Measurements and determinants of multifaceted poverty in South Africa

Poverty, despite being a multifaceted concept, is commonly measured in either absolute or relative monetary terms. However, it can also be measured subjectively, as people form perceptions on their relative income, welfare and life satisfaction. This is the first study that uses the National Income Dynamics Study data to analyse poverty across various objective and subjective methods. The paper finds that while respondents' poverty status varies across methods, blacks remain the racial group most likely to be defined as poor by at least one method. The multivariate analysis reveals that the impact of some explanatory variables, such as experience of negative events, frequency of crime victimisation, health status and importance of religious activities, is mixed across methods.     

Racial Inequality and Segregation Measures: Some Evidence from the 2000 Census

How much of the observed segregation between black and white Americans can be attributed to income disparities between the two groups? We adopt an approach to the decomposition of segregation measures that combines the method of indirect standardization with the idea that some degree of segregation is the outcome of purely random processes. Using the dissimilarity index as a measure of segregation and data on race and income from US metropolitan areas for 2000, we find that the role played by racial income inequality in accounting for segregation is modest but varies significantly across cities.     

A Different approach to the measurement of income inequality

This article presents Atkinson indices of racial income inequality for 1954-1989. This approach permits the study of racial inequality and inequality in the overall distribution of income in a consistent framework. The Atkinson index shows that progress towards racial equality stopped much earlier than observation of mean income ratios would suggest and that most of the gains have been eroded.     

Skin Tone and Self-Employment: is there an Intra-Group Variation among Blacks?

The purpose of this paper is to formally evaluate whether odds of entry into self-employment decrease as skin tone darkens for Blacks in the United States. Extending past work on inter-group differences in Black-White self-employment, based on data from National Longitudinal Survey of Youth 1997, with darker skin tone the odds of self-employment decline. Having spent more time in labor force further decreases the likelihood of self-employment for darker skin tone Blacks, and being a high-school graduate, scoring high on Armed Services Vocational Aptitude Battery (ASVAB), or higher past year income are not associated with self-employment of darker skin tone Blacks. While darker skin tone Blacks who are self-employed derive lower income, those who are self-employed and with more human capital (longer time spent in the labor force, scoring high on ASVAB or being a high school graduate) have a higher income.     

Differences in white-non-white returns to schooling: Theory and policy

Summary and conclusions In this paper, we reviewed and evaluated the empirical literature on differences in white-non-white returns to schooling during the pre- and post-Civil Rights Act of 1964 periods. The most striking results, using the 1960 census data, are that returns to education for Blacks are low. Equally interesting are the results using 1967 Survey of Economic Opportunity data; these show that Blacks have gained considerably relative to whites in returns to education. A logical explanation of these differences was the impact of the landmark Civil Rights Act of 1964.     

Race and wealth

One of the most heated scholarly controversies in the area of racial equality and social justice in the 1980s has been the dispute over the nature, cause, and meaning of economic changes occurring within the black community. Although this debate has important public policy consequences, most of the research on which the debate is based is concerned with income. We argue that a broader interpretation of life chances should include an examination of wealth as well as income. Using the 1984 Survey of Income and Program Participation (SIPP), we examine black and white patterns of wealth inequality. Our analysis uncovers a depth of inequality beyond that which is found when income alone is considered. Furthermore, we find that both race and class are important in determining patterns of racial inequalities in wealth.     

Using the Blinder-Oaxaca Decomposition Method to Measure Racial Bias in Achievement Tests

The Blinder-Oaxaca decomposition technique is typically applied to gender or racial earnings gaps with the goal of determining the percent of the gap that can be attributed to differences in attributes between groups and to labor market discrimination. We apply this technique to the racial gap in achievement tests with the goal of measuring the relative racial bias of these tests. The Armed Services Vocational Aptitude Battery (ASVAB) and the Peabody Individual Achievement Test (PIAT) were administered to respondents from the 1997 National Longitudinal Survey of Youth. Decomposition results indicate that up to 49.5 % of the white-black gap in the PIAT is explained by racial differences in average attributes. The corresponding figure for the ASVAB is 44.7 %. Since the same sample and specification are used in estimating ASVAB and PIAT scores, the difference in the percent of the gaps due to attributes can be ascribed to test score bias and not omitted variable bias. Therefore, the results suggest that the “discrimination” or bias of the ASVAB is greater than the PIAT.     

Job Satisfaction in the United States: Are Blacks Still More Satisfied?

