nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2020‒07‒27
twenty papers chosen by

  1. The contribution of precision agriculture technologies to farm productivity and the mitigation of greenhouse gas emissions in the EU By SOTO Iria; BARNES Andrew; BALAFOUTIS Athanasios; BECK Bert; SANCHEZ FERNANDEZ Berta; VANGEYTE Jurgen; FOUNTAS Spyros; VAN DER WAL Tamme; EORY Vera; GOMEZ BARBERO Manuel
  2. The cleansing effect of banking crises By Gropp, Reint; Ongena, Steven; Rocholl, Jörg; Saadi, Vahid
  3. Productivity growth and global value chain participation in the digital age By Claudio Battiati; Cecilia Jona-Lasinio; Silvia Sopranzetti
  4. Productivity Growth and Value Chains in Four European Countries By Izabela Karpowicz; Nujin Suphaphiphat
  5. Rationing the Commons By Nicholas Ryan; Anant Sudarshan
  6. Types of Innovation and Firm performance By Michele Cincera; Ela Ince
  7. Trade, Productivity and (Mis)allocation By Berthou, Antoine; Chung, John Jong-Hyun; Manova, Kalina; Sandoz, Charlotte
  8. Agglomeration Effects in a Developing Economy: Evidence from Turkey By Cem Özgüzel
  9. Nonparametric estimation of R&D international spillovers By Georgios Gioldasis; Antonio Musolesi; Michel Simioni
  10. Global Trade and Margins of Productivity in Agriculture By Farid Farrokhi; Heitor S. Pellegrina
  11. On ‘Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT and Productivity’ By Campbell, Douglas L.; Mau, Karsten
  12. Infrastructure “Privatization”: When Ideology Meets Evidence By Antonio Estache
  13. Total factor productivity and the measurement of neutral technology By Alban Moura
  14. Management Practices, Worker Commitment, and Workplace Representation By John T. Addison; Paulino Teixeira
  15. Upscaling the productivity performance of the Agricultural Commercialization Cluster Initiative in Ethiopia By ELOUHICHI Kamel; TEMURSHOEV Umed; COLEN Liesbeth; GOMEZ Y PALOMA Sergio
  16. Application of symbolic clustering to the estimation of agricultural production costs By Dominique Desbois
  17. Competition, Competitiveness and Growth in Sub-Saharan Africa By Reda Cherif; Sandesh Dhungana; Xiangming Fang; Jesus R Gonzalez-Garcia; Yuanchen Yang; Mustafa Yenice; Jung Eun Yoon
  19. Labor Costs and Corporate Investment in Italy By Daniel Garcia-Macia
  20. Beauty and Productivity: A Meta-Analysis By Kseniya Bortnikova

  1. By: SOTO Iria (European Commission – JRC); BARNES Andrew; BALAFOUTIS Athanasios; BECK Bert; SANCHEZ FERNANDEZ Berta (European Commission – JRC); VANGEYTE Jurgen; FOUNTAS Spyros; VAN DER WAL Tamme; EORY Vera; GOMEZ BARBERO Manuel (European Commission – JRC)
    Abstract: Agriculture in the EU has to cope with global challenges such as climate change mitigation and making farming more efficient. The active management of agricultural practices using appropriate technologies and systems could reduce greenhouse gas (GHG) emissions and increase agricultural productivity and income. However, information on the uptake, use and impacts of precision agriculture technologies (PAT) in the EU is so far sparse and site-specific. This technical report assesses the impact of PAT on GHG emissions and farm economics. To this end, a typology of PAT was created in order to identify those that had the greatest potential to reduce GHG emissions. Secondly, five case studies were selected with the aim of identifying a range of EU countries, precision agriculture techniques and arable crop types that could realise the maximum potential economic and environmental benefits of adopting PAT. A survey was applied to 971 adopters and non-adopters of machine guidance and/or variable-rate nitrogen application technologies on the selected study cases with the aim of assessing the reasons behind uptake and the economic and environmental impacts of different approaches. Finally, economic and environmental impacts were investigated though a partial budgeting analysis and the Miterra-Europe model respectively. Results indicate that, although most surveyed farmers were aware of PAT, uptake rates are low. High investment costs, farm size and the farmers’ age were identified as barriers to the adoption of PAT. The survey reveals that adoption barriers might be overcome by boosting economic incentives that aim to improve economic performance both directly and indirectly. However, non-monetary incentives, such as technical advice or training, also seem to be of interest to the surveyed farmers. The results of the survey also show that information points, such as peer-to-peer learning, attendance at trade fairs, visits to (and by) researchers and industry dealers, have a positive effect on PAT uptake. The results of the partial budget analysis, where capital costs of the technologies are not included, indicate that impacts are highly variable by country, by farm type and size, and by technology. The results of the environmental impact analysis show that the introduction of PAT might have positive effects on the environment, with reductions in GHG emissions from the reduced application of fertiliser, reduced fertiliser production and reduced use of fuels.
