References of "van Kerm, Philippe 50026710"
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See detailMacroprudential policy and household wealth inequality
Carpantier, Jean-Francois; Olivera, Javier; van Kerm, Philippe UL

in Journal of International Money & Finance (in press)

Macroprudential policies, such as caps on loan-to-value (LTV) ratios, have become part of the policy paradigm in emerging markets and advanced countries alike. Given that housing is the most important ... [more ▼]

Macroprudential policies, such as caps on loan-to-value (LTV) ratios, have become part of the policy paradigm in emerging markets and advanced countries alike. Given that housing is the most important asset in household portfolios, relaxing or tightening access to mortgages may affect the distribution of household wealth in the country. In a stylised model we show that the final level of wealth inequality depends on the size of the LTV ratio, housing prices, credit cost and the strength of a bequest motive, and therefore it is not possible to predict an unequivocal effect of LTV ratios on wealth inequality. These trade-offs are illustrated with estimations of `Gini Recentered Influence Function' regressions on household survey data from 12 Euro-zone countries that participated in the first wave of the Household Finance and Consumption Survey. The results show that, among the households with active mortgages, high LTV ratios at the time of acquisition are related to high contributions to wealth inequality today, while house price increases are negatively related to inequality contributions. A proxy for the strength of bequest motives tends to be negatively related with wealth inequality, but credit cost does not show a significant link to the distribution of wealth. [less ▲]

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See detailAccounting for income distribution differences over time and across countries
van Kerm, Philippe UL

Presentation (2018, January)

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See detailModelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988--2009
Sologon, Denisa M.; van Kerm, Philippe UL

in Journal of the Royal Statistical Society. Series A Statistics in Society (2018), 181(2), 409-440

The paper exploits large-scale administrative data to analyse trends in male earnings inequality in Luxembourg during 20 years of rapid economic growth, industrial redevelopment and massive inflow of ... [more ▼]

The paper exploits large-scale administrative data to analyse trends in male earnings inequality in Luxembourg during 20 years of rapid economic growth, industrial redevelopment and massive inflow of foreign workers. A detailed error components model is estimated to identify persistent and transitory components of (the trends of) log-earnings variance and to disentangle the contributions to it of native, immigrant and cross-border workers. The model is flexible and allows for a high degree of individual, age, time and cohort heterogeneity. We observe a surprising stability in overall earnings inequality as a result of more complex underlying changes, with marked increases in persistent inequality (except among natives), a growing contribution of foreigners and a decrease in earnings instability (primarily for natives). [less ▲]

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See detailAccounting for Differences in Income Inequality across Countries: Ireland and the United Kingdom
Sologon, Denisa M.; van Kerm, Philippe UL; Li, Jinjing et al

E-print/Working paper (2018)

This paper proposes a framework for studying international differences in the distribution of household income. Integrating micro-econometric and micro-simulation approaches in a decomposition analysis it ... [more ▼]

This paper proposes a framework for studying international differences in the distribution of household income. Integrating micro-econometric and micro-simulation approaches in a decomposition analysis it quantifies the role of tax-benefit systems, employment and occupational structures, labour prices and market returns, and demographic composition in accounting for differences in income inequality across countries. Building upon EUROMOD (the European tax-benefit calculator) and its harmonized datasets, the model is portable and can be implemented for any cross-country comparisons within the EU. An application to the UK and Ireland--two countries that have much in common while displaying different levels of inequality--shows that differences in tax-benefit rules between the two countries account for roughly half of the observed difference in disposable household income inequality. Demographic differences play negligible roles. The Irish tax-benefit system is more redistributive than UK's due to a higher tax progressivity and higher average transfer rates. These are largely attributable to policy parameter differences, but also to differences in pre-tax, pre-transfer income distributions. [less ▲]

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See detailMeasuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg
Hildebrand, Vincent A.; Pi Alperin, Maria Noel; van Kerm, Philippe UL

in Review of Income and Wealth (2017), 63(2), 288-309

This paper examines the relative well-being of Portuguese immigrants in Luxembourg by looking at indicators of material deprivation. We document material deprivation differences between immigrants and ... [more ▼]

