We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a nonrandom sample) and for attrition (panel retention may also be non-random). Our econometric model is a form of endogeneous switching regression, and is fitted using simulated maximum likelihood methods. The estimates, derived ...
Despite the increasing incidence of part-time employment in Germany, the effects on wage rates are studied rarely. I therefore use SOEP panel data from 1984 to 2010 and apply different econometric approaches and definitions of part-time work to measure the socalled part-time wage gap of both, men and women in East and West Germany. A very robust finding is that part-time working men are subject to ...
The economic gap between eastern and western Germany is still sizeable, even 25 years after the fall of the Berlin Wall. In terms of GDP per inhabitant and productivity, eastern Germany has attained nearly three-quarters of western German levels, respectively. Since some years, the catch-up process is advancing very slowly indeed. The main reason for low productivity is the lack of highly skilled jobs. ...
Germany's occupational and sectoral change towards a knowledge-based economy calls for high returns to education. Nevertheless, female graduates are paid much less than their male counterparts. We wonder whether overeducation affects sexes differently and whether this might answer for part of the gender pay gap. We decompose total year of schooling in years of over- (O), required (R), and undereducation ...
In spite of the great U-turn that saw income inequality rise in Western countries in the 1980s, happiness inequality has dropped in countries that have experienced income growth (but not in those that did not). Modern growth has reduced the share of both the "very unhappy" and the "perfectly happy". The extension of public amenities has certainly contributed to this greater happiness homogeneity. This ...
Can moving to an earnings-related parental leave system influence children’s wellbeing and are heterogeneous effects on parents carried over to the entire family, making special groups of children worse off than others? To answer this question, this study exploits a large and unanticipated parental leave reform in Germany as a natural experiment. By replacing a means-tested by an earnings-related system ...
Closely following recent innovations in the literature on the multidimensional measurement of poverty, this paper provides similar measures for the top of the distribution using a dual cutoff method to identify individuals, who can be considered as rich in a multidimensional setting. We use this framework to analyze the role of wealth, health and education, in addition to income, as dimensions of multidimensional ...
In spite of there being few elements of tax or cash benefit systems in developed countries that are any longer explicitly gender-biased in a discriminatory sense, it is well recognised that they have significant gender effects. To the extent that women earn less than men on average under tax-benefit systems that are progressive, there is some redistribution from men to women overall. However, an aggregate ...