Earnings Mobility and Long-Run Inequality: An Analysis Using Matched CPS Data

In this article we use matched cross sections from the Current Population Survey (CPS) to examine patterns of short-term earnings mobility for the period 1967-91, which we then employ to assess the impact of rising annual individual earnings inequality on inequality over a longer span, First, we find that less-educated individuals and blacks have more instability in their earnings than those who are more highly educated and non-black. Second, short-term mobility levels have not undergone major changes over the time span we examine. Third, our results suggest that long-run inequality (calculated over five years) rose in the latter half of the 1980s. Fourth, important differences exist across demographic groups in long-run inequality trends, with long-term inequality increasing most in the 1980s for less-educated males.     

Differences across Cohorts in Finnish Intergenerational Income Mobility

Trends in intergenerational economic mobility in Finland are analyzed using panel data from 1950 through 1999 on more than 250,000 sons and daughters born between 1930 and 1970. A significant decline is estimated in the intergenerational transmission elasticity from the 1930 birth cohort until the baby boom cohorts of the early 1950s. After that we observed no increase in the extent of mobility for 1950s and 1960s birth cohorts, but rather the reverse. The result holds both for sons and daughters. A decomposition of the intergenerational transmission elasticities across cohorts shows that most of the early decline in transmission reflected a drop in the influence of parental income on the children's earnings that operated through investments in the child's schooling. This early pattern is postulated to reflect the phases of secondary educational expansion at the time. Throughout, a rise is estimated in the intergenerational transmission elasticity with age at which sons and daughters are observed. This has also been noted in prior U.S. studies and, at least in this Finnish context, this seems to result almost entirely from rising estimated returns to education with age.     

Non-farm income,gender, and inequality: evidence from rural Ghana and Uganda

This paper examines how the distribution of earnings in rural Ghana and Uganda differs by income type and by gender. We find that non-farm earnings contribute to rising inequality, but that lower income groups also benefit due to strong overall growth in non-farm earnings. The inequality-inducing effect is driven by self-employment income; wage income, on the other hand, reduces inequality. The tendency of non-farm income to contribute to inequality is greater among female-headed households for whom self-employment is important and non-farm opportunities more constrained. Determinants of non-farm income are estimated and appear to be strongly related to location, education, age, and distance to market. Estimates of the linkages to agriculture in Ghana are weaker than expected, showing the non-farm sector to be functioning more as an alternative activity to agriculture than as a complement.     

Growth,Industrialization, and the Intergenerational Correlation of Advantage

The shift from feudalism to industrial capitalism was generally accompanied by an increase in social mobility. We ask whether such an increase has occurred in a developing nation currently undergoing rapid industrialization, Indonesia. It has, at least as measured by a declining intergenerational correlation of education. To highlight the effects of economic growth on intergenerational mobility, we contrast Indonesia's experience with that of Bangladesh, where industrialization has proceeded more slowly and the correlation between parents’ and children's education has been roughly stable. We also examine potential causal channels for the rising educational mobility we find in Indonesia, but cannot identify specific pathways related to above‐average school building or rapid industrialization in a region.     

Race and Post-Displacement Earnings Among High-Tech Workers

This study examines racial variations in post-layoff earnings among a cohort of workers displaced in 1985 from Silicon Valley's high-technology industries. The analysis shows that blacks and Hispanics suffered greater earnings losses than non-Hispanic whites, and that this racial disparity occurred both among those who found other jobs within the high-tech sector and among those who were reemployed outside the high-tech sector. There were no statistical differences in outcomes between Asians and non-Hispanic whites.     

Labor Markets in Crisis: The Double Liability of Low-Wage Work During COVID-19

We adopt a novel identification strategy to examine the heterogeneous effects of Canada’s COVID-19 economic shutdown on hours worked across the earnings distribution. Early labor-market analyses found that workers in the bottom of the earnings distribution experienced a much larger reduction in hours worked than workers in the top of the earnings distribution. Our analysis reveals a double liability of low-wage work during Canada’s COVID-19 economic shutdown: while workers in every quintile experienced a large reduction in hours on average, significant increases in hours were only present among workers in the bottom quintile. Implications for crisis income supports are discussed.     

