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This article from Economic Policy provides a summary of five papers that contribute to our understanding of economic and policy issues. The first paper examines the impacts of historical conflicts on the current conflict in Ukraine, emphasizing the importance of demining, preserving social cohesion, and addressing gender imbalances and conflict-related sexual violence. The second paper evaluates the effectiveness of legislation aimed at restricting the mobility of unemployed individuals within specific areas of a city, finding that these laws are ineffective and have unintended negative consequences. The third paper analyzes the macroeconomic impact of structural reforms in Italy, showing that these reforms can lead to increased productivity and GDP growth. The fourth paper presents a comprehensive analysis of China's foreign lending practices, highlighting unconventional confidentiality clauses and collateral arrangements used by Chinese lenders. The final paper explores the question of higher education subsidies, finding that increased subsidies can have positive fiscal and welfare impacts in many countries. These papers offer evidence-based recommendations and policy lessons for policymakers in various contexts. [Extracted from the article]

This paper documents an unprecedented decrease in young homeownership since the Great Recession driven by regions with high house prices. Using a panel of U.S. metro areas, I calibrate an equilibrium spatial macro-finance model with overlapping generations of mobile households. The dynamics of regional housing markets is explained by an aggregate credit contraction with heterogeneous local impacts rather than by local shocks. Lower millennial income and wealth amplify its effect. The impact of subsidies to first-time buyers is dampened, because they fail to stimulate regions that suffer from larger busts. Place-based subsidies achieve larger gains. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Many research papers in household finance utilize annual snapshots of household wealth from administrative data, such as tax registries, to calculate "imputed consumption." However, trading costs, unobserved intrayear trades, or unobserved security characteristics may cause measurement error. We document how such errors vary across groups of individuals by income, portfolio characteristics, and wealth and how they are correlated with individual income and balance sheets, asset prices, and the business cycle using transaction-level retail brokerage account data. We find that the economic significance of imputation error is small in many research settings, and we discuss robustness checks and econometric specifications to minimize the impact of imputation error in future research. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Does the ability to pledge an asset as collateral, after purchase, affect its price? This paper identifies the impact of collateral service flows on house prices, exploiting a plausibly exogenous constitutional amendment in Texas that legalized home equity loans in 1998. The law change increased Texas house prices 4 |$\%$|⁠ ; this is price-based evidence that households are credit-constrained and value home equity loans to facilitate consumption smoothing. Prices rose more in locations with inelastic supply, higher prelaw house prices, higher income, and lower unemployment. These estimates reveal that richer households value the option to pledge their home as collateral more strongly. [ABSTRACT FROM AUTHOR]

Fairness or equity in health financing is critical to ensuring universal health coverage (UHC). While equity in health financing is generally about financing health services according to ability-to-pay, misconceptions exist among policymakers, decision-makers and some researchers about what constitutes financing health services according to ability-to-pay or an equitably financed health system. This commentary characterizes three misconceptions of equitable health financing-(1) the misconception of fair contribution, (2) the pro-poor misconception and (3) the misconception of cross-subsidization. The paper also uses these misconceptions to clearly illustrate what constitutes equity in health financing, highlighting the importance of income distribution. The misconceptions come from the authors' extensive engagements with policymakers and practitioners, especially in Africa. A clear understanding of equity in health financing provides an avenue to significant progress towards UHC and improving a country's income distribution. [ABSTRACT FROM AUTHOR]

This paper studies why investors buy dividend-paying assets and how they time consumption accordingly. We combine administrative bank data linking customers' consumption and income to portfolio data and survey responses on financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth, income, and age distributions increase spending precisely around days of dividend receipt. Our results are at odds with a number of existing rational and behavioral explanations, such as financial constraints and impulsiveness. Instead, consumption responses reflect "planned" excess sensitivity, driven by investors who select dividend portfolios, anticipate dividend income, and plan consumption accordingly. [ABSTRACT FROM AUTHOR]

I estimate a life cycle model of portfolio choices that incorporates the relationship between market returns and the skewness of idiosyncratic income shocks. The cyclicality of skewness can explain (a) low stock market participation among young households, (b) why the equity share of participants slightly increases until retirement, and (c) why renters invest less in stocks than do homeowners. With a relative risk aversion of 6 and yearly participation cost of $250, the model matches the evolution of wealth, participation, and conditional equity shares over the life cycle. Nevertheless, cyclical skewness increases the equity premium by at most 0.5 percentage points. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This paper offers a comprehensive picture of the performance of the Mexican health system during the period 2000–18. Using high-quality and periodical data from the Organization for Economic Cooperation and Development, the World Bank, the Institute for Health Metrics and Evaluation and Mexico's National Survey of Household Income and Expenditure, we assess the evolution of seven types of indicators (health expenditure, health resources, health services, quality of care, health care coverage, health conditions and financial protection) over a period of 18 years during three political administrations. The reform implemented in Mexico in the period 2004–18―which includes the creation of 'Seguro Popular'―and other initiatives helped improve the financial protection levels of the Mexican population, expressed in the declining prevalence of catastrophic and impoverishing health expenditures, and various health conditions (consumption of tobacco in adults and under-five, maternal, cervical cancer and human immunodeficiency virus (HIV) or acquired immunodeficiency syndrome (AIDS) mortality rates). We conclude that policies intended to move towards universal health coverage should count on strong financial mechanisms to guarantee the consistent expansion of health care coverage and the sustainability of reform efforts. However, the mobilization of additional resources for health and the expansion of health care coverage do not guarantee by themselves major improvements in health conditions. Interventions to deal with specific health needs are also needed. [ABSTRACT FROM AUTHOR]

