Income Threshold Research Articles

Fisher poverty, value chain equity, and resilience: The case of the Indonesian Blue Swimming Crab and the Peruvian Mahi-Mahi

Many marine fishery supply chains are becoming increasingly global and export oriented. Simultaneously, academic discussions around fisheries and poverty have often construed fishers as being among the poorest and most marginalised people in society. However, how value accrues along these supply chains, and how that affects fisher wellbeing, remains understudied. If fishers are indeed impoverished and relevant stakeholders wish to address the causes of impoverishment, then understanding how the value of a fish accrues along a value chain is essential. This research seeks to more clearly understand the existence, nature, and extent of fisher poverty through case studies of the Peruvian Mahi-Mahi and the Indonesian Blue Swimming Crab fisheries. It examines how value accrues along export-oriented fishery supply chains in country of origin and the prevalence of underearning at the fisher level. The value accrued at each domestic value chain step (fishers, middlemen/aggregators, processors) is estimated and used to calculate the level of underearning experienced by fishers within the value chains. Underearning is understood here as falling below a living income threshold, rooted in a rights-based approach to human rights. It is found that while fishers earn a significant percentage of the value of a fish that accrues in the country of origin, differences in number of actors per value chain step and labour intensity per kg of product handled mean that fishers still typically earn significantly less than other value chain groups. Underearning is found to be present in both value chains, with 69 % of Blue Swimming Crab fishers and 38 % of Mahi-Mahi fishers earning less than the rural living income. The outcomes of the research indicate that while fishers, particularly in export-oriented fisheries, are not the poorest of the poor, they still face significant challenges to their well-being and the stability of their livelihoods. It is recommended that future research incorporate more multi-faceted approaches to poverty and well-being in their analysis.

Perceived Influence of a State-Level Universal Free School Meal Policy on Households With Varying Income Levels: An Analysis of Parental Perspectives

BackgroundIn the United States, a means-tested approach is often used to provide free or reduced-price meals (FRPM) to students from lower-income households. However, federal income thresholds do not account for regional cost of living variations. Thus, many ineligible households may be at risk for food insecurity. Universal free school meal (UFSM) policies may help address this issue, especially in states with a higher cost of living. ObjectiveTo evaluate parent perceptions of the influence of Massachusetts’ statewide UFSM policy on households eligible and ineligible for FRPM. DesignCross-sectional survey of parents across income categories conducted during the 2022-23 school year. Participants/settingMassachusetts parents (N = 403) with children in grades kindergarten through grade 12 with incomes ranging from <185% of the federal poverty level to >300% of the federal poverty level. Main outcome measuresParents’ perceived influence of Massachusetts’ UFSM policy on their child and household. Statistical analyses performedAnalysis of variance examined differences in the perceived impact of UFSM by FRPM eligibility, adjusting for demographic characteristics. ResultsHouseholds that were FRPM eligible or near eligible were significantly more likely to report that their ability to have enough food for their family would be harder without UFSM (P < .0001) compared with those in the highest income category. Across all income categories, approximately 75% of parents reported that school meals should be free for all children, and UFSM saved their family money and time and reduced stress, with no significant differences by FRPM eligibility. Roughly half (52%) reported their household finances would be hurt and 42% of parents from households eligible for FRPM reported their child would be less likely to eat school meals if the UFSM policy ended. ConclusionsThis study found strong parent support of UFSM policies regardless of income level. In addition, parents perceived that discontinuing UFSM may adversely influence school meal participation, including among students from lower-income households, as well as food security among households ineligible for FRPM, particularly in areas with higher costs of living. Policies to expand UFSM should be considered among additional states and at the national level.

An environmental Kuznets curve for global forests: An application of the mi-lasso estimator

In this study, we employ a Moran's i based Lasso (Mi-Lasso) methodology to address the spatial dependence of an unspecified functional form, investigating the association between a country's economic growth and the rate of deforestation. Our aim is to explore the existence of a forestry environmental Kuznets curve (EKC). Our approach to handling spatial dependence overcomes limitations identified in existing EKC literature. We estimate a series of cross-sectional data models spanning the period from 1990 to 2020 for 146 countries. Our findings indicate a non-linear relationship, revealing a change peak rate of deforestation over time. Additionally, we observe that the income threshold at which the deforestation rate begins to decrease changes over time with differences observed between model specifications. Crucially, our results highlight that failing to account for spatial dependence leads to a significant absolute upward bias in ordinary least squares (OLS) estimates of income and worse model fit.

