Total Labor Income Research Articles

Labor Income Losses Associated With Heart Disease and Stroke From the 2019 Panel Study of Income Dynamics

Current estimates of productivity losses associated with heart disease and stroke in the US include income losses from premature mortality but do not include income losses from morbidity. To estimate labor income losses associated with morbidity of heart disease and stroke in the US due to missed or lower labor force participation. This cross-sectional study used 2019 Panel Study of Income Dynamics data to estimate labor income losses associated with heart disease and stroke by comparing labor income between persons with and without heart disease or stroke, after controlling for sociodemographic characteristics and other chronic conditions and considering the situation of zero labor income (eg, withdrawal from the labor market). The study sample included individuals aged 18 to 64 years who were reference persons or spouses or partners. Data analysis was conducted from June 2021 to October 2022. The key exposure was heart disease or stroke. The main outcome was labor income, measured for the year 2018. Covariates included sociodemographic characteristics and other chronic conditions. Labor income losses associated with heart disease and stroke were estimated using the 2-part model, in which part 1 is to model the probability that labor income is greater than zero and part 2 is to regress positive labor income, with both parts having the same set of explanatory variables. In the study sample consisting of 12 166 individuals (6721 [52.4%] females) representing a weighted mean income of $48 299 (95% CI, $45 712-$50 885), the prevalence of heart disease was 3.7% and the prevalence of stroke was 1.7%, and there were 1610 Hispanic persons (17.3%), 220 non-Hispanic Asian or Pacific Islander persons (6.0%), 3963 non-Hispanic Black persons (11.0%), and 5688 non-Hispanic White persons (60.2%). The age distribution was largely even, from 21.9% for the age 25 to 34 years group to 25.8% for the age 55 to 64 years group, except for young adults (age 18-24 years), who made up 4.4% of the sample. After adjustment for sociodemographic characteristics and other chronic conditions, persons with heart disease would receive an estimated $13 463 (95% CI, $6993-$19 933) less in annual labor income than those without heart disease (P < .001), and persons with stroke would receive an estimated $18 716 (95% CI, $10 356-$27 077) less in annual labor income than those without stroke (P < .001). Total labor income losses associated with morbidity were estimated at $203.3 billion for heart disease and $63.6 billion for stroke. These findings suggest that total labor income losses associated with morbidity of heart disease and stroke were far greater than those from premature mortality. Comprehensive estimation of total costs of CVD may assist decision-makers in assessing benefits from averted premature mortality and morbidity and allocating resources to the prevention, management, and control of CVD.

Ocean Recreation and the Economic Contributions of Visitation in and around Gray’s Reef National Marine Sanctuary

Providing demonstrable and quantifiable evidence to substantiate the value of Marine Protected Areas like National Marine Sanctuaries is important for understanding their role in the blue economy, as well as gaining management and financial support for their protection. This study employs economic contribution analysis to estimate the economic contributions of ocean recreation spending of visitors to Gray’s Reef National Marine Sanctuary (GRNMS) and the coastal Georgia region. Employing economic contribution analysis is found to be more useful in influencing stakeholder decisions, and can therefore be a useful tool in providing inputs for management decisions related to marine protected areas. This study shows that visitors to coastal Georgia spent about USD 1.4 billion on ocean recreation activities in a single year. This translates to a total economic contribution of 18,950 jobs, USD 603 million labor income, USD 938 million value added, and USD 1.8 billion output. About USD 123 million of the total visitor spending can be attributed to GRNMS, contributing 1702 total jobs, USD 54 million in total labor income, USD 84 million in total value added, and USD 159 million in total output. This study highlights the importance of coastal Georgia and GRNMS as economic drivers of the region’s economy, supporting the need for continued management and investment in the Sanctuary and its resources.