    Keywords: Precision Agriculture, Climate change, Mitigation, Agriculture, efficiency,farming,technology, impacts, adoption
    Date: 2019–02
  2. By: Gropp, Reint; Ongena, Steven; Rocholl, Jörg; Saadi, Vahid
    Abstract: We assess the cleansing effects of the recent banking crisis. In U.S. regions with higher levels of supervisory forbearance on distressed banks during the crisis, there is less restructuring in the real sector and the banking sector remains less healthy for several years after the crisis. Regions with less supervisory forbearance experience higher productivity growth after the crisis with more firm entries, job creation, and employment, wages, patents, and output growth. Supervisory forbearance is greater for state-chartered banks and in regions with weaker banking competition and more independent banks, while recapitalisation of distressed banks through TARP does not facilitate cleansing.
    Keywords: cleansing effect,banking crises,supervisory for bearance,productivity growth
    JEL: G01 G21 G28 O43
    Date: 2020
  3. By: Claudio Battiati; Cecilia Jona-Lasinio; Silvia Sopranzetti
    Abstract: This paper provides an overview of the current productivity trends and their potential drivers exploring the impact of Global Value Chain (GVC) participation in the European economies and in the US taking into account the scope of country industry digital development. In particular, we investigate whether the reorganization of the production activity and the adoption of new business models as captured by the extent of GVC participation contribute to gain fresh insights about the factors affecting the productivity slowdown in the digital age. The analysis covers 12 European countries (AT, BE, DE, DK, ES, FI, FR, IT, NL, PR, SE, UK) plus the US and 30 industries (ISIC Rev. 4) over the years 2000-2014. We empirically test the linkages between productivity growth and GVC participation in an augmented production function framework and we find: a) a positive and statistically significant impact of forward and backward participation on productivity growth; b) a stronger productivity growth effect in the digital sectors of forward compared to backward linkages; c) relatively bigger productivity returns from forward participation in the medium intensive digital sectors.
    Keywords: Productivity growth, Global value chains, Digital economy
    JEL: O30 F23
    Date: 2020–04
  4. By: Izabela Karpowicz; Nujin Suphaphiphat
    Abstract: Advanced economies have been witnessing a pronounced slowdown of productivity growth since the global financial crisis that is accompanied in recent years by a withdrawal from trade integration processes. We study the determinants of productivity slowdown over the past two decades in four closely integrated European countries, Austria, Denmark, Germany and the Netherlands, based on firm-level data. Participation in global value chains appears to have affected productivity positively, including through its effect on TFP when facilitated by higher investment in intangible assets, a proxy for firm innovation. Other contributors to productivity growth in firms are workforce aging, access to finance, and skills mismatches.
    Keywords: Total factor productivity;Real sector;Gross domestic product;Labor productivity;Financial crises;Productivity,firms,GVC,WP,TFP,productivity growth,selected country,advanced economy,intermediate input
    Date: 2020–01–31
  5. By: Nicholas Ryan (Cowles Foundation, Yale University); Anant Sudarshan (Energy Policy Institute, University of Chicago)
    Abstract: Common resources may be managed with inefficient policies for the sake of equity. We study how rationing the commons shapes the efficiency and equity of resource use, in the context of agricultural groundwater use in Rajasthan, India. We ï¬ nd that rationing binds on input use, such that farmers, despite trivial prices for water extraction, use roughly the socially optimal amount of water on average. The rationing regime is still grossly inefficient, because it misallocates water across farmers, lowering productivity. Pigouvian reform would increase agricultural surplus by 12% of household income, yet fall well short of a Pareto improvement over rationing.
