Time and income poverty: An interdependent multidimensional poverty approach with German time use diary data

Income as the traditional one dimensional measure in well-being and poverty analyses is extended in recent studies by a multidimensional poverty concept, however, two important aspects are missing: time as an important dimension and the interdependence of the often only separately counted multiple poverty dimensions. Our paper will contribute to both aspects: We consider time – and income – both as important resources of everyday activities; the interdependence of the poverty dimensions will be evaluated by the German population. Referring to the time dimension, we follow Sen’s capability approach and argue, that restricted genuine, leisure time might exclude from social participation. The substitution between income and genuine leisure time is estimated by a CES-utility function of general utility with the German Socio-Economic Panel. We disentangle time, income and interdependent multidimensional poverty regimes characterising the working poor by a multinomial logit based on German 2001/02 time use diary data. One striking result: the substitution between time and income is significant and we find an important fraction of time poor who are unable to substitute their time deficit by income. These poor people are ignored within the poverty and well-being as well as the time crunch/time famine discussion so far.Interdependent multidimensional time and income poverty, time and income substitution, extended economic well-being, satisfaction, CES utility function estimation, working poor, German Socio-Economic Panel, German Time Use Surveys 2001/02.

Do high incomes reflect individual performance? The determinants of high incomes in Germany

In neoclassical economic theory the level of individual income is predominantly determined by individual job performance. Thus high incomes reflect the high marginal productivity of labour of the affluent working population. While the scientific research of poverty has a long tradition, nearly nothing is known about the rich. This study tries to diminish this research gap by investigating the structure of high labour incomes in Germany. By revealing the determinants of high incomes by descriptive and paneleconometric analyses mit Daten des Sozio-ökonomischen Panels, we want to answer the question if high incomes are especially the result of individual job performance or rather the result of social selection through social background or sexual discriminationHigh incomes, social background, discrimination, human capital, job performance, GSOEP, theory of justice

Preferred vs. Actual Working Hours - A Ten Years Paneleconometric Analysis for Professions, Entrepreneurs and Employees in Germany

Labour market dynamics according the individual working hour tension (preferred working hours minus actual working hours) of active people with focus on the self-employed, as professions and entrepreneurs, and employees are investigated in our study. The individual longitudinal analysis based on panel data allows us to follow the individual process of working time preferences and actual outcomes in its individual convergence/divergence balancing process in the course of time. Our microanalytic and paneleconometric results (with pooled, one and two factor fixed and random effects models) quantify the working hour tension developments and its determinants in a decade from the mid 80s to the mid 90s. Microdata base is the German Socio-Economic Panel with ten waves from 1985 to 1994. Finally, we discuss impacts of our results for labour market strategies and a targeted economic and social policy

The distribution and re-distribution of income of selfemployed as freelancers and entrepreneurs in Europe

The economic transformations of modern industrial societies have changed the labor markets in terms of industrial relations and occupational structure. The transformation of the traditional welfare state, the deregulation of the labor markets, the technological change and the reorganization of industrial structures influenced strongly the attitude of individuals towards their preferred labor contract. The structural change of the occupational structure was one of the results of this tendency. In particular the self-employed and freelancers have been affected and are a driving factor of labor market changings. On the one side the value of autonomy regarding industrial relations is becoming more important for employees. On the other side employers want to get rid of social security contributions. As a result the multitudinousness of these professions increased. The increasing varieties of occupations among the self-employed and freelancers influenced strongly their income distribution. Recent studies for Germany have shown a great dispersion and a heterogeneous structure of earnings in particular of freelancers (liberal professions) and self-employed. Though there are a variety of international income distribution studies, but – as to the best to our knowledge – no study focusing on the self-employed and freelancers within the total labor force. In our study we concentrate on the income distribution of self-employed and freelancers in different European countries. Based on the Luxembourg Income Study (LIS) we analyze five different European countries and the United States structured by different types of welfare states according to Esping Anderson. We analyze income distributional aspects, an occupational decomposition à la Shorrocks, and re-distributional effects of the tax and transfer systems.Europe, Income distribution of freelancers and self-employed, decomposition of inequality, redistribution, LIS microdata

Migrants in Germany: Separate and Unequal

Migrants of non-Western origin often live among themselves. This residential segregation is, however, not necessarily caused by a lacking will to integrate. It rather seems to a large part explainable with the socio-economic differences between population groups. The key to successful integration of migrants into the German society thus lies in the alleviation of inequalities in respect to education, income and German language skills.Segregation, Migration, Poverty

