Trade and Income
Friday, Jan. 6, 2017 2:30 PM – 4:30 PM
Sheraton Grand Chicago, Grant Park
- Chair: Bonni van Blarcom, Library of Congress
Improving Adherence to Labor Regulations along the Global Value Chain: Incentivizing Exporting Firms
AbstractModern value chains are increasingly globalized, and policymakers often face challenges in implementing cross-border regulations. Trends in macro-data from ILO and UN Comtrade on regulatory efficacy and trade offer limited insight, demonstrating the need for firm-level analysis. In this paper, I present a theoretical model of firm behavior, establishing economic linkages between firm productivity, regulatory adherence, and firm survival. Empirical literature using firm-level data from the Better Work Initiative demonstrates positive associations of adherence with productivity and survival, supporting results for the predictions from my model. I discuss the Better Work data and implementation to test model structure and to calibrate the model for policy experimentation.
Incomes of the Population 65+: A New Look with Linked Survey-Administrative Data
AbstractOver the past several decades, poverty among the population age 65 and over has declined precipitously while income has also steadily increased relative to the median (DeNavas-Walt et al. 2013; Meyer and Sullivan 2010). By necessity, previous studies of poverty and income are based on household surveys. Critics allege, however, that these survey data are subject to underreporting of various sources of income and that the problem may be particularly acute for the population age 65 and over who may rely on capital income including withdrawals from defined-contribution accounts. This project provides a comprehensive evaluation of income data quality of the Current Population Survey March Supplement (CPS ASEC), with a focus on the population age 65 and over. While existing validation studies have typically focused on a single source of income, our project uses a wide array of administrative datasets linked to the CPS-ASEC to validate many components of total household income and provide a new look at income and poverty from both a static and multi-year perspective. Among other results, we find that substituting administrative values reduces the official poverty measure for those aged 65 and over by about two percentage points, from 9 percent to 7.
Early Childhood Development, Earnings Inequality and Social Mobility in an Education Signaling Model
AbstractThe growing income inequality has been a big concern for economists and policy makers around the world. Many factors are responsible for the observed burgeoning income inequality, such as capital outflow, relocation of jobs, declining labor union, i.e., declining bargaining power of the labor, poor regulation of financial institutions, corruption, and all-encompassing globalization. Incomes of the bottom 99 percent population in a society comes mainly from earnings, and much of the earnings inequality results from the inequality of skill formation. The children of poor socioeconomic status stays behind skill accusations as compared to their rich counterpart. In modern technology-rich economies, providing high quality education to the talented individuals and matching their jobs with the highly productive technical sector is crucial for economic growth, earnings inequality and social mobility. Because education is used as a signal for a worker's unobserved endowment of talents, its acuisition by various social groups distorts productive efficiency, lowers social mobility and increases earnings inequality. This paper provides a signaling equilibrium framework to study these issues.
Federal Reserve Bank of St. Louis
Federal Reserve Board
Federal Reserve Bank of New York
- F1 - Trade
- J0 - General