Cumulative Ecological Risk and Academic Performance of Economically Disadvantaged Adolescents: A Moderated Mediation Model

This study explored the association between cumulative ecological risk and academic achievement among adolescents from economically disadvantaged families and the mediating role of coping style and moderating effect of grit on this relationship. We recruited a sample of 509 students from economically disadvantaged families (classified as below the local income threshold) from Hunan Province, China. We conducted three surveys over two years (October 2018–October 2020). The results revealed that (1) cumulative ecological risk has a negative impact on the academic achievement of adolescents from families; (2) coping styles mediate the association between cumulative ecological risk and academic performance; and (3) grit can buffer the impact of cumulative ecological risk on one’s way of coping, but the buffering effect of grit diminishes as the level of cumulative ecological risk increases.

The non-linear effect of income on the shadow economy

This paper aims to explore the correlation between individual income and tax evasion. We develop a novel theoretical model based on the argument that the level of public goods provision and the perceived fairness of public services significantly influence an individual's attitude towards taxation. The model reveals a concave pattern, indicating the presence of an income threshold. Initially, as an individual's income increases, tax evasion decreases due to the perceived fairness of their contributions relative to the benefits received from public services. However, beyond this threshold, the tax burden is perceived as unfair, leading to an increase in tax evasion as income levels rise. We also proof that this income threshold is influenced by the tax rate and enforcement system. We also conduct a panel data analysis on a sample of 35 OECD countries from 2007 to 2020 to support the theoretical findings. The empirical investigation confirms a U-shaped relationship between income and the underground economy. Our findings suggest that policymakers should introduce measures to improve the quality of public goods provision, considering the potential adverse effect of higher income on economic growth. This study is the first to theoretically investigate the non-linear relationship between income and tax evasion while also providing empirical evidence.

Does Aid Induce Foreign Direct Investment: Updated Evidence from a Quasi-Experiment

Abstract While the catalytic effect of aid on foreign direct investment (FDI) has long been an implicit consensus among many policymakers and practitioners, assessments of this causal relationship remain limited and are not always reliable. To mitigate this evidence gap, this study applies an instrumental variable approach that leverages the graduation of the International Development Association (IDA) income threshold as a quasi-experiment to identify the causal linkage between foreign aid and FDI. The analysis reveals that a 1 percent drop in the ratio of aid to gross national income leads to a decline in FDI relative to gross domestic product by 0.9 percent in 42 developing countries from 1987 to 2019. In face of the aid shock induced by IDA graduation, governments in recipient countries restrict their financial policy openness, through which aid could significantly impact subsequent foreign private investment. Results emphasize the necessity of concerted policy interventions to mitigate this negative aid shock.

ESCAPING INCOME TRAP INDEX (EITI)

Middle-income Countries (MIC) that were unable to increase their National Incomes Per Capita (NIPC) to become High-Income Countries (HIC) and were stuck at a certain income threshold fell into the Middle Income Trap (MIT). In this study, 65 countries where 38 of them were HIC which might be taken as an example of economic development success and 26 of them as MIC those had strict competition in the international market along with Türkiye, which was examined as a sample country in the study, have been investigated by Escaping Income Trap Index (EITI). The index consisted of 5 sub-indices and 82 indicators multidimensionally. Türkiye did not have a successful ranking in the overall index and sub-indices. The ratio of Türkiye’s EITI score to leader country’s scores was 65 per cent. It was 60 per cent in the other popular indices generated by international organizations. The relationships of calculated EITI scores with Income Per Capita (IPC) for 65 countries have been tested with both the Cross-sectional Data Method for the 2013-2014 period and the Panel Data Method for twenty-one periods between 1993-1994 and 2013-2014.

Pendampingan Penghitungan dan Pelaporan Pajak Penghasilan Pasal 21 Orang Pribadi pada Civitas Akademika Sekolah Pelayaran Surabaya

Purpose – This community service activity aims to enhance the understanding of individual taxpayers in the field of taxation, specifically in calculating and reporting their taxes online. The community service activity took place at Bhakti Samudera Maritime School located in Surabaya, and the participants were teachers and administrative staff from the school. Design/methodology/approach - The activity was conducted in three phases: questionnaire distribution, training on the calculation and reporting of Article 21 Personal Income Tax (PPh Pasal 21), and assistance in calculating and reporting taxes online. Based on the questionnaire data, it was determined that the academic community had income below the Taxable Income Threshold (PTKP). Therefore, the community service team prepared simplified materials for tax calculation and reporting. Findings – This community service activity improved the understanding of individual taxpayers, specifically the academic community of Bhakti Samudera Maritime School in Surabaya, regarding how to calculate their tax liabilities under Article 21 Personal Income Tax and report them using online e-filing. Originality/value – The school's academic community benefited from the training and assistance provided, as it resolved all tax-related issues and misunderstandings.