We read with interest the recent paper by Sariaslan I et al i .[1] investigating the associations between childhood family income and three outcomes observed later in life: psychiatric disorders, substance misuse and violent crime arrests. To illustrate our point, assume that childhood family income has a causal effect on the neighbourhood in which a family resides while the children are growing up: the higher the income, the more affluent the neighbourhood. [Extracted from the article]

The paper contributes to the scarce literature on the negative effect of coronavirus 2019-induced income and food price shocks on household economic access to food, focusing on Malawi during the first two pandemic waves and using a country representative sample. We find that household income reduction, as explained by income source shocks and health mitigation measures, has a wave-specific and persistent effect on ordinal categories of food security perception. Our evidence supports the implementation and monthly scaling-up of nutrition-sensitive social protection programmes and health measures at the household level to address these adverse effects. [ABSTRACT FROM AUTHOR]

Causal loop diagrams (CLDs) are a systems thinking method that can be used to visualize and unpack complex health system behaviour. They can be employed prospectively or retrospectively to identify the mechanisms and consequences of policies or interventions designed to strengthen health systems and inform discussion with policymakers and stakeholders on actions that may alleviate sub-optimal outcomes. Whilst the use of CLDs in health systems research has generally increased, there is still limited use in low- and middle-income settings. In addition to their suitability for evaluating complex systems, CLDs can be developed where opportunities for primary data collection may be limited (such as in humanitarian or conflict settings) and instead be formulated using secondary data, published or grey literature, health surveys/reports and policy documents. The purpose of this paper is to provide a step-by-step guide for designing a health system research study that uses CLDs as their chosen research method, with particular attention to issues of relevance to research in low- and middle-income countries (LMICs). The guidance draws on examples from the LMIC literature and authors' own experience of using CLDs in this research area. This paper guides researchers in addressing the following four questions in the study design process; (1) What is the scope of this research? (2) What data do I need to collect or source? (3) What is my chosen method for CLD development? (4) How will I validate the CLD? In providing supporting information to readers on avenues for addressing these key design questions, authors hope to promote CLDs for wider use by health system researchers working in LMICs. [ABSTRACT FROM AUTHOR]

This paper presents a model of consumption behavior that explains the presence of "wealthy hand-to-mouth" consumers using a mechanism that differs from those analyzed previously. We show that a two-asset model with temptation preferences generates a demand for commitment and thus illiquidity, leading to hand-to-mouth behavior even when liquid assets deliver higher returns than illiquid assets. This preference for illiquidity has important implications for consumption behavior and for fiscal stimulus policies. Our model matches the recent empirical evidence that Marginal Propensity to Consume remain high even for large income shocks, suggesting a larger response to targeted fiscal stimulus than previously believed. [ABSTRACT FROM AUTHOR]

In this paper, I analyze the determinants of cohabitation, marriage, and divorce in the USA. I first document that college graduates are more likely to marry, and less likely to cohabit and divorce, than non-college educated individuals. To account for these facts within a unified framework, I build and estimate a life-cycle model of partnership formation and dissolution where income processes differ by gender and education. I find that the main driver of education-based differences in mating strategies is that the gender wage gap is larger among college graduates. Since divorce is more costly than ending a cohabitation, marriages tend to be more stable and therefore offer women more protection from human capital depreciation during non-employment. Consequently, marriage is a more effective means of enforcing household specialization. Since college graduates have more room for household specialization, they are more likely to choose marriage. The variance of income shocks, which affects the demand for consumption insurance, is larger among college graduates. Even if the variance of income shocks could potentially explain partnership choices, simulations suggest a small role of income volatility. [ABSTRACT FROM AUTHOR]

Empirically, the poor are more likely to support increases in the level of tax progressivity than the rich. Such income-stratified tax preferences can result from differences in preferences of what should be taxed as argued by previous literature. However, it may also result from income-stratified perceptions of what is taxed. This paper argues that the rich perceive higher levels of tax progressivity than the poor and that tax perceptions affect individuals' support for progressive taxation. Using data from an Austrian survey experiment, we test this argument in three steps: First, in line with past research, we show that individuals' income positions are connected to individuals' tax preferences as a self-interest rationale would predict. However, second, we show that this variation is mainly driven by income-stratified tax perceptions. Third, randomly informing a subset of the sample about actual tax rates, we find that changing tax perceptions causally affects support for redistributive taxation among those who initially overestimated the level of tax progressivity. Our results indicate that tax perceptions are relevant for forming tax preferences and suggest that individuals are more polarized in their perceptions of who pays how much taxes than in their support for who should pay how much tax. [ABSTRACT FROM AUTHOR]

