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The Intergenerational Transmission of Cognitive Skills
Eric A. Hanushek, Babs Jacobs, Guido Schwerdt, Rolf van der Velden, Stan Vermeulen, Simon Wiederhold
VoxEU,
February
2022
Abstract
Parents influence their children in many ways, but which family features actually cause the strong intergenerational linkages that we observe? This column presents the first causal evidence on cognitive skill transmission in the family. Using Dutch survey and registry data, the authors show that parents’ maths and language skills strongly affect the same skills in their children, and that skills within dynasties are not just genetically determined but are significantly affected by educational experiences. This highlights the importance of good educational environments in alleviating persistent inequalities.
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Finance-Growth Nexus and Banking Efficiency: The Impact of Microfinance Institutions
Afsheen Abrar, Iftekhar Hasan, Rezaul Kabir
Journal of Economics and Business,
March-April
2021
Abstract
This paper investigates the relative importance of microfinance institutions (MFIs) at both the macro (financial development, economic growth, income inequality, and poverty) and micro levels (efficiency of traditional commercial banks). We observe a significant impact on most of the fronts. MFIs’ participation increases overall savings (total bank deposits) and credit allocation (loans to private sector) in the economy. Their involvement enhances economic welfare by reducing income inequality and poverty. Additionally, their active presence helps to discipline the traditional commercial banks by subjecting them to more competition triggering higher efficiency.
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FDI, Human Capital and Income Convergence — Evidence for European Regions
Björn Jindra, Philipp Marek, Dominik Völlmecke
Economic Systems,
No. 2,
2016
Abstract
This study examines income convergence in regional GDP per capita for a sample of 269 regions within the European Union (EU) between 2003 and 2010. We use an endogenous broad capital model based on foreign direct investment (FDI) induced agglomeration economies and human capital. By applying a Markov chain approach to a new dataset that exploits micro-aggregated sub-national FDI statistics, the analysis provides insights into regional income growth dynamics within the EU. Our results indicate a weak process of overall income convergence across EU regions. This does not apply to the dynamics within Central and East European countries (CEECs), where we find indications of a poverty trap. In contrast to FDI, regional human capital seems to be associated with higher income levels. However, we identify a positive interaction of FDI and human capital in their relation with income growth dynamics.
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Old Age Poverty – Causes and a Projection for 2023
Ingmar Kumpmann, Michael Gühne, Herbert S. Buscher
Jahrbücher für Nationalökonomie und Statistik,
No. 232,
2012
Abstract
Several factors bring about a rise in old age poverty in Germany, especially in East Germany. Using data from the German Socio-economic Panel (SOEP) we examine causes and extent of old age poverty in Germany. We begin our inquiry with a cross section regression in order to determine the impact of several factors on retirement incomes in Germany. In the second step we performan income projection of today’s 50 to 55 year-old people for the year 2023. In doing so, we take into account different sources of income, including several forms of capital income and the calculated rent of owner-occupied houses and flats.We find a significant rise in old age poverty especially in East Germany as a consequence of rising unemployment after the German unification.
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Old Age Poverty and Satisfaction with Living Conditions in East and West Germany, 1995 and 2009
L. J. Zhu, Anja Weißenborn, Herbert S. Buscher
Wirtschaft im Wandel,
No. 7,
2011
Abstract
The current contribution presents poverty indicators for West and East Germany for the years 1995 and 2009. The analysis is based on the two corresponding waves of the GSOEP. We only consider households with at least one senior citizen aged 65 or above. Furthermore, we distinguish between male and female pensioners. In the first part the weighted equivalized household income is calculated as well as various statistical measures such as the 20%- and 80%-percentile, the 80/20-ratio and the 90/10-ratio of the income distribution of senior citizen households. In an additional step we also present and discuss the main sources of income such households have. In the second part of the contribution we focus on social indicators with respect to the satisfaction with income and the current living conditions as well as the expected situation in five years. As the results show, old age poverty has increased in both parts in Germany with East German women being an exception. With respect to the future, most elder people look optimistically into the future.
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Africa and the Global Financial Crisis - Impact on Economic Reform Processes
R. Adelou Alabi, J. Alemazung, Achim Gutowski, Robert Kappel, Tobias Knedlik, O. Osnachi Uzor, Karl Wohlmuth, Hans H. Bass
African Development Perspectives Yearbook, Vol. 15,
2011
Abstract
In volume XV of the African Development Perspectives Yearbook, the Research Group on African Development Perspectives investigates the impact of the GFC on economic reform processes in Africa. The analysis is structured in such a way so as to reflect the opportunities and dangers of policy reversals in the face of the GFC. The impact of the crisis on different types and forms of governance in the region is considered. The first question is therefore which macro-economic policy instruments have to be applied in order to overcome the crisis and to continue with sustainable development. The second question is how the GFC has affected Africa's external economic relations and if the path of opening up to the world markets is continued. The third question raised is how the crisis has affected social cohesion, impacted on poverty alleviation strategies and the achievement of Millennium Development Goals (MDGs). All these questions are discussed in the various contributions which comprise general studies and country case studies. The authors also looked into the role of international financial institutions during and after the crisis. The volume XV of the African Development Perspectives Yearbook is structured into three Units. Unit 1 addresses general issues regarding the impact of the GFC on reform processes in Africa. Unit 2 presents case studies from countries and sub-regions. Unit 3 presents reviews and book notes of current literature focusing on issues of African development perspectives.
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Poverty in EU Countries
Herbert S. Buscher, Ingmar Kumpmann, Li Huan
Wirtschaft im Wandel,
No. 6,
2010
Abstract
The contribution provides an overview of several poverty measures in European countries. These measures are recommended by the so-called Laeken criteria and include, among others, the level of poverty income, the Gini coefficient as a measure of inequality of the income distribution as well as the 90/10- and the 80/20-ratio of the income distribution to shed light on the relation of the income shares in the extreme tails of the distribution. Compared over the years 2000 and 2008, the results indicate an increase in poverty in Europe over time, with Germany being located in the middle of the selected countries. Relative poverty is most severe in the new EU member states such as Romania, Bulgaria, and Latvia.
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Old Age Poverty – Causes and a Projection for 2023
Ingmar Kumpmann, Michael Gühne, Herbert S. Buscher
Abstract
Several factors bring about a rise in old age poverty in Germany, especially in East Germany. Using data from the German Socio-economic Panel (SOEP) we examine causes and extent of old age poverty in Germany. We begin our inquiry with a cross section regression in order to determine the impact of several factors on retirement incomes in Germany. In the second step we perform an income projection of today’s 50 to 55 year-old people for the year 2023. In doing so, we take into account different sources of income, including several forms of capital income and the calculated rent of owner-occupied houses and flats. We find a significant rise in old age poverty especially in East Germany as a consequence of rising unemployment after the German unification.
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Badr-El-Din A. Ibrahim:"The Role of Home Based Enterprises (HBEs) in Alleviating Sudanese Urban Poverty and the Effectiveness of Policies and Programmes to Promote HBEs"
Tobias Knedlik, K. (eds.) Wohlmuth
Sudan Economic Research Group Discussion Papers, No. 34,
2003
Abstract
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