Income Inequality in the United States Through the Lens of Other Advanced Economies

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Income Inequality in the United States Through the Lens of Other Advanced Economies"

Transcription

1 Mia DeSanzo Wealth & Power Major Writing Assignment 3/3/16 Income Inequality in the United States Through the Lens of Other Advanced Economies Income inequality in the United States has become a political issue in this country, but it is a matter of both national and global importance. To the extent that income inequality is linked to high rates of poverty, it is a humanitarian issue. It is also an issue of stability; historically, high income inequality has been associated with political and social instability. As the world s largest economy, anything that is destabilizing in the US is a threat to global stability. (Bechtel 197) Inequality is rising across the board in advanced economies, but is rising higher and faster in the United States. The factors that have led to the current level of disparity between the top and the bottom income brackets in American society are present in other advanced economies as well, yet many of them do not have the same levels of inequality. In order to shed some light on how this came to be and what might be done to improve it, I will discuss the development of income inequality in the United States, and then compare and discuss income inequality across other developed economies, including factors that contribute to it and those that mitigate it. Before comparing the US to other countries, it is worth looking internally to see exactly how the current level of income inequality developed over the last few decades. According to Bryan and Martinez in On the Evolution of Income Inequality in the United States, most of the increase in income inequality has been in the top half of earners. This is to say that the income of the top is pulling away from the middle. Most of the labor income increases have been in the top ten percent, and most of that increase has been in the top one percent. ( ) There was also

2 an increase of inequality in the bottom half of earners during the 1980 s, attributed mostly to a decrease in real minimum wage. (103) These figures are for labor income. If nonwage income is included, such as insurance benefits and pensions, inequality is even worse than it appears in wages alone. (105) In Public Policy, Economic Inequality, and Poverty, Timothy Smeeding confirms these observations and points out that as of 2001, a 95 th percentile family had an income 3.2 times higher than a 50 th percentile family, around $164,100 compared to $51,400, and that 50 th percentile family had an income times higher than the 20 th percentile family, which made around $24,000. While the ratio of the 50 th percentile to the 20 th percentile hadn t changed much over the 54 years of data they looked at, they saw that since the 1970 s, the top end is running away from the middle. (963) Bryan and Martinez also looked at income inequality between the genders and between groups with different levels of education. Inequality among both males and females has been increasing, but the gap between males and females is closing as income for women has been rising. (106) In looking at educational levels, they considered both inequality between groups and within groups. Inequality has been rising within groups and between groups. Within groups, the pattern is similar to overall inequality, with the top pulling away from the middle. (107) The between-group inequality levels have been increasing as well, indicating an increase in the education premium: between 1963 and 2002, the median male income increased 78 percent for postgraduates, 41 percent for college graduates, 17 percent for some college, and 11 percent for high school graduates; it decreased 10 percent for high school dropouts. (108) Although there is some disagreement over it, it may be that this increase in the value of education is related to technological changes that demanded skills and education. (109) This point is reiterated by Max Roser and Jesus Crespo Cuaresma in Why is Income Inequality Increasing in The Developed

3 World?, where the rise in skill premiums is explained as a combination of changes in technology demanding high-skilled workers and the demand for low-skilled workers declining with the decline of manufacturing due to globalization. (7) With these internal developments in mind, we can compare the US to other advanced economies and consider what it is that makes the US stand out in income inequality. To generalize the findings, there is the least inequality in the northern European countries, including the Nordic countries, Belgium, and the Netherlands, somewhat more in central Europe, including Germany, Austria, and France, followed by the large Anglo-Saxon nations of Canada, Australia, and the United Kingdom, with the US having less equality than all of those. (Smeeding 959) Smeeding goes on to say that the US differs, above all, in the relative disadvantage of its poorest residents. Our poorest residents have incomes only 39 percent of the median; in other rich nations they are much higher. While inequality has been rising across advanced nations, and all advanced economies face the same pressures of technological change and globalization, the outcomes of inequality vary greatly from country to country. As previously mentioned, as technology has advanced, we have seen a shift toward demand for high-skilled labor and from an industry-based economy to a service economy across the advanced economies. At the same time, low-skilled, labor-intensive production jobs have moved to developing countries. Roser elaborates that as the prices of imported products fall, the wages in the import-competing sector also fall. In contrast, the rising prices of those goods that are exported cause higher wages in the exporting sectors of the economy. As advanced economies import labor-intensive goods and export skill- and capitalintensive goods, the effects of the shifting economy are magnified. (8) As Reuveny says in Economic Openness, Democracy, and Income Inequality, economic openness creates winners

4 and losers in a society (578) and this can be addressed through policies that compensate the losers from trade openness. (594) We see that some countries do a better job of mitigating rising inequality and helping their poorest residents. After strongly stating the need to reduce income inequality in the US and China the world s biggest economies, both with extreme income inequality Bechtel goes on to say that European institutions and norms do set a 21 st century standard for reduced income inequality. (212) What is it that European countries are getting right the United States is getting so very wrong? According to Kollmeyer in Income Inequality in Advanced Capitalism: How Protective Institutions Can Promote Egalitarian Societies, there are three main institutions that work in more egalitarian societies: a large public sector economy, strong collective bargaining institutions, and the dual income family. (425) Additionally, the US spends less on cash and near-cash transfer programs for the nonelderly than other advanced economies. (Smeeding 970) The first of these protections is a large public sector. Kollmeyer tells us that quantitative studies show that public spending in democratic countries reduces income inequality because those countries get revenue from progressive taxation and spend the resulting resources to benefit the population across the social hierarchy, effectively redistributing wealth from the top to the bottom. (As a side note, he also points out that this does not hold for non-democratic countries, where larger public spending is often associated with more inequality, attributed to those funds being spent on the narrow interests of the elite, rather than in the broad public interest.) (426) Roser also notes the connection between the public sector and a decrease of income inequality in another way; increases in the tax share of GDP is strongly associated with decreases of inequality. He notes that rising tax revenue is likely associated with an increase in the number of public sector employees, which probably contributes to reductions in overall

