Pseudo Panel Research Articles

An Assessment of the Relevance of the Mincerian Equation: The Case of Mauritius

This paper assesses the relevance of the Mincerian Equation in Mauritius. Using CMPHS data, the basic equation is augmented to cater for wage responsiveness to changes across different schooling levels. However, the use of the standard linear regression method does not take into consideration the endogeneity of the variable years of schooling and sample selection bias. The IV2SLS Method is adopted, using region as an instrument. The Heckit model is further adopted to address the problem of sample selection bias. This study also employs pseudo panel models as an alternative to IV2SLS as a weak instrument may significantly impact results.

Changing levels of income and multidimensional poverty among persons with disabilities in Colombia: A pseudo panel analysis

In Colombia, more than 4 per cent of the population lives with disability and high levels of income and multidimensional poverty have been recognised within this group. However, there is no information on how the levels of poverty have changed over time or whether households with members with disabilities are more likely to be chronically poorer than households without disabilities in the country. In addition, no evidence exists on the potential effect of the Covid-19 pandemic on the socioeconomic characteristics of persons with disability. This study aims to contribute to the literature on this topic by analysing a nationally representative survey (Quality of Life Survey) from 2018 to 2022 and studying the changes in the levels of income and multidimensional poverty of persons with disabilities and their household, and identifying whether any changes associated with the Covid-19 pandemic.

Willingness to pay for changes in travel time and work time: A stated choice experiment of US commuters

Studying the tradeoffs between commuting, working, and money—including the willingness to pay (WTP) for changes to travel time and work time—is of interest in both travel behavior research and transportation practice. Our study's objectives were to: (1) quantify WTP for travel time and work time changes; (2) measure preference heterogeneity in these time values; and (3) examine sensitivities to changes in income and travel cost. First, we conducted a stated choice experiment that added work time and income to traditional travel time and cost attributes, collecting data from 675 US adult commuters in late 2020. Second, we estimated pseudo panel mixed multinomial logit models with random and systematic preference heterogeneity. Average WTP was larger for travel time changes than for work time changes, although values varied across personal, household, and commute/work characteristics. Overall and on the margin, US commuters appear to dislike commuting more than they dislike working, a finding which differs from previous studies in Chile and Austria. Although future work could improve the realism of the choice experiment, our research offers a simple stated preference method to help work towards advancing an understanding of the values and tradeoffs involving both working and commuting.

Structural transition of protein intake in urban China: Stage characteristics and driving forces

AbstractThe rapidly growing animal protein demand of Chinese residents has caused multiple pressures, including on food security, health, and the environment. It is critical to study the reasons for the changes in Chinese residents' protein intake structure and make a reasonable judgment about its future trend. This paper uses the Nationwide Urban Household Survey Date from 1992 to 2009 to construct a pseudo panel and conduct research based on the habit formation theory. We find that there is a significant habit formation effect in the consumption of the main protein source foods of Chinese urban residents, especially animal foods. It weakens with the passage of time, which may be the reason for the continuous increase in urbanites' animal protein intake. There are differences in the protein intake structure and changing trend of urban residents in China's different regions. We suggest that government should pay more attention to the development of animal husbandry and the supply security of feed grains; strengthen nutritional intervention efforts to guide residents toward balanced and healthy dietary patterns, with moderate intake of animal protein; and formulate more detailed nutritional standards by region and population to cope with the impact of the growing animal protein demand among China's residents. [EconLit Citations: D12, E21, Q18].

The impact of anti-COVID-19 restrictions and transitory unemployment insurance policies on unemployment in Russia