This paper examines the relative well-being of Portuguese immigrants in Luxembourg by looking at indicators of material deprivation. We document material deprivation differences between immigrants and nationals---the `deprivation gap'---and measure the extent to which income differentials (and other sociodemographic differences) explain this gap using a combination of non-parametric methods and a versatile graphical device. We find a large and significant deprivation gap against Portuguese immigrants, whatever the indicator considered. The extent to which the gap is merely a reflection of differences in income, however, depends on what deprivation items are taken into consideration. Income differences almost fully account for material deprivation differences when the latter is measured using the items included in the official EU social indicator of material deprivation. Inclusion of housing condition indicators mitigates this relationship and we then find compelling evidence that the deprivation gap is not entirely accounted for by income differentials. [less ▲]

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See detailWealth, Top Incomes, and Inequality
Cowell, Frank A.; Nolan, Brian; Olivera, Javier et al

in Hamilton, Kirk; Hepburn, Cameron (Eds.) National Wealth: What is Missing, Why it Matters (2017)

Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth, what is included in "wealth", and facts about ... [more ▼]

Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth, what is included in "wealth", and facts about wealth distributions. This chapter highlights issues that arise in making ideas and facts about wealth inequality precise, and employs newly-available data to take a fresh look at wealth and wealth inequality in a comparative perspective. The composition of wealth is similar across countries, with housing wealth being the key asset. Wealth is considerably more unequally distributed than income, and it is distinctively so in the United States. Extending definitions to include pension wealth however reduces inequality substantially. Analysis also sheds light on life-cycle patterns and the role of inheritance. Discussion of the joint distributions of income and wealth suggests that interactions between increasing top income shares and the concentration of wealth and income from wealth towards the top is critical. [less ▲]

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See detailHow does attrition affect estimates of persistent poverty rates? The case of EU-SILC
Jenkins, Stephen P.; van Kerm, Philippe UL

in Atkinson, Anthony B.; Guio, Anne-Catherine; Marlier, Eric (Eds.) Monitoring Social Inclusion in Europe (2017)

Among the primary EU indicators of social inclusion is the persistent at risk of poverty rate, defined as the proportion of persons in a country who are at risk of income poverty in the current year and ... [more ▼]

Among the primary EU indicators of social inclusion is the persistent at risk of poverty rate, defined as the proportion of persons in a country who are at risk of income poverty in the current year and who were at risk of income poverty in at least two of the preceding three years. Evidence about poverty persistence is an important complement to information about poverty prevalence at a point in time. Estimates of persistent at risk of poverty rates are derived from the longitudinal component of EU SILC in which the fortunes of individuals are tracked over four consecutive years, in principle. In practice, not all of the individuals present in the first sample year provide four years of income data: there is attrition and estimates of persistent at risk of poverty measure may therefore not be reliable. Rates of attrition from the four-year EU SILC samples used to calculate persistent poverty rates vary substantially across Member States, and there is also substantial cross-national diversity in the characteristics of individuals lost to follow-up. This paper documents such patterns in detail and provides evidence that application of longitudinal weights does not fully account for the effects of attrition, and that different assumptions about the poverty status of attritors lead to wide bounds for estimates of persistent poverty rates for most Member States. [less ▲]

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See detailDecomposing quantile wage gaps: a conditional likelihood approach
van Kerm, Philippe UL; Choe, Chung; Yu, Seunghee

in Journal of the Royal Statistical Society. Series C Applied Statistics (2016), 65(4), 507-527

The paper develops a parametric variant of the Machado–Mata simulation methodology to examine quantile wage differences between groups of workers, with an application to the wage gap between native and ... [more ▼]

The paper develops a parametric variant of the Machado–Mata simulation methodology to examine quantile wage differences between groups of workers, with an application to the wage gap between native and foreign workers in Luxembourg. Relying on conditional-likelihood-based ‘parametric quantile regression’ in place of the standard linear quantile regression is parsimonious and cuts computing time drastically with no loss in the accuracy of marginal quantile simulations in our application. We find that the native worker advantage is a concave function of quantile: the advantage is small (possibly negative) for both low and high quantiles, but it is large for the middle half of the quantile range (between the 20th and 70th native wage percentiles). [less ▲]