5 income inequality because the income inequality in the public sector is lower than in the private sector. Cheol-Sung Lee suggests in The Limit of Equality Projects: Public-Sector Expansion, Sectoral Conflicts, and Income Inequality in Postindustrial Economies that policymakers would do well to consider possible unintended negative consequences of using public sector expansion to promote income equality,, such as worse macroeconomic performance in some countries, but admits that it has achieved its promise for gender equality, income equality, and full employment at a large scale for several decades. Perhaps the American voter who is concerned with income inequality would do well to weigh these ideas when listening to politicians who want to take a slash-and-burn approach to the public sector, in terms of both spending and public sector employment. The second protective institutions identified by Kollmeyer are trade unions and collective bargaining structures. There are at least three ways that trade unions may contribute to lower overall income inequality. First, in increasing the bargaining power of workers, they increase labor s share of the income so that more money goes into wages rather than profits. Second, unions tend to reduce the gap between high- and low-income workers. Third, social norms are affected to influence wage inequality in non-unionized sectors. Additionally, some countries have more centralized wage setting in which decisions are made at the national level and then implemented by employers and unions, while others, including the US, have a decentralized system in which unions negotiate directly with employers at the local level, having little impact on national economic policy. ( ) Further, in discussing the tax share of GDP, Roser notes that high tax share is also strongly correlated with regulation of the labor market, such as minimum wage laws and stronger labor protection. Unemployment benefits are also likely to be higher in states with a larger tax share of GDP. These tend to be the kind of benefits that trade

6 unions fight for to benefit their membership, and also reduce income inequality across the board. (On unemployment benefits, Roser cites Koeniger s findings that more generous unemployment benefits in fact lower income inequality. ) Roser also speaks directly to the issue of trade unions, noting that higher levels of wage coordination lower inequality. Again, the equality-minded American voter would do well to consider this in an age of politicians bragging about union busting. The third protective institution identified by Kollmeyer is the family, an important institution because it allows for the pooling of incomes among multiple income earners and the redistribution of income from working to non-working members of society. There have been changes, positive and negative, to the way that families buffer against. The increasing participation of women in the workforce is generally an equalizing force, spreading income more widely across society and adding income to many lower-income families. On the other hand, the rise of households headed by single mothers contributes to inequality because they have fewer resources than dual income families, the gender gap in pay means that they generally make less than their male counterparts, and in the US, single mothers tend to be less educated than other women. ( ) Again, many European countries have policies favorable to families and to women, such as paid maternity leave, that are not guaranteed and often unavailable in the United States. This is yet another angle the equality-conscious voter in the United States might want to consider before casting a ballot. Beyond Kollmeyer s protective institutions, there is the matter poverty and social safety net programs. As previously mentioned, Smeeding points out that our poorest residents are at relative disadvantage compared to the poorest in other rich nations. He says that this reflects relatively low wages at the bottom of the distribution in the United States compared to other

7 developed nations, but it also reflects the relative weakness of the income support system for families with children and for the low-income elderly in the United States. (969) He also explains that, while every nation has its own mix of benefits and policies to fight poverty, other advanced democracies do a better job of reducing poverty than the US does, even with the Earned Income Tax Credit counted as social assistance. Countries such as Sweden, Belgium, and Germany, who have generous social insurance programs, such as unemployment, workers compensation, disability benefits, and paid family leave, find that those programs reduce poverty by over seventy percent. Targeted social assistance programs in countries such as Finland and the United Kingdom have large effects there, and smaller effects in the aforementioned heavily insured nations, where the heavy lifting has already been done by those programs. (974) In contrast, in 1999 (the latest comparable year available at the time Smeeding was writing in 2005), the United States spent less than three percent of GDP on cash and near-cash assistance for the nonelderly, or less than half the amount spent by Canada or the UK; less than a third of spending in Germany, the Netherlands, or Belgium; and less than a quarter of the amount spent in Finland or Sweden. (970) Lee, while warning about the pitfalls of relying on a large public sector, also makes an argument for generosity of social benefit programs that increase equality through progressive taxation and generous social transfers : This has been the single most important determinant for reducing inequality across advanced industrial democracies, even since the 1980 s, when the public-sector employment strategy began to show its adverse effects in some liberal and social-democratic countries. Welfare states role in protecting citizens vulnerable to rapid technological innovations and intensified global competition through generous transfers and entitlements should not be discounted. (118) When an American politician suggests that we are spending too much on programs for the poor and it is a huge

8 burden for the taxpayer, a wise voter with an eye toward reducing poverty and increasing equality should take those claims with a grain of salt. We have seen how the US differs from other advanced economies, especially those in Europe, and have also seen some of the ways those countries differ from one another. I have chosen to compare and contrast other countries with the US in order to answer the question of how and why income inequality varies across countries with advanced economies because the inequality in this country is so alarmingly out of line with other wealthy nations, including the other liberal democracies such as Canada and the United Kingdom. This largely seems to be a matter of the political culture in the US and the kind of policies that it engenders. As I have suggested throughout the discussion of the institutions and policies that reduce inequality, the solution for the inequality problem may lie in the ballot box. Large amounts of income inequality have been associated with social, political, and financial upheaval, so our national stability may depend on addressing this issue. Further, because of our special position as the world s largest economy, global stability may depend on it.

