Found 18 article(s) for author 'Income Inequality'

Income Inequality Affects Donations Only for High-Income People Who Feel Financially Insecure and Distrust Others

Income Inequality Affects Donations Only for High-Income People Who Feel Financially Insecure and Distrust Others. Ashley Whillans, 2019, Paper, “There is a growing debate about whether high-income individuals are more or less generous when income inequality is high. We advance this ongoing conversation by analysing a large and comprehensive data set with approximately one million respondents from 140 countries. In this data set, higher-income individuals who live in countries with greater income inequality are less likely to donate money to charity and are more likely to volunteer than their lower-income counterparts. Higher-income individuals who feel financially insecure or show distrust of others are especially unlikely to donate money to charity under high income inequality. These moderators do not influence rates of volunteering. Together, these results advance the debate regarding whether and when inequality shapes prosocial behaviour.Link

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David Deming on Education and Social Mobility, the Labor Markets of the Future, and Solutions for Income Inequality

David Deming on Education and Social Mobility, the Labor Markets of the Future, and Solutions for Income Inequality May 2019. GrowthPolicy’s Devjani Roy interviewed David Deming, Professor of Public Policy, Education, and Economics at Harvard Kennedy School and Harvard Graduate School of Education and Director of the Harvard Inequality and Social Policy Program, on higher […]

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Immigration and Preferences for Redistribution in Europe

Immigration and Preferences for Redistribution in Europe. Alberto Alesina, February 2019, Paper, “We examine the relationship between immigration and attitudes toward redistribution using a newly assembled data set of immigrant stocks for 140 regions of 16 Western European countries. Exploiting within-country variations in the share of immigrants at the regional level, we find that native respondents display lower support for redistribution when the share of immigrants in their residence region is higher. This negative association is driven by regions of countries with relatively large Welfare States and by respondents at the center or at the right of the political spectrum. The effects are also stronger when immigrants originate from Middle-Eastern countries, are less skilled than natives, and experience more residential segregation. These results are unlikely to be driven by immigrants’ endogenous location choices.Link

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Economic Strategy for Higher Wages and Expanded Labor Participation

Economic Strategy for Higher Wages and Expanded Labor Participation. Jason Furman, Martin Feldstein, 2019, Paper, “We propose two alternative policy options for promoting increased earnings and employment of low-income households: expanding the Earned Income Tax Credit (EITC) among childless workers, and implementing a wage subsidy for low-income workers that would be administered through employers. The EITC is based on household income and administered as a tax credit, while the subsidy based on hourly wages would require no filing or administrative effort by workers. We compare and contrast the costs and benefits of these two approaches to raising wages. Our two policy options are meant as part of a response to the sluggish income growth at the bottom of the distribution over the past several decades.Link

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Saving the heartland: Place-based policies in 21st Century America

Saving the heartland: Place-based policies in 21st Century America. Edward Glaeser, Lawrence Summers, March 8, 2018, Paper, “America’s regional disparities are large and regional convergence has declined if not disappeared. This wildly uneven economic landscape calls for a new look at spatially targeted policies. There are three plausible justifications for place-based policies–agglomeration economies, spatial equity and larger marginal returns to targeting social distress in high distress areas. The second justification is stronger than the first and the third justification is stronger than the second. The enormous social costs of non-employment suggests that fighting long-term joblessness is more important than fighting income inequality. Stronger tools, such as spatially targeted employment credits, may be needed in West Virginia than in San Francisco.Link

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(Mis)perceptions of Inequality

(Mis)perceptions of Inequality. Michael I. Norton, July 24, 2017, Paper, “Laypeople’s beliefs about the current distribution of outcomes such as income and wealth in their country influence their attitudes towards issues ranging from taxation to healthcare–but how accurate are these beliefs? We review the burgeoning literature on (mis)perceptions of inequality. First, we show that people on average misperceive current levels of inequality, typically underestimating the extent of inequality in their country. Second, we delineate potential causes of these misperceptions, including people’s overreliance on cues from their local environment, leading to their erroneous beliefs about both the overall distributions of wealth and income and their place in those distributions. Third, we document that these (mis)perceptions of inequality—but not actual levels of inequality—drive behavior and preferences for redistribution. More promisingly, we review research suggesting that correcting misperceptions influences preferences and policy outcomes.Link

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Das Knowhow Kapital

Das Knowhow Kapital. Ricardo Hausmann, March 17, 2017, Opinion, “It has been a quarter-century since apartheid ended, and 23 since the African National Congress took power in South Africa. But, as President Jacob Zuma reported in his recent State of the Nation Address, the country’s whites remain in control.  “White households earn at least five times more than black households,” said Zuma, and “only 10% of the top 100 companies on the Johannesburg Stock Exchange are owned by black South Africans.” Whites still represent 72% of top management. The Gini coefficient, a widely-used measure of inequality, shows no sign of falling and remains one of the highest in the world.” Link

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Entrepreneurship and growth: lessons from an intellectual journey

Entrepreneurship and growth: lessons from an intellectual journey. Philippe Aghion, January 2017, Paper, “This lecture is the story of an intellectual journey, that of elaborating a new—Schumpeterian—theory of economic growth. A theory where (i) growth is generated by innovative entrepreneurs; (ii) entrepreneurial investments respond to incentives that are themselves shaped by economic policies and institutions; (iii) new innovations replace old technologies: in other words, growth involves creative destruction and therefore involves a permanent conflict between incumbents and new entrants. First, we motivate and then lay out the Schumpeterian paradigm and point to a set of empirical predictions which distinguish this paradigm from other growth models. Second, we raise four debates on which the Schumpeterian approach sheds new light: the middle income trap, secular stagnation, the recent rise in top income inequality, and firm dynamics. Third and last, we show how the paradigm can be used to think (or rethink) about growth policy design.Link

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