The income gradient in political participation is a widely accepted stylized fact. Based on nine panel datasets from six countries, this research note asks whether income changes trigger short‐term effects on political involvement. Irrespective of indicator, specification, and method (hybrid random effects models, fixed effects models with lags and leads, and error correction models), there are few significant short‐term effects of income changes. In conjunction with earlier research, this finding suggests that the income gradient in political participation is likely to reflect stable differences between rich and poor voters emerging early in the life course.

How do people perceive the utility of redistribution? Support for redistribution is commonly understood as being determined by self‐interest in a way that is monotonically proportional to expected net transfers. However, this would imply that average support for redistribution is static and unaffected by changes in the distribution of incomes. This study addresses this incongruence by integrating concepts from the literature on redistribution preferences, namely the diminishing marginal utility of income, inequity aversion and loss aversion. These concepts are formalized by making two distinctions regarding redistribution: absolute versus relative utility and gains versus losses. An analysis of the European/World Values Survey suggests that the preferences of the poor are determined by absolute gains, while the preferences of the rich are determined by relative losses. In other words, the poor care about how much they gain from redistribution, while the rich care about the share of their income that they lose from it. The findings have important implications for the relationships among public opinion, economic development and income inequality.

Charitable giving involves two seemingly distinct decisions: whether to give and how much to give. However, many researchers methodologically assume that these decisions are one and the same. The present study supports the argument that this is an incorrect assumption that is likely to generate misleading conclusions, in part, since the second decision is much more financial in nature than the first. The argument that charitable giving entails two distinct decisions is validated by empirically dismissing the prevailing Tobit model, which assumes a single decision, in favor of less restrictive two-stage approaches: Cragg’s model and the Heckman model. Most importantly, it is shown that only by adopting a two-stage approach may it be uncovered that common determinants of charitable giving such as income and gender affect the two decisions at hand very differently. Data comes from a high-quality 2012 Danish survey and administrative registers.

Governments depend on nonprofit, voluntary sector organisations to deliver social and community services, and public funding is the sector’s most important income source. However, in many countries, public funding for social services is becoming more limited, conditional and precarious, and governments are encouraging nonprofits to diversify their funding base, and shift their reliance to income from market activity and private donations. This article is concerned with access to philanthropic and commercial funding among nonprofits, and the factors affecting it. It firstly discusses an emerging policy agenda to promote private funding among nonprofit community service providers. Then, multivariate analysis of survey data from 521 Australian nonprofits shows which organisations access income from client fees, business activities, community fundraising, and philanthropic foundations. By exploring inequalities in the distribution of these main sources of private funding, the article helps identify the types of organisations that face challenges in establishing and sustaining streams of private income, and which are likely to require ongoing public support.

This study attempts to answer a perennial question asked of and by every student of linguistics: ‘What can you do with this degree?’. We address the question through an in-depth analysis of administrative and tax data from Statistics Canada (2009–2018). Specifically, this article (i) maps out educational and employment pathways of linguistics graduates in Canada, (ii) compares their earnings to graduates from other ‘competitor’ programs that future linguists consider as viable alternatives, and (iii) verifies the range of careers advertised by linguistics departments against the reality of the industries in which graduates from those departments are employed. These findings enable us to draw conclusions about the optimal and suboptimal educational and career pathways that involve a linguistics degree. Linguistics graduates tend to earn less than their peers in comparable programs, unless they pursue a lengthy educational path. The findings also point to a partial mismatch between potential careers advertised by Canadian linguistics departments and actual areas of employment after graduating with a linguistics degree. We provide suggestions for linguistics departments on how best to align the policies and practices of these programs with the ground truth of the labor market.

In this study we investigate the relationship between income and charitable giving. Previous research shows inconsistent findings regarding both the effect of income on the probability of giving and the proportion of income spent on charitable giving. We test hypotheses with the Giving in The Netherlands Panel Study 2003 (N = 1,316). We do not find an effect of income on the probability of giving, but a consistent negative effect of income on both total and religious donations as a proportion of income. This effect cannot be explained by stronger religious affiliation of lower income groups, or by other differences such as age, and price of giving. We find evidence in favor of a giving standard: Norms concerning the level of donations in specific situations that people in different income groups share, leading lower income groups to donate a higher proportion of their income.