9 Works Cited Bechtel, Gordon G. "Does Globalization Mitigate Income Inequality?". Journal Of Data Science 12.(2014): Academic Search Premier. Web. Bryan, Kevin A., and Leonardo Martinez. "On The Evolution Of Income Inequality In The United States." Economic Quarterly ( ) 94.2 (2008): Academic Search Premier. Web. Kollmeyer, Christopher. "Income Inequality In Advanced Capitalism: How Protective Institutions Can Promote Egalitarian Societies." Comparative Sociology 13.4 (2014): Academic Search Premier. Web. Lee, Cheol-Sung, Young-Bum Kim, and Jae-Mahn Shim. The Limit of Equality Projects: Public-sector Expansion, Sectoral Conflicts, and Income Inequality in Postindustrial Economies. American Sociological Review 76.1 (2011): Web. Reuveny, Rafael, and Quan Li. "Economic Openness, Democracy, and Income Inequality: An Empirical Analysis". Comparative Political Studies 36.5 (2003): Web. Roser, M. and Cuaresma, J. C., Why is Income Inequality Increasing in the Developed World?. Review of Income and Wealth, 62: 1 27 (2016). doi: /roiw Smeeding, Timothy M. "Public Policy, Economic Inequality, And Poverty: The United States In Comparative Perspective." Social Science Quarterly (Wiley-Blackwell) 86.(2005): Academic Search Premier. Web.

In class, we have framed poverty in four different ways: poverty in terms of

In class, we have framed poverty in four different ways: poverty in terms of Sandra Yu In class, we have framed poverty in four different ways: poverty in terms of deviance, dependence, economic growth and capability, and political disenfranchisement. In this paper, I will focus

More information

International Migration and the Welfare State. Prof. Panu Poutvaara Ifo Institute and University of Munich

International Migration and the Welfare State. Prof. Panu Poutvaara Ifo Institute and University of Munich International Migration and the Welfare State Prof. Panu Poutvaara Ifo Institute and University of Munich 1. Introduction During the second half of 20 th century, Europe changed from being primarily origin

More information

19 ECONOMIC INEQUALITY. Chapt er. Key Concepts. Economic Inequality in the United States

19 ECONOMIC INEQUALITY. Chapt er. Key Concepts. Economic Inequality in the United States Chapt er 19 ECONOMIC INEQUALITY Key Concepts Economic Inequality in the United States Money income equals market income plus cash payments to households by the government. Market income equals wages, interest,

More information

Economics Of Migration

Economics Of Migration Department of Economics and Centre for Macroeconomics public lecture Economics Of Migration Professor Alan Manning Professor of Economics and Director of the Centre for Economic Performance s research

More information

Michael Förster. OECD Social Policy Division. November 3 rd 2015

Michael Förster. OECD Social Policy Division. November 3 rd 2015 Michael Förster OECD Social Policy Division November 3 rd 2015 Rózsavölgyi Szalon Budapest 4 November 2015 Three major OECD studies since 2008 2008 2011 2015 2/16 Results from recent OECD study on inequality:

More information

Rewriting the Rules of the Market Economy to Achieve Shared Prosperity. Joseph E. Stiglitz New York June 2016

Rewriting the Rules of the Market Economy to Achieve Shared Prosperity. Joseph E. Stiglitz New York June 2016 Rewriting the Rules of the Market Economy to Achieve Shared Prosperity Joseph E. Stiglitz New York June 2016 Enormous growth in inequality Especially in US, and countries that have followed US model Multiple

More information

GLOBAL WAGE REPORT 2016/17

GLOBAL WAGE REPORT 2016/17 GLOBAL WAGE REPORT 2016/17 WAGE INEQUALITY IN THE WORKPLACE Patrick Belser Senior Economist, ILO Belser@ilo.org Outline Part I: Major Trends in Wages Global trends Wages, productivity and labour shares

More information

LABOUR-MARKET INTEGRATION OF IMMIGRANTS IN OECD-COUNTRIES: WHAT EXPLANATIONS FIT THE DATA?

LABOUR-MARKET INTEGRATION OF IMMIGRANTS IN OECD-COUNTRIES: WHAT EXPLANATIONS FIT THE DATA? LABOUR-MARKET INTEGRATION OF IMMIGRANTS IN OECD-COUNTRIES: WHAT EXPLANATIONS FIT THE DATA? By Andreas Bergh (PhD) Associate Professor in Economics at Lund University and the Research Institute of Industrial

More information

Can free-trade policies help to reduce gender inequalities in employment and wages?

Can free-trade policies help to reduce gender inequalities in employment and wages? Janneke Pieters Wageningen University, the Netherlands, and IZA, Germany Trade liberalization and gender inequality Can free-trade policies help to reduce gender inequalities in employment and wages? Keywords:

More information

PARTIE III RAPPORTS NATIONAUX. établie par le Professeur Nigel Lowe, Faculté de droit de l Université de Cardiff * * *

PARTIE III RAPPORTS NATIONAUX. établie par le Professeur Nigel Lowe, Faculté de droit de l Université de Cardiff * * * ENLÈVEMENT D ENFANTS / PROTECTION DES ENFANTS CHILD ABDUCTION / PROTECTION OF CHILDREN Doc. prél. No 8 C Prel. Doc. No 8 C mai / May 2011 ANALYSE STATISTIQUE DES DEMANDES DÉPOSÉES EN 2008 EN APPLICATION

More information

How s Life in the United Kingdom?