This paper studies the effects of minimum wages in Indonesia around the time of birth on child height-for-age Z scores (HAZ) up to five years of age. Using variations in annual fluctuations in real minimum wages in different Indonesian provinces, it finds that children exposed to increases in minimum wages in their birth years have higher HAZ in the first five years of their lives. The estimated impacts are based on difference-in-differences models with biological-mother fixed effects and year-of-birth fixed effects and are robust to inclusion of multiple time-varying factors. The impacts are prominent particularly among male children. [ABSTRACT FROM AUTHOR]

This paper proposes a model of the distribution channel to study the decisions of manufacturers, retailers and consumers. The model is used to study how retail distribution affects manufacturing and consumers. As the cost of distribution falls, the retail sector increases assortment size and allows a larger mass of manufacturers to enter, allowing consumers to buy more variety. Entry primitives in manufacturing and retailing determine vertical pricing power. The equilibrium of the model predicts that the national retail sector is a fraction of the total economy that depends on the demand for variety. It is not affected by, e.g. consumer transportation cost or income. Data support this prediction. [ABSTRACT FROM AUTHOR]

This paper examines whether nonlinear and non-Gaussian features of earnings dynamics are caused by hours or hourly wages. Our findings from the Norwegian administrative and survey data are as follows: (i) Nonlinear mean reversion in earnings is driven by the dynamics of hours worked rather than wages since wage dynamics are close to linear, while hours dynamics are nonlinear—negative changes to hours are transitory, while positive changes are persistent. (ii) Large earnings changes are driven equally by hours and wages, whereas small changes are associated mainly with wage shocks. (iii) Both wages and hours contribute to negative skewness and high kurtosis for earnings changes, although hour-wage interactions are quantitatively more important. (iv) When considering household earnings and disposable household income, the deviations from normality are mitigated relative to individual labor earnings: changes in disposable household income are approximately symmetric and less leptokurtic. [ABSTRACT FROM AUTHOR]

Despite established links among persistent unemployment, low wages, and children's economic well-being, social scientists have yet to document how variability in work hours is linked to child poverty. Our knowledge of the safety net's heterogeneous responses to work-hour instability is also limited. This is of critical importance for scholars and policymakers. Using nationally representative data collected every 4 months, this paper examines how intra-year work-hour volatility is related to child poverty, measured through both the official poverty measure (OPM) and the supplemental poverty measure (SPM). It further assesses varying degrees of buffering effects of cash, in-kind benefits, and tax transfers on income in the context of work-hour volatility. Results indicate that more than one in four households (26%) facing the greatest volatility lived under the poverty line. Black and Hispanic children, as well as those living with unpartnered single mothers, faced substantially higher variability in household market hours worked. Hispanic children experienced not only greater volatility in their caregivers' work hours but also higher poverty level, even after taking government programs into account. In-kind benefits are more effective in buffering household income declines resulting from unstable work hours, followed by tax transfers and cash benefits. The effectiveness of near-cash benefits is particularly salient among Black children and children of single mothers. These results provide new evidence to inform policy discussions surrounding the best ways to help socioeconomically disadvantaged families to retain benefits and smooth their income in the face of frequent variation in work hours and, thus, earnings. [ABSTRACT FROM AUTHOR]

Summary: This article reports on findings that indicate how First Nations musical activities function as cultural determinants of health. Drawing on early findings from a 3-year Australian Research Council funded project titled The Remedy Project: First Nations Music as a Determinant of Health, we detail Australian and Ni Vanuatu First Nations musicians' reported outcomes of musical activity using a First Nations cultural determinants of health framework. The broader findings indicate that our respondents see musical activity as actively shaping all known domains of cultural health determinants, and some surrounding political and social determinants. However, this paper focusses specifically on the political and economic determinants that emerged in analysis as the most dominant subthemes. We argue that this study provides strong impetus for continued investigation and reconceptualization of the place of music in cultural health determinant models. Lay Summary: This article looks at how making and performing music, recording music and listening to music helps the health of First Nations peoples in Australia and Ni Vanuatu. Music is an important part of the lives of First Nations peoples from these places and so research was done to try to understand why it is meaningful. Music can be used as an outlet for personal feelings, and can also be a way that groups of people can express common concerns. First Nations musicians talked about how music makes them feel, and how music is used to strengthen relationships between people, and between people and their culture. Musicians also talked about how music helps them express their political and economic goals. The findings backed up existing First Nations' models of health that say that health for First Nations People's needs to be thought about in a holistic way. The findings also showed that the relationship between music and health needs to be studied more so that we can better understand how it helps maintain links with the past, gives a guide for the present and opens options for the future. Graphical Abstract [ABSTRACT FROM AUTHOR]

This paper evaluates whether the devolution reform of forestland to household management improves allocative efficiency and household welfare through participation in forestland rental markets. Using a household panel dataset from three Chinese provinces, we find positive effects of the emerging forestland rental markets: with the reform, forestland was transferred to forestland-constrained and labour-rich households and households with higher levels of productivity in forestry. Participation in forestland rental markets increases household per-capita income and decreases the likelihood of income falling below the poverty line. We do not find any support for forestland captured by land-richer, wealthier, larger or powerful households. [ABSTRACT FROM AUTHOR]