    Keywords: Common resources, Agricultural productivity, Misallocation, Sustainable development
    JEL: D24 Q15 Q56 O13
    Date: 2020–06
  6. By: Michele Cincera; Ela Ince
    Abstract: The paper brings together firm-level R & D spending information with patent information and aims to investigate the impact of different types of patented inventions on firm output growth performance controlling for R & D spending and other firm financials. We consider forward-looking indicators of breakthrough and general innovation, and backward-looking indicators of originality and radicalness in innovation activities. Firm performance is estimated through a Cobb-Douglas production function. We allow for non-linearity in relationship between innovation strategy and firm performance and we investigate sectoral heterogeneity looking at the impact in health industries and ICT producers. Models are estimated using two-stage least squares and generalised method of moments to control for potential endogeneity of innovation indicators. Our findings confirm non-linearity and sectoral heterogeneity in relationship between the different types of innovation and firm performance. While ICT producers are growing with breakthrough innovations, general-purpose technologies and, to a certain extend, with original and radical innovations, the growth of firms operating in health industries is not explained by breakthrough innovations nor by specific trend of feature of ICT and the choice of incremental innovation strategy by pharmaceutical and biotechnology firms
    Keywords: Breakthrough innovation, Generality, Originality, Radicalness, Firm growth
    Date: 2019–07
  7. By: Berthou, Antoine; Chung, John Jong-Hyun; Manova, Kalina; Sandoz, Charlotte
    Abstract: We examine the gains from globalization in the presence of firm heterogeneity and potential resource misallocation. We show theoretically that without distortions, bilateral and export liberalizations increase aggregate welfare and productivity, while import liberalization has ambiguous effects. Resource misallocation can either amplify, dampen or reverse the gains from trade. Using model-consistent measures and unique new data on 14 European countries and 20 industries in 1998-2011, we empirically establish that exogenous shocks to export demand and import competition both generate large aggregate productivity gains. Guided by theory, we provide evidence consistent with these effects operating through reallocations across firms in the presence of distortions: (i) Both export and import expansion increase average firm productivity, but the former also shifts activity towards more productive firms, while the latter acts in reverse. (ii) Both export and import exposure raise the productivity threshold for survival, but this cut-off is not a sufficient statistic for aggregate productivity. (iii) Efficient institutions, factor and product markets amplify the gains from import competition but dampen those from export access.
    Keywords: Allocative Efficiency; export demand; import competition; international trade; Misallocation; productivity
    JEL: F10 F14 F43 F62 O24 O40 O47
    Date: 2019–12
  8. By: Cem Özgüzel (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Productivity differences across Turkish provinces is one of the highest among the OECD countries. In this paper, I estimate agglomeration effects for Turkish provinces to shed light on the causes of productivity differences and provide evidence on the importance of such effects in a developing country context which literature needs. I use a novel administrative dataset recently made available at NUTS-3 level, for 81 provinces of Turkey for the period 2008-2013 and carry out a two-step estimation. Using a variety of panel data techniques and historical instruments to deal with estimation concerns, I estimate an elasticity of labor productivity with respect to the density of 0.057-0.06, which is higher than in developed countries and around the levels observed in developing countries. I find that domestic market potential matters even more than density and is the most significant determinant of the productivity differences across Turkish provinces. Finally, in stark contrast with the evidence coming from developed countries, I do not find any effects for positive sorting of workers across provinces. This finding suggests that urbanisation patterns may be operating differently in developing countries, indicating the need for further evidence from such countries.
    Keywords: local labor markets,spatial wage disparities,developing country,Turkey
    Date: 2020–06
  9. By: Georgios Gioldasis (Department of Economics and Management - University of Ferrara); Antonio Musolesi (Department of Economics and Management - University of Ferrara); Michel Simioni (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques)
    Abstract: We revisit the issue of international technology diffusion within the framework of large panels with strong cross-sectional dependence by adopting a method which extends the Common Correlated Effects (CCE) approach to nonparametric specifications. Our results indicate that the adoption of a nonparametric approach provides significant benefits in terms of predictive ability. This work also refines previous results by showing threshold effects, nonlinearities and interactions, which are obscured in parametric specifications and which have relevant policy implications.