How s Life in the United Kingdom? How s Life in the United Kingdom? November 2017 On average, the United Kingdom performs well across a number of well-being indicators relative to other OECD countries. At 74% in 2016, the employment rate

More information

INNOCENTI WORKING PAPER RELATIVE INCOME POVERTY AMONG CHILDREN IN RICH COUNTRIES

INNOCENTI WORKING PAPER RELATIVE INCOME POVERTY AMONG CHILDREN IN RICH COUNTRIES UNICEF Innocenti Research Centre INNOCENTI WORKING PAPER RELATIVE INCOME POVERTY AMONG CHILDREN IN RICH COUNTRIES Jonathan Bradshaw, Yekaterina Chzhen, Gill Main, Bruno Martorano, Leonardo Menchini and

More information

Is Economic Development Good for Gender Equality? Income Growth and Poverty

Is Economic Development Good for Gender Equality? Income Growth and Poverty Is Economic Development Good for Gender Equality? February 25 and 27, 2003 Income Growth and Poverty Evidence from many countries shows that while economic growth has not eliminated poverty, the share

More information

CAN FAIR VOTING SYSTEMS REALLY MAKE A DIFFERENCE?

CAN FAIR VOTING SYSTEMS REALLY MAKE A DIFFERENCE? CAN FAIR VOTING SYSTEMS REALLY MAKE A DIFFERENCE? Facts and figures from Arend Lijphart s landmark study: Patterns of Democracy: Government Forms and Performance in Thirty-Six Countries Prepared by: Fair

More information

Maurizio Franzini and Mario Planta

Maurizio Franzini and Mario Planta Maurizio Franzini and Mario Planta 2 premises: 1. Inequality is a burning issue for economic, ethical and political reasons (Sen, Stiglitz, Piketty, Milanovic) 2. Inequality is today a more complex phenomenon

More information

The Great Laissez-Faire Experiment

The Great Laissez-Faire Experiment AP PHOTO/CHARLES REX ARBOGAST The Great Laissez-Faire Experiment American Inequality and Growth from an International Perspective By David R. Howell December 2013 WWW.AMERICANPROGRESS.ORG Section 1: Introduction

More information

The business case for gender equality: Key findings from evidence for action paper

The business case for gender equality: Key findings from evidence for action paper The business case for gender equality: Key findings from evidence for action paper Paris 18th June 2010 This research finds critical evidence linking improving gender equality to many key factors for economic

More information

Qatar. Switzerland Russian Federation Saudi Arabia Brazil. New Zealand India Pakistan Philippines Nicaragua Chad Yemen

Qatar. Switzerland Russian Federation Saudi Arabia Brazil. New Zealand India Pakistan Philippines Nicaragua Chad Yemen Figure 25: GDP per capita vs Gobal Gender Gap Index 214 GDP GDP per capita per capita, (constant PPP (constant 25 international 211 international $) $) 15, 12, 9, 6, Sweden.5.6.7.8.9 Global Gender Gap

More information

How s Life in New Zealand?

How s Life in New Zealand? How s Life in New Zealand? November 2017 On average, New Zealand performs well across the different well-being indicators and dimensions relative to other OECD countries. It has higher employment and lower

More information

EDUCATION OUTCOMES EXPENDITURE ON EDUCATION INTERNATIONAL STUDENT ASSESSMENT TERTIARY ATTAINMENT

EDUCATION OUTCOMES EXPENDITURE ON EDUCATION INTERNATIONAL STUDENT ASSESSMENT TERTIARY ATTAINMENT EDUCATION OUTCOMES INTERNATIONAL STUDENT ASSESSMENT TERTIARY ATTAINMENT EXPENDITURE ON EDUCATION EXPENDITURE ON TERTIARY EDUCATION PUBLIC AND PRIVATE EDUCATION EXPENDITURE EDUCATION OUTCOMES INTERNATIONAL

More information

Impacts of migration on households in Myanmar s Dry Zone

Impacts of migration on households in Myanmar s Dry Zone HelpAge briefing Impacts of migration on households in Myanmar s Dry Zone Contents 2 Who are the migrants from the Dry Zone? 2 Where do they migrate? 3 How heavily do households rely on remittances from

More information

Documentation and methodology...1

Documentation and methodology...1 Table of contents Documentation and methodology...1 Chapter 1 Overview: Policy-driven inequality blocks living-standards growth for low- and middle-income Americans...5 America s vast middle class has

More information

HIGHLIGHTS. There is a clear trend in the OECD area towards. which is reflected in the economic and innovative performance of certain OECD countries.

HIGHLIGHTS. There is a clear trend in the OECD area towards. which is reflected in the economic and innovative performance of certain OECD countries. HIGHLIGHTS The ability to create, distribute and exploit knowledge is increasingly central to competitive advantage, wealth creation and better standards of living. The STI Scoreboard 2001 presents the

More information

The labor market in Japan,

The labor market in Japan, DAIJI KAWAGUCHI University of Tokyo, Japan, and IZA, Germany HIROAKI MORI Hitotsubashi University, Japan The labor market in Japan, Despite a plummeting working-age population, Japan has sustained its

More information

Migration Policy and Welfare State in Europe

Migration Policy and Welfare State in Europe Migration Policy and Welfare State in Europe Assaf Razin 1 and Jackline Wahba 2 Immigration and the Welfare State Debate Public debate on immigration has increasingly focused on the welfare state amid

More information

How s Life in Portugal?