PurposeDuring the COVID-19 pandemic, transitory unemployment insurance (UI) policies substantially increased unemployment benefits (UBs) and the number of eligible groups in Russia. The procedure for registering as unemployed was moved to an online platform. The present paper aims to distinguish the effect of anti-COVID-19 restrictions on unemployment from that of the transitory unemployment insurance policies.Design/methodology/approachUsing 553,627 approved claims for unemployment benefits from the Russian Public Employment Service (PES) administrative records (June 2019–December 2020), monthly data on the number of individuals registered as unemployed are aggregated in a pseudo panel. A double-difference approach is employed to identify the effects of the social interaction intensity and teleworkability (TW) of the latest occupation on unemployment. The first is associated with a direct effect of anti-COVID-19 restrictions and the latter with the simplified application procedure.FindingsThe face-to-face (F2F) intensity of the latest occupation did not lead to any increase in the number of unemployed persons as could be expected in response to anti-COVID-19 restrictions. Job TW had two opposite effects on unemployment: it decreased individuals' risk of job loss and increased their likelihood of claiming unemployment benefits. Surprisingly, however, in line with the typical response of the Russian labour market to downturns, the latter dominated. The largest response was found among men and individuals with primary education.Originality/valueThis study is the first to attempt to distinguish the effect of anti-COVID-19 restrictions from that of the transitory UI policies on unemployment in Russia.

Gender Earning Difference between Public and Private Sector of Pakistan

The study is an attempt to observe the earning differences between male and female of the public and private sector in Pakistan by employing nationally representative Pakistan Labor Force Survey (PLFS) data for the period 2006 - 2021. In order to perform a detailed comparative analysis of the earning difference, the private sector is further segregated into formal and informal sectors. Empirical evidences acquired by employing Pseudo panel technique, ascertain that earning differences in the public sector are low compared to the private sector. Public sector is performing a fair role in reducing gender earning difference in Pakistan. It is concluded that the female employees of informal sector are more exploited compared to the formal sector in both public and private sector because of the female vulnerability. Migration from rural to urban areas contributes significantly in reducing wage differential across genders.

Heterogeneous impact of internet availability on female labor market outcomes in an emerging economy: Evidence from Indonesia

Greater female labor market participation benefits not only women's empowerment and the well-being of their families, but also the economy as a whole. Yet the labor force participation of women in developing countries is relatively stagnant, even with higher levels of economic development and better educational attainment. Women are also more likely to work in the informal sector and unskilled jobs. The arrival of the internet and the subsequent creation of internet-based jobs may positively affect women's labor market outcomes. In this paper, we examine the effect of internet availability on five dimensions of women's labor market outcomes in Indonesia, focusing on the heterogeneity in the impact of internet availability on female labor market outcomes. We construct a balanced pseudo panel covering all districts in the country for 2008 – 2018. We find that internet availability has a small positive effect on the labor force participation and full-time employment of younger or low-educated women. We find a small negative effect on the likelihood of holding skilled jobs for these groups of women. We also find a small negative effect on job formality. These effects are concentrated among low-educated women. The findings are mainly explained by the kind of internet-based jobs that were created in the country. On balance, we do not find evidence that the internet significantly improves women's labor market outcomes.

Pseudo Panel Analysis of Waste Disposal and Household Health Expenditure in Ghana: The Role of Institutions

This study analyzed the effect of waste disposal on household health expenditure in Ghana by using Pseudo Panel technique to inform policy. It further analyzed the role institutions play in dealing with waste disposal and household health expenditure in Ghana. Numerous empirical studies have been carried out on waste disposal. However, these empirical studies did not focus on examining the effect of waste disposal on household health expenditure in Ghana. The study employs pseudo panel constructed from repeated cross sectional data from Ghana Living Standard Surveys (5, 6 &7) to achieve this objective. The System Generalized Method of Moments (GMM) is employed to estimate the model. Results from the study indicates that, improper solid waste disposal leads to the spread of diseases like malaria, cholera, diarrhoea, dengue and others. This leads to the increase in the health expenditure of these households. However, when solid waste disposal is interacted with institutions (Faith Based Organizations), it reduces household health expenditure. The study recommends that, government institutions should complement the efforts of these Faith Based Organizations (FBOs) to help achieve higher positive outcome. Keywords: Solid waste disposal, liquid waste disposal, household health expenditure, pseudo panel, institutions DOI: 10.7176/JRDM/89-04 Publication date: November 30 th 2022

Contemporary and dynamic effects of socio-economic factors on physical (in)activity: Does intensity matter?