GENDER PROFILE OF INCOME AND CONSUMPTION: EVIDENCE FROM THE NATIONAL TRANSFER ACCOUNTS OF MOLDOVA

The use of the National Transfer Accounts (NTA) methodology has opened up the possibility of examining gender differences in income and consumption throughout the life cycle. This article presents the results of the study of the gender profile of income and consumption based on the NTA of Moldova for 2019. Moldova is characterized by a low level of employment of the population, low incomes and a high involvement of the population in international labor migration. Women's labor incomes are lower than men's throughout the life cycle, and the life cycle surplus is entirely formed by men, who are net donors to cover the life cycle deficit of other age groups during the working period. More than two-thirds of the economic life cycle deficit is held by women, and the gender gap in economic dependence was 22.7% - an additional share of the total labor income needed to finance women's economic dependence compared to the total labor income needed to finance men's economic dependence. Differences in the age profile of working income are due to the fact that women enter the labor market a little later than men, due to much higher enrollment rates in higher education institutions, as well as due to low participation in the labor market during the period associated with the birth and upbringing of children. The economic dependence of women is a reflection of the “gender contract” characteristic of Moldova, according to which a man and a woman participate in the labor market, but the woman still has most of the household chores.” It can be assumed that the problem of underestimation of income by the population in the household survey could cause an underestimation of the age profile of labor income, which, in turn, influenced the estimation of the size of the economic life cycle deficit.

Sectoral heterogeneity, industrial structure transformation, and changes in total labor income share

• Build a multi-sector dynamic general equilibrium model to characterize the impact of sectoral heterogeneity on the industrial structure transformation and labor income shares, and then perform it with numerical simulations result. • Find that the changing direction of total labor income share is same as the labor share of labor-intensive industries. • Explain the “U-shape” trend of China's total labor income share changes. • Help to further understand the economic connotation of the time-varying elasticity production function model and the ongoing structural transformation of China's economy. In recent years, China's labor income share has undergone substantial changes and the evolution of income distribution is inseparable from the process of industrial structural transformation. From the perspective of sectoral heterogeneity, this study develops Ngai and Pissarides’ (2007) model, constructing a multisector dynamic general equilibrium model. We propose that technological progress or capital deepening will promote the flow of production factors among sectors, with the direction dependent on the substitution elasticity between products, sectoral differences in the rate of technological progress, factor output elasticity, and elasticity of factor substitution. This process of factor flow also causes changes in total labor income share, and the direction parallels the labor share of labor-intensive industries. Combining the development data of China's three major industries during different periods, the results demonstrate that in the industrial period, labor flows from the agricultural sector to the industrial sector and the total labor income share decreases; in the postindustrial period, labor flows from the industrial sector to the service sector and the total labor income share increases. The contribution of this study is in presenting a comprehensive and systematic examination of the impact of sectoral heterogeneity on industrial structure transformation and labor income share, which explains the U-shaped trend of China's overall total labor income share and also helps to further understand the structural transformation of the Chinese economy.

Assessing the generational impact of COVID-19 using National Transfer Accounts (NTAs)

An important aspect of the current COVID-19 crisis is that not all age groups are equally affected by the pandemic. To account for the generational impact of COVID- 19, a dynamic overlapping generations model with realistic demography, human capital and NTAs is constructed. The COVID-19 crisis is modelled through two unexpected and temporary negative shocks: an economic shock that reduces labour income, and a demographic shock that increases the mortality hazard rates of those infected. The model is applied to 12 countries for which full NTA data are available. Results are presented for two extreme fiscal policies: one in which governments compensate workers for 0% (without fiscal support) of their total labour income losses due to the pandemic, and another in which governments compensate workers for 100% (with fiscal support) of these losses. In addition, I analyse the impact of these policies on public debt. The results show that COVID-19 is affecting the financial situations of people aged 25 to 64 and their children more than those of older people. By compensating workers for their income losses, the economic impact of COVID-19 has been more evenly distributed across cohorts, reducing the burden on people aged zero to 64, and increasing the burden on people aged 65 and older. Moreover, the simulation results show that a 1% decline in labour income leads to an average increase in the debt-to-total labour income ratio of between 1.2% (without fiscal policy) and 1.6% (with fiscal policy).