Fluidity in Sexual Identity,Unmeasured Heterogeneity,and the Earnings Effects of Sexual Orientation

Using data drawn from the National Longitudinal Study of Adolescent Health, this study (1) examines the sensitivity of the estimated earnings penalty of sexual minority status to family‐level unobserved heterogeneity, and (2) explores whether the earnings effects of sexual orientation differ by the degree of fluidity in individuals' self‐reported sexual identity over time. Evidence from sibling pairs suggests that unobserved family heterogeneity is not an important source of bias in the estimated relationship between sexual orientation and young adult earnings. I find that gay males and bisexuals earn lower wages than their heterosexual counterparts, while lesbians earn wages that are not significantly different from heterosexual females. Finally, I examine the role of fluidity in sexual orientation over time and find that males who are longer‐term gay identifiers earn wages that are 26.4 percent lower than their consistently heterosexual‐identifying counterparts.     

Late Entry in Swedish Tertiary Education: Can the Opportunity of Lifelong Learning Promote Equality Over the Life Course?

In this article, I investigate the relation between economic inequality and the decision to take up studies at the tertiary level late in life. Who exactly decides to enrol? Is it advantaged or disadvantaged groups in terms of current earnings rank, occupation, unemployment experience and social origin? Using unique register data of university applications and discrete time hazard regression models, the results show the likelihood of a late entry to be especially high for individuals who are disadvantaged to a moderate extent in terms of current earnings rank and also with some unemployment experience. Class differences in the transition to tertiary education decline with age. This suggests, with a moderate amount of simplification, that lifelong learning tends to promote both intra‐ and intergenerational equality.     

Sex and Interoccupational Wage Differences in Israel

An examination of the influence of the sex identification of an occupation on earnings reveals that: (1) male occupations earn more than female occupations; (2) nonsegregated occupations tend to be more similar in earnings to female than to male occupations; (3) the majority of female occupations earn below the mean for occupations at each level of education; the inverse is true for male occupations; (4) men in female occupations earn less than they do in male occupations; and (5) women in male occupations do not consistently earn more than women in female occupations at comparable levels of education. Our data indicate that they tend to gravitate toward the lower earning male occupations. These findings support the hypothesis that in Israel, as elsewhere, occupational segregation is an important factor underlying earning differentials between women and men. Wage differentials are the result not only of differences in human capital resources, but also of unequal opportunities within the occupational structure. The division of labor by sex does not cause inequality—rather it permits the perpetuation of a system of social relations in which the work women do is allocated inferior status and economic rewards. The social forces which produce and sustain this reality are worthy of further investigation.     

Is faster better? Quantifying the relationship between broadband speed and economic growth

In this paper, I aim to quantify the relationship between higher broadband speeds (10 Mbps versus 25 Mbps) and the growth rates in important economic outcomes in U.S. counties including jobs, personal income, and labor earnings. Doing so exposes the potential for severe selection bias in studies of broadband's economic impact, which is addressed in this study using Coarsened Exact Matching. Once balanced, the data reveal no economic payoff from the 15 Mbps speed difference between the years 2013 and 2015 (when data is available). I also revisit an early and widely-cited study on broadband's effect on employment to evaluate the possible impacts of selection bias, and conclude that the positive benefits of broadband reported in that particular study are likely spurious. The selection bias problem may infect other studies on the economic impacts of broadband Internet services. Future research on broadband's economic impact should explicitly address selection bias.     

When the Former CEO Stays on Board: The Role of the Predecessor’s Board Retention for Product Innovation in Family Firms

Understanding product innovation in family firms is an important research endeavor given the economic predominance of those firms, their idiosyncrasies, and the importance of constant renewal for those firms to achieve transgenerational survival. Recently, family firm research has highlighted the role of next-generation chief executive officers (CEOs; i.e., successors) who are often seen as drivers for innovating a family firm’s products. However, prior research has typically neglected that predecessors, who are often portrayed as less willing to introduce product innovation, frequently remain involved postsuccession through occupying board positions and thus still substantially influence the decision-making processes and outcomes of family firms, such as product innovation. As a result, our understanding of the role of predecessors and their postsuccession involvement in family firms’ product innovation remains unclear. Building on stakeholder salience theory and on insights from the literature on innovation and succession in family firms, we develop hypotheses about how and under which conditions the predecessor’s board retention affects product innovation in family firms after succession. Building on more than 200 family firm CEO succession cases in small- and medium-sized, privately owned family firms, our results reveal that the predecessor’s board retention negatively affects product innovation. This negative effect is strengthened with increasing involvement of the predecessor in the successor selection process, and it is offset in the case of family succession. Our findings contribute to the emerging stream of research on family firm succession and product innovation and provide important implications for practice.     