A systematic reflection upon dual career couples

Particularly among the highly educated, a persistent upward trend in female employment rates has characterized western industrialized countries in the last decades. Yet, strong gender inequalities persist in the career chances of equally highly qualified men and women. Women are still underrepresented in executive/ leading positions in both the private and public sector of the economy. We argue that such gender inequalities are also due to the fact that the majority of highly educated women lives with an equally highly educated partner. For these women the realization of dual careers becomes ever more important and represents an essential prerequisite for their own professional development. Following Phyllis Moen's 'linked lives' idea, we will argue that the achievement or failure of dual-career arrangements is a 'social-relational process' (Moen 2003a: 10) and that partners' lives are embedded with and influenced by each other. In particular, we will discuss how this entwining occurs, which processes at different levels play a role, and how these different processes interact with each other. Finally, we will give some suggestions on the direction for future research. -- Vor allem bei Hochqualifizierten charakterisiert ein andauernder Aufwärtstrend weiblicher Beschäftigungsraten die westlichen Industrieländer in den letzten Jahrzehnten. Jedoch herrscht bei den Karrierechancen von gleich qualifizierten Männern und Frauen noch immer eine große Geschlechterungleichheit vor. Frauen sind in führenden/leitenden Positionen sowohl im privatwirtschaftlichen als auch im öffentlichen Beschäftigungssektor noch immer unterrepräsentiert. Wir argumentieren, dass solche Geschlechterungleichheiten auf den Umstand zurückzuführen sind, dass die Mehrzahl hoch gebildeter Frauen mit gleichermaßen hoch gebildeten Partnern zusammenlebt. Für diese Frauen gewinnt die Realisierung von Doppelkarrieren an Bedeutung und stellt eine entscheidende Voraussetzung für ihre eigene professionelle Entwicklung dar. In Anlehnung an Phyllis Moens "linked lives" Idee werden wir diskutieren, dass der Erfolg oder das Scheitern von Doppelkarrierenarrangements ein "social- relational process" (Moen 2003a: 10) ist und dass die Lebensverläufe der Partner miteinander verwoben und voneinander abhängig sind. Im Einzelnen werden wir diskutieren, wie diese Verflechtung sich gestaltet, welche Prozesse auf verschiedenen Ebenen eine Rolle spielen und wie diese Prozesse miteinander interagieren. Zum Schluss werden wir Vorschläge für die Richtung zukünftiger Forschungen formulieren.

Preferred vs. Actual Working Hours - A Ten Years Paneleconometric Analysis for Professions, Entrepreneurs and Employees in Germany

Labour market dynamics according the individual working hour tension (preferred working hours minus actual working hours) of active people with focus on the self-employed, as professions and entrepreneurs, and employees are investigated in our study. The individual longitudinal analysis based on panel data allows us to follow the individual process of working time preferences and actual outcomes in its individual convergence/divergence balancing process in the course of time. Our microanalytic and paneleconometric results (with pooled, one and two factor fixed and random effects models) quantify the working hour tension developments and its determinants in a decade from the mid 80s to the mid 90s. Microdata base is the German Socio-Economic Panel with ten waves from 1985 to 1994. Finally, we discuss impacts of our results for labour market strategies and a targeted economic and social policy.Labour market dynamics, working hour tension, desired and actual working hours, paneleconometric analyses, professions, entrepreneurs and employees

Economic implications from deficit finance

The paper enlightens popular part of the budget policy - deficit finance. In the process of securing economic conditions to surpass the current economic crises, the governments all over the world incline towards debt deficit finance. The intention is to describe the implications such as multiplier effect, crowding out effect, correlation between budget and trade deficit. One of them are positive, they increase the aggregate demand and national income, other negative in term that they crowd out the private sector from the capital market under increased demand for loanable funds. --Budget deficit,Crowding out,Twin deficits,Exchange rates

Preferred vs. Actual Working Hours - A Ten Years Paneleconometric Analysis for Professions, Entrepreneurs and Employees in Germany

Labour market dynamics according the individual working hour tension (preferred working hours minus actual working hours) of active people with focus on the self-employed, as professions and entrepreneurs, and employees are investigated in our study. The individual longitudinal analysis based on panel data allows us to follow the individual process of working time preferences and actual outcomes in its individual convergence/divergence balancing process in the course of time. Our microanalytic and paneleconometric results (with pooled, one and two factor fixed and random effects models) quantify the working hour tension developments and its determinants in a decade from the mid 80s to the mid 90s. Microdata base is the German Socio-Economic Panel with ten waves from 1985 to 1994. Finally, we discuss impacts of our results for labour market strategies and a targeted economic and social policy.Labour market dynamics, working hour tension, desired and actual working hours, paneleconometric analyses, professions, entrepreneurs and employees

Timing, Fragmentation of Work and Income Inequality - An Earnings Treatment Effects Approach

Traditional welfare analyses based on money income needs to be broadened by its time dimension. In the course of time the traditional full-time work is diminishing and new labour arrangements are discussed (keyword: flexible labour markets). Our study is contributing to economic well-being by adding insights into particular work effort characteristics - the daily timing of work and its fragmentation - and its resulting income distribution. With our focus on ‘who is working when within a day with which earnings consequences’ we go beyond traditional labour market analyses with its working time division into aggregated full and part time work, working hours spread across a week and weekend, life time working etc. Whereas the first part of our study is describing the distribution of timing and fragmentation of daily work time and its resulting income based on more than 35.000 diaries of the recent German Time Budget Survey 2001/2002, the second part of our study quantifies determinants of arrangement specific earnings functions detecting significant explanatory pattern of what is behind. The economic theory behind is a human capital approach in a market and non-market context, extended by non-market time use, the partner’s working condition, social networking as well as household and regional characteristics. The econometrics use a treatment effects type interdependent estimation of endogenous participation (selection) in a daily working hour pattern (self-selection)and pattern specific earnings function explanation. The overall result: Individual earnings in Germany are dependent on and significant different with regard to the daily working hour arrangement capturing timing and fragmentation of work time. Market and non-market factors are important and significant in explaining earnings.time use and inequality, timing and fragmentation of work time, working hour arrangements, labour supply, earnings explanation, human capital, market and non-market time use, time use diary data, treatment effects modelling, endogenous self-selection, German time budget survey 2001/2002