Despite the substantial literature on the paradox of the happy female worker, research has been sparse in investigating race differences in job satisfaction. The last national level study on racial differences in job satisfaction was done in 1981 when, using national level U.S. data from the National Longitudinal Surveys of Mature Men for 1966, 1969 and 1971, Bartel showed that blacks had significantly more job satisfaction and further, that this racial gap had widened during this time. Though the reasons for this gap and its widening were not investigated, it was suggested, in a close parallel to the reason for the contented female worker, that lower expectations, in this case due to discrimination in the labor market, could be a reasonable explanation. Surprisingly, since then, there have been only a handful of studies focused on smaller, specific groups. This paper exploits two U.S. national level data sets, the GSS and the NLSY 1997, to examine the racial gap in job satisfaction. Simple means show that blacks are much less satisfied than whites and moreover, this difference has persisted not only across genders but also across almost four decades. To isolate the pure race effect, a sequential process is adopted by first examining the simple difference in the means of job satisfaction, then, through probit estimation, seeing the impact of individual attributes, finally progressing to incorporation of job attributes. Probit estimates give robust results. Blacks are significantly less satisfied than whites even when income, benefits and occupations are controlled. However, this racial gap is greater in the case of women and younger black men. An exploratory analysis shows that when discrimination is accounted for, the satisfaction gap is further reduced and the race coefficients are rendered insignificant. Estimates with comparison income show that the satisfaction gap is driven by perceived discrimination and not necessarily discrimination as captured by comparison income. This highlights the importance of policy measures to reduce perceptual discrimination.     

Job characteristics and the labor force participation behavior of black and white male youth

Previous work regarding the labor force participation of black and white youth has ignored the fact that they may face jobs with different characteristics, such as socioeconomic status or degree of danger. This article examines the effects that such characteristics have on the probability of participation for a sample of black and white males from the National Longitudinal Survey Youth Cohort. The results suggest that some job characteristics have a significant impact on participation, particularly socioeconomic status. The estimates presented here suggest, however, that racial differences in socioeconomic status probably explain only a small portion of the black-white male youth participation rate differential.     

Family structure, school attendance, and child labor in the American South in 1900 and 1910

Even in the early 20th century, black children were much more likely to be living apart from one or both parents than were white children. This paper examines the contribution of these racial differences in family structure to the racial differences in children’s experiences in the American South. Living apart from one or both parents was associated with lower school attendance and greater labor market participation, particularly for blacks. However, racial differences in adult literacy, household resources, and school characteristics were much more important for explaining the racial gaps in children’s activities than were racial differences in family structure.     

The role of real income level and income distribution in fulfillment of basic needs

Using internationally comparable estimates of real GDP per capita, along with World Bank data on seven basic-needs indicators and one income equality measure, relative importance of real income level and income equality, for improvement in the provision of basic needs, is assessed on the basis of a multiple regression model. Income level seems important in almost all cases; but the importance of income equality is observed only on a limited scale. Although income is probably more important in low-income LDCs, the relationships studied appear broadly similar in the low-income and the middle-income LDC contexts.     

Literacy Skills and Earnings: Race and Gender Differences

This study examines differences in returns to literacy skills on earnings of black and white men and women. Literacy skill is a composite measure of three scales: reading comprehension, document literacy (the ability to locate and use information in, say, tables and graphs), and mathematics proficiency. Using data from the National Adult Literacy Survey (NALS), we estimate earnings determination models separately for each racial/gender group. Our findings show that the effect of literacy on earnings varies by race and gender. Literacy skills favorably rewarded black men relative to black women and white men and women, net of education and other relevant variables. More importantly, literacy completely explained the effect of a high school diploma and some college on earnings of black men. We conclude that the economic importance of literacy skills is particularly salient for less-educated black men.     

Black Female Earnings and Income Volatility

I provide new evidence on earnings and income volatility among Black women in the United States over the past four decades by using matched data from the March Current Population Survey. I use a measure of total volatility that encompasses both permanent and transitory instability, and that admits labor-force transitions. My results show that, for Black women, earnings volatility fell over the entire period and income volatility rose after the mid 1980s. I also find that changes over time in labor force transitions into and out of work along with an increasing share of Black women continuously employed coincide with shifts in volatility levels and trends. Among Black women, differences in volatility levels emerge across education groups and marital status, though the trends typically remain consistent both across and within racial groups.     

Inequality of Opportunity in China's Labor Earnings: The Gender Dimension

This paper investigates the inequality of opportunity in China's labor earnings, defined as the component of inequality determined by personal circumstances that lie beyond the control of an individual, of which gender is one, as opposed to the component determined by personal efforts. Using the Survey of Women's Social Status in China (2010), we measure the share of inequality of opportunity in the total inequality of individual labor earnings for people aged 26–55 years, and separately for six birth cohorts and for female and male subsamples. Gender is revealed as the single most important circumstance determining nationwide individual labor earnings, with one's region of residence, father's occupation, father's education, birth cohort and holding rural or urban hukou also playing significant roles. A further investigation into the roles of circumstances and personal efforts (including education level, occupation, Communist Party membership, migration and marital status) confirms that circumstances play an alarmingly high role in shaping labor earnings distribution in China, and reveals notable gender differences that cannot be attributed to personal effort alone. These results provide the basis for recommending ways to improve gender equality of opportunity in the future.     

