Austerity and the income distribution: The case of Cyprus

The economic crisis affecting Cyprus is likely to have considerable impact on the income distribution. Our analysis provides an early assessment of the short-run distributional effects of austerity measures. We distinguish between fiscal measures that affect wages, taxes and contribution rates and measures that directly affect the function of the welfare system. Using the tax-benefit EUROMOD model we attempt to quantify the distributional implications of both. The analysis focuses on the policy changes introduced over the period between 2011 and 2012, i.e. before the expected bailout deal between the government of Cyprus and the consortium of international lenders which is expected in spring 2013. Specifically, we simulate the ceteris paribus impact of the reforms on inequality and poverty as well as estimate how the burden of austerity has been shared across income groups

The Gender Wage Gaps, 'Sticky Floors' and 'Glass Ceilings' of the European Union

We consider and attempt to understand the gender wage gap across 24 EU member states, all of which share the objective of gender equality, using 2007 data from the European Union Statistics on Income and Living Conditions. The size of the gender wage gap varies considerably across countries and selection corrections affect the offered gap, sometimes substantially. Most of the gap cannot be explained by the characteristics available in this data set. Quantile regressions show that, in most countries, the wage gap is wider at the top of the wage distribution ('glass ceilings') and, in fewer countries, it is wider at the bottom of the wage distribution ('sticky floors'). These features are related to country-specific characteristics that cannot be evaluated at the member state level. We use the cross-country variation in this large sample of member states to explore the influence of (i) policies concerned with reconciling work and family life and (ii) wage-setting institutions. We find that policies and institutions are systematically related to unexplained gender wage gaps.gender wage gap, selection, quantile effects, work-family reconciliation, wage-setting institutions

The gender wage gaps, 'sticky floors' and 'glass ceilings' of the European Union

We consider and attempt to understand the gender wage gap across 24 EU member states, all of which share the objective of gender equality, using 2007 data from the European Union Statistics on Income and Living Conditions. The size of the gender wage gap varies considerably across countries and selection corrections affect the offered gap, sometimes substantially. Most of the gap cannot be explained by the characteristics available in this data set. Quantile regressions show that, in most countries, the wage gap is wider at the top of the wage distribution ('glass ceilings') and, in fewer countries, it is wider at the bottom of the wage distribution ('sticky floors'). These features are related to country-specific characteristics that cannot be evaluated at the member state level. We use the cross-country variation in this large sample of member states to explore the influence of (i) policies concerned with reconciling work and family life and (ii) wage-setting institutions. We find that policies and institutions are systematically related to unexplained gender wage gaps

Evaluating the impact of labour market reforms in Greece during 2010-2018

In view of long-standing weaknesses in Greece’s labour markets, several labour market reforms were implemented during the economic adjustment programmes with two objectives. Firstly, support the economy’s adjustment through more flexible labour markets and secondly, enhance gains in cost competitiveness. In relation to their objectives, we find evidence that reforms largely fulfilled the second objective and partially the first, albeit left mostly unaddressed some of the long-standing weaknesses, such as low participation rate and high tax wedge. The analysis is backed by two distinct but complementary approaches. From a micro-founded analysis, while the 2014 reduction in social security contributions positively affected incentives for official sector labour participation, those appear to have decreased cumulatively during the overall programme period. From a top-down macroeconomic perspective, findings suggest that Greece’s 2012 labour market reforms had a positive impact on reducing Unit Labour Cost (ULC), increasing the use of flexible forms of employment, slowing down unemployment rate dynamics and slightly accelerating employment growth trends. At the same time, it appears that the 2012 reforms did not improve labour participation rates, while they increased average working hours and inequality

An Econometric Analysis of Residential Water Demand in Cyprus

This paper analyses econometrically residential water demand in the three major urban areas of Cyprus, a semi-arid country with medium to high income levels. Water demand turns out to be inelastic, but not insensitive, to prices; price elasticity is less than unity in absolute terms, but significantly different from zero. The analysis further shows that periodic interruptions in household water supply, which were applied as an urgent water saving measure in 2008–2009, did not encourage water conservation among the population. The paper discusses these results, pointing at the need for appropriate water pricing policies and long-term planning in order to move towards sustainable water resource managemen