Minimum wages and the uptake of Supplemental Security Income

This study investigates whether the minimum wage affects the uptake of Supplemental Security Income (SSI). To disentangle the effect of the minimum wage from underlying macroeconomic conditions, I use a triple-differences-type model that exploits cross-state and temporal differences in the minimum wage and its differential effects on those individuals with and without a high school diploma. I find that a one percent increase in the minimum wage leads to a 0.33 percent decline in SSI uptake. The effect is concentrated in unmarried individuals, who are more likely to face financial constraints and thus meet income and resource thresholds for collecting SSI.

A new scenario framework for equitable and climate-compatible futures

ABSTRACT This paper demonstrates a modelling approach and scenario framework for global burden-sharing, that foregrounds questions of climate and energy justice. We classify 134 countries into four development categories based on thirteen indicators. Using the quadratic plateau model, we estimate that an energy threshold of 94 GJ and an income threshold of USD 28,500 are necessary for meeting sustained levels of development in health, education, and infrastructure. We construct baseline scenarios for convergence to these and other threshold values drawn from the literature. Emissions constraints are then imposed in the form of the remaining carbon budget corresponding to the temperature targets of the Paris Agreement to assess the degree of energy-emissions and energy-GDP decoupling required to meet them. Our results show that limiting warming to 1.5°C requires higher effort across all regions, with the global effort remaining similar across scenarios. However, the distribution of the global effort across development categories varies significantly, depending on whether energy and climate equity are considered. The mitigation burden for the highest development category is almost six times higher if climate equity is considered. In contrast, the effort required by the least developed category is doubled if climate equity is compromised.

AS THE IMPOVERISHED GET EVEN POORER: AN ANALYSIS ON THE IMPACT OF PHILIPPINE TRAIN LAW TO THE MINIMUM WAGE EARNER

In the Philippines, the TRAIN Law or tax reform for acceleration and inclusion legislation was put into effect in 2018. This law sought to significantly alter the nation's tax structure in order to increase money for poverty alleviation, healthcare, and infrastructure. One of the features of the law was to increase the income threshold below which minimum wage earners would not be required to pay income tax. But it also resulted in higher costs for goods and services, which had an effect on Metro Manila's level of living. This qualitative research examines the significant data and information based on the participant's experiences with the TRAIN law. Semi-structured questions were used in the in-depth interview to facilitate deeper clarification and additional discussion. The results show that the majority of the impact of the law on the poor is related to basic needs like food, for which they must cut their budget in order to survive because there are other expenses to consider, such as utility bills and debts. Moreover, it impacts an individual's emotional and overall health, including mental health concerns brought on by financial difficulties. Additionally, it has an impact on their social interaction because they tend to engage with others less frequently because they are preoccupied with the things that need significant financial outlays. Thus, it may be inferred that the poor income class households' standard of living declined with the introduction of TRAIN law. KEYWORDS: tax reform law, poverty alleviation, minimum wage earner

Socio-demographic and economic profile of households with catastrophic health expenditures in Muanda, Boma and Matadi in 2022: a household cross-sectional study

Background Catastrophic health expenditures are direct healthcare expenses that exceed 10% or 25% of total household income. The present study aims to measure the proportion of households that fall into catastrophic health expenditure, their socio-demographic and economic characteristics and the factors associated with catastrophic health expenditures. Methods We conducted a secondary data analysis of 205 households from a cross-sectional study in seven health zones in 2022 in DRC. A Clustered Lot Quality Assurance Sampling (LQAS) was used through a 3-stage sampling process. Data were entered into SPSS version 26 and analyzed using the same software. Descriptive analyses included frequencies and percentages, bivariate analyses were performed to see the association between catastrophic health expenditure at 10% and 25% and the independent variables (location, household size, household head occupation, health insurance coverage, and economic well-being). Binary logistic regressions were performed respectively at the 10% and 25% thresholds of income. The association was statistically significant if the p-value was strictly less than 0.05. Results Overall, the extent of catastrophic expenditure at the 10% threshold was 72%, and 47% at the 25% threshold of the monthly household income. Poor households were 1.87 (95% confidence interval, CI=1.06-3.28) times more exposed to catastrophic expenditure than rich households. Conclusions In Kongo Central’s port area, catastrophic health expenditure prevalence is significantly higher than in Sub-Saharan Africa. This exposes the majority to further poverty, highlighting the need for a healthcare coverage system in the country. Registration: ESP/CE/118/2022 of September 12, 2022

