Rank Order
Caste and Punishment: The Legacy of Caste Culture in Norm Enforcement
Karla Hoff, Mayuresh Kshetramade & Ernst Fehr
Economic Journal, November 2011, Pages F449-F475
Abstract:
Well-functioning groups enforce social norms that restrain opportunism. We study how the assignment to the top or bottom of the caste system affects the altruistic punishment of norm violations. Individuals at the bottom of the hierarchy exhibit a much lower willingness to punish norm violations that hurt members of their own caste. We can rule out self-selection into castes and control for wealth, education and political experience. We thus plausibly identify the impact of caste status on altruistic punishment. The lower willingness to punish may impair the low castes' ability to enforce contracts, to ensure property rights and sustain cooperation.
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Does capitalism produce an entrepreneurial class?
Martin Ruef & David Reinecke
Research in Organizational Behavior, forthcoming
Abstract:
This paper probes the conditions under which we might expect an entrepreneurial middle class of independent shopkeepers, merchants, professionals, and small manufacturers to expand or decline with capitalist development. We highlight the predictions offered by structural and Marxist accounts of middle class formation and apply them critically to four cases, including the early American Republic, industrializing England, Tsarist Russia, and the U.S. South during the antebellum-postbellum transition. Our empirical analyses and review of the historical literature suggest that the exogenous imposition of capitalist institutions often fails to propel entry into entrepreneurial activity and may even backfire, as cooptation or resentment among traditional elites generates barriers to small business proprietorship. When middling entrepreneurs exhibit greater agency with respect to the creation of capitalist institutions, their prospects tend to improve but the ability of scholars to draw causal linkages between structural change and the middle class are impaired, owing to problems of endogeneity. Paralleling institutional studies of organizations, the paper also underscores the importance of myth and ceremony - over mere numerical prevalence - in the ‘making' of an entrepreneurial middle class.
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The Allocation of Talent and U.S. Economic Growth
Chang-Tai Hsieh et al.
University of Chicago Working Paper, July 2011
Abstract:
In 1960, 94 percent of doctors were white men, as were 96 percent of lawyers and 86 percent of managers. By 2008, these numbers had fallen to 63, 61, and 57 percent, respectively. Given that innate talent for these professions is unlikely to differ between men and women or between blacks and whites, the allocation of talent in 1960 suggests that a substantial pool of innately talented black men, black women, and white women were not pursuing their comparative advantage. This paper estimates the contribution to U.S. economic growth from the changing occupational allocation of white women, black men, and black women between 1960 and 2008. We find that the contribution is significant: 17 to 20 percent of growth over this period might be explained simply by the improved allocation of talent within the United States.
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Deborah Rogers, Omkar Deshpande & Marcus Feldman
PLoS ONE, September 2011, e24683
Abstract:
The causes of socioeconomic inequality have been debated since the time of Plato. Many reasons for the development of stratification have been proposed, from the need for hierarchical control over large-scale irrigation systems to the accumulation of small differences in wealth over time via inheritance processes. However, none of these explains how unequal societies came to completely displace egalitarian cultural norms over time. Our study models demographic consequences associated with the unequal distribution of resources in stratified societies. Agent-based simulation results show that in constant environments, unequal access to resources can be demographically destabilizing, resulting in the outward migration and spread of such societies even when population size is relatively small. In variable environments, stratified societies spread more and are also better able to survive resource shortages by sequestering mortality in the lower classes. The predictions of our simulation are provided modest support by a range of existing empirical studies. In short, the fact that stratified societies today vastly outnumber egalitarian societies may not be due to the transformation of egalitarian norms and structures, but may instead reflect the more rapid migration of stratified societies and consequent conquest or displacement of egalitarian societies over time.
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Tehila Kogut
Journal of Economic Psychology, forthcoming
Abstract:
The social utility model suggests that people feel more satisfied with equal divisions of resources than from inequitable outcomes, even when the latter favors oneself. Research examining children's behavior has shown that the tendency to share half of one's endowment increases with age between the ages of 3 to 8. However, the satisfaction the children derive from their decisions (to share half of their endowments) has yet to be examined. We present two studies (using the dictator and ultimatum games) suggesting that young children (5-6 years old) are aware of the norms of fairness but choose to act selfishly and prefer not to share. Slightly older children aged 7-8 adopt these norms in their actual behavior but do not feel happier when they share half of their endowments than when they share less than half. Finally, true inequity aversion only appears at the ages of 9-10, when children not only give more, but they correspondingly also feel better when their endowments are equally divided.
