Klaus F. Zimmermann

The article is testing bequest motives by using a population-wide administrative dataset from Sweden to find that children who likely provided services and daughters with children receive more. However, while adopted stepchildren receive less (Cinderella effect), there is no support for altruism motives.

Read more in:

Oscar Erixson & Henry Ohlsson
Estate division: equal sharing, exchange motives, and Cinderella effects
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1437-1480.
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Journal Website, complete issue 4.

Author Abstract: This study contributes to the empirical literature testing bequest motives by using a population-wide administrative dataset, covering data on inherited amounts for complete families matched with an extensive set of economic and demographic variables, to estimate the influence of child characteristics on differences in inherited amounts among siblings. Our main findings are, first, children who are more likely to have provided services to the parent receive more than their siblings, as predicted by the exchange model. Second, daughters with children receive more than sons with children. This is consistent with the prediction of the evolutionary model that larger investments should go to offspring who are certain to be genetically related. There are also Cinderella effects—that is, adopted stepchildren receive less than siblings who are biological or children who are adopted by both parents. Third, we do not find support for the prediction of the altruism model that bequests are compensatory.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
“Ancestral ecological endowments and missing women“
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

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A new GLO Discussion Paper finds that asset diversity increased in the United States between 2007 and 2009, in particular with age, education and income. It is lower at the bottom of the wealth distribution.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 386, 2019

The diversity of household assets holdings in the United States in 2007 and 2009: Measurement and determinants – Download PDF
by Sierminska, Eva M. & Silber, Jacques

GLO Fellow Eva Sierminska

Author Abstract: We apply diversity indices, such as the Gini-Simpson index and entropy related indices, to the study of the distribution of individual asset holdings in the United States in 2007 and 2009. We examine the impact of the 2008 recession on asset diversity and the way individual socio-economic characteristics as well as important life events affect this measure. The focus of our analysis is on financial assets. We use a unique panel data set that provides us with comprehensive household level data for 2007 and 2009 in the United States– the Survey of Consumer Finances. We find that asset diversity increases between 2007 and 2009. In addition, it increases with age, education and income and it is lower at the bottom of the wealth distribution. Life changing situations such as getting divorced or losing one’s job have a statistically significant negative effect on a change in diversity, while getting married or having deteriorating health have a positive effect. Active money management also affects asset diversity positively.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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A new GLO Discussion Paper finds that IV estimates indicate that there is no statistically significant relationship between BMI and mental health for young adults, whereas there is a positive and statistically significant relationship for the elderly.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 385, 2019

The Impact of BMI on Mental Health: Further Evidence from Genetic Markers – Download PDF
by Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso

GLO Fellows Carlos Flores & Alfonso Flores-Lagunes

Author Abstract: We examine the relationship between BMI and mental health for young adults and elderly individuals using data from the National Longitudinal Study of Adolescent Health and the Health & Retirement Study. While OLS estimates show that BMI is significantly associated with worse mental health in both young adulthood and old age, they are likely to be confounded by (i) unobserved factors that affect both BMI and mental health and (ii) reverse causality. To tackle confounding, we take two complementary approaches. First, we use a polygenic score for BMI as an IV and adjust for polygenic scores for other factors that may invalidate this IV. The IV estimates indicate that there is no statistically significant relationship between BMI and mental health for young adults, whereas there is a positive and statistically significant relationship for the elderly. Moreover, we show that IV estimates likely have to be interpreted as identifying a weighted average of effects of BMI on mental health mostly for individuals on the upper quantiles of the BMI distribution. Given potential remaining concerns about the validity of the IV, our second approach is to consider it an “imperfect” IV and estimate an upper bound on the average treatment effect for the corresponding population following Nevo & Rosen (2012). The estimated upper bounds reinforce the conclusions from the IV estimates: they show little evidence of a detrimental effect of BMI on mental health for young adults while being consistent with an economically meaningful effect for elderly individuals. Lastly, we explore some of the potential channels through which BMI may affect mental health for the elderly.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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A new GLO Discussion Paper suggests that smartphone use has a causal negative effect on academic performance.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 384, 2019

Smartphone Use and Academic Performance: Correlation or Causal Relationship? – Download PDF
by Baert, Stijn & Vujić, Sunčica & Amez, Simon & Claeskens, Matteo & Daman, Thomas & Maeckelberghe, Arno & Omey, Eddy & De Marez, Lieven

GLO Fellows Stijn Baert & Sunčica Vujić

Author Abstract: After a decade of correlational research, this study attempts to measure the causal impact of (general) smartphone use on educational performance. To this end, we merge survey data on general smartphone use, exogenous predictors of this use, and other drivers of academic success with the exam scores of first-year students at two Belgian universities. The resulting data are analysed with instrumental variable estimation techniques. A one-standard-deviation increase in daily smartphone use yields a decrease in average exam scores of about one point (out of 20). When relying on ordinary least squares estimations, the magnitude of this effect is substantially underestimated. The negative association between smartphone use and exam results is more outspoken for students (i) with highly educated fathers, (ii) with divorced parents and (iii) who are in good health. Policy-makers should at least invest in information and awareness campaigns of teachers and parents to highlight this trade-off between smartphone use and academic performance.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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A new GLO Discussion Paper suggests that migration has fostered development across European Union member states but has not necessarily decreased economic inequalities between them.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 383, 2019

