CEBI Research – University of Copenhagen

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CEBI Research

CEBI was launched September 1st 2017. As we build up research results from our work we will share our findings here.

  • 2018.01.31

    Children and Gender Inequality. Evidence from Denmark

    Despite considerable gender convergence over time, substantial gender inequality persists in all countries. Using Danish administrative data from 1980-2013 and an event study approach, we show that most of the remaining gender inequality in earnings is due to children. The arrival of children creates a gender gap in earnings of around 20 percent in the long run, driven in roughly equal proportions by labor force participation, hours of work, and wage rates. Based on these estimates, we show that the fraction of gender inequality caused by child penalties has increased dramatically over time, from about 40 percent in 1980 to about 80 percent in 2013. »

  • 2017.11.06

    How does a financial crisis spread to the real economy?

    Was the most recent financial crisis transmitted to the household sector through a reduction in the credit supply? The tightening of credit by banks in financial distress is one among several possible explanations why households slashed consumption in the aftermath of the financial crisis. »

  • 2017.10.27

    Family labor supply responses to health shocks

    The focus of this study is the extreme shock of the death of a spouse. We show that widows, who tend to be secondary earners and face large income losses when their husbands die, increase their labor force participation by more than 11%. In contrast, widowers, who tend to be primary earners and need to financially support one fewer person when losing their wives, decrease their labor supply. Importantly, female and male survivors exhibit similar sensitivity to comparable changes in household income. »

  • 2017.10.13

    Do bequests increase wealth inequality?

    Our answer to this question is both “yes” and “no”: To understand how bequests might affect different measures of inequality, let us consider an example where everyone receives a bequest proportional to their wealth. In that case, the variance of the wealth distribution increases, while wealth shares remain constant. Thus, absolute inequality increases and relative inequality is unchanged. »