How s Life in Portugal? How s Life in Portugal? November 2017 Relative to other OECD countries, Portugal has a mixed performance across the different well-being dimensions. For example, it is in the bottom third of the OECD in

More information

CAUSES AND CONSEQUENCES OF GROWING INEQUALITY and what can be done about it

CAUSES AND CONSEQUENCES OF GROWING INEQUALITY and what can be done about it THE FOURTH ANNUAL OXFORD FULBRIGHT DISTINGUISHED LECTURE ON INTERNATIONAL RELATIONS CAUSES AND CONSEQUENCES OF GROWING INEQUALITY and what can be done about it Professor Joseph E. Stiglitz Friday 23 May

More information

CH 19. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

CH 19. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question. Class: Date: CH 19 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In the United States, the poorest 20 percent of the household receive approximately

More information

Insecure work and Ethnicity

Insecure work and Ethnicity Insecure work and Ethnicity Executive Summary Our previous analysis showed that there are 3.2 million people who face insecurity in work in the UK, either because they are working on a contract that does

More information

How s Life in Poland?

How s Life in Poland? How s Life in Poland? November 2017 Relative to other OECD countries, Poland s average performance across the different well-being dimensions is mixed. Material conditions are an area of comparative weakness:

More information

Global Employment Trends for Women

Global Employment Trends for Women December 12 Global Employment Trends for Women Executive summary International Labour Organization Geneva Global Employment Trends for Women 2012 Executive summary 1 Executive summary An analysis of five

More information

Income Distributions and the Relative Representation of Rich and Poor Citizens

Income Distributions and the Relative Representation of Rich and Poor Citizens Income Distributions and the Relative Representation of Rich and Poor Citizens Eric Guntermann Mikael Persson University of Gothenburg April 1, 2017 Abstract In this paper, we consider the impact of the

More information

How s Life in the Netherlands?

How s Life in the Netherlands? How s Life in the Netherlands? November 2017 In general, the Netherlands performs well across the OECD s headline well-being indicators relative to the other OECD countries. Household net wealth was about

More information

Lecture 1 Economic Growth and Income Differences: A Look at the Data

Lecture 1 Economic Growth and Income Differences: A Look at the Data Lecture 1 Economic Growth and Income Differences: A Look at the Data Rahul Giri Contact Address: Centro de Investigacion Economica, Instituto Tecnologico Autonomo de Mexico (ITAM). E-mail: rahul.giri@itam.mx

More information

How s Life in France?

How s Life in France? How s Life in France? November 2017 Relative to other OECD countries, France s average performance across the different well-being dimensions is mixed. While household net adjusted disposable income stands

More information

Japan s average level of current well-being: Comparative strengths and weaknesses

Japan s average level of current well-being: Comparative strengths and weaknesses How s Life in Japan? November 2017 Relative to other OECD countries, Japan s average performance across the different well-being dimensions is mixed. At 74%, the employment rate is well above the OECD

More information

How s Life in Sweden?

How s Life in Sweden? How s Life in Sweden? November 2017 On average, Sweden performs very well across the different well-being dimensions relative to other OECD countries. In 2016, the employment rate was one of the highest

More information

Retrospective Voting

Retrospective Voting Retrospective Voting Who Are Retrospective Voters and Does it Matter if the Incumbent President is Running Kaitlin Franks Senior Thesis In Economics Adviser: Richard Ball 4/30/2009 Abstract Prior literature

More information

How s Life in Estonia?

How s Life in Estonia? How s Life in Estonia? November 2017 Relative to other OECD countries, Estonia s average performance across the different well-being dimensions is mixed. While it falls in the bottom tier of OECD countries

More information

How s Life in the Czech Republic?

How s Life in the Czech Republic? How s Life in the Czech Republic? November 2017 Relative to other OECD countries, the Czech Republic has mixed outcomes across the different well-being dimensions. Average earnings are in the bottom tier

More information

BY Amy Mitchell, Katie Simmons, Katerina Eva Matsa and Laura Silver. FOR RELEASE JANUARY 11, 2018 FOR MEDIA OR OTHER INQUIRIES:

BY Amy Mitchell, Katie Simmons, Katerina Eva Matsa and Laura Silver.  FOR RELEASE JANUARY 11, 2018 FOR MEDIA OR OTHER INQUIRIES: FOR RELEASE JANUARY 11, 2018 BY Amy Mitchell, Katie Simmons, Katerina Eva Matsa and Laura Silver FOR MEDIA OR OTHER INQUIRIES: Amy Mitchell, Director, Journalism Research Katie Simmons, Associate Director,

More information

How s Life in Finland?

How s Life in Finland? How s Life in Finland? November 2017 In general, Finland performs well across the different well-being dimensions relative to other OECD countries. Despite levels of household net adjusted disposable income

More information

Cons. Pros. Vanderbilt University, USA, CASE, Poland, and IZA, Germany. Keywords: immigration, wages, inequality, assimilation, integration

Cons. Pros. Vanderbilt University, USA, CASE, Poland, and IZA, Germany. Keywords: immigration, wages, inequality, assimilation, integration Kathryn H. Anderson Vanderbilt University, USA, CASE, Poland, and IZA, Germany Can immigrants ever earn as much as native workers? Immigrants initially earn less than natives; the wage gap falls over time,

More information

The State of Working Wisconsin 2017

The State of Working Wisconsin 2017 The State of Working Wisconsin 2017 Facts & Figures Facts & Figures Laura Dresser and Joel Rogers INTRODUCTION For more than two decades now, annually, on Labor Day, COWS reports on how working people

More information

The True Cost of an Amnesty for Illegal Immigrants

The True Cost of an Amnesty for Illegal Immigrants Briefing Paper 11.11 www.migrationwatchuk.org The True Cost of an Amnesty for Illegal Immigrants 1 Introduction This paper is a Migrationwatch response to various proposals for what amounts to an amnesty

More information

How s Life in the United States?