Inequality and Union Membership: The Influence of Relative Earnings and Inequality Attitudes

Using surveys from the International Social Survey Programme covering the period 1985–2002 for seven European countries (West and East Germany, Sweden, Norway, Italy, the Netherlands and Great Britain), we examine the effect of relative earnings on union membership and show that union density is higher among workers in the intermediate earnings group than among low or high earners. Next, we examine the association of inequality attitudes with union membership and demonstrate that union membership is not only motivated by instrumental considerations related to relative earnings, but also by normative concerns about inequality. We interpret our findings suggesting that rising earnings inequality is in itself a source of union decline.     

Labor Market Conditions and the Economic Status of Black Men: A Note

I study the effects of local employment to population ratios on the relative position of blacks to evaluate whether tight labor markets reduce the differences in economic status between young blacks and whites. I find evidence that blacks receive greater employment advantages than whites in tight labor markets, but the effect is small. Blacks with 12 or fewer years of education experience higher earnings in tight labor markets, but this effect is also small.     

Intergenerational Mobility and Interracial Inequality: The Return to Family Values

This paper investigates two questions. First, what is the relative importance of the components of childhood family environment—parental values versus parental class status—for young adult economic outcomes? Second, are interracial differences in labor market outcomes fully explained by differences in family environment? We find that both family values and family class status affect intergenerational mobility and inter‐racial inequality. Consideration of racial differences in parental values and class status alters but does not eliminate the impact of race on the labor market outcomes of young adults.     

The NBA, Exit Discrimination, and Career Earnings

The purpose of this article is threefold. First, it complements the many wage discrimination studies by examining exit discrimination in the NBA using a decade's worth of data (the 1980s). White players have a 36 percent lower risk of being cut than black players, ceteris paribus , translating into an expected career length of 7.5 seasons for an apparently similar player who is white and 5.5 seasons for the same player who is black. Second, the career earnings effect of exit discrimination in the 1980s is larger ($808,000) than the career earnings effect of wage discrimination ($329,000). Third, our data are consistent with the hypothesis that customer racial discrimination is the reason for the observed exit discrimination.     

It Pays to Value Family: Work and Family Tradeoffs Reconsidered

We use longitudinal data to assess whether individuals who place greater importance on marriage and family pay a price for that priority in subsequent labor market success. Males placing a high priority on family before entering the labor market earn more, contrary to behavioral research but consistent with the economics literature. More important, females who place a high priority on family do not suffer in terms of subsequent earnings, contrary to most previous research.     

经济发展和气温升高——基于中国直辖市和省会城市面板数据的实证研究

气温升高已经成为困扰人们经济生活的主要问题,因此研究导致气温升高的原因显得特别重要。文章尝试利用我国直辖市和省会城市面板数据研究经济发展对气温升高的影响,分别利用全国样本数据和分地区样本数据,实证研究发现我国经济增长和经济结构均是导致气温升高的原因。同时也发现经济发展对气温升高的影响具有外部性,即周边地区的经济发展也会导致省会城市的气温升高,因此气候问题只有各地区通力合作才能得以治理。     

Unionization,Inequality and Redistribution

This article explores the implications of the OECD‐wide decline of union density for earnings inequality and income redistribution by looking at aggregate (country‐level) data. Over the period 1975–95, countries that experienced relatively large declines in union density also experienced relatively large increases in earnings inequality. In addition, governments apparently became less willing to engage in ‘compensatory redistribution’ in these countries. Since the early 1990s, however, union decline has become less closely associated with rising earnings inequality and redistributive policy changes. I argue that the declining relevance of unionization has to do with changes in the position of union members in the income distribution. In most OECD countries, the average union member has become relatively better off as union density has declined and union members have probably become less supportive of wage solidarity and redistributive government policies.     

What Caused Rising Earnings Inequality in Britain? Evidence from Time Series, 1970–1993

The paper reviews some of the competing explanations for the rising levels of earnings inequality in Britain, such as skill shortages, rising unemployment, globalization, demographic factors and inflation. These explanations are rejected in favour of the idea that it was the major changes in the institutional pay-setting arrangements that were largely responsible for rising inequality. Union density figures and strike data are explored in support of this thesis.     

收益与收益质量的分层研究

各层面对收益的不同认识以及所导出的收益质量问题是极为重要的实际问题。本文先以经济学和会计学辨析的视角说明收益的内涵及在理论与实践中的偏差，阐明全面收益理论的要点与意义。然后深入到收益质量内部，从经济收益的大小、会计收益与真实收益差异的客观性和人为因素导致的收益质量三个不同层面进行分析，最后就研究结论，运用统计分析的方法对我国上市公司收益质量进行实证描述与分析，本文旨在揭示收益质量不高的原因，找出辨析与提高收益与收益质量的方法与途径。