The effect of income on the relationship between travel motives and destination choices

Background: Studies investigating the relationship between travel motivations and destination choice are often unidimensional and hierarchical, presenting limited perspectives on traveller groups with diverse socioeconomic backgrounds.Aim: This study investigates the variations in travel motives versus destination choices given different income bands. It presents a nuanced profile of income group members based on socio-demographic variables and travel experience.Setting: South African domestic tourism.Method: Threshold regression was applied to determine whether 13 motivations changed toward six destinations given specific income levels. Data from the 2019 South African Social Attitudes Survey (SASAS) were used and the weighted sample represented 42 573 093 South Africans.Results: The threshold regression materialised with between four to six breakpoints for most destinations. Fun dominated as a motive among lower income groups, as opposed to relationship building for higher income groups. Relaxation, as a known core travel motivation, did not lead to varied interest in specific destinations. Apart from motives, race and travel experience produced several significant differences.Conclusion: Income thresholds meaningfully explain variations in the relationship between travel motivations and destination choice. More effective marketing strategies should be built around travellers within overlooked markets.Contribution: The study provides novel empirical evidence that destination choice is non-linear and multifaceted. It applies threshold regression that has not been used in destination choice studies. Finer nuanced segments are identified and suggest an amendment to the travel career pattern (TCP) to accommodate developing and emergent travellers.

Income and emotional well-being: Evidence for well-being plateauing around $200,000 per year

Is emotional well-being monotonically increasing in the level of income or does it reach a plateau at some income threshold, whereafter additional income does not contribute to further well-being? Using a data-driven approach to detect the placement of the threshold, we find a flat relationship between household income and emotional well-being above a threshold around $200,000 per year. Our analysis relies on a number of assumptions, which we briefly discuss. We conclude that although the analysis of this paper provides some evidence for well-being plateauing around $200,000 per year, more research is needed before any definite conclusions about the relationship between emotional well-being and income can be drawn.

Exploring the link between economic growth, energy consumption, and environmental pollution in G20

AbstractThis study examined the interplay between economic growth and environmental pollution in G20 countries, employing panel data analysis techniques. The primary aim was to assess the validity of the Environmental Kuznets Curve (EKC) hypothesis using contemporary econometric methods, while considering the pertinent literature. Preliminary findings of the study affirm the EKC hypothesis, which posits that environmental pollution initially escalates with economic growth but diminishes after surpassing a specific income threshold. Nevertheless, upon integrating per capita energy consumption into the analysis, the descending trajectory postulated in the inverted U‐shaped hypothesis emerged as statistically non‐significant. This undermines the EKC hypothesis's assertion that industrialized nations with elevated per capita incomes predominantly contribute to reduced environmental pollution. Consequently, in the context of developed nations, this research bolsters the prevailing consensus in scholarly discourse that economic growth augments resource consumption, thereby adversely impacting environmental quality.

Financial protection in health revisited: Is catastrophic health spending underestimated for service- or disease-specific analysis?

Economists originally developed methods to assess financial catastrophe using total or aggregate out-of-pocket health spending. Aggregate out-of-pocket health spending is financially catastrophic when it exceeds a fixed proportion (i.e., threshold) of a household's total income or expenditure in a given period. However, these methods are now applied to assess financial catastrophe in disease- or service-specific rather than aggregate out-of-pocket health spending without using disease- or service-specific thresholds. This paper argues that not using disease- or service-specific thresholds for such assessments is misleading and underestimates the burden of financial catastrophe, especially among households from poorer backgrounds. It then proposed disease- or service-specific catastrophic payment thresholds, applied them to Nigeria and found that financial catastrophe was underestimated for the five service groups considered. The paper stresses the importance of using disease- or service-specific thresholds and avoiding unadjusted thresholds, which may leave poorer households behind as financially protected.

Tác động môi trường của tăng trưởng kinh tế: Tiếp cận bằng mô hình ngưỡng bảng động

The paper uses the environmental Kuznets curve (EKC) theory to study the environmental impact of economic growth in 17 Asian countries in the period 1996-2019 and at the same time search for the income threshold which causes a change in direction of impact. A dynamic panel threshold regression model is used. The findings show that economic growth has an inverted U-shaped nonlinear effect on environmental degradation. Accordingly, economic growth increases the impact on degradation when GDP per capita is low, but when it exceeds the threshold point (12487 USD thousand/person/year), economic growth helps to improve environmental quality. When comparing the difference in impact between the group of developed and developing countries, our results again confirm these findings. This result provided evidence that the EKC hypothesis exists in Asian countries. In addition, energy consumption, foreign direct investment, trade openness, and institutional quality significantly impact CO2 emissions. Some policy implications are suggested to reduce environmental degradation and promote sustainable economic development in Asia based on the research results

The link between economic growth and emigration from developing countries: Does migrants' skill composition matter?