Economic Contributions of Visitor Spending in Ocean Recreation in the Florida Keys National Marine Sanctuary

Understanding the economic value of marine sanctuaries such as the Florida Keys National Marine Sanctuary (FKNMS) is important to justify public and private investments and to provide information to support management activities and understand their role in the nation’s blue economy. Very few studies have employed economic contribution analysis in examining economic value, even though it is more useful in influencing the behaviors of decision makers. This study therefore employs such a methodology to determine the economic importance of tourism and visitor spending in the sanctuary to Monroe County, Florida’s economy. Visitors who came to the area for ocean recreation and tourism spent a total of USD 1.7 billion, which translates to a contribution of 19,688 total jobs, USD 752 million in total labor income, USD 1.2 billion in total value added, and USD 2 billion in total output to the region. With regard to the spending of snorkelers and divers only, total spending is about USD 1.07 billion, contributing about 12,441 total jobs, USD 466 million in total labor income, USD 767 million in total value added, and USD 1.2 billion in total output. Ocean recreation is therefore an important economic driver in the region and efforts should be directed at protecting the diverse and sensitive ecosystem of the sanctuary.

Economic Impact Analysis of Farmers’ Markets in the Washington, DC Metropolitan Area: Evidence of a Circular Economy

Consumer interest in farmers’ markets (FMs) has dramatically increased during the past decade. The number of FMs in the United States has grown from 1755 in 1994 to 8140 in 2019 (USDA, 2019). To evaluate the economic impacts (EIs) of FMs in the Washington, DC metropolitan area, we collected FMs’ consumer data and used IMPLAN-based social accounting matrices to evaluate the direct, indirect, and induced economic impacts of FMs. The empirical results from IMPLAN provide the direct gross sales, income figures, and an estimate of the number of jobs in the study region. The results show the average total output of USD 36,181,059, total employment of 663 people, total value-added creation of USD 19,019,226, and total labor income created of USD 8,653,350 in the region. The FM average income multiplier is 1.51, which indicates that a USD 1 increase in personal income (PI) for an FM translates into USD 1.51 in PI across the economy of the region. We also highlight the impact of FMs as an important component of the circular economy (CE). To this end, we present a qualitative approach examining the potential of a CE as applied to the farmers’ markets in the Washington, DC metropolitan area using qualitative data from focus groups. The goal of the circular economy is to provide more sustainability in the local economy.

Pengembangan Model dan Metode Perhitungan Bonus Demografi

Previously research on bonus demographic measurement is still only focused on one model, namely dependency ratio which coverage two methods namely Cheung et al and Adioetomo. This research was carried out in East Lombok Regency and consist of two models, namely dependency ratio model and economic lifetime model. Dependency ratio model which coverage four methods namely Cheung et al, Adioetomo, Komine &amp; Kabe, and Golini. Meanwhile economic lifetime model which coverage two methods namely support ratio and ratio of lifecycle pension wealth to total labour income. The aimed of this research is to determine model and method of bonus demographic measurement. This research used descriptive quantitative method. Based on the data analysis the results obtained that model that developed for measurement of demographic bonus is only dependency ratio model, meanwihle economic lifetime model isn’t developed yet. Refer to the fourth method of dependency ratio model, three methods have been developed namely Cheung et al, Adioetomo, Komine and Kabe, meanwhile Golini hasn’t been developed yet. Based on Cheung et al method East Lombok Timur Regency has been achieved demographic bonus between 2035 and 2045, but based on Adioetomo method between 2020 and 2045 has not been achieved demographic bonus yet and based on Komine and Kabe method will be achieved demographic bonus between 2020 and 2045. Keywords: demographic bonus, dependency ratio, economic lifetime

Sustainability at a cost: An inceptive analysis of “extended” fishing ban on the livelihoods of fishers of Tamil Nadu

