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Bulletin N°159

4 août 2008 - August  4, 2008

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PAUVRETE - POVERTY

. Putting poverty in political context : A multi-level analysis of working-aged poverty across 18 affluent democracies,
D. Brady, A. Fullerton and J. Moren Cross, Luxembourg Income Study, Luxembourg, Working paper, n° 487, July, 41 p., (2008).

Résumé - Summary : Our study analyzes how political context, embodied by the welfare state and Leftist political actors, shapes individual poverty. Using the Luxembourg Income Study, we conduct a multilevel analysis of working-aged adult poverty across 18 affluent Western democracies. Our index of welfare generosity has a negative effect on poverty net of individual characteristics and structural context. For each standard deviation increase in welfare generosity, the odds of poverty decline by a factor of 2.3. The odds of poverty in the U.S. (the least generous welfare state) are greater by a factor of 16.6 than a person with identical characteristics in Denmark (the most generous welfare state). Significant interaction effects suggest that welfare generosity reduces the extent to which low education and the number of children increase poverty. Also, welfare generosity reduces poverty among those with low education, single mother households, and young households. We show that Leftist parties and union density reduce the odds of poverty, however their effects channel through the welfare state. Ultimately, poverty is shaped both by individual characteristics and the political context in which that individual resides.
Zone géographique / Geographical area : Données internationales / International data

. Résurgence de la pauvreté dans la vieillesse ? Les débats actuels sur les retraites en Allemagne,
M. Veil, Ires, Noisy-le-Grand, Chronique internationale de l'Ires, n° 113, juillet, 9 p., (2008).
Zone géographique / Geographical area : Allemagne / Germany

EMPLOI - EMPLOYMENT

. Annual review of working conditions in the EU 2007-2008,
M. Giaccone and G. Bucalossi, European Foundation for the Improvement of Living and Working Conditions, Dublin, 87 p., (2008).
Zone géographique / Geographical area : Europe

. Passé professionnel et sécurité des trajectoires. Une exploitation de l'enquête FQP de 2003,
M. Bruyère et L. Lizé, Centre d'Economie de la Sorbonne, Paris, CES working papers, n° 2008.44, 19 p., (2008).

Résumé :
Ce travail propose d’analyser la sécurité des parcours professionnels selon les trois critères définis par le CERC (2005) : la stabilité de l’emploi (rester dans le même emploi), la sécurité de l’emploi (reprise d’emploi rapide après une mobilité externe) et la sécurité des revenus (maintenir ou augmenter ses revenus). Nous cherchons à vérifier si les caractéristiques de l’emploi occupé sont des facteurs plus importants que ne le sont les variables individuelles classiques pour expliquer ces trois critères à partir de l’enquête Formation et Qualification Professionnelle de l’INSEE (FQP 2003). Nos résultats font ressortir que les variables d’emploi sont les plus importantes pour expliquer la stabilité de l’emploi et la sécurité des revenus. En revanche, les variables individuelles comme l’âge et le diplôme deviennent au moins aussi déterminantes que les caractéristiques du dernier emploi occupé pour expliquer la reprise rapide d’un emploi après une mobilité externe. Ces résultats éclairent le débat sur la « flexicurité » dont sa réussite serait fondée sur une forte implication individuelle des salariés dans la construction de leurs parcours professionnels.

Summary :
This paper offers an analysis of the career security according to three criteria defined by the CERC (2005): the job stability (length of job tenure), the job security (short duration of unemployment after an external mobility), and the income security (maintaining or increasing incomes). We try to verify if job characteristics are more important factors than classical individual variables to explain these three criteria. The 2003 FQP Survey contains rich information to describe jobs. It offers usual information as the sector or the size of the company, and also newer information about concrete conditions of job as the use of information technology, the work rate, contact with the public, type of hierarchical control, position in the firm. We process all these data to analyze the link between characteristics of job, and career security. On the one hand, variables connected to the job are the most important to explain employment stability and income security. On the other hand, individual’s variables as age and diploma become at least as much determining as the characteristics of the last job to explain job security when a worker left his job. This result throws light on the debate on the flexicurity based on a strong individual involvement of employees in their career curriculum.
Zone géographique / Geographical area : France


. Skill needs in Europe : Focus on 2020,
Cedefop, Thessaloniki, July, 29 p., (2008).
Zone géographique / Geographical area : Europe

REVENU - INCOME

. Do minimum wages really reduce teen employment ? Accounting for heterogeneity and selectivity in State panel data,
S. Allegretto, A. Dube et M. Reich, Institute for Research on Labor and Employment, Berkeley, Paper, n° 66-08, June, 37 p., (2008).