ObjectiveThis paper identifies varying contemporary and dynamic effects of socio-economic factors on individuals' decisions to allocate their time to physical activities when the intensity of these activities comes into play.MethodsBased on repeated cross-sectional data sourced from the Argentinean National Risk Factor Surveys of 2005, 2009, and 2013, we developed 18 fictitious cohorts to set up a pseudo panel. To address endogeneity problems, four econometric specifications were estimated: OLS, Heckman two-stage model, fixed- and random-effects models.ResultsWe find that changes in the opportunity cost of time are highly significant and provide shifts in individuals' decisions regarding the allocation of their time to physical activity consumption. When considering the intensity at which physical activities are consumed, increased income impacts less, suggesting that individuals faced with a wage increase reduce the time of consumption but increase its intensity. An interesting finding is that employed people consume more physical activity than inactive individuals. This indicates that the substitution effect produced by an increase in the wage rate is less than the income effect. Additionally, the increase in the coefficient of employed persons is greater when the intensity factor is considered, indicating that for employed individuals a trade-off between time and intensity is generated. We also found that higher levels of education increase the probability of participating in physical activities, but decrease the time spent in such activities. Furthermore, there are heterogeneous impacts on physical activity consumption between males and females, which can be observed in the strong effect of household production for women with at least one child. Finally, such impacts remain in a variety of estimated specifications.ConclusionsThese results may be useful in order to suggest some tools for the design of interventions that are aimed at increasing participation in physical activities.

Food price volatility and household welfare: A case study of major cities of Pakistan

The purpose of this paper is to find the impact of food price volatility on the welfare of urban households of Pakistan. Food price volatility in monthly prices of major food commodities for main cities of Pakistan is calculated through standard deviation method. Moreover, the study adopts the methodology provided by Alkire and Foster 2007, and Alkire and Santos 2010 to develop Household Deprived Welfare Index (DWI) for major cities of Pakistan. Following Deaton 1985, the study uses pseudo panel approach. Fixed Effect technique is applied to estimate the impact of volatility on household welfare. The results generated from pseudo panel fixed effect technique depicts that food price volatility has significant and negative impact on household welfare. This study lengthens the literature by identifying the impact of food price volatility on household welfare at city level in Pakistan, using four waves of PSLM/HIES data 2007-08, 2011-12, 2013-14 and 2014-15.This type of micro-level research has not been conducted (nationally or internationally) so far; therefore, it would help the policy makers to implement policies to combat the effect of volatile prices and develop programs for the welfare of severely affected areas.

Healthcare Utilization Under a Comprehensive Public Welfare Program: Evidence From Japan.

The public assistance system in Japan provides detailed and comprehensive livelihood support for low-income families with various needs. As one example, and the beneficiaries of the public welfare program in Japan can receive the same medical treatments as those insured of the universal public health insurance without any financial burdens. This system has greatly contributed to maintaining and improving the health of public assistance beneficiaries but may cause excessive healthcare utilization: moral hazard. This study uses a large sample taken from two nationally representative claim data for public assistance and public health insurance patients to estimate the magnitude of moral hazard effect in basic outpatient utilization. The results of the fixed-effect regression analysis utilizing the concept of pseudo panel data analysis and those of propensity score matching show that the average treatment effect of public assistance assignment on healthcare utilization is significantly positive. Specifically, public assistance assignment increases monthly healthcare expenditure by 17.5 to 22.9 percent and the monthly number of doctor visits by 23.1 to 27.8 percent, respectively. In addition, the average treatment effects on the treated are also significantly positive, suggesting that monthly healthcare expenditure significantly decreases by 22.7 to 25.0 percent and the number of visits by 27.6 to 29.7 percent, respectively, when imposing a copayment on public assistance beneficiaries. However, the estimated price elasticity based on these results is very small, approximately −0.02, indicating that the level of copayment rate has little effect on the intensive margin of outpatient healthcare utilization.

Income rank and income concerns: What correlates with international migration intentions?

The link between the relative income theory and migration is well-established. There is however less consensus on how migration intentions change as populations climb up the wealth ladder. We argue that people’s subjective concerns about unfavorable financial positions and the worry about deteriorating income rank are associated with higher migration intentions, irrespective of actual income gaps. Drawing on survey data from the Gallup World Poll (GWP), spanning 129 countries between 2009 and 2017, this is the first cross-country study that attempts to gauge the links between the concerns about low rank in relative deprivation and international migration. We construct an index to proxy the intensity of the concern over low income using individuals’ self-assessment of own financial and life wellbeing. Our findings have important migration policy implications for home countries. While improving macroeconomic conditions and reducing actual inequality are important to lower migration outflows, migration intentions can be more significantly associated with subjective perceptions of lower financial well-being than with actual income or wealth differentials. The results held robust in both individual and pseudo panel results, across genders and educational levels, and after controlling for relative macroeconomic conditions, global communication, and addressing endogeneity.

