Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal?

Choe, Chung; Kerm, Philippe Van

doi:10.3390/econometrics6030041

Cited by 23 publications

(24 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…WFH feasibility) on the distributional statistic v ( F ) can be correctly calculated through a simple OLS estimation. Following Choe and Van Kerm ( 2018 ), we both label this measure as ‘unconditional effect’ (UE) and determine a marginal change in the distribution of the WFH feasibility swapping a 10 percentage points share of employees from one feasibility level to the other one. In other words, considering the baseline feasibility levels across Italian employees as the counterfactual scenario, we estimate the UE of a WFH feasibility increase on labour income inequality moving toward a distribution composed of 10 percentage point less employees with a low level of WFH feasibility and 10 percentage point more employees with a high feasibility level.…”

Section: Econometric Methodsmentioning

confidence: 99%

“…More details on variables included in the model are provided in Appendix Table 7 . The resulting effect on distributional statistics is labelled in this case as ‘unconditional partial effect’ (UPE) (Firpo et al 2009 ; Choe and Van Kerm 2018 ), but it is also named ‘policy effect’ or ‘counterfactual effect’ in the literature (Rothe 2010 ; Chernozhukov et al 2013 ; Gallo and Pagliacci 2020 ). The main difference between UEs and UPEs relies on the fact that in the UEs calculation the WFH feasibility shift determines a consequent change in covariates in the vector Z according to the joint income distribution, whereas in the UPEs estimation these covariates are explicitly kept constant.…”

Section: Econometric Methodsmentioning

confidence: 99%

“…For the sake of brevity, formulas to calculate the RIFs for the mean, the Gini index, and the quantiles are not replicated here, but they can be easily found inChoe and Van Kerm (2018).…”

mentioning

confidence: 99%

See 2 more Smart Citations

Working from home and income inequality: risks of a ‘new normal’ with COVID-19

2020

View full text Add to dashboard Cite

In the current context of the COVID-19 pandemic, working from home (WFH) became of great importance for a large share of employees since it represents the only option to both continue working and minimise the risk of virus exposure. Uncertainty about the duration of the pandemic and future contagion waves even led companies to view WFH as a 'new normal' way of working. Based on influence function regression methods, this paper explores the potential consequences in the labour income distribution related to a long-lasting increase in WFH feasibility among Italian employees. Results show that a positive shift in WFH feasibility would be associated with an increase in average labour income, but this potential benefit would not be equally distributed among employees. Specifically, an increase in the opportunity to WFH would favour male, older, high-educated, and high-paid employees. However, this 'forced innovation' would benefit more employees living in provinces have been more affected by the novel coronavirus. WFH thus risks exacerbating pre-existing inequalities in the labour market, especially if it will not be adequately regulated. As a consequence, this study suggests that policies aimed at alleviating inequality, like income support measures (in the short run) and human capital interventions (in the long run), should play a more important compensating role in the future.

show abstract

Section: Econometric Methodsmentioning

confidence: 99%

Section: Econometric Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Working from home and income inequality: risks of a ‘new normal’ with COVID-19

2020

View full text Add to dashboard Cite

show abstract

“…That may result from two sources: (1) Despite its multinational structure, the cross-border labor market of Luxembourg is rather homogenous: Cross-border workers are less strongly polarized in skills and occupations and with lower within-group wage inequality than immigrants living and working in Luxembourg [74]. (2) Considering only long-distance (and motorized) travel, the study emphasizes the differentiation of attitudes in a region made of four countries and several languages or cultures (mostly German and French).…”

Section: Discussionmentioning

confidence: 99%

Links between Attitudes, Mode Choice, and Travel Satisfaction: A Cross-Border Long-Commute Case Study

et al. 2020

View full text Add to dashboard Cite

This paper focuses on a particular form of high mobility, namely the long journeys to work generated by cross-border job market. More precisely, it studies the impact of such behaviors on well-being by analyzing the relationships between mode choice, transport-related attitudes, socio-demographic and spatial attributes, and the level of satisfaction in the context of cross-border long commutes to Luxembourg. The statistical modelling is rooted to a conceptual framework that emphasizes the mutual dependencies between attitudes, mode choice, and satisfaction. Based on a survey among long-distance commuters (N = 3093) held in 2010 and 2011, two ordered logistic regressions, one of which including latent constructs of transport-related attitudes derived from a structural equation modelling, are developed to explain satisfaction in commuting. Main findings are: (1) Travel-related attitudes influence satisfaction with travel more than socio-demographic attributes; (2) public transport users are globally more satisfied in commuting than car drivers; (3) the socio-economic model of satisfaction is plagued by omitted variables issues; (4) the attitude model of satisfaction drops all but one socio-economic attributes (education remains) while improving adjustment (Pseudo-R-squared = 0.57 versus 0.09; BIC = 2953 versus 6059) and avoiding omitted variables bias. The effect of attitudes and other latent constructs is of paramount importance, even concealing most socio-demographic attributes to assess satisfaction. The conclusion is devoted to a discussion on the sustainability of these cross-border long commutes from the individual, social, and environmental points of view.

show abstract

“…The RIF regression approach has several advantages over conventional inequality Choe and Van Kerm, 2018. ) In essence, the method probes what the wealth distribution be expected to look like if there were more transfer recipients and fewer non-recipients, or more recipients of large versus medium versus small transfers, with everything else held constant?…”

Section: The Impact Of Intergenerational Transfers On Wealth Inequalitymentioning

confidence: 99%

Intergenerational Transfers by Size and Wealth Inequality in Rich Countries

Nolan¹,

Juan²,

Kerm³

et al. 2020

Preprint

Self Cite

View full text Add to dashboard Cite

This paper uses household wealth surveys to compare patterns of intergenerational wealth transfers across six rich countries and assess the relationships between transfers, current levels of net wealth, and wealth inequality. The paper examines four Euro Area countries, France, Germany, Italy, and Spain and extends the systematic comparison to the US and the UK. It finds that many of those currently at the top of the wealth distribution did not benefit from intergenerational transfers, but those who did received particularly large amounts while those toward the bottom of the wealth distribution received very little. A substantial gap in net wealth is seen between those who received or did not receive some wealth transfer. Controlling for age, gender, education and household size reduces the size of that gap but it remains substantial, especially in the US. We further look at how a marginal increase in the proportion of recipients of transfers of differing sizes would contribute to the shape of the overall wealth distribution using influence function regressions. Crucially, we show that the impact depends not only on the locations in the wealth distributions of recipients versus non-recipients, but also on the size of the receipt, an aspect which has been overlooked to date. In most countries, increasing the proportion of recipients of large transfers generally increases overall wealth inequality. In contrast, having more recipients of small or medium- sized transfers would be expected to reduce wealth inequality modestly, as they are more concentrated around the middle of the wealth distribution than non-recipients. (Stone Center on Socio-Economic Inequality Working Paper)

show abstract

Foreign Workers and the Wage Distribution: What Does the Influence Function Reveal?

Cited by 23 publications

References 31 publications

Working from home and income inequality: risks of a ‘new normal’ with COVID-19

Working from home and income inequality: risks of a ‘new normal’ with COVID-19

Links between Attitudes, Mode Choice, and Travel Satisfaction: A Cross-Border Long-Commute Case Study

Intergenerational Transfers by Size and Wealth Inequality in Rich Countries

Contact Info

Product

Resources

About