RAE Ratings and Research Quality: The Case of Economics Departments

The RAE ratings, while intended for allocating research funds to UK universities, are often used as quality indicator by academics and students throughout the world. Yet the same outcome has been criticised as biased in favour of universities that are old, located in England, large and represented on the assessment panel. Although a naive approach can suggest otherwise, the RAE ratings of Economics departments in 1996 and 2001 investigated here are in quite close agreement with the profession's view of research quality as documented by independent rankings in the academic literature.RAE ratings, university rankings, research funding

Developing a food basket for fulfilling physical and non-physical needs in Cyprus. Is it affordable?

Background: An acceptable and affordable food basket (FB) is necessary to meet not only physical (healthy) needs but also the non-physical needs of individuals and communities. Methods: FBs were developed based on the Cypriot national food-based dietary guidelines for six types of household: single woman (±40 years), single man (±40 years), a couple (±40 years) without children, single woman (±40 years) with two children (10-year-old boy and 14-year-old girl), single man (±40 years) with two children and a couple (±40 years) with two children. Non-physical needs (kitchen equipment, physical activity and other related functions of food) were added to the baskets. The cost, acceptability and feasibility of FB were examined through the focus group discussions. Affordability was defined as the cost of the each basket as a percentage of household income (Guaranteed Minimum Income [GMI]). Results: The budget for healthy food has the highest proportion in the total food budget (83-89%) compared with the other components. The part of the budget required for other functions of food is small compared with that of healthy food and ranged between 4.7 and 6.7% of the total monthly budget. For low-income families, the proportion of income that needs to be spent on the FB for physical needs and FB for physical and non-physical needs ranged from around 39 to 72% and 47 to 81%, respectively. Conclusions: The FB fulfilling physical and non-physical needs is not affordable among the low-income families (mainly with children) receiving the GMI scheme in Cyprus

Developing a food basket for fulfilling physical and non-physical needs in Cyprus. Is it affordable?

Background: An acceptable and affordable food basket (FB) is necessary to meet not only physical (healthy) needs but also the non-physical needs of individuals and communities. Methods: FBs were developed based on the Cypriot national food-based dietary guidelines for six types of household: single woman (±40 years), single man (±40 years), a couple (±40 years) without children, single woman (±40 years) with two children (10-year-old boy and 14-year-old girl), single man (±40 years) with two children and a couple (±40 years) with two children. Non-physical needs (kitchen equipment, physical activity and other related functions of food) were added to the baskets. The cost, acceptability and feasibility of FB were examined through the focus group discussions. Affordability was defined as the cost of the each basket as a percentage of household income (Guaranteed Minimum Income [GMI]). Results: The budget for healthy food has the highest proportion in the total food budget (83-89%) compared with the other components. The part of the budget required for other functions of food is small compared with that of healthy food and ranged between 4.7 and 6.7% of the total monthly budget. For low-income families, the proportion of income that needs to be spent on the FB for physical needs and FB for physical and non-physical needs ranged from around 39 to 72% and 47 to 81%, respectively. Conclusions: The FB fulfilling physical and non-physical needs is not affordable among the low-income families (mainly with children) receiving the GMI scheme in Cyprus

The Cypriot food basket for health and adequate social participation

Introduction: Besides its nutritional function, food also serves a range of other human needs that are important to ensure an adequate participation in the society. Aim: To assess the cost of the Cypriot food basket (FB) fulfilling physical and non-physical needs as a part of the pilot project for the development of a common methodology for comparable reference budgets in all EU countries. Materials and methods: 24 adult subjects were randomly assigned into 3 focus groups (FGs). HFBs were developed for 6 different types of households living in the capital city and were based on the Cypriot National Guidelines for Food and Exercise. FGs have discussed the HFB, the other food functions (non-physical needs) and the buying habits. Afterwards, adaptations in the food baskets and the pricing were conducted