IMPACT OF CROP PRODUCTIVITY ON POVERTY AMONG FARM HOUSEHOLDS IN GHANA

Ghana Poverty Reduction Strategy I & II sought to increase crop productivity to reduce high poverty incidence in farm sector, but the magnitude of impact of the productivity on poverty is not present in all agro-ecological zones in Ghana. The aim of the study is to estimate poverty headcount ratio, poverty gap and poverty severity, and link crop productivity to poverty according to agroecology subject to a two-step instrumental variable regression technique using Pseudo Panel data from the Ghana Living Standards Survey (GLSS rounds 5 & 6). Farmers’ poverty headcount ratio, poverty gap, and poverty severity reduced from 57%, 25%, and 14% in 2005 to 37%, 14%, and 7% in 2013 respectively. The result further indicates that 1% growth in crop productivity reduces the probability of poverty headcount ratio, poverty gap and poverty severity by 0.28%, 0.38% and 0.75% respectively in all agro-ecological zones. Additionally, the paper shows that education, livestock and remittance income reduces poverty, while household size and great distance to access water increase poverty differently from agro-ecology. The study recommends rapid crop productivity growth by prioritizing technology adoption and institutional coordination to suit agro-ecological conditions among the poor, illiterate and non-partisan.

Effects of pricing and infrastructure on car ownership: A pseudo-panel-based dynamic model

This study investigates households’ car ownership decisions in response to changes in vehicle quota control and transport infrastructure in Singapore. Unlike previous cross-sectional studies, we calibrate a dynamic car ownership model with a pseudo panel constructed from repeated cross-sectional travel surveys, controlling for the persistence of car ownership and unobserved heterogeneity. We find that the tightening of vehicle quota control and improved rail transit accessibility have reduced households’ desire to purchase cars. The long-run effect of these two policies is larger than their short-run effect due to the existence of true state dependence. The impact of expressway-network expansion is insignificant.

Factors influencing customer satisfaction with water service quality in Chile

Consumers satisfaction with water and service quality are not always in line with monitored water and service quality compliance. Reducing the difference between perceptions and realities requires understanding how perceptions are formed and the factors that affect them. Most studies have researched these factors in developed countries. This study analyzes the factors that explain customer satisfaction with water and service quality and of the service provided by water supply and sanitation providers in Chile, shedding light on the factors that affect customer satisfaction in a developing country context and, also in a situation with stringent water service standards and reliable water supply. A Structural Equation Model was estimated, using an unbalanced pseudo panel with 32,745 observations collected by the Superintendencia de Servicios Sanitarios of Chile. Results indicate that perceived water quality has a strong influence on the perceived health risk.Additionally, customer risk perception mainly depends on organoleptics, which are explained by taste, odour, and clarity. Service quality and price are mainly influenced by the consumer's perception of water quality and the payment system. Furthermore, perceived health risk and service quality negatively impact customer satisfaction with water and service quality. Reducing the difference between perceptions and realities requires an understanding of how perceptions are formed. This research sheds light on these processes.

Inequality of opportunity in China: Evidence from pseudo panel data

We construct a pseudo panel sample from the China General Social Survey to study the inequality of opportunity in China. The pseudo panel enables us to control for cohort-specific heterogeneities when estimating the Mincer equation, and the results show that individual circumstances play a prominent role in determining income advantage. Counterfactual analysis further reveals the importance of cohort-level circumstances: individual circumstances account for less than 10% of the observed income inequality, whereas equalizing both the individual circumstances and the cohort fixed effects reduces income inequality by 30%. Among the individual circumstances we examine, gender and paternal characteristics contribute more to income inequality than does hukou of birth. Subsample analysis shows that China's western provinces exhibit the highest inequality of opportunity and that the inequality of opportunity among younger cohorts is smaller than that among older cohorts.

