2022 Fiscal Year Research-status Report
Life-Cycle Earnings Profiles, Informality, Inequality and Impacts of COVID-19 in Developing Economies
| Project/Area Number |
21K01439
|
|---|
| Research Institution | National Graduate Institute for Policy Studies |
|---|
Principal Investigator |
Hsu Minchung 政策研究大学院大学, 政策研究科, 准教授 (20467062)
|
|---|
| Project Period (FY) |
2021-04-01 – 2024-03-31
|
| Keywords | life-cycle earnings / informal employment / inequality |
|---|
| Outline of Annual Research Achievements |
I have worked on the research of life-cycle profiles of earnings using data from Indonesia, Vietnam and Chile and investigate the effects of formal and informal employment experiences during FY2022.
With Indonesian and Vietnamese data, I aim to investigate the patterns of earnings for both formal and informal workers. In both countries, informal workers account for more than 70% of the total employment.
Regarding Chile, I utilize rich information from the Chilean panel survey data, Social Protection Survey (EPS), and administrative data of pension contributions
(HPA) that allows us to identify formal/informal employment histories. With this information, I focus on investigating the disparity in wage driven by sector-specific experiences with the Chilean data.
|
| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
The data management and empirical analysis took longer than expected.
|
| Strategy for Future Research Activity |
In FY2023, I will continue the estimation of earnings profiles over the life cycle by education and by sectors. I will further take into account the selection issue. In addition, I will investigate earnings risk over the life cycle and develop a life-cycle model to perform policy experiments, and discuss implications for inequality, taxation, and social security.
Outlines of the work plan in FY2023:
1. Estimation of Earnings Profiles: Estimate earnings profiles using the method used in Kambourov and Manovskii (2009) to control for cohort and education effects in addition to the sector earnings differences over the life cycle. Take into account the selection issue mentioned by Heckman (1979, Econometrica). 2. Investigation of Earnings Risk: Investigate earnings risk over the life cycle using a method similar to that in Storesletten, Telmer and Yaron (2004) and Krueger, Mitman and Perri (2016). 3. Development of a Life-Cycle Model: Develop a life-cycle model incorporating the estimated earnings profiles and shocks. 4. Policy Experiments: Conduct policy experiments using the life-cycle model and discuss implications for inequality, taxation, and social security.
|
| Causes of Carryover |
Some planned work was delayed. I plan to participate workshops/conferences this year that requires more fund.
|