    Keywords: cross-sectional dependence,nonparametric regression,spline functions,large panels,factor models,international technology diffusion
    Date: 2019–06–17
  10. By: Farid Farrokhi; Heitor S. Pellegrina
    Abstract: We study the effects of globalization on agricultural productivity across countries. We develop a multi-country general equilibrium model that incorporates choices of crops and technologies in agricultural production at the micro-level of fields covering the surface of the earth. We estimate our model using field-level data on potential yields of crops under different technologies characterized by factor and input intensity. We evaluate the welfare and productivity gains from reductions in trade costs of agricultural outputs and inputs across countries between 1980 and 2015. In addition to gains from international crop specialization, we find notable gains from access to foreign agricultural inputs. This mechanism operates through a shift from traditional (labor-intensive) technologies to modern (input-intensive) ones.
    JEL: F10 F14 F60 Q16 R14
    Date: 2020–06
  11. By: Campbell, Douglas L.; Mau, Karsten (RS: GSBE other - not theme-related research, Macro, International & Labour Economics)
    Abstract: Bloom, Draca, and Van Reenen (2016) find that Chinese import competition induced a rise in patenting, IT adoption, and TFP by up to 30% of the total increase in Europe in the late 1990s and early 2000s. We uncover several coding errors in an important robustness check of their patent results. When corrected, we find no statistically significant relationship between Chinese competition and patents. Other specifications in the original paper use a problematic log(1+patents) transformation. This normalization induces bias given low average patent counts for firms in China-competing sectors, and rapidly declining patents across the sample.
    JEL: F14 F13 L25 L60
    Date: 2020–07–09
  12. By: Antonio Estache
    Abstract: The paper documents the differences between the rhetoric and the evidence on the infrastructure privatization experience that started in the mid-1990s. It shows the heterogeneity across regions and across sub-sectors of the relative importance of the private actors in infrastructure financing. It then reviews the long term evidence on the efficiency and equity effects of the policy. It shows that reformers have underestimated the trade-offs between efficiency and equity, as well as their fiscal effects. Moreover, it finds that in many cases, the initial improvements credited to privatization eroded with time in sectors in which competition was limited so that the performance differences with state-owned enterprises disappeared. Finally, it suggests that, in most countries, policies focusing on market structure, competition, regulation and institutional and governance strengthening have been much more important determinants of performance than privatization per se. It concludes by arguing that more realism and less ideology will go a long way in allowing the various forms of privatization to contribute to the global infrastructure agenda in the interest of all stakeholders.
    Keywords: privatization; regulation; restructuring; efficiency; equity; distributional effects
    JEL: H54 L14 L25 L32 L33 L50 L90
    Date: 2020–07
  13. By: Alban Moura
    Abstract: TFP measures constructed from chain-aggregated output, such as those published by the Bureau of Labor Statistics or Fernald (2014), confound contributions from neutral and sector-specifc technology. Therefore, they should not be used to infer the path of neutral technology in presence of investment-specific technical change. Two theory-consistent, utilization-adjusted measures of neutral technology at the quarterly frequency are proposed for the US business sector. Both indicate that neutral technology progress declined dramatically after the mid-1970s. In particular, its contribution to US growth fell from more than 85% before 1973 to less than 25% afterward. The associated welfare loss is enormous: if neutral technology had continued on its pre-1970s trend, 2017 US output would have been 70% higher.
    Keywords: total factor productivity, neutral technology, investment-specific technology, sources of growth.
    JEL: E22 E23 E32 O41 O47
    Date: 2020–05
  14. By: John T. Addison; Paulino Teixeira
    Abstract: Using multilevel mixed effects ordered logistic models, this paper conducts an original investigation of the new management as a technology approach for all EU nations in a framework that explicitly recognizes worker representation while incorporating the notion of affective commitment. It is reported that that low worker commitment is unlikely to be found in establishments with better management practices and that, controlling for management practices and worker representation, the hypothesis that financial and productivity performance is superior in establishments without worker representation is not rejected by the data. For establishments with worker representation, the works council-only variant is seemingly the most favorable regime for financial performance, although this does not carry over to the labor productivity outcome. On net, however, the evidence suggests that the selected management practices are likely to be favorable to performance in plants with and without formal workplace representation. Greater worker commitment is strongly associated with improved labor productivity. Moreover, in this case there is seemingly no difference between works council-only representation and no representation at all. Overall, although the results for workplace representation and the financial situation are mixed, it is the case that greater commitment trumps any negative influence of worker representation type.