AbstractTackling the root causes of migration from developing countries through development cooperation has been suggested as an essential part of the policy mix in OECD migrant destinations. This is even though the evidence on whether economic development leads to more or less people emigrating is so far inconclusive. We investigate the relationship between income per capita and emigration to OECD countries separately for three different skill groups—low‐skilled, medium‐skilled and high‐skilled emigrants—being the first to employ panel regression approaches that account for cross‐country heterogeneity and cover a policy‐relevant time frame of about 5 years. Our findings reveal a universal negative association between income per capita and emigration for all three skill groups and for different income thresholds. This implies that policy makers should not be too concerned about potential trade‐offs between (successful) development cooperation and immigration management, at least in the short to medium run that our analysis covers. At the same time, the scope for using development cooperation as a migration policy instrument can be considered to be limited given the modest size of the estimated income effect: Taking our point estimates at face value, a 10% rise in GDP per capita would on average lead to about 3600 fewer immigrants per destination.

Influence of Levels of Income on Micro and Small Business Operators’ Participation in Social Security Fund in Moshi Municipality

This research intended to assess the influence of income levels on micro and small business operators’ participation in social security fund (SSF) in Moshi Municipality, Tanzania. This study was guided by the Social Protection Theory (SPT) which described that Social Security Funds provides benefits to both individuals and households to propagate losses of earnings caused by sickness, maternity, employment injury, invalidity, old age or death. This research used a concurrent research design with a mixed research approach. The target population for the study was business operators found in Moshi Municipality totaling to 6,884. A sample size of 378 respondents obtained from Yamane (1964) formula through stratified random sampling and purposive Sampling. A structured questionnaire was administered as the tool for collecting primary data and Key informant Interviews were administered to gather additional qualitative data. Validity was ensured through discussion of the instrument with experts. Reliability of the instruments was obtained having Cronbach’s Alpha coefficient of 0.76. Ethical considerations were adhered toward conducting this study. Descriptive statistics and content analysis was used for quantitative and qualitative data respectively. The study revealed that level of income affects the way that small or micro business operator perceives the value of social security funds in Moshi Municipality. This study recommends that social security funds should set a minimum income threshold for participation to ensure that micro and small business operators with low level of income participate in the social security funds in Moshi Municipal Council.

Household income supplements in early childhood to reduce inequities in children's development

BackgroundEarly childhood interventions have the potential to reduce children's developmental inequities. We aimed to estimate the extent to which household income supplements for lower-income families in early childhood could close the gap in children's developmental outcomes and parental mental health. MethodsData were drawn from a nationally representative birth cohort, the Longitudinal Study of Australian Children (N = 5107), which commenced in 2004 and conducted follow-ups every two years. Exposure was annual household income (0–1 year). Outcomes were children's developmental outcomes, specifically social-emotional, physical functioning, and learning (bottom 15% versus top 85%) at 4–5 years, and an intermediate outcome, parental mental health (poor versus good) at 2–3 years. We modelled hypothetical interventions that provided a fixed-income supplement to lower-income families with a child aged 0–1 year. Considering varying eligibility scenarios and amounts motivated by actual policies in the Australian context, we estimated the risk of poor outcomes for eligible families under no intervention and the hypothetical intervention using marginal structural models. The reduction in risk under intervention relative to no intervention was estimated. ResultsA single hypothetical supplement of AU$26,000 (equivalent to ∼USD$17,350) provided to lower-income families (below AU$56,137 (∼USD$37,915) per annum) in a child's first year of life demonstrated an absolute reduction of 2.7%, 1.9% and 2.6% in the risk of poor social-emotional, physical functioning and learning outcomes in children, respectively (equivalent to relative reductions of 12%, 10% and 11%, respectively). The absolute reduction in risk of poor mental health in eligible parents was 1.0%, equivalent to a relative reduction of 7%. Benefits were similar across other income thresholds used to assess eligibility (range, AU$73,329-$99,864). ConclusionsHousehold income supplements provided to lower-income families may benefit children's development and parental mental health. This intervention should be considered within a social-ecological approach by stacking complementary interventions to eliminate developmental inequities.