment (AMC) to help purchase pneumococcal vaccine for low-income countries. The AMC aimed to encourage the development of such vaccines, ensure distribution to children in low-income countries, and pilot the AMC mechanism for possible future use. Three vaccines have been developed and more than 150 million children immunized, saving an estimated 700,000 lives. This paper reviews the economic logic behind AMCs, the experience with the pilot, and key issues for future AMCs.Link

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Jeffry Frieden on Globalization, the Rise of Populism, and the Future of Democracy

Jeffry Frieden on Globalization, the Rise of Populism, and the Future of Democracy January 2020. GrowthPolicy’s Devjani Roy interview Jeffry Frieden, Chair of the Department of Government at Harvard and Stanfield Professor of International Peace, on globalization, the rise of populism, and the future of democracy. | Click here for more interviews like this one. […]

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The Changing Face of Economics

The Changing Face of Economics. Dani Rodrik, January 10, 2020, Opinion, “Economists necessarily lack evidence about alternative institutional arrangements that are distant from our current reality. The challenge is to remain true to empiricism without crowding out the imagination needed to envisage the inclusive and freedom-enhancing institutions of the future.Link

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