This paper explores the local impact of various forms of fiscal and monetary support for UK-based companies in the context of disruption caused by COVID-19 and associated public health restrictions, including support for household incomes (and therefore private consumption) via the 'furlough' scheme, the Covid Corporate Financing Facility and various national and local business support schemes. It shows that the economic crisis associated with the pandemic has been construed to justify interventions that preserve the spatially uneven status quo of the UK's model of economic development, protecting business from harms arising, apparently, from the public's reaction to the pandemic. To some extent, COVID-19 has been treated as a localised phenomenon that the national economy requires protection from. [ABSTRACT FROM AUTHOR]

Background This paper concerns the spatial determinants of the first two waves of COVID-19 at the neighbourhood level. Methods Using data for the first and second waves of COVID-19 at the neighbourhood level in Barcelona, we analyse whether local characteristics acted in the same way during the two waves and identify typologies of areas depending on such determinants. Univariate and bivariate local Moran's I and count data models are used. Results Some structural effects at the neighbourhood level consistently either boost (e.g. population density) or reduce (e.g. income) COVID-19 cases. Other effects differ between the two waves (i.e. age composition, schools and transport infrastructures). Conclusions Since certain characteristics influenced the virus diffusion in opposite ways between the two pandemic waves, territorial heterogeneity alone is insufficient to explain COVID-19 outbreaks—individual behaviour also needs to be factored in. Consequently, both econometric and spatial analysis techniques are recommended for tracking the spatiotemporal spread of this disease and for monitoring the effectiveness of policy measures across heterogeneous neighbourhoods. [ABSTRACT FROM AUTHOR]

What shapes preferences for income redistribution? Studies find that social identification plays an important role. In this paper, I argue that in-group favoritism generated through income proximity and out-group discrimination stemming from a nation/foreigner cleavage affect redistribution preference. Using data from a survey experiment with 4,002 Japanese citizens, I examined whether priming the poor as recipients of public assistance (or Seikatsu Hogo) generates more (less) support for income redistribution among the poor (the wealthier) and whether priming foreigners as public assistance recipients decreases support for redistribution. Analyses reveal that respondents with annual household income of 5–10 million yen negatively respond to the treatment priming the poor as public assistance recipients. Results also indicate that priming foreigners as public assistance recipients decreases support for redistribution. These findings corroborate previous research that finds evidence from North America and Europe. Analyzing a sample from Japan offers the external validity because the recent rise in income disparity in Japan involves unique characteristics including pauperization of low-income groups without enriching the wealthy. A rapid increase in the inflow of immigrants to Japan necessitates the need to study how Japanese people shape their redistribution preference in response to a growing number of foreign residents. [ABSTRACT FROM AUTHOR]

Access to safe drinking water is critical in improving health and well-being. It is estimated that >40% of urban households in Ghana do not have access to safe drinking water. Although the willingness and ability of community members to collectively take local initiatives are essential to curtailing inequities in water access in Ghana, the determinant of collective action is less explored. This paper explores determinants of collective action in water-insecure neighbourhoods and examines how perceived inequities in access to water and trust mediate the relationship between lack of access to water and collective action in urban Ghana. The results show that the urban poor OR = 12.047 (p = 0.000) were more likely to participate in water-related collective action compared to wealthy individuals. Primary decision-makers were 1.696 times more likely to participate in collective (p = 0.02). We also found that perceived inequities OR = 0.381 (p = 0.00) significantly predict participation in collective action to address water insecurity. Water service providers should be subjected to a rigid state-level framework that ensures inclusivity, fairness and justice in their distribution systems. [ABSTRACT FROM AUTHOR]

Introduction Healthcare workers' work performance and mental health are associated with positive mental health outcomes and directly related to increased productivity and decreased disability costs. Methods We conducted a systematic review to identify factors associated with work performance of healthcare workers during a pandemic and conducted a meta-analysis of the prevalence of mental health outcomes in this context. Primary papers were collected and analysed using the Population/Intervention/Comparison/Outcome framework and using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. To critically appraise the studies included in the review, we used the AXIS appraisal tool to assess each cross-sectional study's quality. Results The study identified nine factors associated with the work performance and mental health of healthcare workers, including experiencing feelings of depression, anxiety, having inadequate support, experiencing occupational stress, decreased productivity, lack of workplace preparedness, financial concerns associated with changes in income and daily living, fear of transmission and burnout/fatigue. Conclusion There is a rapidly rising need to address the work performance and mental health of healthcare workers providing timely care to patients. Regular and sustained interventions, including the use of information and communication technologies such as telehealth, are warranted. [ABSTRACT FROM AUTHOR]

This paper presents the rationale for a four-asset growth policy model, which the US economy has executed only on a partial and intermittent basis over the past four decades. The need for such a model is driven by (1) growing global competition, (2) resulting slower gross domestic product and personal income growth, and (3) a consequent rise in income inequality. Without a more effective growth model to both broaden and deepen the role of technology, declining growth and its skewed distribution among income classes will perpetuate current social and political unrest. To achieve both broader and deeper technology-based growth across the economy, the proposed technology element model specifies the four major asset categories that characterize technology-based economic development, which combine to drive more effective growth policy analysis and development. [ABSTRACT FROM AUTHOR]

