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Income Inequality and Risk Taking: The Impact of Social Comparison Information

In contrast to the assumptions of standard economic theory, recent experimental evi-dence shows that the income of peers has a systematic impact on observed degrees of risk aversion. This paper reports the findings of two experiments examining the impact of income inequality on risk preferences and whether the knowledge of inequality mediates the decisions. In Experiment 1, participants who were recruited ...

School Entry, Afternoon Care, and Mothers’ Labour Supply

The availability of childcare is a crucial factor for mothers’ labour force participation. While most of the literature examines childcare for preschool children, we specifically focus on primary school-aged children, estimating the effect of formal afternoon care on maternal labour supply. To do so, we use a novel matching technique, entropy balancing, and draw on the rich and longitudinal data of ...

Top Incomes in Germany, 1871-2014

This study provides new evidence on top income shares in Germany from industrialization to the present. Income concentration was high in the nineteenth century, dropped sharply after WWI and during the hyperinflation years of the 1920s, then increased rapidly throughout the Nazi period beginning in the 1930s. Following the end of WWII, German top income shares returned to 1920s levels. The German pattern ...

Day Care Quality and Changes in the Home Learning Environment of Children

Children's development is fostered by both high quality Early Childhood Education and Care (ECEC) settings and high quality home learning environments. As we know little about the interrelations between these two environments, we examine whether the child's attendance in a high quality ECEC arrangement relates to the quality of her home learning environment. Using rich NICHD Study of Early Child Care ...

The Integration of International Financial Markets: An Attempt to Quantify Contagion in an Input-Output-Type Analysis

The increasing integration of international financial markets means that credit defaults in one country have to be covered by creditors in other countries. If the principle of creditor liability were applied systematically, the financial losses incurred by the financial institution that provided the credit and is thus directly affected by the default would be ‘passed on’ through its domestic and foreign ...

The Effects of Conflict on Fertility: Evidence from the Genocide in Rwanda

Our study analyzes the fertility effects of the 1994 genocide in Rwanda. We study the effects of violence on both the duration time to the first birth in the early post-genocide period and on the total number of post-genocide births per woman up to 15 years following the conflict. We use individual-level data from Demographic and Health Surveys, estimating survival and count data models. This article ...

Social Causation Versus Health Selection in the Life Course: Does Their Relative Importance Differ by Dimension of SES?

A person’s socioeconomic status (SES) can affect health (social causation) and health can affect SES (health selection). The findings for each of these pathways may depend on how SES is measured. We study (1) whether social causation or health selection is more important for overall health inequalities, (2) whether this differs between stages of the life course, and (3) between measures of SES. Using ...

The German Socio-Economic Panel (SOEP)

An Integrated Approach for a Top-Corrected Income Distribution

Household survey data provide a rich information set on income, household context and demographic variables, but tend to underreport incomes at the very top of the distribution. Administrative data like tax records offer more precise information on top incomes, but at the expense of household context details and incomes of non-filers at the bottom of the distribution. We combine the benefits of the ...

Dynastic Inequality Compared: Multigenerational Mobility in the United States, the United Kingdom, and Germany

Using harmonized household survey data, we analyze long‐run social mobility in the United States, the United Kingdom, and Germany, and test recent theories of multigenerational persistence of socioeconomic status. In this country comparison setting, we find evidence against a universal law of social mobility. Our results show that the long‐run persistence of socioeconomic status and the validity of ...