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Alan Gustman, Thomas Steinmeier & Nahid Tabatabai
NBER Working Paper, September 2011
Abstract:
Studies using data from the early 1990s suggested that while the progressive Social Security benefit formula succeeded in redistributing benefits from individuals with high earnings to individuals with low earnings, it was much less successful in redistributing benefits from households with high earnings to households with low earnings. Wives often earned much less than their husbands. As a result, much of the redistribution at the individual level was effectively from high earning husbands to their own lower earning wives. In addition, spouse and survivor benefits accrue disproportionately to women from high income households. Both factors mitigate redistribution at the household level. This paper compares outcomes for the earlier cohort with those of a cohort born twelve years later. The aim of the study is to see whether, after the recent growth in two earner households, and the growth in women's labor market activity and earnings, the Social Security system now fosters somewhat more redistribution from high to low earning households. The analysis is based on data from the Health and Retirement Study and includes members of households with at least one person age 51 to 56 in either 1992 or in 2004. As expected, women enjoyed a more rapid growth of labor force participation, hours of work and covered earnings than men. This increased the redistribution of Social Security benefits among households. Nevertheless, a considerable gap remains between the labor market activities and earnings of women versus men. As a result, the Social Security system remains much less successful in redistributing benefits from households with high covered earnings to those with lower covered earnings than in redistributing benefits from individuals with high covered earnings to those with lower covered earnings.
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Income mobility in Russia (2000-2005)
Anna Lukiyanova & Aleksey Oshchepkov
Economic Systems, forthcoming
Abstract:
Using the data from the Russian Longitudinal Monitoring Survey (RLMS), this paper investigates income mobility in Russia during the period of rapid economic growth (2000-2005). Employing a broad set of mobility indices, we show that there is much mobility in household incomes from one year to the next and over longer periods in Russia. Both relative and absolute mobility in Russia are significantly higher than in Western countries. We demonstrate that income growth in Russia was strongly pro-poor in 2000-2005. Incomes of the relatively poor were growing faster than incomes of the relatively rich. However, this inequality-reducing effect was almost exactly offset by changes in the relative positions of individuals and the overall reduction in cross-sectional inequality was merely modest.
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Harris Sondak & Tom Tyler
Journal of Experimental Social Psychology, forthcoming
Abstract:
This paper reports two studies examining the influence of social context on judgments about the fairness and desirability of two allocation mechanisms - markets and hierarchies. Two allocation contexts are compared: distributing benefits and burdens. The results show that people prefer to allocate burdens through markets and benefits through hierarchies. In both cases desirability is linked to procedural fairness, suggesting that people always prefer to use the fairer procedure for allocation, but view different procedures as fairer in these different contexts. Procedural fairness judgments were found to be linked to respondents' judgments about the impact of using different procedures to make allocations in each context, with people in each case preferring the procedure that they believe will have the most positive impact upon group cohesion. These findings suggest that what is construed as a fair procedure in one social context is not the same as what is construed as a fair procedure in another social context.
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Parental education, grade attainment and earnings expectations among university students
Liam Delaney, Colm Harmon & Cathy Redmond
Economics of Education Review, December 2011, Pages 1136-1152
Abstract:
While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university, based on a rich and unique dataset of university students. While large socio-economic differences in academic performance exist at the point of entry into university, these differences are substantially narrowed during the period of study. Importantly, the differences across socio-economic backgrounds in university grade attainment for female students is explained by intermediating variables such as personality, risk attitudes and time preferences, and subject/college choices. However, for male students, we explain less than half of the socio-economic gradient through these same pathways. Despite the weakening socio-economic effect in grade attainment, a key finding is that large socio-economic differentials in the earnings expectations of university students persist, even when controlling for grades in addition to our rich set of controls. Our findings pose a sizable challenge for policy in this area as they suggest that equalising educational outcomes may not translate into equal labour market outcomes.