Using novel nighttime lights and high-resolution atmospheric reanalysis, this paper exploits exogenous fluctuations in temperature and precipitation to identify the causal effects of weather disturbances on local economic growth in the Philippines – the world’s most disaster-prone country. Our findings reveal that heightened temperature variability significantly dampens growth, but only in poor municipalities. This effect persists for at least 2 years after the initial shock. Furthermore, the relationship between weather shocks and growth is nonlinear. We also demonstrate that adverse weather events impede growth by disrupting agricultural productivity and essential service sectors, including wholesale and retail trade, health and education. Overall, our results highlight the importance of understanding the distributional impact of climate change within countries, its underlying mechanisms, and how economic development policies can help shield poor municipalities from the vagaries of the weather.

This study revisits the relationship between household consumption and its economic (income, wealth, and interest rates) and behavioural drivers. We specify this relationship while allowing for a threshold effect and a switching regime, which help capture further asymmetry, time-variation, and nonlinearity in this relationship. To this end, we specify a vector logistic smooth transition regression (VLSTR) model, which allows modelling the consumption–income relationship in a nonlinear system and provides more concise estimators. We obtain two interesting results. First, the consumption–income relationship is time-varying, regime-dependent, and it exhibits asymmetry and nonlinearity. Second, while household consumption remains driven by usual factors (income, financial wealth, interest rate, and exchange rate), it is also statistically sensitive to factors (consumer sentiment), and this sensitivity is regime-dependent.

Constrained econometric techniques hamper investigations of disease prevalence and income risks in the shrimp industry. We employ an econometric model and machine learning (ML) to reduce model restrictions and improve understanding of the influence of diseases and climate on income and disease risks. An interview of 534 farmers with the models enables the discernment of factors influencing shrimp income and disease risks. ML complemented the Just-Pope production model, and the partial dependency plots show nonlinear relationships between income, disease prevalence, and risk factors. Econometric and ML models generated complementary information to understand income and disease prevalence risk factors.

Ultimatum proposals and dictator donations are studied when proposers can choose the income and sex of the responder. Responder attributes generated strong effects in the selection decisions; subjects preferred to send proposals to low-income responders and female responders were much more popular than males. Hence, signals of income and sex appear to be important in deciding with whom to bargain. We also report from an experiment where both responders and proposers could select co-player based on socioeconomic status and gender. Both female responders and proposers were strongly preferred. A weaker tendency was that high status subjects were favored.

The political involvement of adolescents is characterized by a substantial socioeconomic gradient already at a young age with enduring effects into adulthood. This study investigates whether high parental income creates an enhancing environment that increases the influence of genetic dispositions on political interest using the German TwinLife study (2014–2020, age 10–29, n = 6,174, 54% female, 19% migration background). While 30–40% of the total variance in political interest of twin adolescents (age 10–18) can be attributed to genetic influences, a gene–environment interaction model shows that this share is much lower among poor compared to rich families. Family fixed-effects models among early adults further show no significant effect of income differences on political interest after controlling for family background and genetic influences. This study suggests that the income gap in political participation cannot be fully understood without accounting for life cycle processes and genetic background.

Households are frequently subject to income and asset shocks. We performed a lab experiment, inducing losses on a real effort task, after which we measured cognitive performance, loss aversion and cheating behavior. We found that asset losses, but not income losses, act as a cognitive load, by decreasing accuracy and increasing response times. We did not detect any change in dishonesty or loss aversion.

Several themes which are common to both econometrics and psychometrics are surveyed. The themes are illustrated by reference to permanent income hypotheses, simultaneous equation models, adaptive expectations and partial adjustment schemes, and by reference to test score theory, factor analysis, and time-series models.