Résumé - Summary : Traditional estimates of minimum wage effects on employment include controls for state unemployment rates and state and year fixed-effects. Using Current Population Survey data, we show that such estimates often are biased and that the estimates vary ith the source of identifying variation. Without sufficient controls for heterogeneous employment patterns that would occur without minimum wage policies, traditional estimates vary substantially both in sign and magnitude depending on time period and hence with the selectivity of states with minimum wage hikes. Estimates without sufficient controls also vary across demographic groups in a counterintuitive manner that suggests misspecification problems. To account for heterogeneous employment patterns and selectivity among states with minimum wages, we include controls for long-term growth differences among states by using a state-specific linear trend, and controls for heterogeneous responses to economic shocks by including Census division-specific time effects. In the 1990 to 2006 period, including these controls reduces the magnitude of the estimated employment elasticity from -0.168 (significant at the 1 percent level) to -0.024 (not significant). Although the division and state trend controls do not constitute a panacea, they do provide important tools to mitigate the bias that results from unobserved spatial heterogeneities in employment patterns that are correlated with the minimum wage. Since estimates in most previous national-level studies insufficiently address this issue, economists’ estimates of minimum wage effects must be revised accordingly.
Zone géographique / Geographical area : Etats-Unis / United States

. Minimum wages and earnings inequality in urban Mexico : revisiting the evidence,
M. Bosch and M. Manacorda, Centre for Economic Performance, London, CEP discussion paper, n° 880, July, 62 p., (2008).

Résumé - Summary : This paper explores the contribution of the minimum wage to the well documented rise in earnings inequality in Mexico between the late 1980 and the late 1990s. In contrast to the view that sees minimum wages as an ineffective redistributive tool in developing countries, we find that the deterioration in the real bite of the minimum wage is responsible for the entire rise in inequality at the bottom of the distribution. Our result challenges the widespread perception that trade induced shocks are the single most important factor behind the recent rise in earnings inequality in several less developed economies.
Zone géographique / Geographical area : Mexique / Mexico

. New estimates of the effects of minimum wages in the U.S. retail trade sector,
T. T. Addison, M. L. Blackburn and C. D. Cotti, Institute for the Study of Labor, Bonn, IZA discussion paper, n° 3597, July, 37 p., (2008).

Résumé - Summary : This paper examines the impact of minimum wages on earnings and employment in selected branches of the retail-trade sector, 1990-2005, using county-level data on employment and a panel regression framework that allows for county-specific trends in sectoral outcomes. We focus on particular subsectors within retail trade that are identified as particularly low-wage. We find little evidence of disemployment effects once we allow for geographic-specific trends. Rather, in many sectors the evidence suggests modest (but robust) positive employment effects. One explanation we consider for these ‘perverse’ effects is that minimum wages may have significant influences on product demand shifts.
Zone géographique / Geographical area : Etats-Unis / United States

. Salaire minimum et bas revenus : Comment concilier justice sociale et efficacité économique ?,
P. Cahuc, G. Cette et A. Zylberberg, Conseil d'Analyse économique, Paris, Rapport, juillet, 94 p., (2008).
Zone géographique / Geographical area : France

AUTRES DONNEES SOCIALES - OTHER SOCIAL ISSUES

. German consumption : Is there hope for a revival  ?,
G. Epppendorfer and M. H Stierle, Directorate-General for Economic and Financial Affairs, Brussels, ECFIN country focus, n°6, June, 6 p., (2008).

Résumé - Summary : In Germany private consumption virtually stagnated for nearly a decade and clearly lagged behind GDP growth. This Country Focus uses the estimation of a consumption function to show that the drop in employment is the most important factor behind the reluctance to consume in the first half of this decade. However, given the significant labour market improvement since 2005, employment cannot explain the persistent sluggishness of consumer expenditure since then. We found that additional factors such as various components of disposable income, perceived inflation and one-off events like the VAT increase and the expiry of the more generous depreciation rules have also held back private consumption. Since these one-offs will no longer weigh on private consumption, employment continues to increase and inflation will hopefully abate, there are reasons for optimism for a (moderate) revival of private consumption in Germany.
Zone géographique / Geographical area : Allemagne / Germany

. No one written off : reforming welfare to reward responsibility,
Department for Work and Pensions, London, Public consultation, July, 118 p., (2008).
Zone géographique / Geographical area : Royaume-Uni / United Kingdom

. Objectif 50% de diplômés de l'enseignement supérieur versus déclassement des jeunes,
P. Lemistre, Céreq, Marseille, Net-doc, n° 39, juin, 40 p., (2008).

Résumé :
Ce document tente une synthèse des enjeux et débat liés à l’expansion scolaire en France. Il examine les limites des projections à 2015 concernant l’objectif 50 % de diplômés, ceci en regard d’un taux déclassement des jeunes dont une réévaluation, à la baisse, est proposée après une discussion relative aux mesures disponibles. Le déclassement est le versant négatif de l’expansion scolaire à court terme. Les effets à long terme sont examinés comme des effets de composition négatifs (dévalorisation des diplômes) et positifs (croissance endogène, structuration des systèmes productifs, effets macro économiques moyens), les seconds semblant l’emporter sur les premiers. Cette perspective est défendue sur le plan théorique et en la resituant dans le débat actuel entre une analyse en terme « d’inflation scolaire » et d’économie de l’innovation.

Summary :
This document attempts a synthesis of issues and debate related to the educational expansion in France. It examines the limits of projections to 2015 on goals 50 % of graduates, this against over education. Over education is the negative side of educational expansion in the short term. The long-term effects are considered as negative composition effect (devaluation of diplomas) and positive (endogenous growth, structuring productive systems, macro economic effects), the latter seem to outweigh the first. This perspective is supported on a theoretical level and placing it in the current debate between an analysis term inflation school and innovation economy.
Zone géographique / Geographical area : France

. Surcote : les raisons d'un échec relatif,
C. Albert, N. Grave et J-B. Oliveau, Cnav, Paris, Retraite et société, n° 54, juin, 31 p., (2008).
Zone géographique / Geographical area : France