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See detailA distribution-sensitive examination of the gender wage gap in Germany
Selezneva, Ekaterina; van Kerm, Philippe UL

in Journal of Economic Inequality (2016), 14(1), 21-40

This paper provides a new examination of the gender pay gap for Germany based on a family of distribution-sensitive indicators. Wage distributions for men and women do not only differ by a fixed constant ... [more ▼]

This paper provides a new examination of the gender pay gap for Germany based on a family of distribution-sensitive indicators. Wage distributions for men and women do not only differ by a fixed constant; differences are more complex. We show that focusing on the bottom of the wage distribution reveals a larger gender gap. Our distribution-sensitive analysis can also be used to study whether the statistical disadvantage of women in average pay might be ‘offset’ by lower inequality. Over a broad range of plausible preferences over inequality, we show however that ‘inequality-adjusted’ estimates of the gap can be up to three times higher than standard inequality-neutral measures in Eastern Germany and up to fifty percent higher in Western Germany. Using preference parameters elicited from a hypothetical risky investment question in our sample, inequality-adjusted gender gap measures turn out to be close to those upper bounds. [less ▲]

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See detailAssessing Individual Income Growth
Jenkins, Stephen P.; van Kerm, Philippe UL

in Economica (2016), 83(332), 679-703

We develop methods for describing distributions of income growth across individuals and for comparing changes in growth distributions over time. The methods include graphical devices (‘income growth ... [more ▼]

We develop methods for describing distributions of income growth across individuals and for comparing changes in growth distributions over time. The methods include graphical devices (‘income growth profiles’) and dominance conditions, and also summary indices, together with associated methods of estimation and inference. Taking an explicitly longitudinal perspective, our approach illuminates clearly who are the gainers and the losers, and also provides distributionally-sensitive assessments—ones that allow the income growth for different individuals to be weighted differently. Our empirical application shows that the pattern of income growth in Britain over the period 1992–6 was less pro-poor than that for 1998–2002, and not significantly different from the pattern for 2001–5. [less ▲]

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See detailWealth Inequality: A Survey
Cowell, Frank A.; van Kerm, Philippe UL

in Journal of Economic Surveys (2015), 29(4), 671-710

We survey the issues involved in comparing wealth distributions and measuring wealth inequality with illustrations from the Eurosystem Household Finance and Consumption Survey.

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See detailModeling the Joint Distribution of Income and Wealth
Jäntti, Markus; Sierminska, Eva M.; van Kerm, Philippe UL

in Garner, Thesia; Short, Kathleen (Eds.) Measurement of Poverty, Deprivation, and Economic Mobility (2015)

This paper considers a parametric model for the joint distribution of income and wealth. The model is used to analyze income and wealth inequality in five OECD countries using comparable household-level ... [more ▼]

This paper considers a parametric model for the joint distribution of income and wealth. The model is used to analyze income and wealth inequality in five OECD countries using comparable household-level survey data. We focus on the dependence parameter between the two variables and study whether accounting for wealth and income jointly reveals a different pattern of social inequality than the traditional “income only” approach. We find that cross-country variations in the dependence parameter effectively account only for a small fraction of cross-country differences in a bivariate measure of inequality. The index appears primarily driven by differences in inequality in the wealth distribution. [less ▲]

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See detailLuxembourg: Has inequality grown enough to matter?
Fusco, Alessio; van Kerm, Philippe UL; Alieva, Aigul et al

in Nolan, Brian; Salverda, Wiemer; Checchi, Daniele (Eds.) et al Changing Inequalities and Societal Impacts in Rich Countries: Thirty Countries' Experiences (2014)

Luxembourg experienced remarkable economic performance and employment growth since the middle of the 1980s. Based on the development of the financial sector, this growth benefited massively from the ... [more ▼]

Luxembourg experienced remarkable economic performance and employment growth since the middle of the 1980s. Based on the development of the financial sector, this growth benefited massively from the contribution of immigrants and cross-border workers to the labour force. High economic growth led to a rapid improvement in the overall living standard of the resident population. During the same period, income inequality increased too, albeit modestly. Even if the country can still be considered a low inequality country by international standards, this trend is a potential source of concern. This chapter analyses the factors that explain the rise in income inequality between 1985 and 2010 and provides a descriptive account of whether this trend has been correlated with a set of social, cultural, and political outcomes. By and large, the positive impact of the improvement of overall living standards seems to have prevailed over the potential detrimental effects of increasing inequality. [less ▲]