AbstractAn emphasis on sustainable marine fish production has paved the way for the enactment of Marine Fisheries Regulation Acts and subsequent regulations in India. A closed season ban on fishing has been one of the very few successful regulatory measures since its introduction in 2001 in Tamil Nadu. Since 2017, the fishing ban period has been extended from 45 to 60 days for the east coast of India, for ecosystem‐based marine fisheries management. This study analyses the socioeconomic impacts of change in the fishing ban (closed season) across the four coastal zones of Tamil Nadu. For the past 10 years, CPUE has been stable or increased marginally. Among the four coasts, the relative change in employment and labour income loss was highest for Palk Bay (36.84%). Transaction costs of implementation of the ban caused an additional expense of Rs 496.5 million to the Government in 2017 and the overall total labour income loss has leaped from Rs 1,638.2 to 2,100.2 million due to the extension of the ban. The fishing ban has aided in the recovery of habitat and regeneration of stock through recruitment. Training and capacity building on alternative livelihood options are highly recommended to enable the workers to cope with the ban period.

Losing standard employment in Germany: The consequences of displacement and dismissal for workers’ subsequent careers

This study examines the effects of job loss on workers’ subsequent careers in Germany. To provide a comprehensive picture, I distinguish between displacement due to plant closure and dismissal and simultaneously analyze the effects on workers’ subsequent labor market statuses, labor incomes, and non-standard employment risks. The results show that both events have lasting negative effects. Five years after job loss, displaced and dismissed workers have 12 and 15 percentage point lower employment chances respectively. Although this is mostly explained by higher unemployment risks, more than a third is due to displaced and dismissed workers leaving the labor force entirely, especially via (early) retirement. Moreover, I find large short-term total labor income losses which are mainly explained by lower employment chances and reduced working hours but falls in hourly wages become relatively more important as time passes. Five years after job loss, the negative effects on hourly wages still amount to 6 percent for displaced workers and 8 percent for workers who were dismissed. With respect to non-standard employment, I show that both displacement and dismissal increase the risks of self-employment, part-time employment, and temporary employment with only the latter being transitional in nature.

Labor Demand Shocks and Housing Prices Across the United States: Does One Size Fit All?

This study examines whether effects of labor demand shocks on housing prices vary across time and space. Using data on 321 U.S. metropolitan statistical areas (MSAs), the authors estimate the medium- and long-run effects of increases in MSA-level employment and total labor income on housing prices. Instrumental variable estimates for different time periods, and also for coastal, noncoastal, large, and small metropolitan statistical areas, are obtained using the shift-share instrument. Results suggest that labor demand shocks have positive effects on housing prices; however, these effects appear to vary across time periods and across different types of MSAs.

Does education matter? – economic dependency ratios by education

When studying the economic consequences of changes in the age structure of the population, looking at economic dependency ratios provides us with some descriptive and intuitive initial insights. In this paper, we present two economic dependency ratios. The first ratio is based on economic activity status, and relates the number of dependent individuals to the number of workers. The second dependency ratio relates consumption to total labour income. To build up the second ratio, we rely on the recently set up National Transfer Accounts (NTA) for Austria. Simulations of the employment-based dependency ratio with constant agespecific employment rates indicate that the employment-based dependency ratio will increase from 1.23 in 2010 to 1.88 in 2050, based on a population scenario that assumes low mortality, medium fertility and medium migration in the future. The corresponding values for the NTA-based dependency with constant age-specific labour income and consumption are 1.12 in 2010 and 1.49 in 2050.We then compare how the dependency ratio would di?er if we accounted for the increasing levels of educational attainment. While the education-specific age patterns of economic activities are kept constant as of 2010, the changing educational composition up to 2050 is accounted for. In Austria, higher educated individuals enter and exit the labour market at older ages and have more total labour income than lower educated individuals. Our simulations of the education-specific economic dependency ratios up to 2050, based on the optimistic projection scenario of low mortality and high educational levels in the future, show that the employment-based ratio will increase to 1.68 and the NTA-based dependency ratio will rise to 1.28. These increases are still considerable, but are well below the values found when changes in the educational composition are not taken into account. We can therefore conclude that the trend towards higher levels of educational attainment may help to reduce economic dependency.

