In this report, we combine theory and empirical estimates for how labor earnings respond to changes in tax rates and unearned income. We use lottery winnings to obtain variation in unearned income and tax reforms to obtain variation in the net of tax rate. Combining this information with...

Marginal prices fell, and disposable incomes increased, for drug and alcohol consumers during the pandemic. Most of the amount, timing, and composition of the 240,000 deaths involving alcohol and drugs since early 2020 can be explained by income effects and category-specific price changes. For...

The Traditional View (TV) of large deficits and debt is they have large economic costs, save in a recession and early recovery, because they crowd out investment and lower future income, and taken to extremes, can cause inflation and even a financial crisis. The TV has been challenged, most...

This paper uses firm-level information to evaluate how crises are transmitted internationally. It constructs a new data set of financial statistics, industry information, geographic data, and stock returns for over 10,000 companies in 46 countries to test what types of firms were most affected...

Unpaid care work amounts to an astronomical figure of 2 billion hours per day in the world of which three quarters are performed by women. This reality explains, to a large extent, the little progress that has been seen in reducing gender gaps, as far as employment, wages and use time are...

The COVID-19 pandemic led to stark reductions in economic activity in India. We employ CMIE's Consumer Pyramids Household Survey to examine the timing, distribution, and mechanism of the impacts from this shock on income and consumption through December 2020. First, we estimate large and...

Introducing heterogeneous households to a New Keynesian small open economy model amplifies the real income channel of exchange rates: the rise in import prices from a depreciation lowers households’ real incomes, and leads them to cut back on spending. When the sum of import and export...

For the design of the pension system, it is crucial to disentangle the employment responses related to the substitution effect and the income effect. In this paper, we provide causal evidence regarding the importance of the income effect, which is generally assumed to be small or non-existent....

Women's breast cancer (BC) in Africa is detrimental to development, given the role women play in their families and society's well-being. Policymakers should be alerted to the effects of BC. This paper describes the income impact of breast cancer and assesses factors that influence income and...

Diese Studie präsentiert eine umfassende Auslegeordnung, wie sich die Covid-19-Pandemie entlang der Einkommensverteilung in der Schweiz ausgewirkt hat. Grundlage der Analyse sind sechs Befragungswellen des sotomo/SRF-Bevölkerungsmonitorings, welche die Situation der Haushalte in der Schweiz...

For the design of the pension system, it is crucial to disentangle the employment responses related to the substitution effect and the income effect. In this paper, we provide causal evidence regarding the importance of the income effect, which is generally assumed to be small or non-existent....

Knowledge of the effect of unearned income on economic behavior of individuals in general, and on labor supply in particular, is of great importance to policy makers. Estimation of income effects, however, is a difficult problem because income is not randomly assigned and exogenous changes in...

One of the main topics highlighted in the field of economic pol icy applications is the impact of taxation on labor. In an era in which macroeconomic stability, technological change, and globalization pressure the job market, there exists no strong consensus in the lit erature on how exactly...

A central tax policy parameter that has recently received much attention, but about which there is substantial uncertainty, is the overall elasticity of taxable income. We provide new estimates of this elasticity which address identification problems with previous work, by exploiting a long...

To show how fast Internet affects employment in Africa, we exploit the gradual arrival of submarine Internet cables on the coast and maps of the terrestrial cable network. Robust difference-in-differences estimates from three datasets covering 12 countries show large positive effects on...

Studies of the consumption-smoothing benefits of unemployment insurance (UI) have found that the optimal benefit level is very small, perhaps even 0, for conventional levels of risk aversion. In this paper, I derive a formula for the optimal benefit rate in terms of income and price elasticities...

Efforts to estimate the effects of international trade on a country's real income have been hampered by the failure to account for the endogeneity of trade. Frankel and Romer recently use a country's geographic attributes - notably its distance from potential trading partners - as an instrument...

We address the effects of wages on employment growth on the basis of a theoretical model from which cost and demand effects can be derived. In the empirical analysis we take a highly disaggregated perspective and apply a newly developed shift-share regression technique on an exhaustive and very...

This paper uses a model of trade in vertically differentiated products to examine the effects of "excessive wage" increases (i.e. above productivity) on the volume of commodity imports. The model predicts that for commodities, in which the country has comparative advantage in high quality...

Whether cash transfers have unintended behavioural effects on the recipient household's labour supply is of considerable policy interest. We examine the 'intent to treat effect' of the Indira Gandhi National Old-Age Pension Scheme on prime-age women's labour supply decisions in India, where...

The shift of labour out of the agricultural sector and into the manufacturing and services sectors seems to be an important factor in explaining why some countries are so much richer than others. Therefore, understanding not only the driving mechanisms and forces behind the process of structural...

Nutrition transition is driven by quantity increase and structural change in food consumption. Particularly, meat consumption plays an important role. This study proposes a simple but innovative method to empirically decompose the total income effect on nutrition improvement into direct income...

Why are average hours worked per adult lower in rich countries than in poor countries? Weconsider two natural explanations: income effects in preferences, in which leisure becomesmore valuable when income rises, and distortionary tax systems, which are more prevalentin richer countries. To...

Why are average hours worked per adult lower in rich countries than in poor countries? We consider two natural explanations: income effects in preferences, in which leisure becomes more valuable when income rises, and distortionary tax systems, which are more prevalent in richer countries. To...

We study the causal impact of religiosity through a randomized evaluation of an evangelical Protestant Christian values and theology education program delivered to thousands of ultra-poor Filipino households. Six months after the program ended, treated households have higher religiosity and...

The Traditional View (TV) of large deficits and debt is they have large economic costs, save in a recession and early recovery, because they crowd out investment and lower future income, and taken to extremes, can cause inflation and even a financial crisis. The TV has been challenged, most...

We consider a small set of axioms for income averaging - recursivity, continuity, and the boundary condition for the present. These properties yield a unique averaging function that is the density of the reflected Brownian motion with a drift started at the current income and moving over the...

Nutrition transition is driven by quantity increase and structural change in food consumption. Particularly, meat consumption plays an important role. This study proposes a simple but innovative method to empirically decompose the total income effect on nutrition improvement into direct income...

The shift of labour out of the agricultural sector and into the manufacturing and services sectors seems to be an important factor in explaining why some countries are so much richer than others. Therefore, understanding not only the driving mechanisms and forces behind the process of structural...

Whether cash transfers have unintended behavioural effects on the recipient household's labour supply is of considerable policy interest. We examine the 'intent to treat effect' of the Indira Gandhi National Old-Age Pension Scheme on prime-age women's labour supply decisions in India, where...

Those who are not married or cohabitating in the years before retirement are at greater risk of having inadequate income in retirement, according to a new study published today by the Economic and Social Research Institute (ESRI).

Dieses Gutachten im Auftrag der Bundestagsfraktion von Bündnis 90/Die Grünen untersucht auf Basis des ZEW-Mikrosimulationsmodells und der Haushaltsdaten des Sozio-oekonomischen Panels (SOEP) die Einführung eines Garantiesicherungskonzepts.

The standard economic theorization is based on the neo-classical rationality postulate. But irrational activities and superstitious practices impact a wide range of decisions and choices in our day today life. Dissection of irrational behaviour of an individual is not so simple to comprehend but...