MEASURING POVERTY ACCOUNTING FOR TIME

In this paper we make a methodological proposal to measure poverty accounting for time by proposing a new family of intertemporal poverty indexes that aims at reconciling the way poverty is measured in a static and a dynamic framework. Our index is able to consider the duration of the poverty spell and the social preference for equality in well‐being given that, in contrast with others that have been previously proposed, it is sensitive to the level of inequality between individual complete poverty experiences over time. Moreover, other indices in the literature can be interpreted as special cases of our more general measure. An empirical illustration shows the relevance of considering the distribution of poverty experiences among the population in an international analysis.     

OTC Clearing Arrangements for Bank Systemic Risk Regulation: A Simulation Approach

Based on a simulation approach, this paper compares different over‐the‐counter (OTC) clearing models regarding their netting efficiency and loss‐concentration implications. The results indicate that the mandatory clearing of all standardized OTC derivatives by a Central Counterparty (CCP) propagated by regulators would significantly decrease systemic risk as compared to existing clearing arrangements only if the multilateral netting benefits of the CCP and loss mutualization are fully attained. Therefore, regulators have to ensure that there is a critical mass of asset classes under mandatory clearing, that broad market participation in the CCP is enabled, and that there is an appropriate client asset protection regime.     

The Extent of Occupational Segregation in the United States: Differences by Race,Ethnicity, and Gender

This paper studies occupational segregation by ethnicity/race and gender by following a new approach that facilitates multigroup comparisons and econometric analyses to take into account group characteristics. The analysis shows that segregation is particularly intense in the Hispanic and Asian populations (the situation being more severe for the former given its higher concentration in low‐paid jobs). A distinctive characteristic of Hispanics is that segregation is higher for men than for women although females are more concentrated in low‐paid jobs. Segregation neither for women nor for African and Native Americans is reduced by taking human capital variables into account.     

Consumption,Credit, and the Missing Young

There are more young adults today with either no credit history or insufficient credit history to be scored by one of the major credit bureaus than there were before the Great Recession—a reality that is likely an outcome of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009–10. In regressions that include a rich set of controls, we show that measures of young adults missing a credit score in credit bureau data act as a drag on state-level consumption growth. We demonstrate that this effect is driven by young people's loss of access to credit since the legislation went into effect.