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Molly Dahl, Thomas DeLeire & Jonathan Schwabish
Journal of Human Resources, Fall 2011, Pages 750-774
Abstract:
We document trends in the volatility in earnings and household incomes between 1985 and 2005 in three different data sources: administrative earnings records, the Survey of Income and Program Participation (SIPP) matched to administrative earnings records, and SIPP survey data. In all data sources, we find a substantial amount of year-to-year volatility in workers' earnings and household incomes. In the data sources that contain administrative earnings, we find that volatility has been roughly constant, and has even declined slightly, since the mid-1980s. These findings differ from what is found using survey data and what has been reported in previous studies.
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SES affects infant cognitive flexibility
Melissa Clearfield & Laura Niman
Infant Behavior and Development, forthcoming
Abstract:
Cognitive flexibility requires processing multiple sources of information and flexible adaptation of behavioral responses. Poverty negatively impacts cognitive control in young children, but its effects on infants are not well-understood. This study investigated longitudinally the development of cognitive flexibility in low-income infants. Thirty-two infants (15 low-SES, 17 high-SES) were tested at 6, 9, and 12 months of age. Cognitive flexibility was measured with a perseverative reaching task, where infants were taught to reach to one location and then asked to switch to a second location. High-SES infants replicated the typical developmental trajectory, reaching randomly at 6 months, perseverating at 9 months, and reaching correctly at 12 months. In contrast, the low-SES infants showed a delayed pattern, reaching correctly at 6 months, randomly at 9 months, and perseverating at 12 months. Links between cognitive flexibility and frontal cortex development are explored as a potential mechanism.
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The Importance of Early Childhood Poverty
Greg Duncan et al.
Social Indicators Research, forthcoming
Abstract:
Most poor children achieve less, exhibit more problem behaviors and are less healthy than children reared in more affluent families. We look beyond correlations such as these to a recent set of studies that attempt to assess the causal impact of childhood poverty on adult well-being. We pay particular attention to the potentially harmful effects of poverty early in childhood on adult labor market success (as measured by earnings), but also show results for other outcomes, including out-of-wedlock childbearing, criminal arrests and health status. Evidence suggests that early poverty has substantial detrimental effects on adult earnings and work hours, but on neither general adult health nor such behavioral outcomes as out-of-wedlock childbearing and arrests. We discuss implications for indicators tracking child well-being as well as policies designed to promote the well-being of children.
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Child Labor and Trade Liberalization in Indonesia
Krisztina Kis-Katos & Robert Sparrow
Journal of Human Resources, Fall 2011, Pages 722-749
Abstract:
We examine the effects of trade liberalization on child work in Indonesia, identifying geographical differences in the effects of trade policy through district level exposure to reduction in import tariff barriers, from 1993 to 2002. The results suggest that increased exposure to trade liberalization is associated with a decrease in child work among the 10-15 year olds. The effects of tariff reductions are strongest for children from low-skill backgrounds, older siblings, and in rural areas. Favorable income effects for the poor, induced by trade liberalization, are likely to be the dominating effects underlying these results.
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Low Subjective Social Status Promotes Ruminative Coping
Benita Jackson et al.
Journal of Applied Social Psychology, October 2011, Pages 2434-2456
Abstract:
Correlational research has shown that lower social standing is associated with poorer health, but it is unknown if this association is causal. Two experiments tested whether randomly assigned low subjective social status would promote ruminative coping, a mechanism leading to the development of poor health outcomes. Participants were college females, split about evenly between Blacks and Whites. Experiment 1 (N = 39) found those imagining themselves at the bottom (vs. top) of a social ladder showed more ruminative coping using rater-assessed responses. Experiment 2 (N = 42) replicated these results, extended them with a self-report outcome measure, and demonstrated that negative affect did not mediate between subjective social status and ruminative coping. Across both experiments, race/ethnicity had no effect.