How s Life in the United States? How s Life in the United States? November 2017 Relative to other OECD countries, the United States performs well in terms of material living conditions: the average household net adjusted disposable income

More information

OECD Health Data 2009 comparing health statistics across OECD countries

OECD Health Data 2009 comparing health statistics across OECD countries OECD Centres Germany Berlin (49-3) 288 8353 Japan Tokyo (81-3) 5532-21 Mexico Mexico (52-55) 5281 381 United States Washington (1-22) 785 6323 AUSTRALIA AUSTRIA BELGIUM CANADA CZECH REPUBLIC DENMARK FINLAND

More information

Is There a Trade-off between Unemployment and Inequality?

Is There a Trade-off between Unemployment and Inequality? No. 33A, August 1997 Is There a Trade-off between Unemployment and Inequality? Rebecca M. Blank Over the last two decades virtually every western European nation has faced high and persistent unemployment.

More information

Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC

Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC Jovicic IZA Journal of European Labor Studies (2016) 5:21 DOI 10.1186/s40174-016-0071-4 IZA Journal of European Labor Studies ORIGINAL ARTICLE Wage inequality, skill inequality, and employment: evidence

More information

Objectives of the project

Objectives of the project Objectives of the project Document recent public sector adjustments Provide evidence on their short term and longterm effects Illustrate these effects through concrete examples Identify eventually some

More information

2010 Human Development Report: 40-year Trends Analysis Shows Poor Countries Making Faster Development Gains

2010 Human Development Report: 40-year Trends Analysis Shows Poor Countries Making Faster Development Gains Strictly embargoed until 4 November 2010, 10:00 AM EDT (New York), 14:00PM GST 2010 Human Development Report: 40-year Trends Analysis Shows Poor Countries Making Faster Development Gains 20th anniversary

More information

Inclusion and Gender Equality in China

Inclusion and Gender Equality in China Inclusion and Gender Equality in China 12 June 2017 Disclaimer: The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development

More information

Migration and the European Job Market Rapporto Europa 2016

Migration and the European Job Market Rapporto Europa 2016 Migration and the European Job Market Rapporto Europa 2016 1 Table of content Table of Content Output 11 Employment 11 Europena migration and the job market 63 Box 1. Estimates of VAR system for Labor

More information

Migration, Demography and Labour Mobility

Migration, Demography and Labour Mobility Migration, Demography and Labour Mobility Prof. Panu Poutvaara, PhD WELFARE GAINS FROM FREE MOBILITY 3 INSIGHTS FROM ECONOMICS 1/3 General insight: immigration improves overall welfare, provided that migration

More information

Chapter 4 Specific Factors and Income Distribution

Chapter 4 Specific Factors and Income Distribution Chapter 4 Specific Factors and Income Distribution Chapter Organization Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from

More information

Job Growth and the Quality of Jobs in the U.S. Economy

Job Growth and the Quality of Jobs in the U.S. Economy Upjohn Institute Working Papers Upjohn Research home page 1995 Job Growth and the Quality of Jobs in the U.S. Economy Susan N. Houseman W.E. Upjohn Institute Upjohn Institute Working Paper No. 95-39 Published

More information

The Outlook for EU Migration

The Outlook for EU Migration Briefing Paper 4.29 www.migrationwatchuk.com Summary 1. Large scale net migration is a new phenomenon, having begun in 1998. Between 1998 and 2010 around two thirds of net migration came from outside the

More information

The United Kingdom in the European context top-line reflections from the European Social Survey

The United Kingdom in the European context top-line reflections from the European Social Survey The United Kingdom in the European context top-line reflections from the European Social Survey Rory Fitzgerald and Elissa Sibley 1 With the forthcoming referendum on Britain s membership of the European

More information

ISSUE BRIEF: U.S. Immigration Priorities in a Global Context

ISSUE BRIEF: U.S. Immigration Priorities in a Global Context Immigration Task Force ISSUE BRIEF: U.S. Immigration Priorities in a Global Context JUNE 2013 As a share of total immigrants in 2011, the United States led a 24-nation sample in familybased immigration

More information

Korea s average level of current well-being: Comparative strengths and weaknesses

Korea s average level of current well-being: Comparative strengths and weaknesses How s Life in Korea? November 2017 Relative to other OECD countries, Korea s average performance across the different well-being dimensions is mixed. Although income and wealth stand below the OECD average,

More information

The impact of Chinese import competition on the local structure of employment and wages in France

The impact of Chinese import competition on the local structure of employment and wages in France No. 57 February 218 The impact of Chinese import competition on the local structure of employment and wages in France Clément Malgouyres External Trade and Structural Policies Research Division This Rue

More information

Danish Politics. Carsten Jensen. Department of Political Science University of Aarhus. Aspects of Denmark: Department of Political Science,

Danish Politics. Carsten Jensen. Department of Political Science University of Aarhus. Aspects of Denmark: Department of Political Science, Aspects of Denmark: Danish Politics Carsten Jensen Department of Political Science, University of Aarhus Slide 1 Topics 1. The basics: The Danish constitution Democracy in Denmark 2. The political parties:

More information

The Demography of the Labor Force in Emerging Markets

The Demography of the Labor Force in Emerging Markets The Demography of the Labor Force in Emerging Markets David Lam I. Introduction This paper discusses how demographic changes are affecting the labor force in emerging markets. As will be shown below, the

More information

A COMPARISON OF ARIZONA TO NATIONS OF COMPARABLE SIZE

A COMPARISON OF ARIZONA TO NATIONS OF COMPARABLE SIZE A COMPARISON OF ARIZONA TO NATIONS OF COMPARABLE SIZE A Report from the Office of the University Economist July 2009 Dennis Hoffman, Ph.D. Professor of Economics, University Economist, and Director, L.