Women tend to experience a substantial decline in their labour income after their first child is born, while men do not. Do such 'child penalties' also exist in the political arena? Using comprehensive administrative data from Norway, we find that women are less likely than men to secure elected office after their first child is born. The effects already manifest from the nomination stage, where mothers receive less favourable rankings on party lists relative to comparable fathers. This paper broadens our understanding of a fundamental social issue in political representation and demonstrates how motherhood even affects positively selected women. [ABSTRACT FROM AUTHOR]

The Preconception Period Analysis of Risks and Exposures Influencing Health and Development (PrePARED) Consortium creates a novel resource for addressing preconception health by merging data from numerous cohort studies. In this paper, we describe our data harmonization methods and results. Individual-level data from 12 prospective studies were pooled. The crosswalk-cataloging-harmonization procedure was used. The index pregnancy was defined as the first postbaseline pregnancy lasting more than 20 weeks. We assessed heterogeneity across studies by comparing preconception characteristics in different types of studies. The pooled data set included 114,762 women, and 25,531 (22%) reported at least 1 pregnancy of more than 20 weeks' gestation during the study period. Babies from the index pregnancies were delivered between 1976 and 2021 (median, 2008), at a mean maternal age of 29.7 (standard deviation, 4.6) years. Before the index pregnancy, 60% of women were nulligravid, 58% had a college degree or more, and 37% were overweight or obese. Other harmonized variables included race/ethnicity, household income, substance use, chronic conditions, and perinatal outcomes. Participants from pregnancy-planning studies had more education and were healthier. The prevalence of preexisting medical conditions did not vary substantially based on whether studies relied on self-reported data. Use of harmonized data presents opportunities to study uncommon preconception risk factors and pregnancy-related events. This harmonization effort laid the groundwork for future analyses and additional data harmonization. [ABSTRACT FROM AUTHOR]

This paper proposes a tractable way to model boundedly rational dynamic programming. The agent uses an endogenously simplified, or "sparse," model of the world and the consequences of his actions and acts according to a behavioral Bellman equation. The framework yields a behavioral version of some of the canonical models in macroeconomics and finance. In the life-cycle model, the agent initially does not pay much attention to retirement and undersaves; late in life, he progressively saves more, generating realistic dynamics. In the consumption-savings model, the consumer decides to pay little or no attention to the interest rate and more attention to his income. Ricardian equivalence and the Lucas critique partially fail because the consumer may not pay full attention to taxes and policy changes. In a Merton-style dynamic portfolio choice problem, the agent endogenously pays limited or no attention to the varying equity premium and hedging demand terms. Finally, in the neoclassical growth model, agents act on a simplified model of the macroeconomy; in equilibrium, fluctuations are larger and more persistent. [ABSTRACT FROM AUTHOR]

Environmental Engel curves describe how households' income relates to the pollution associated with the services and goods consumed. This paper estimates these curves with neural networks using the novel dataset constructed in Levinson and O'Brien. We provide further statistical rigor to the empirical analysis by constructing prediction intervals obtained from novel neural network methods such as extra‐neural nets and MC dropout. The application of these techniques for five different pollutants allow us to confirm statistically that Environmental Engel curves are upward sloping, have income elasticities smaller than one and shift down, becoming more concave, over time. Importantly, for the last year of the sample, we find an inverted U shape that suggests the existence of a maximum in pollution for medium‐to‐high levels of household income beyond which pollution flattens or decreases for top income earners. [ABSTRACT FROM AUTHOR]

Parental child-related spending represents an important pathway to promote children's human capital development and material well-being. It is also, however, a pathway that perpetuates social inequalities given the well-known socioeconomic divide in parental spending on children. Although several studies have documented the extent to which current family income is associated with spending on children, we still know little about the causal effects of additional income on child-related spending across the socioeconomic strata. In this paper, I examine the effects of income gains due to universal and unconditional cash transfers from the Alaska Permanent Fund Dividend on child-related spending. Using longitudinal household expenditure data from the 1996–2015 Consumer Expenditure Surveys, I exploit exogenous variation in the generosity of the Alaska Dividend to estimate short- and long-term disparities in parental expenditures resulting from payouts. Results provide a unique opportunity to compare the behavior of high- and low-income parents after an income boost. I find that low- and middle-income parents use cash transfers to catch up with their more affluent counterparts in the short and long term. Low-income parents are, however, unable to keep up with the long-term increases in child-related spending made by their middle-income counterparts. Implications of results for the reproduction of socioeconomic inequalities and for current and proposed cash-transfer policies are discussed. [ABSTRACT FROM AUTHOR]

Rising wage inequality in wealthy countries is disproportionately driven by widening differences in pay between workplaces, through increasingly homogenous workforces as well as widening differences in the pay of similar workers. While this is found consistently across countries, the variation in trends highlights the need to study institutional settings. This paper uses cross-national representative European data from the Structure of Earnings Survey to study the trends in wage inequality over time between and within firms, linking these to changes in structural and institutional factors. Indeed, common structural changes such as globalization and digitalization contribute to rising wage inequality across otherwise similar workers within and between establishments. However, the institutional context plays an important role: where employers' pay setting is constrained through more biting minimum wages or multi-employer collective bargaining, this inequality is compressed and does not grow as much. [ABSTRACT FROM AUTHOR]

