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1. A cost-of-living squeeze? Distributional implications of rising inflation.

Author

CAUSA, ORSETTA, SOLDANI, EMILIA, NHUNG LUU, and SORIOLO, CHIARA

Subjects
PRICE inflation, COST of living, FOOD sales & prices, CONSUMPTION (Economics)
Abstract

In most OECD countries inflation sharply increased since the end of 2021, mostly driven by energy and food prices. Certain categories of households are particularly vulnerable, as they spend large portions of their consumption on energy and food. Drawing on national micro-based household budget survey data, this paper quantifies the impact of rising prices on households' welfare. Declines in household purchasing power between August 2021 and August 2022 are estimated to range from 3% in Japan to 18% in Czechia. This decline is driven by energy prices in most countries, especially Denmark, Italy, and the United Kingdom. In general, inflation weighs relatively more on lower income households. The effects are stronger for rural households, due to energy price inflation. These findings call for a careful targeting of income and price support measures, notwithstanding their administrative and logistical complexity, taking into account their effects on economic activity, inflation, and environmental goals. [ABSTRACT FROM AUTHOR]

Published
2023
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2. Public kindergarten, maternal labor supply, and earnings in the longer run: too little too late?

Author

Soldani, Emilia and Soldani, Emilia

Abstract

By facilitating early re-entry to the labor market after childbirth, public kindergarten might positively affect maternal human capital and labor market outcomes: Are such effects long-lasting? Can we rely on between-individuals differences in quarter of birth to identify them? I isolate the effects of interest from spurious associations through difference-in-difference, exploiting across-states and over-time variation in public kindergarten eligibility regulations in the United States. The estimates suggest a very limited impact in the first year, and no longer-run impacts. Even in states where it does not affect kindergarten eligibility, quarter of birth is strongly and significantly correlated with maternal outcomes.

Published
2021

3. The impact of tax reforms on the labor supply of married women

Author

Dagsvik, John K, Montobbio, Fabio, Locatelli, Marilena, Soldani, Emilia, and Strøm, Steinar

Abstract

We show how a neoclassical labor supply model with optimal decisions for labor force participation and hours of work, derived from first order conditions, can be taken to data even in the presence of a step-wise linear progressive tax system which may imply non-convex budget sets. The estimated model is used to simulate the optimal behavior when the tax system of 2001 is replaced by the less progressive tax system of 2006. The latter tax system implies a lower labor market participation among married women in Norway, a higher working load, given participation, and a more uneven distribution of household income.

Published
2015

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