More information

Edexcel (A) Economics A-level

Edexcel (A) Economics A-level Edexcel (A) Economics A-level Theme 4: A Global Perspective 4.2 Poverty and Inequality 4.2.2 Inequality Notes Distinction between wealth and income inequality Wealth is defined as a stock of assets, such

More information

EMU, Switzerland? Marie-Christine Luijckx and Luke Threinen Public Policy 542 April 10, 2006

EMU, Switzerland? Marie-Christine Luijckx and Luke Threinen Public Policy 542 April 10, 2006 EMU, Switzerland? Marie-Christine Luijckx and Luke Threinen Public Policy 542 April 10, 2006 Introduction While Switzerland is the EU s closest geographic, cultural, and economic ally, it is not a member

More information

How s Life in Germany?

How s Life in Germany? How s Life in Germany? November 2017 Relative to other OECD countries, Germany performs well across most well-being dimensions. Household net adjusted disposable income is above the OECD average, but household

More information

Executive summary. Migration Trends and Outlook 2014/15

Executive summary. Migration Trends and Outlook 2014/15 Executive summary This annual report is the 15th in a series that examines trends in temporary and permanent migration to and from New Zealand. The report updates trends to 2014/15 and compares recent

More information

The Inequalities of. Wealth Distribution: its Economic and. Political Consequences. Dr David Rees

The Inequalities of. Wealth Distribution: its Economic and. Political Consequences. Dr David Rees The Inequalities of Wealth Distribution: its Economic and Political Consequences Dr David Rees Wealth Distribution Exercise Your opinion on wealth distribution is based on what you think is 'fair' or 'unfair'

More information

International Migration: Seizing the Opportunity

International Migration: Seizing the Opportunity International Migration: Seizing the Opportunity Gabriel Felbermayr Munich Economic Summit June 30 / July 1, 2016 Ifo Center for International Economics G. Felbermayr 22 AGENDA A huge potential Natives

More information

Commitment to Development Index 2017

Commitment to Development Index 2017 Commitment to Development Index 2017 The Commitment to Development Index ranks 27 of the world s richest countries on policies that affect more than five billion people living in poorer nations. Because

More information

How s Life in Australia?

How s Life in Australia? How s Life in Australia? November 2017 In general, Australia performs well across the different well-being dimensions relative to other OECD countries. Air quality is among the best in the OECD, and average

More information

How s Life in Belgium?

How s Life in Belgium? How s Life in Belgium? November 2017 Relative to other countries, Belgium performs above or close to the OECD average across the different wellbeing dimensions. Household net adjusted disposable income

More information

Race, Ethnicity, and Economic Outcomes in New Mexico

Race, Ethnicity, and Economic Outcomes in New Mexico Race, Ethnicity, and Economic Outcomes in New Mexico Race, Ethnicity, and Economic Outcomes in New Mexico New Mexico Fiscal Policy Project A program of New Mexico Voices for Children May 2011 The New Mexico

More information

How s Life. in the Slovak Republic?

How s Life. in the Slovak Republic? How s Life October 2015 in the Slovak Republic? Additional information, including the data used in this country note, can be found at: www.oecd.org/statistics/hows-life-2015-country-notes-data.xlsx HOW

More information

How s Life in Mexico?

How s Life in Mexico? How s Life in Mexico? November 2017 Relative to other OECD countries, Mexico has a mixed performance across the different well-being dimensions. At 61% in 2016, Mexico s employment rate was below the OECD

More information

How s Life in Ireland?

How s Life in Ireland? How s Life in Ireland? November 2017 Relative to other OECD countries, Ireland s performance across the different well-being dimensions is mixed. While Ireland s average household net adjusted disposable

More information

The UK and the European Union Insights from ICAEW Employment

The UK and the European Union Insights from ICAEW Employment The UK and the European Union Insights from ICAEW Employment BUSINESS WITH CONFIDENCE icaew.com The issues at the heart of the debate This paper is one of a series produced in advance of the EU Referendum

More information

How s Life in Hungary?

How s Life in Hungary? How s Life in Hungary? November 2017 Relative to other OECD countries, Hungary has a mixed performance across the different well-being dimensions. It has one of the lowest levels of household net adjusted

More information

Chile s average level of current well-being: Comparative strengths and weaknesses

Chile s average level of current well-being: Comparative strengths and weaknesses How s Life in Chile? November 2017 Relative to other OECD countries, Chile has a mixed performance across the different well-being dimensions. Although performing well in terms of housing affordability

More information

Changes in Wage Inequality in Canada: An Interprovincial Perspective

Changes in Wage Inequality in Canada: An Interprovincial Perspective s u m m a r y Changes in Wage Inequality in Canada: An Interprovincial Perspective Nicole M. Fortin and Thomas Lemieux t the national level, Canada, like many industrialized countries, has Aexperienced

More information

How s Life in Switzerland?

How s Life in Switzerland? How s Life in Switzerland? November 2017 On average, Switzerland performs well across the OECD s headline well-being indicators relative to other OECD countries. Average household net adjusted disposable

More information

It s Working A COMMONSENSE GUIDE OF SOCIALISM. education, growth, opportunity

It s Working A COMMONSENSE GUIDE OF SOCIALISM. education, growth, opportunity It s Working education, growth, opportunity A COMMONSENSE GUIDE T O T H E FA L S E P R O M I S E S OF SOCIALISM 1 Income equality! Everyone contributes an equal amount and equally shares in rewards! Everyone

More information

How s Life in Norway?