I estimate the average federal individual income tax rate paid by America's 400 wealthiest families, using a relatively comprehensive estimate of their Haig–Simons income: their change in wealth, plus US individual taxes. I do so using publicly available statistics from the IRS Statistics of Income Division, the Survey of Consumer Finances, and Forbes magazine from 1992 to 2020. This paper's baseline analysis uses all years of data and systematically varies start and end years. The baseline estimates of the average federal individual income tax rate on the wealthiest 400 families are 9.6 per cent in nominal terms and 12.0 per cent in real (inflation-adjusted) terms. Sensitivity analyses yield nominal estimates in the 6.7–14.6 per cent range and real estimates in the 8.4–17.9 per cent range. These estimates can be combined with effective corporate income tax rates to estimate all-in effective income tax rates on the wealthiest. [ABSTRACT FROM AUTHOR]

This paper analyses the relative merits of wealth and capital income taxes as instruments for taxing the rich. The main rationale for a wealth tax is to address the incompleteness of the tax code in taxing unrealized capital gains, which can be enormous and concentrated among the wealthy. However, by taxing presumed rather than actual returns, a wealth tax fails to address inequality among taxpayers with the same wealth but different capital incomes. In addition, wealth taxation creates liquidity problems that may adversely affect growth firms and start-ups, which is why wealth taxes typically provide exemptions and deductions for certain business assets. Our empirical analysis, based on Swedish register data, describes the wealth composition of the wealthiest and assesses the distributional incidence of different combinations of wealth and capital income taxation. [ABSTRACT FROM AUTHOR]

This paper reviews recent developments in the theory and practice of optimal capital taxation. We emphasize three main rationales for capital taxation. First, the frontier between capital and labour income flows is often fuzzy, thereby lending support to a broad-based, comprehensive income tax. Next, the very notions of income and consumption flows are difficult to define and measure for top wealth holders where capital gains due to asset price effects dwarf ordinary income and consumption flows. Therefore the proper way to tax billionaires is a progressive wealth tax. Finally, as individuals cannot choose their parents, there are strong meritocratic reasons why we should tax inherited wealth more than earned income or self-made wealth for which individuals can be held responsible, at least in part. This implies that the ideal fiscal system should also include a progressive inheritance tax, in addition to progressive income and wealth taxes. We then confront our prescriptions with historical experience. Although there are significant differences, we argue that observed fiscal systems in modern democracies bear important similarities with this ideal triptych. [ABSTRACT FROM AUTHOR]

Objectives Previous research in the United States suggests contextual income mobility may play a role in explaining the disparities between life expectancy in the United States and peer countries. This article aims to extend previous research by estimating the consequences of average individual exposure to mobility regimes during childhood and adolescence on adult health. Methods This study draws its data from two longitudinal datasets that track the county of residence of respondents during childhood and adolescence, the Panel Study of Income Dynamics and the National Longitudinal Survey of Youth 1997. We implement marginal structural models to assess the association of the average exposure to county income mobility on five health outcomes and behaviors. Results The results are only partially consistent with a systematic association between exposure to income mobility and health outcomes. Evidence obtained from the National Longitudinal Survey of Youth suggests less income mobility might increase the probability of smoking by age 30. Discussion The paper provides a precise assessment of the hypothesis that childhood exposure to income mobility regimes may influence health status through behavior later in life and contribute to longevity gaps. Only partial evidence on smoking suggests an association between income mobility and health, so we discuss potential reasons for the disparities in results with previous research. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses the various topics within the issue, including the economics of aging, consumer spending, retirement planning, and public pensions.

In our recent paper,[1] we examined associations between family income during childhood and adolescence on subsequent risks of developing psychiatric disorders, having substance misuse problems and being arrested for a violent crime. In fact, the point estimates for the sibling-comparison estimates were all close to 1, indicating no difference between the siblings regardless of their family income exposure, and the confidence intervals were narrow, indicating a high level of precision of the estimates. [Extracted from the article]

And this need becomes especially urgent if sibling designs are to inform policy-making, as proposed by Sariaslan I et al. i Author contributions N.H.R. T.L. and A.H.P. discussed the paper by Sariaslan I et al. i [1] and agreed on an appropriate response. Even though the sibling groups carry the entire causal conclusion of the article, we do not find a single table describing the distribution of within-family income differences, or outcome differences. Income differences are most likely smaller in Finland than in most other countries, and the causes and consequences of such income differences may be very different under different societal models and/or in vulnerable groups. [Extracted from the article]

Do different loan application formats affect consumer loan requests? Six studies show that when consumers are asked to provide a preferred monthly payment (MP) (vs. loan amount [LA]), they request different principal amounts. This is because these loan application formats differ in the scale-compatible information they bring to consumers' mind. When LAs are elicited, consumers think of and request the cost of the expenditure they seek to finance. When MPs are elicited, however, consumers think of their monthly budget slack to construct and then request MPs they perceive to be affordable. For lower cost loans with a given term and interest rate, the MP (vs. LA) format results in larger principal requests. This effect reverses for higher cost acquisitions because individuals' budget slack caps out around $500 per month. These studies provide insight into how consumer loan application formats can affect consumer borrowing, as well as the psychological underpinnings responsible for the effect. Theoretical, managerial, and consumer welfare implications of the findings are discussed. [ABSTRACT FROM AUTHOR]