Large farms, large benefits? Sustainability certification among family farms and agro-industrial producers in Peru

• We use nationally representative data to explore implications of sustainability certification among large and small farms. • Certification is much more common among large farms than among small farms. • Certified farms are geographically clustered. • Certification is associated with higher farm incomes and changes in farm practices among large but not among small farms. • The importance and potential of certification in the large farm sector has been overlooked and deserves more attention. Do sustainability standards improve socioeconomic conditions and environmental performance among participant farms? While numerous studies have addressed this question, results are mixed, and the external and internal validity of the available evidence is limited. Moreover, the extant literature has mainly focused on smallholder farms. Our contribution is twofold. First, this is the first paper to use nationally representative panel data to explore the proliferation and implications of sustainability certification. Second, we consider both small (family-operated) and large (agro-industrial) farms. We use data from Peru’s National Agricultural Survey and panel and pseudo panel methods. In terms of outcome variables, we focus on annual farm income and farm practices. Although sustainability standards rhetorically emphasize small farms, we find that certification is much more common among large farms than among small farms. Further, certified farms are geographically clustered, which confirms previous findings. Results also show that certification is associated with higher farm incomes and changes in farm practices among large but not among small farms. These differences are not attributable to farm size alone but likely associated with other characteristics of large farms such as crop choices and type of standard. We conclude that the importance and potential of certification in the large farm sector have been underappreciated and should receive more scientific attention in the future.

Micro-economic analysis of domestic water demand: application of the pseudo-panel approach

The main purpose of the work is twofold. First, we tried to identify the main determinants that may explain the consumption of residential water in Tunisia using the pseudo panel method. This technique proved its effectiveness to overcome the lack of panel data. Moreover, the comparison between the obtained results using this method and those calculated based on the cross-sectional data showed the robustness of the pseudo-panel estimators. In the second step, our goal examined the policies and strategic orientations that seemed to be useful to manage water consumption in Tunisia. Estimation results reveal that the income elasticity of Tunisian residential demand for water is of about 1.18% and price elasticity is around 0.34 confirming that residential water demand in Tunisia is inelastic. This analysis consolidates the assumptions highlighting a coupling between Economic Status and drinking water consumption, the synergy between the equipment rate and water demand, and the synergy between the type of housing structure and the drinking water demand. In addition, it also emphasized the coupling between the socio-professional category of the household head and water consumption, the coupling between household size and water consumption, and the classical economic assumption confirming that price elasticity is negative.

Immigrant diversity, integration and worker productivity: uncovering the mechanisms behind ‘diversity spillover’ effects

Abstract A growing body of research is demonstrating a robust positive relationship between the diversity of a city’s foreign-born population in the USA and worker productivity. Other research has focused on diversity within firms, similarly finding positive effects in many cases. Although it appears that diverse teams within firms are better at problem-solving and are more creative, the exact mechanism(s) that drive the relationship between diversity and productivity at the scale of city-regions are less apparent and underexplored in extant research. Drawing on research from several fields, I describe four mechanisms that might drive the relationship between immigrant diversity and productivity at the urban level. I explore each mechanism with a pseudo panel of workers and fixed effects OLS regressions across U.S. Metropolitan Statistical Areas between 2011 and 2017. The results most strongly support that at the urban level, diversity enhances productivity through what I call ‘exposure effects’ and ‘interactive problem-solving’, wherein workers become more productive and more creative through exposure to new cultures and ways of thinking and through joint problem-solving. These results suggest that positive externalities arise when coupling rising immigrant diversity with the social integration of people from diverse backgrounds.

For the love of sun and wind? Proximity to renewable energy facilities and support for renewable power across time and space in the United States

The relationship between proximity to energy development and public support is inconsistent. Research indicates that proximity to fossil fuels is associated with higher support for that fuel source, yet these relationships vary across time and space and have rarely been studied for renewable energy. We use two waves of a U.S. national survey and novel propensity-score-based pseudo panel methods to analyze how proximity to renewable energy influences public support for its expanded use. Results indicate proximity to renewable energy development does not predict support, and panel regression results suggest that growth in local renewable energy has not altered support for renewables. Rather, political factors and climate change risk perceptions are most influential. Unlike fossil fuel industries, proximity to renewable energy does not predict support for using these technologies. Although more research is needed, we suggest that renewables, as of 2016, lack the cultural and social significance of fossil fuels.