Income distribution: Second thoughts

As a follow-up of his book on income distribution the author reformulates his version on the scarcity theory of income from productive contributions. The need to introduce into an earnings theory several job characteristics, non-cognitive as well as cognitive, and the corresponding personality traits is stressed, the latter subdivided into innate and learnable capabilities. The theory is presented in two alternative mathematical versions: one where job and person characteristics are continuous and one where they have discrete values and their frequencies assume continuous values. Although, mainly in the United States, numerous empirical inquiries have been made, job characteristics and the corresponding personal characteristics have not been included in sufficient number. I want to express my profound gratitude to Professor Robert H. Haveman, who not only published a deep-delving review article on my book Income Distribution: Analysis and Policies but also commented on an earlier text of the present article. I also owe a great debt to Professor Jan Pen who in a long series of discussions challenged a number of my concepts and figures. Finally I want to thank Dr. S. K. Kuipers for helpful comments on an earlier draft

Does wage rank affect employees' well-being?

How do workers make wage comparisons? Both an experimental study and an analysis of 16,000 British employees are reported. Satisfaction and well-being levels are shown to depend on more than simple relative pay. They depend upon the ordinal rank of an individual's wage within a comparison group. “Rank” itself thus seems to matter to human beings. Moreover, consistent with psychological theory, quits in a workplace are correlated with pay distribution skewness

Intra-Household Work Timing: The Effect on Joint Activities and the Demand for Child Care

This study examines whether couples time their work hours and how this work timing influences child care demand and the time that spouses jointly spend on leisure, household chores, and child care. By using an innovative matching strategy, this study identifies the timing of work hours that cannot be explained by factors other than the partners' potential to communicate about the timing of their work. The main findings are that couples with children create less overlap in their work times and this effect is more pronounced the younger the children. We find evidence for a togetherness preference of spouses, but only for childless couples. Work timing also influences the joint time that is spent on household chores, but the effect is small. Finally, work timing behaviour affects the demand for informal child care, but not the demand for formal child care

How STRANGE are your study animals?

A new framework for studies of animal behaviour will help to avoid sampling bias— ten years on from the call to widen the pool of human participants in psychology research beyond the WEIRD.Publisher PDFNon peer reviewe

Human hippocampal neurogenesis drops sharply in children to undetectable levels in adults.

New neurons continue to be generated in the subgranular zone of the dentate gyrus of the adult mammalian hippocampus. This process has been linked to learning and memory, stress and exercise, and is thought to be altered in neurological disease. In humans, some studies have suggested that hundreds of new neurons are added to the adult dentate gyrus every day, whereas other studies find many fewer putative new neurons. Despite these discrepancies, it is generally believed that the adult human hippocampus continues to generate new neurons. Here we show that a defined population of progenitor cells does not coalesce in the subgranular zone during human fetal or postnatal development. We also find that the number of proliferating progenitors and young neurons in the dentate gyrus declines sharply during the first year of life and only a few isolated young neurons are observed by 7 and 13 years of age. In adult patients with epilepsy and healthy adults (18-77 years; n = 17 post-mortem samples from controls; n = 12 surgical resection samples from patients with epilepsy), young neurons were not detected in the dentate gyrus. In the monkey (Macaca mulatta) hippocampus, proliferation of neurons in the subgranular zone was found in early postnatal life, but this diminished during juvenile development as neurogenesis decreased. We conclude that recruitment of young neurons to the primate hippocampus decreases rapidly during the first years of life, and that neurogenesis in the dentate gyrus does not continue, or is extremely rare, in adult humans. The early decline in hippocampal neurogenesis raises questions about how the function of the dentate gyrus differs between humans and other species in which adult hippocampal neurogenesis is preserved

Financial Satisfaction and (in)formal Sector in a Transition Country

This paper examines the relationship between working in the formal or informal sector and self-reported individual financial satisfaction in a country in transition. It does so by allowing for individual heterogeneity in terms of perceived financial insecurity and tax morale. The empirical analysis uses a dataset for Albania, a country in transition. The method applied is the ‘self-administered questionnaire’, which combines personal contacts with written questionnaire. The results indicate that, for most individuals, working in the informal sector has negative effects on their self reported financial satisfaction. For some individuals, however, this effect is positive. The characteristic defining these two groups of individuals is their attitude towards the perceived financial insecurity related to not paying taxes. These findings have important implications, in particular for transition countries with large informal sectors. Given the involuntary participation in the informal sector in these countries, the majority of individuals working in this sector will remain financially dissatisfied as long as they have no other social safety net

Happiness economics

There is enough evidence to be confident that individuals are able and willing to provide a meaningful answer when asked to value on a finite scale their satisfaction with their own lives, a question that psychologists have long and often posed to respondents of large questionnaires. Without taking its limitations and criticisms too lightly, some economists have been using thismeasure of self-reported satisfaction as a proxy for utility so as to contribute to a better understanding of individuals' tastes and hopefully behavior. By means of satisfaction questions we can elicit information on individual likes and dislikes over a large set of relevant issues, such as income, working status and job amenities, the risk of becoming unemployed, inflation, and health status. This information can be used to evaluate existing ideas from a new perspective, understand individual behavior, evaluate and design public policies, study poverty and inequality, and develop a preference based valuation method. In this article I first critically assess the pros and cons of using satisfaction variables, and then discuss its main applications