We analyze how the corporate sector's financing position affects national current account balances in a macroeconomic panel analysis for sample of 25 countries for the period 1980–2015. A consistent finding is that an increase (decrease) in corporate net lending is associated with a higher (lower) current account. We disentangle the current account effects of corporate saving and investment and conduct a number of robustness checks. We show that corporate saving and top household income shares are inversely related in our sample and that they have opposite effects on the current account. We conclude that corporate sector saving has contributed considerably to global current account imbalances. [ABSTRACT FROM AUTHOR]

In response to the COVID-19 pandemic, large parts of the economy were locked down and, as a result, households' income risk rose sharply. At the same time, policy makers put forward the largest stimulus package in history. In the United States it amounted to $2 trillion, a quarter of which represented transfer payments to households. To the extent that such transfers were (i) announced in advance and (ii) conditional on recipients being unemployed, they mitigated income risk associated with the lockdown—in contrast to unconditional transfers. We develop a baseline scenario for a COVID-19 recession in a medium-scale heterogeneous agent new Keynesian model and use counterfactuals to quantify the impact of transfers. For the short run, we find large differences in the transfer multiplier: it is negligible for unconditional transfers and about unity for conditional transfers. Overall, we find that the transfers reduced the output loss due to the pandemic by some two percentage points at its trough. [ABSTRACT FROM AUTHOR]

Information about the share of total income held by the richest 1%, or other top income groups, is increasingly used to discuss inequality levels and trends within and between nations. A top income share is the ratio of the total income held by the top income group divided by total personal income (the 'income control total'). We compare two approaches to estimating income control totals: the 'external' approach used by the World Inequality Database, and an augmented 'internal' approach. We argue in favour of the latter, with reference to five desirable properties that a top share series would ideally possess. The choice matters: our augmented 'internal' approach yields estimates of the UK top 1% share that are around 2% points higher than the 'external' approach. [ABSTRACT FROM AUTHOR]

Using microsimulation tools, we explore the social policy responses to the Great Recession and the COVID-19 crisis, and their impact on preserving living standards in Ireland. During the Great Recession, the focus was on cost reduction. By contrast, during the COVID-19 crisis, the focus was on mitigating the impact on household incomes. In addition, an innovation in joint public and private responses emerged through social partnership. We find a stronger policy response during the COVID-19 crisis than the Great Recession. The COVID-19 crisis was more rapid, leaving more individuals out of work, thus family support was weaker. This was compensated by stronger private support through social partnership. Consequently, those with lower incomes had larger disposable incomes at the onset of the crisis; an effect that reduced with policy learning. We find increasing trust in public institutions during the COVID-19 crisis as opposed to a decline during the Great Recession. [ABSTRACT FROM AUTHOR]

Can unconditional cash transfers have long-term benefits for women's employment in developing countries? This study exploits discontinuous exposure to the South African Child Support Grant for mothers whose children were born one year apart to identify the short- and long-term effects of a positive income shock of roughly $400 ($650 PPP in 2010). In the short term, there is a considerable increase in the probability of being active and looking for a job. Five years after receiving the transfer, mothers who benefited for one year are as likely to be employed as those who never received it; the type of occupation is also similar, other than a small decrease in work in the agricultural sector. Overall, the grant appears to facilitate job search for single mothers in the presence of high search costs, but does not significantly change job prospects. [ABSTRACT FROM AUTHOR]

Objective Physical activity is recommended for recipients of a kidney transplant. However, ADHERE BRAZIL study found a high prevalence (69%) of physical inactivity in Brazilian recipients of a kidney transplant. To tackle this behavior, a broad analysis of barriers is needed. This study aimed to identify factors (patient and transplant center levels) associated with physical inactivity among recipients of a kidney transplant. Methods This was a subproject of the ADHERE BRAZIL study, a cross-sectional, multicenter study of 1105 recipients of a kidney transplant from 20 kidney transplant centers. Using a multistage sampling method, patients were proportionally and randomly selected. Applying the Brief Physical Activity Assessment questionnaire, patients were classified as physically active (≥150 min/wk) or physically inactive (<150 min/wk). On the basis of an ecological model, 34 factors associated with physical inactivity were analyzed by sequential logistic regression. Results At the patient level, physical inactivity was associated with smoking (odds ratio = 2.43; 95% CI = 0.97–6.06), obesity (odds ratio = 1.79; 95% CI = 1.26–2.55), peripheral vascular disease (odds ratio = 3.18; 95% CI = 1.20–8.42), >3 posttransplant hospitalizations (odds ratio = 1.58; 95% CI = 1.17–2.13), family income of >1 reference salary ($248.28 per month; odds ratio = 0.66; 95% CI = 0.48–0.90), and student status (odds ratio = 0.58; 95% CI = 0.37–0.92). At the center level, the correlates were having exercise physiologists in the clinical team (odds ratio = 0.54; 95% CI = 0.46–0.64) and being monitored in a teaching hospital (undergraduate students) (odds ratio = 1.47; 95% CI = 1.01–2.13). Conclusions This study identified factors associated with physical inactivity after kidney transplantation that may guide future multilevel behavioral change interventions for physical activity. Impact In a multicenter sample of recipients of a kidney transplant with a prevalence of physical inactivity of 69%, we found associations between this behavior and patient- and center-level factors. At the patient level, the chance of physical inactivity was positively associated with smoking, obesity, and patient morbidity (peripheral vascular disease and hospitalization events after kidney transplantation). Conversely, a high family income and a student status negatively correlated with physical inactivity. At the center level, the presence of a dedicated professional to motivate physical activity resulted in a reduced chance of physical inactivity. A broad knowledge of barriers associated with physical inactivity can allow us to identify patients at a high risk of not adhering to the recommended levels of physical activity. [ABSTRACT FROM AUTHOR]