How s Life in Norway? How s Life in Norway? November 2017 Relative to other OECD countries, Norway performs very well across the OECD s different well-being indicators and dimensions. Job strain and long-term unemployment are

More information

How s Life in Canada?

How s Life in Canada? How s Life in Canada? November 2017 Canada typically performs above the OECD average level across most of the different well-indicators shown below. It falls within the top tier of OECD countries on household

More information

Course: Economic Policy with an Emphasis on Tax Policy

Course: Economic Policy with an Emphasis on Tax Policy Course: Economic Policy with an Emphasis on Tax Policy Instructors: Vassilis T. Rapanos email address: vrapanos@econ.uoa.gr Georgia Kaplanoglou email address: gkaplanog@econ.uoa.gr Course website: http://eclass.uoa.gr/courses/econ208/

More information

Remarks on the Political Economy of Inequality

Remarks on the Political Economy of Inequality Remarks on the Political Economy of Inequality Bank of England Tim Besley LSE December 19th 2014 TB (LSE) Political Economy of Inequality December 19th 2014 1 / 35 Background Research in political economy

More information

STATISTICAL REFLECTIONS

STATISTICAL REFLECTIONS World Population Day, 11 July 217 STATISTICAL REFLECTIONS 18 July 217 Contents Introduction...1 World population trends...1 Rearrangement among continents...2 Change in the age structure, ageing world

More information

Chapter 10. Resource Markets and the Distribution of Income. Copyright 2011 Pearson Addison-Wesley. All rights reserved.

Chapter 10. Resource Markets and the Distribution of Income. Copyright 2011 Pearson Addison-Wesley. All rights reserved. Chapter 10 Resource Markets and the Distribution of Income Resource markets differ from markets for consumer goods in several key ways First, the demand for resources comes from firms producing goods and

More information

Religious Demography of Emerging Economies

Religious Demography of Emerging Economies Religious Demography of Emerging Economies Age structures and fertility in the BRIC countries and the global religious consequences of their economic growth M. Stonawski 1, V. Skirbekk 2, M. Potančoková

More information

The Impact of Immigration on Wages of Unskilled Workers

The Impact of Immigration on Wages of Unskilled Workers The Impact of Immigration on Wages of Unskilled Workers Giovanni Peri Immigrants did not contribute to the national decline in wages at the national level for native-born workers without a college education.

More information

Pew Research Center. December 10,

Pew Research Center. December 10, September 2011 A Snapshot of Hispanic Older Adults: Economic Security, Demographics & Voting Trends Overview The aging population in the United States is drastically growing and changing. It is estimated

More information

Benefits and costs of free trade for less developed countries

Benefits and costs of free trade for less developed countries Benefits and costs of free trade for less developed countries Nina PAVCNIK Trade liberalization seems to have increased growth and income in developing countries over the past thirty years, through lower

More information

Discussion comments on Immigration: trends and macroeconomic implications

Discussion comments on Immigration: trends and macroeconomic implications Discussion comments on Immigration: trends and macroeconomic implications William Wascher I would like to begin by thanking Bill White and his colleagues at the BIS for organising this conference in honour

More information

The crisis of democratic capitalism Martin Wolf, Chief Economics Commentator, Financial Times

The crisis of democratic capitalism Martin Wolf, Chief Economics Commentator, Financial Times The crisis of democratic capitalism Martin Wolf, Chief Economics Commentator, Financial Times WU-Lecture on Economics 19 th January 2017 Vienna University of Economics and Business The crisis of democratic

More information

How s Life in Austria?

How s Life in Austria? How s Life in Austria? November 2017 Austria performs close to the OECD average in many well-being dimensions, and exceeds it in several cases. For example, in 2015, household net adjusted disposable income

More information

Chapter 6 Democratic Regimes. Copyright 2015 W.W. Norton, Inc.

Chapter 6 Democratic Regimes. Copyright 2015 W.W. Norton, Inc. Chapter 6 Democratic Regimes 1. Democracy Clicker question: A state with should be defined as a nondemocracy. A.a hereditary monarch B.an official, state-sanctioned religion C.a legislative body that is

More information

New Economical, Political and Social Trends in Latin America, and the Demands for Participation

New Economical, Political and Social Trends in Latin America, and the Demands for Participation New Economical, Political and Social Trends in Latin America, and the Demands for Participation Bernardo Kliksberg DPADM/DESA/ONU 21 April, 2006 AGENDA 1. POLITICAL CHANGES 2. THE STRUCTURAL ROOTS OF THE

More information

Whether or not the poor will always be with us, as the Bible says,1 poverty

Whether or not the poor will always be with us, as the Bible says,1 poverty SHAL.0889.C12_327-362 10/21/03 3:22 PM Page 327 C H A P T E R 12 Poverty, Inequality, and Welfare Whether or not the poor will always be with us, as the Bible says,1 poverty has certainly been a constant

More information

Income Inequality and Social, Economic, and Political Instability. Joseph Stiglitz Dubai: World Government Summit February 13, 2017

Income Inequality and Social, Economic, and Political Instability. Joseph Stiglitz Dubai: World Government Summit February 13, 2017 Income Inequality and Social, Economic, and Political Instability Joseph Stiglitz Dubai: World Government Summit February 13, 2017 Growing inequality In most countries around the world Even though convergence

More information