Labor Demand Shocks and Housing Prices Across the Us: Does One Size Fit All?

This paper examines whether effects of labor demand shocks on housing prices vary across time and space. Using data on 321 US metropolitan statistical areas, we estimate the medium- and long-run effects of increases in metropolitan statistical area-level employment and total labor income on housing prices. Instrumental variable estimates for different time periods, and also for coastal, non-coastal, large, and small metropolitan statistical areas are obtained using the shift-share instrument. Results suggest that labor demand shocks have positive effects on housing prices. However, these effects appear to vary across time periods and across different types of metropolitan statistical areas.

Efecto de los aumentos en la escolaridad en el mercado laboral colombiano entre 2008 y 2016

We examine the changes in the supply of Colombian workers with different levels of schooling and estimate the effect of these changes on salaries between 2008 and 2016 using a Mincer model. The share of the work force with primary schooling or less declined from 46% to 32.5%, the share with secondary schooling rose from 36% to 39.5%, and the share with tertiary schooling rose from 18 to 28%. We find that schooling had positive effects at every level of schooling, but particularly at the tertiary level. The marginal effect of a year of schooling declined at every level. In real terms we find an increase of 21% in average salaries for workers with primary schooling between 2008 and 2016 but few changes in average salaries among more educated workers. Since the share of more educated workers increased, total labor income in Colombia increased substantially over these years.

THE IMPACT OF CHINESE IMPORT COMPETITION ON THE LOCAL STRUCTURE OF EMPLOYMENT AND WAGES: EVIDENCE FROM FRANCE

ABSTRACTThe rapid rise of Chinese exports over the past two decades has raised concerns about manufacturing jobs and wage inequality in high‐income countries. spillovers beyond the manufacturing sector are an important issue given the large size of the nontraded sector in modern economies as well as the imperfect spatial mobility of households. In this paper, I estimate the impact of Chinese import competition onto the structure of employment and wages of local labor markets in France, with an emphasis on spillovers effects beyond manufacturing and the degree of local wage inequality. Local employment and total labor income in both manufacturing and nonmanufacturing are negatively affected by rising exposure to imports. Import competition from China polarized the local structure of employment in the manufacturing sector. The wage distribution is uniformly negatively affected in manufacturing while the nontraded sector experiences wage polarization, i.e., a rise in upper‐tail inequality and a decline in bottom‐tail inequality. While overall wage inequality is on average not affected, I show that it increased in response to trade shocks in areas where the minimum wage is only weakly binding.

The Impact of Chinese Import Competition on the Local Structure of Employment and Wages: Evidence from France

The rapid rise of Chinese exports over the past two decades has raised concerns about manufacturing jobs and wage inequality in high-income countries. Spill-overs beyond the manufacturing sector are an important issue given the large size of the non-traded sector in modern economies as well as the imperfect spatial mobility of households. In this paper, I estimate the impact of Chinese import competition onto the structure of employment and wages of local labor markets in France, with an emphasis on spill-overs effects beyond manufacturing and the degree of local wage inequality. Local employment and total labor income in both manufacturing and non-manufacturing are negatively affected by rising exposure to imports. The estimates imply that each local manufacturing job destroyed by Chinese import competition results in the loss of about 1.5 local job outside of manufacturing. These substantial “local multiplier effects” are however much lower when expressed in terms of hours worked or earnings rather than job count. Import competition from China polarized the local structure of employment in the manufacturing sector. The wage distribution is uniformly negatively affected in manufacturing while the non-traded sector experiences wage polarization, i.e. a rise in upper-tail inequality and a decline in bottom-tail inequality. While overall wage inequality is on average not affected, I show that it increased in response to trade shocks in areas where the minimum wage is only weakly binding.

