Working papers results

This paper provides a detailed empirical assessment of the evolution of income inequality and the redistributive e↵ects of the tax and transfer system following the 2007-2008 crisis. It focuses on the US case, drawing on data from the Current Population Survey for the period 2007-2012. Contrary to most existing studies, it uses of a wide range of inequality indicators and looks in detail at several sections of the income distribution, allowing for a clearer picture of the heterogeneous consequences of the crisis. Furthermore, it analyses the contribution of di↵erent types of taxes and transfers, beyond the overall cushioning e↵ect of the system, which allows for a more refined assessment of its e↵ectiveness. Results show that although the crisis implied income losses across the whole income distribution, the burden was disproportionately born by low to middle income groups. Income losses experienced by richer households were relatively modest and transitory, while those experienced by poorer households were not only strong but also highly persistent. The redistributive system had a crucial role in taming the increase in income inequality in the immediate aftermath of the crisis, and during the GR years, particularly cash transfers. After 2010, however, its e↵ect became weaker and income inequality experienced a new surge. The findings of this paper contribute to a better understanding of the distributional consequences of aggregate crises and the role of tax and transfer policies in stabilising the income distribution in a crisis aftermath.e theoretical bases for the impact of higher education policy on social mobility.

This paper relates social mobility and social stratification to higher education policy. We show that higher‐education policy which leads to differences in quality and per‐student expenditure as well as in admission procedures between standard and elite universities, is a key factor in generating permanent social stratification and social immobility. We develop an intergenerational model which shows that a two‐tier higher education characterised by a division between elite and standard universities can be a key factor in generating permanent social stratification, social immobility and self‐reproduction of the ‘elite’. In our approach, low mobility is essentially explained by the differences in quality and in selection between elite and standard universities. A key result is that the wider the quality gap and the difference in per‐student expenditures between elite and standard universities, the less social mobility. This is because a larger quality gap reinforces the weight of family backgrounds at the expense of personal ability. Our simulations show that this impact can be large. These findings provide theoretical bases for the impact of higher education policy on social mobility.

In this study we review the literature on the origins and implications of family structure in historical perspective with a focus on Italian provinces. Furthermore we present newly- collected data on three of the main features of family structure: female mean age at marriage, the female celibacy rate, and the fraction of illegitimate births. The data are collected at the provincial level for 1871, the year of Italy's political unification. The analysis of the data allows us to confirm and quantify the geographic differentiation in family patterns across the country. We also illustrate the links between family structure and a set of socio-economic outcomes, in the short, medium, and long run.

The paper provides a framework of how culture affects citizens' subjective well-being. According to self-determination theory, well-being is driven by the satisfaction of three basic psychological needs: autonomy, relatedness and competence. We assess if and to what extent generalized trust and the values of obedience and respect influence the Europeans’ satisfaction of these needs, controlling for income and education. We find positive impact of generalized morality (i.e. high trust and respect, low obedience). Results are robust to different checks for endogeneity, including instrumental variable regressions at country, regional and individual level as well as to panel-data estimations.

In 2011, Italy introduced board gender quotas in listed companies. Comparing within firms before-after reform changes, we document that quotas are associated with a higher share of female board directors, with higher levels of education of board members and a lower share of elderly members. We then use the reform period as an instrument for the share of female directors and find no significant impact on firms’ performance. Interestingly, we find that the share of female directors is associated to a lower variability of stock market prices. We also run event studies on the stock price reaction to the introduction of gender quotas. A positive effect of the quota law on stock market returns emerges at the date of board’s election. Our results are consistent with gender quotas inducing a beneficial renovation of the board, which is positively received by the market.

We theoretically show that when mothers need to buy childcare services not only if they work but also if they want to search actively for a job, a reduction in the price of childcare will increase their likelihood of searching but may decrease their willingness to accept a job offer and therefore lower employment. We test these predictions empirically by means of a Regression Discontinuity design and find that the introduction in Italy of pre-kindergarten, a much cheaper alternative to day care for 2-year-old children, increased both participation in the labour market and employment of mothers of eligible children. This effect was driven largely by a significant decrease in the stated reservation wage. For a full evaluation of the policy we finally provide evidence that pre-kindergarten did not affect children’s cognitive development as measured at second grade.

In this paper, we exploit pension reform-induced changes in retirement eligibility requirements to assess the role of grandparental child care availability in the employment of women who have children under 15. We focus on Italy for two reasons: first, it has low rates of female employment and little formal child care provision, and second, it has undergone several pension reforms in a relatively short time span. Our analysis shows that, among the women studied, those whose own mothers are retirement eligible have a 13 percent higher probability of being employed than those whose mothers are ineligible. The pension eligibility of maternal grandfathers and paternal grandparents, however, has no significant effect on the women’s employment probability. We also demonstrate that the eligibility of maternal grandmothers mainly captures the effect of their availability for child care. Hence, pension reforms, by potentially robbing households of an important source of flexible, low-cost child care, could have unintended negative consequences for the employment rates of women with children.

This paper investigates the extent to which attitudes are affected by political regimes and government policies. We focus on female attitudes toward work and gender-role attitudes in the population at large, which have been shown to have significant effects on labor market outcomes. We exploit the imposition of state-socialist regimes across Central and Eastern Europe, and their efforts to promote women’s economic inclusion, for both instrumental and ideological reasons, presenting evidence from two different datasets. First, we take advantage of the German partition into East and West after 1945 and unique access to restricted information on place of residence to implement a spatial regression discontinuity design. We find more positive attitudes toward work in the sample of East German women. We also find evidence that increased female access to higher education and fulltime employment, arguably two of the very few positive aspects of living under state-socialism, may have served as channels for regime influence. Second, we employ a difference-in-differences strategy that compares attitudes formed in Central and Eastern European countries (CEECs) and Western European Countries (WECs), before and after the imposition of state socialism in CEECs. Gender-role attitudes formed in CEECs during the state socialist period appear to be significantly less traditional than those formed in WECs.

We study a setting where anti-discrimination legislation gives rise to adverse selection in the labor market. Firms rely on nonlinear compensation contracts to screen workers who differ in their family/career orientation. This results in a la- bor market equilibrium where career-oriented workers are offered an inefficiently low duration of parental leave. In addition, family-oriented workers are offered lower wages as compared to their equally skilled career-oriented counterparts. We demonstrate the usefulness of mandatory parental leave rules in mitigating the distortion in the labor market and derive conditions under which a Pareto im- provement is possible. We also characterize the optimal parental leave policy and highlight the possibility for parental leave legislation to eliminate the wage penalty of family-oriented workers by supporting pooling employment contracts.

Education is a key sociological variable in the explanation of health and health disparities. Conventional wisdom emphasizes a life course-human capital perspective with expectations of causal effects that are quasi-linear, large in magnitude for high levels of educational attainment, and reasonably robust in the face of measured and unmeasured explanatory factors. In this paper, we challenge this wisdom by offering an alternative theoretical account and an empirical investigation organized around the role of measured and unmeasured cognitive and non-cognitive skills as confounders in the association between educational attainment and health. Based on longitudinal data from the National Longitudinal Survey of Youth – 1997 spanning mid adolescence through early adulthood, results indicate that a) effects of educational attainment are very vulnerable to issues of omitted variable bias; b) that measured indicators of cognitive and non-cognitive skills account for a significant proportion of the traditionally observed effect of educational attainment; c) that such skills have effects larger than that of even the highest levels of educational attainment when appropriate controls for unmeasured heterogeneity are incorporated; and d) that models that most stringently control for such time-stable abilities show little evidence of a substantive association between educational attainment and health. Implications for theory and research are discussed.