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Children discard a resource to avoid inequity
Alex Shaw & Kristina Olson
Journal of Experimental Psychology: General, forthcoming
Abstract:
Elucidating how inequity aversion (a tendency to dislike and correct unequal outcomes) functions as one develops is important to understanding more complex fairness considerations in adulthood. Although previous research has demonstrated that adults and children reduce inequity, it is unclear if people are actually responding negatively to inequity or if people dislike others getting more than them (motivated by social comparison) and like to share maximal resources, especially with those who have few resources (motivated by social welfare preferences). In order to evaluate if children are truly averse to inequity, we had 3- to 8-year-old children distribute resources to 3rd parties and found that 6- to 8-year-old children would rather throw a resource in the trash than distribute unequally, suggesting that concerns with equity can trump concerns with maximal sharing. We also demonstrated that children's reactions were not based on wanting to avoid upsetting the recipients or based on a preference for visual symmetry and that children will even throw away a resource that could have gone to themselves in order to avoid inequity. These results demonstrate the existence of inequity aversion in children, provide a new method for studying inequity aversion specifically, and suggest the need for new models to explain why inequity aversion may have evolved.
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Slum Clearance and Urban Renewal in the United States
William Collins & Katharine Shester
NBER Working Paper, September 2011
Abstract:
We study the local effects of the Housing Act of 1949, which established a federally subsidized program that helped cities clear areas for redevelopment, rehabilitate deteriorating structures, complete comprehensive city plans, and enforce building codes. We use an instrumental variable strategy to estimate the program's effects on city-level measures of median income, property values, employment and poverty rates, and population. The estimates are generally positive and economically significant, and they are not driven by differential changes in cities' demographic composition. The results are consistent with a model of spatial equilibrium in which local productivity is enhanced.
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Housing crowding effects on children's wellbeing
Claudia Solari & Robert Mare
Social Science Research, forthcoming
Abstract:
The degree to which children grow up in crowded housing is a neglected but potentially important aspect of social inequality. Poor living conditions can serve as a mechanism of social stratification, affecting children's wellbeing and resulting in the intergenerational transmission of social inequality. This paper reports an investigation of housing crowding on children's academic achievement, behavior, and health in the U.S. and Los Angeles, a city with atypically high levels of crowding. We use data from the Panel Study of Income Dynamics' Child Development Supplement and the Los Angeles Family and Neighborhood Survey to explore the effect of living in a crowded home on an array of child wellbeing indicators. We find that several dimensions of children's wellbeing suffer when exposed to crowded living conditions, particularly in Los Angeles, even after controlling for socioeconomic status. The negative effects on children raised in crowded homes can persist throughout life, affecting their future socioeconomic status and adult wellbeing.
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Kate Ann Levin et al.
Social Indicators Research, November 2011, Pages 179-194
Abstract:
Adolescence is a critical period where many patterns of health and health behaviour are formed. The objective of this study was to investigate cross-national variation in the relationship between family affluence and adolescent life satisfaction, and the impact of national income and income inequality on this relationship. Data from the 2006 Health Behaviour in School-aged Children: WHO collaborative Study (N = 58,352 across 35 countries) were analysed using multilevel linear and logistic regression analyses for outcome measures life satisfaction score and binary high/low life satisfaction. National income and income inequality were associated with aggregated life satisfaction score and prevalence of high life satisfaction. Within-country socioeconomic inequalities in life satisfaction existed even after adjustment for family structure. This relationship was curvilinear and varied cross-nationally. Socioeconomic inequalities were greatest in poor countries and in countries with unequal income distribution. GDP (PPP US$) and Gini did not explain between country variance in socioeconomic inequalities in life satisfaction. The existence of, and variation in, within-country socioeconomic inequalities in adolescent life satisfaction highlights the importance of identifying and addressing mediating factors during this life stage.
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Jackson Goodnight et al.
Journal of Abnormal Psychology, forthcoming
Abstract:
A quasi-experimental comparison of cousins differentially exposed to levels of neighborhood disadvantage (ND) was used with extensive measured covariates to test the hypothesis that neighborhood risk has independent effects on youth conduct problems (CPs). Multilevel analyses were based on mother-rated ND and both mother-reported CPs across 4-13 years (n = 7,077) and youth-reported CPs across 10-13 years (n = 4,524) from the Children of the National Longitudinal Survey of Youth. ND was robustly related to CPs reported by both informants when controlling for both measured risk factors that are correlated with ND and unmeasured confounds. These findings are consistent with the hypothesis that ND has influence on conduct problems.
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Associations with early-life socio-economic position in adult DNA methylation
Nada Borghol et al.