Antiretroviral therapy, labor productivity, and sex

To estimate the impact of antiretroviral therapy (ART) on labor productivity and income using detailed employment data from two large tea plantations in western Kenya for HIV-infected tea pluckers who initiated ART. Longitudinal study using primary data on key employment outcomes for a group of HIV-infected workers receiving antiretroviral therapy (ART) and workers in the general workforce. We used nearest-neighbor matching methods to estimate the impacts of HIV/AIDS and ART among 237 HIV-positive pluckers on ART (index group) over a 4-year period (2 years pre-ART and post-ART) on 4 monthly employment outcomes - days plucking tea, total kilograms (kgs) harvested, total days working, and total labor income. Outcomes for the index group were compared with those for a matched reference group from the general workforce. We observed a rapid deterioration in all four outcomes for HIV-infected individuals in the period before ART initiation and then a rapid improvement after treatment initiation. By 18-24 months after treatment initiation, the index group harvested 8% (men) and 19% (women) less tea than reference individuals. The index group earned 6% (men) and 9% (women) less income from labor than reference individuals. Women's income would have dropped further if they had not been able to offset their decline in tea plucking by spending more time on nonplucking assignments. HIV-infected workers experienced long-term income reductions before and after initiating ART. The implications of such long-term impacts in low-income countries have not been adequately addressed.

Indeterminacy, underground activities and tax evasion

This paper introduces underground activities and tax evasion into a one-sector dynamic general equilibrium model with aggregate external effects. The model presents a novel mechanism driving the self-fulfilling prophecies, which is characterized by well behaved (downward sloping) labor demand schedules. This mechanism differs from the customary one, and it is complementary to it. Compared to traditional labor market income, the income derived from underground labor activity is subject to a lower expected tax rate when considering both the probability of detection and the evasion penalty. During a belief-driven expansion, the household allocates more time to both traditional and underground labor supply. In equilibrium, this action serves to lower the effective labor tax rate faced by the household, thus providing stimulus to aggregate labor supply so as to make the initial expansion self-fulfilling. The mechanism here is akin to a “regressive tax”; the household's effective tax rate depends negatively on the level of total labor income. We argue that an underground sector, and the associated tax evasion, offer a good economic rationale for a regressive tax rate.

A Cost–Benefit Analysis of Bariatric Surgery on the South Plains Region of Texas

The regional economic burdens of obesity have not been fully quantified. This study incorporated bariatric surgery demographics collected from a large university hospital with regional economic and employment data to evaluate the cost of obesity for the South Plains region of Texas. Data were collected from patients who underwent laparoscopic gastric bypass and laparoscopic banding between September 2003 and September 2005 at Texas Tech University Health Sciences Center. A regional economic model estimated the economic impact of lost productivity due to obesity. Comparisons of lost work days in the year before and after surgery were used to estimate the potential benefit of bariatric surgery to the South Plains economy. Total output impacts of obesity, over $364 million, were 3.3% of total personal income; total labor income impacts neared $60 million: the losses corresponded to $2,389 lost output and $390 lost labor income per household. Obesity cost the South Plains over 1,977 jobs and decreased indirect business tax revenues by over $13 million. The net benefit of bariatric surgery was estimated at $9.9 billion for a discount rate of 3%, $5.0 billion for a discount rate of 5%, and $1.3 billion for a discount rate of 10%. Potential benefits to the South Plains economy of performing bariatric surgery more than outweigh its costs.

Estimating economic information for fisheries using unequal probability sampling

This study provides detailed descriptions of procedures for conducting unequal probability sampling (UPS) and deriving the population parameters for important economic variables that are critical in economic analysis of fisheries. This study uses a Pareto sampling method and describes how the Horvitz-Thompson (HT) estimator is adjusted for non-response and how this adjustment is applied to the certainty units and non-certainty units separately. As an example, this study applies the UPS method without replacement to fisheries in the Southwest region of Alaska, to estimate the total employment and total labor income for each of three disaggregated harvesting sectors. This study shows that the suggested method is a useful approach that can be used to estimate similar economic information through surveys of fish harvesting and processing sectors.