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See detailSpace-filling location selection
Bia, Michela; van Kerm, Philippe UL

in Stata Journal (2014), 14(3), 605-622

This note describes a Stata implementation of a space-filling location selection algorithm. It optimally selects a subset from an array of locations so that the spatial coverage of the array by the ... [more ▼]

This note describes a Stata implementation of a space-filling location selection algorithm. It optimally selects a subset from an array of locations so that the spatial coverage of the array by the selected subset is optimized according to a geometric criterion. Such an algorithm is useful in site selection problems, but also in various non-parametric estimation procedures, e.g. to select (multivariate) knot locations in spline regression analysis. [less ▲]

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See detailLes inégalités de salaire
Brosius, Jacques; van Kerm, Philippe UL

in Marlier, Eric; Brosius, Jacques; Dautel, Vincent (Eds.) et al Cohésion sociale et territoriale au Luxembourg, Regards croisés (2014)

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See detailThe Relationship between EU Indicators of Persistent and Current Poverty
Jenkins, Stephen P.; van Kerm, Philippe UL

in Social Indicators Research (2014), 116(2), 611-638

The current poverty rate and the persistent poverty rate are both included in the EU's portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these ... [more ▼]

The current poverty rate and the persistent poverty rate are both included in the EU's portfolio of primary indicators of social inclusion. We show that there is a near-linear relationship between these two indicators across EU countries drawing on empirical analysis of EU-SILC and ECHP data. Using a prototypical model of poverty dynamics, we explain how the near-linear relationship arises and show how the model can be used to predict persistent poverty rates from current poverty information. In the light of the results, we discuss whether the EU's persistent poverty measure and the design of EU-SILC longitudinal data collection require modification. [less ▲]

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See detailThe joint distribution of income and wealth
Jäntti, Markus; Sierminska, Eva M.; van Kerm, Philippe UL

in Gornick, Janet; Jäntti, Markus (Eds.) Economic Inequality in Cross-National Perspective (2013)

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See detailGeneralized measures of wage differentials
van Kerm, Philippe UL

in Empirical Economics (2013), 45(1), 465-482

This paper considers measures of wage differentials not solely determined by mean comparisons but summarizing differences across complete wage distributions. The approach builds on considerations of risk ... [more ▼]

This paper considers measures of wage differentials not solely determined by mean comparisons but summarizing differences across complete wage distributions. The approach builds on considerations of risk or inequality aversion and on standard expected utility concepts. In an application to the gender pay gap in Luxembourg the disadvantage of women persists according to the proposed measures: lower mean wages for women are not compensated by differences in higher moments of wage distributions (e.g., by less dispersion) at least for realistic assumptions about women preferences toward risk and inequality. The paper also illustrates an original empirical model for wage distributions in the presence of covariates and under endogenous labour market participation. [less ▲]

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See detailInequality, growth and mobility: The intertemporal distribution of income in European countries 2003--2007
van Kerm, Philippe UL; Pi Alperin, Maria Noel

in Economic Modelling (2013), 35(C), 931-939

This paper exploits EU Statistics on Income and Living Conditions longitudinal data 2003–2007 to describe the intertemporal distribution of income in twenty-six European countries prior to the onset of ... [more ▼]

This paper exploits EU Statistics on Income and Living Conditions longitudinal data 2003–2007 to describe the intertemporal distribution of income in twenty-six European countries prior to the onset of the Great Recession. We document levels, inequality and progressivity in the distribution of year-on-year income gains and losses and examine the relationship of these with inequality and poverty indicators. New Member States have typically seen individual incomes grow faster than other EU countries. Income gains were disproportionately pro-poor in all countries. We therefore observe regression to the mean both among EU countries and among individuals within countries. However, short-run income mobility does not significantly reduce inequality of time-averaged incomes. Potential issues about cross-country comparability of the data and the short period under consideration call for caution in interpreting our results, however. [less ▲]

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