International Journal of Epidemiology, forthcoming
Background: Disadvantaged socio-economic position (SEP) in childhood is associated with increased adult mortality and morbidity. We aimed to establish whether childhood SEP was associated with differential methylation of adult DNA.
Methods: Forty adult males from the 1958 British Birth Cohort Study were selected from SEP extremes in both early childhood and mid-adulthood. We performed genome-wide methylation analysis on blood DNA taken at 45 years using MeDIP (methylated DNA immunoprecipitation). We mapped in triplicate the methylation state of promoters of approximately 20 000 genes and 400 microRNAs. Probe methylation scores were averaged across triplicates and differential methylation between groups of individuals was determined. Differentially methylated promoter sites of selected genes were validated using pyrosequencing of bisulfite-converted DNA.
Results: Variably methylated probes (9112 from n = 223 359 on the microarray) corresponded to 6176 gene promoters with at least one variable probe. Unsupervised hierarchical clustering of probes obtained from the 500 most variable promoters revealed a cluster enriched with high SEP individuals confirming that SEP differences contribute to overall epigenetic variation. Methylation levels for 1252 gene promoters were associated with childhood SEP vs 545 promoters for adulthood SEP. Functionally, associations with childhood SEP appear in promoters of genes enriched in key cell signalling pathways. The differentially methylated promoters associated with SEP cluster in megabase-sized regions of the genome.
Conclusions: Adult blood DNA methylation profiles show more associations with childhood SEP than adult SEP. Organization of these associations across the genome suggests a well-defined epigenetic pattern linked to early socio-economic environment.
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Subjective social status predicts in vivo responsiveness of β-adrenergic receptors
Frank Euteneuer et al.
Health Psychology, forthcoming
Objective: Several poor health outcomes, including cardiovascular risk, have been associated with both subjective social status (SSS) and sympathetic overactivity. Because prolonged sympathetic overactivation down regulates beta adrenergic receptor (β-AR) function, reduced β-AR responsiveness is considered an indicator of sympathetic overactivity and a cardiovascular risk factor. Though prior research has focused on objective social status and β-AR function, no studies have examined the association between SSS and β-AR function. We aimed to learn whether SSS predicts the in vivo responsiveness of β-ARs.
Methods: We assessed the chronotropic 25 dose (CD25), an in vivo marker of β-AR responsiveness, in 94 healthy participants. The MacArthur Scales of Subjective Social Status were used to assess SSS in the USA (SSS-USA) and in the local community (SSS-C). Objective social status was analyzed by calculating the Hollingshead Two-Factor Index.
Results: β-AR responsiveness was reduced (as indicated by higher CD25 values) in participants with lower SSS-USA (p = .007) and lower SSS-C (p < .001). The relationship between CD25 and SSS was particularly robust with respect to SSS-C. Hierarchical regression analyses revealed that SSS-C remained a significant predictor of CD25 (p < .001) and accounted for 14% of the total variance (32%) in CD25 after adjusting for sociodemographic variables (age, ethnicity, gender), health factors (exercise, smoking status, body mass index) and objective social status.
Conclusion: Our results indicate that β-AR function may be an important component of the link between SSS and health.
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Fred Ssewamala et al.
Children and Youth Services Review, forthcoming
Abstract:
Youth of color are disproportionately likely to grow-up in poor, disadvantaged neighborhoods characterized by high levels of psychosocial stressors and inadequate supportive resources. Poverty and racial minority status correlate with an increased risk of high-school dropout, teen pregnancy, substance abuse, and sexually transmitted infections (STIs). Given these trends, child welfare researchers are developing various interventions to increase the protective resources and social opportunities available to youth of color. This article reports results of a preliminary, qualitative study that investigated the feasibility and acceptability of an economic empowerment intervention in the South Bronx and East Harlem, New York. Using focus groups and brief questionnaires with youth and their parents/guardians (N = 24 dyads), we explored attitudes toward youth educational savings accounts, financial planning classes, and mentorship for inner-city youth. Findings indicate a strong interest in an economic empowerment intervention among adolescents and their caregivers in these communities. These findings have implications for the design of larger-scale research programs that aim to improve inner-city youth's socio-economic wellbeing using economic empowerment models.