Why do Filipinos desire to work more hours?

In 2018, 16.4 per cent of Filipino workers stated that they wanted to have more work hours in their present jobs, to have an additional job, or to have a new job with longer work hours, that is, they declared themselves under-employed. Analysis of the 2015 Labor Force Survey data shows that relative to being full-time employed and not under-employed, the major determinant of being under-employed is the basic pay. Region, educational attainment, sector, and primary occupation are much less important determinants.     

Not Black-Alone: The 2008 Presidential Election and Racial Self-Identification among African Americans

This paper estimates a reduced form racial identity equation for a sample of African American survey respondents. The change in a state’s fraction of white votes for Obama in 2008 relative to Kerry in 2004 provides an empirical proxy for a change in white antagonism toward African Americans. Using Current Population Survey data from 2003 to 2013, this paper finds that there is a positive and statistically significant Obama-effect on African American self-identification as mixed-race rather than as black-alone.     

The vintage schooling hypothesis and racial differences in earnings and on-the-job training: A longitudinal analysis

Why do younger black males earn more relative to whites than do older black males? The literature offers two competing explanations. Smith and Welch suggest this pattern is evidence that employers are rewarding the improved skills of more recently, better-educated blacks. Lazear, and Duncan and Hoffman suggest that the pattern is the result of employer discrimination that prevents blacks from entering occupations that offer on-the-job training (OJT) and wage growth with experience. The competing views are tested by using the National Longitudinal Survey of Labor Market Experience of Young Men to compare black and white earnings and regression estimates in two periods. Regression results for 1968 and 1978 indicate that, as the NLS cohort aged, only white males had an age-earnings profile exhibiting the positive effect of OJT. Over the period, education coefficients decreased for both groups with the reduction greatest in black coefficients. This suggests that the earnings effect of education is not as stable for blacks as it is for whites over the life cycle. Black-white earnings ratios were approximately the same in both periods. The results reported here support the explanations offered by Lazear and by Duncan and Hoffman, implying that policies focusing on eliminating racial differences in educational quality may be insufficient in improving the relative position of blacks over the life cycle.     

Flying Ducks? Girls’ Schooling in Rural Vietnam

Using the Vietnam Living Standards Survey 1992–93, this paper has found significant gender differences in children's education – parents are less likely to keep girls in school. The method of Doiron and Riddell (1994) is applied to decompose the predicted probability gap of being in school between boys and girls. Their method takes into account the nonlinear nature of the probit model. The decomposition result suggests that most observed gender differences in the predicted probability gap may be driven by discrimination, which may be due to Confucian values. Girls are colloquially referred to as 'flying ducks' as they are regarded as a loss to the family upon marriage. Cultural values could shape the parents' perception of the rate of the children's income transfer to the parents. If the cultural norms dictate that sons provide old–age security to the parents, while daughters marry and provide no support to the parents, parents may not be willing to invest as much in girls' education relative to boys. Promotion of gender equality and reduction of the reliance on sons in providing old–age security to parents are necessary to ensure that girls have equal opportunities to receive education.
JEL classification : I 2; J 16; J 71     

Individual preferences on trade liberalization: evidence from a Japanese household survey

This paper studies an individual’s preference on trade liberalization using a Japanese household survey, the Keio Household Panel Survey. As a result, we show that preferences toward trade liberalization are affected by economic factors (income, gender, family, asset, and job status) as well as noneconomic factors (noncognitive factors and behaviroal biases). We find that male, educated, and people with smaller family prefer trade liberalization. Furthermore, people who prefer liberty to equality and have less local patriotism, tend to be positive to trade liberalization.

     

The pay-off to training for blacks: The win experience

Conclusion The striking racial difference in the payoff to OJT and PSE activities could have been generated by two distinct phenomena, and probably reflects a combination of both. On the one hand, Blacks may have restricted access to OJT and PSE opportunities, essentially being allocated the least desirable ones. This could come about through discrimination on the part of WIN program personnel assigned the allocation responsibility, or, more likely, reflects attitudes of employers, as expressed to or perceived by WIN project staff. Note that we are measuring net gains here and explicitly controlling for education and work experience, so that observed disparities cannot easily be attributed to differences in capability. This paper is based on an evaluation performed under contract to the Office of Program Evaluation, U.S. Employment and Training Administration, U.S. Department of Labor. As with all such contracts there is no implied official responsibility for findings or conclusions. The evaluation itself was undertaken by a consortium of three firms, Pacific Consultants Ketron, Inc., and Camil Associates; Michael Temple (Ketron) and David Miller (Camil) and their staffs contributed to the evaluation effort.