Introduction Data Methods Results Robustness Conclusions Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience Tammy Schirle (WLU) Third Annual CLSRN Conference May 29, 2009 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Motivation Motivation Issue: incomes of seniors Elderly poverty Adequacy of income support programs Income inequality among seniors ⇒ inequality in access to health services ⇒ inequality in life expectancy Preference for redistribution What drives changes in the senior income distribution? Targeted policy response Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Interesting Trends Figure 1 - Poverty and inequality, elderly married couples 0.35 0.30 Gini coefficient 0.25 0.20 0.15 0.10 Incidence of low income 0.05 0.00 1976 1981 1986 1991 1996 2001 2006 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Interesting Trends Figure 3 - General increase in income and income inequality 1996 1.0 2001 2006 0.8 ensity 0.6 De 0.4 0.2 0.0 9 9 10 10 11 11 12 12 Log After Tax Income of Senior Married Couples Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Interesting Trends Figure 2 - Labour force participation of women 75 %) women (% 65 ation of w 55 participa United States Canada 45 our force Labo 35 25 1960 1960 1965 1965 1970 1970 1975 1975 1980 1980 1985 1985 1990 1990 1995 1995 2000 2000 2005 2005 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Objectives Objectives: Document changes in distribution of senior family income 1996-2006 Role of women’s experience, employment, public and private pension Role of other characteristics, men’s employment, pensions Preview: Distribution shifts: women’s pension, employment Disequalizing effects: education, men’s employment Equalizing effects: women’s CPP/QPP, men’s pension, women’s FTFY exp. Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions SLID Survey of Labour and Income Dynamics (RDC) 1996, 2006 Married couples, oldest spouse age 65-79 Senior income = couple’s after tax income + RRSP withdrawals 2006 dollars Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions SLID Key variables Income Sources Employment = + earnings Pension access = + RPP, RRIF, RRSP CPP/QPP access = + CPP/QPP Characteristics Education, Age FTFY equivalent experience Also consider: Poor health, immigrant status, number of children, urban, province Women’s age at first birth, age first marriage, married more than once, single generation in economic family Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Distribution of Senior Couples’ After Tax Income Table 1: Changes in the senior income distribution 1996 2006 % Change Percentile 10 23678 26405 11.5 50 35141 43301 23.2 90 65866 79477 20.7 Gini 0.250 0.255 2.1 Sample size 1719 1409 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Distribution of Senior Couples’ After Tax Income Table 2: Changes in income sources 1996 2006 Notable Wives Earnings .17 .28 top ↑ 19 pts. Pensions .28 .47 middle ↑ 23 pts. CPP/QPP .56 .73 low, middle ↑ 22+ Husbands Earnings .21 .35 top ↑ 21 pts. Pensions .66 .74 low ↑ 18 pts. CPP/QPP .94 .95 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Distribution of Senior Couples’ After Tax Income Tables 3-6: Changes in characteristics 1996 2006 Notable Wives < = Gr.8 .34 .21 middle ↓ 16 pts. University .04 .10 top ↑ 15 pts. FTFY 16 19 low ↑ 4 Husbands < = Gr.8 .39 .21 low ↓ 23 pts. University .09 .17 top ↑ 13 pts. FTFY 42 39 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Distribution of Senior Couples’ After Tax Income Tables 3-6: Changes in characteristics 1996 2006 Notable Wives Poor health .07 .05 low ↑ 3 pts. Immigrant .29 .24 ↓ tails Age first married 23 23 top ↓ Married more than once .10 .14 low, middle ↑ Family Number of children 3.61 3.12 Urban .81 .75 Single generation .78 .84 low ↑ 12 pts. Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Description Decomposition of Changes in the Income Distribution Firpo, Fortin, Lemieux (2007) combines methods from Dinardo, Fortin, Lemieux (1996) - counterfactual distribution & statistics Firpo, Fortin, Lemieux (2009) - unconditional quantile / recentered influence function regressions Oaxaca-Blinder decompositions Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Description Stage 1: Overall Composition and Structure Effects 1996 ( ν 0 ), 2006 ( ν 1 ) DFL (1996) reweighting ( ν C ) → Counterfactual - 2006 composition with 1996 structure ˆ ∆ ν O = ( ˆ ν 1 − ˆ ν C ) + ( ˆ ν C − ˆ ν 0 ) � �� � � �� � structure composition Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Description Stage 2: Contribution of each factor Firpo, Fortin, Lemieux (2009) Unconditional quantile / RIF regressions → γ ν 0 , γ ν 1 , γ ν C Contributions to composition effects �� N � �� N � ˆ ∆ ν X = i =1 ˆ 1 ( T i ) · X i · ˆ i =1 ˆ 0 ( T i ) · X i · ˆ ω ∗ γ ν C − ω ∗ γ ν 0 Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Stage 1 Figure 4 - Composition effects (1996 vs. Counterfactual) 1996 1.0 2006 0.8 Counterfactual ensity 0.6 De 0.4 0.2 0.0 9 9 10 10 11 11 12 12 Log After Tax Income of Senior Married Couples Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Stage 1 Figure 5 - Composition effects (1996 vs. Counterfactual) 0.20 After Tax Income 0.15 Total Change in Log A Composition Effects ff 0.10 Structure Effects 0.05 0.00 10 20 30 40 50 60 70 80 90 Percentile Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Stage 2 - Unconditional quantile (RIF) regressions Table 8 - Log After Tax Income, 1996 Percentile 10th 50th 90th Wives - Employment 0.118 0.287 0.260 (.035) (.047) (.105) Wives - Pension 0.043 0.206 0.101 (.019) (.039) (.088) Wives - CPP/QPP 0.085 0.122 -0.022 (.030) (.037) (.075) Husbands - Employment 0.071 0.137 0.305 (.029) (.040) (.089) Husbands - Pension 0.220 0.344 0.165 (.031) (.033) (.053) Husbands - CPP/QPP 0.491 -0.074 -0.255 (.099) (.055) (.150) Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Introduction Data Methods Results Robustness Conclusions Stage 2 - Decomposition of Composition Effects Figure 6 - Decomposition of composition effects 0.06 Wives' Characteristics Wives' Characteristics Employment Pension 0.05 CPP/QPP Education ncome 0.04 Age FTFY Experience fter tax in 0.03 ge in log a 0.02 Chang 0.01 0.00 ‐ 0.01 1 2 3 4 5 6 7 8 9 Quantile Tammy Schirle (WLU) Third Annual CLSRN Conference Income Inequality Among Seniors in Canada: the Role of Women’s Labour Market Experience
Recommend
More recommend