After the last major financial crisis, there was much discussion about the idea that the increase in income inequality during the expansionary phase could have forced middle- and low-income groups to increasingly resort to indebtedness to finance their consumption. This debt-led consumption would have stimulated economic growth, but would also explain why it was not sustainable since families would have become more financially fragile. This approach, which we refer to as the 'income inequality and debt-financed consumption as a cause of financial fragility hypothesis', is based on empirical studies that mostly consider the US economy. In this article, we examine whether, as some of the literature suggests, this assumption is sufficient to explain the expansion and subsequent recession in the Spanish economy. [ABSTRACT FROM AUTHOR]

Background Individuals of lower socioeconomic status generally have higher healthcare expenditures than individuals of higher socioeconomic status. However, little is known about how expenditures are distributed across socioeconomic groups over a lifetime, once accounting for differences in life expectancy. This study describes how lifetime healthcare expenditures are distributed across age, sex and socioeconomic groups in Sweden while adjusting for differences in life expectancy. Methods Healthcare utilization from 2016 were linked to demographic and socioeconomic data for a random sample of individuals aged 20 and above in the four largest Swedish regions (n  = 440 659). Mortality data were used to estimate income- and sex-specific survival rates. Expected lifetime healthcare expenditures were estimated by combining survival rates with mean healthcare expenditures over age, by sex, and income quintile. Results We find that expected lifetime healthcare expenditures are highest among the first (lowest) income quintile despite their evident lower life expectancy. Expected lifetime expenditures were 17.9% (16.8%) higher in the first income quintile compared to the fifth (highest) quintile for women (men). Individuals in the first income quintile had higher expected lifetime expenditures for all care categories except for primary care. Conclusion We conclude that despite a lower life expectancy, the quintile of the lowest socioeconomic status still had higher lifetime healthcare expenditures. [ABSTRACT FROM AUTHOR]

As input costs increase, producers need to be mindful of management practices to maintain profit margins and it is important to understand current management practices. Therefore, the objective of this study was to investigate current beef marketing strategies and beliefs of beef producers in the state of Mississippi in 2019. This survey was distributed to cattle producers in Mississippi in the June/July issue of "Cattle Business in Mississippi" magazine with return postage. There also was a link included in the "Monday Memo" email sent to members of the Mississippi Cattlemen's Association. The survey consisted of 22 questions that were divided into three sections: current practices, current cow-calf marketing practice, and general information. Responses from the survey were anonymous and confidential and were received via paper mail or electronic responses. Responses were stored and analyzed using Qualtrics. Data collected from this study were compared with 1999 data from a similar study conducted by Little et al. (2000). Out of 148 respondents, there was a 95% completion rate of surveys taken. Most respondents were 51 years and older with 54% of the respondents being part of the cattle industry for over 31 years. Ninety percent of respondents were members of the Mississippi Cattlemen's Association and almost 60% were certified in Beef Quality Assurance. The majority, 122 of 148 producers, stated their cattle operation was not the primary source of income for their household. The average number of cows, bulls, stockers/yearling, replacement heifers and cattle on-feed on an operation was greater in the 2019 data compared with 1999. On average, the number of cows per operation increased from 40 to 68 animals, bulls increased from 2 to 5 animals, and replacement heifers increased from 7 to 17 animals from 1999 to 2019. There was also an average increase from 30 to76 animals of stocker/yearling and an increase from 2 to 27 animals of on-feed cattle. Most producers vaccinate (81%) and deworm (85%) according to recommendations and indicated a lack of labor and time as reasons for not implementing some common management practices such as preconditioning. Respondents mainly purchased calves directly from a producer (61%) or from special sales (59%). In 1999, over one-half of respondents purchased from an auction. When it came to selling cattle, 58% of respondents sold at auction regularly in 2019. In 1999, 73% of respondents sold at auctions. In 2019, 72% of respondents stated they did not retain ownership while in 1999 only 58% of respondents did not retain ownership. In conclusion, our results suggest there have been key changes within the cattle industry regarding herd size increases and a shift in selling and purchasing habits since 1999. [ABSTRACT FROM AUTHOR]

Using detailed data for U.S. homeowners, we document a negative, nonlinear relation between the loan-to-value ratio (LTV) of homeowners' primary residence and their labor income. Consistent with high LTV individuals experiencing constrained mobility, we find stronger effects among subprime, liquidity- constrained individuals and those living in regions with limited alternative local employment opportunities and strict noncompete law enforcement. Though high LTV individuals are less likely to move across MSAs, they are more likely to change jobs without changing their residence. We find no effects among similar neighboring renters employed at the same firm and with a similar job tenure. [ABSTRACT FROM AUTHOR]