The long-term effect of migration on economic inequality between EU Member States – Download PDF
by Ulceluse, Magdalena

GLO Fellow Magdalena Ulceluse

Author Abstract: This paper explores the long-term effect of migration on economic inequality between the 28 EU member states, covering the period 1995-2017. The cross-national, longitudinal analysis demonstrates that migration has had a positive and significant effect on development and economic growth in 28 member states. However, the findings also indicate that some countries have benefitted from migration more than others. Specifically, for countries experiencing positive net migration the effect is disproportionately larger than for countries experiencing negative net migration. This seems to indicate that, while migration has indeed contributed to economic development in all member states over the period analysed, it has not necessarily contributed to decreasing economic inequalities between them.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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The article studies how the Russian old-age pension affects labor supply, home production, and subjective wellbeing.

Read more in:

Louise Grogan & Fraser Summerfield
Government Transfers, Work, and Wellbeing: Evidence from the Russian Old-Age Pension
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1247-1292 .

Journal Website, complete issue 4.

Author Abstract: This paper examines the impacts of a large and anticipated government transfer, the Russian old-age pension, on labor supply, home production, and subjective wellbeing. The discontinuity in eligibility at pension age is exploited for inference. The 2006–2011 Russian Longitudinal Monitoring Survey is employed. At pension age, women reduce market work and appear to increase home production. They report increased wellbeing. Men reduce labor supply without any apparent increase in wellbeing. Pension receipt does not impact household composition.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
“Ancestral ecological endowments and missing women“
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

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A new GLO Discussion Paper finds that extreme temperatures increased violent mortality in Russia with unequal impact across gender and age groups.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 382, 2019

Extreme Temperature and Extreme Violence across Age and Gender: Evidence from Russia – Download PDF
by Popova, Olga & Otrachshenko, Vladimir & Tavares, José

GLO Fellow Olga Popova

Author Abstract: We examine the relationship between extreme temperatures and violent mortality across Russian regions, with implications for the social costs of climate change. We assess the unequal impact of temperature shocks across gender and age groups by exploring a dataset on temperature and violence in Russia, between the years 1989 and 2015. Hot days lead to an increase in both female and male victims, one hot day resulting in the loss of 1,579 person-years of life for men, and 642 for women. However, the likelihood of victimization during weekends rises noticeably for women, with women between 25 and 59 more victimized on weekends. Our results suggest that female victimization on hot days would be mitigated by increases in regional income and job opportunities, and on cold days, by decreasing the consumption of spirits.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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A new GLO Discussion Paper suggests that government size has reduced inequality in European countries over the period 2004-2015.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 381, 2019

Income Inequality and the Size of Government: A Causal Analysis – Download PDF
by Guzi, Martin & Kahanec, Martin

GLO Fellow Martin Guzi & Martin Kahanec

Author Abstract: Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable estimation techniques to identify a causal relationship between income inequality and government size, measured as the government expenditure share in GDP. Using a novel instrument – the number of political parties in the ruling coalition – we find that accounting for the possible endogeneity of government size increases the magnitude of the estimated negative effects. Our findings thus suggest that much of the literature underestimates the true role of the government in attenuating income inequality. The estimated relationship between income inequality and government size persists in a series of robustness checks.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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A new GLO Discussion Paper suggests that the periods of yen appreciation over the last decades had more than just transitory negative effects on Japanese manufacturing.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 380, 2019

The Yen Exchange Rate and the Hollowing Out of the Japanese Industry – Download PDF
by Belke, Ansgar & Volz, Ulrich

GLO Fellow Ansgar Belke

Author Abstract: Since the demise of the Bretton Woods system, the yen has seen several episodes of strong appreciation, including in the late 1970s, after the 1985 Plaza Agreement, the early and late 1990s and after 2008. These appreciations have not only been associated with “expensive yen recessions” resulting from negative effects on exports; since the late 1980s, the strong yen has also raised concerns about a de-industrialisation of the Japanese economy. Against this backdrop, the paper investigates the effects of changes to the yen exchange rate on the hollowing out of the Japanese industrial sector. To this end, the paper uses both aggregate and industry-specific data to gauge the effects of yen fluctuations on the output and exports of different Japanese industries, exploiting new data for industry-specific real effective exchange rates. Our findings support the view that the periods of yen appreciation had more than just transitory effects on Japanese manufacturing. The results also provide indication of hysteresis effects on manufacturing. While there are certainly also other factors that have contributed to a hollowing out of Japanese industry, a strong yen played a role, too.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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