    Keywords: management as a technology, human resource management, worker commitment worker representation, labor productivity, financial performance
    JEL: D22 J53 J50 L20 M54
    Date: 2020
  15. By: ELOUHICHI Kamel; TEMURSHOEV Umed; COLEN Liesbeth (European Commission - JRC); GOMEZ Y PALOMA Sergio (European Commission - JRC)
    Abstract: This report presents the results of an impact analysis of several scenarios related to the Agricultural Commercialization Cluster (ACC) initiative. This initiative was introduced by the Government of Ethiopia during the first Growth and Transformation Plan (2010-2015) as a mechanism to improve agricultural productivity and production within specific geographies by targeting a limited number of high-value commodities. The farm-household model FSSIM-Dev (Farm System Simulator for Developing Countries) is applied to a representative sample of 2,886 individual farm-households spread throughout the country, taken from the 2013/14 Ethiopia Socioeconomic Survey. Simulation results show that upscaling the ACC productivity performance to the respective regions would lead to an increase in production of the main products ranging between 1.8% and 62.6%, depending on scenario, region and commodity. The average (across all ACC scenarios considered) country-level production increase for wheat, teff, maize and barley are assessed to be 29.6%, 21.1%, 12.8% and 12.6%, respectively. These impacts are driven by the rise in land productivity, rather than area expansion (through putting fallow land into cultivation) and/or area reallocation. The increase in crop yields would also have a positive impact on both income and poverty level of farm households. The average increase in gross income at the country and individual farm-household levels are assessed to be around 14% and 9%, respectively. These impacts could be more pronounced for individual farms: for example, 85% of the farms would experience an increase in gross income of up to 17% to 32%, depending on the nature of scenarios considered. The largest income change occurs in farms specializing in field crops, and in medium-large farms (i.e. farms with total production value of larger than ETB 9,000). The increase in both production and income would also raise food consumption and improve nutritional indicators.
    Keywords: Policy impact analysis, Agricultural Commercialization Cluster Initiative, Farm level modelling, Ethiopia, Sub Saharan Africa
    Date: 2019–11
  16. By: Dominique Desbois (ECO-PUB - Economie Publique - AgroParisTech - INRA - Institut National de la Recherche Agronomique)
    Abstract: This communication analyses the similarities between distributions of conditional quantile estimates, applying it to the problem of cost allocation in agriculture. The first part presents the empirical model, the quantile regression approach and the interval data clustering technique used. The second part presents the comparative analysis of the clustering results between twelve European Member States.
    Abstract: Cette communication utilise la classification des données symboliques pour explorer les similitudes entre distributions d'estimations quantiles conditionnelles, en l'appliquant au problème de l'allocation des coûts spécifiques en agriculture. Après avoir rappelé le cadre conceptuel de l'estimation des coûts de production agricole, la première partie présente le modèle empirique, l'approche de régression quantile et la technique de classification des données d'intervalle utilisée. La seconde partie présente l'analyse comparative entre douze États membres européens des résultats issus de la classification hiérarchique divisive des intervalles d'estimation.
    Keywords: estimation par intervalle,coût de production,classification symbolique,porc,Europe,quantile conditionnel
    Date: 2019–09–03
  17. By: Reda Cherif; Sandesh Dhungana; Xiangming Fang; Jesus R Gonzalez-Garcia; Yuanchen Yang; Mustafa Yenice; Jung Eun Yoon
    Abstract: Does greater product market competition improve external competitiveness and growth? This paper examines this question by using country-and firm-level data for a sample of 39 sub-Saharan African countries over 2000–17, as well as other emerging market economies and developing countries, and finds that an improvement in domestic competition is associated with a signficant increase in real GDP per capita growth rate, achieved mainly through an improvement in export competitiveness and productivity growth. Price levels, including of essential items, are also generally lowered with an increase in competition. Moreover, at the firm-level, evidence shows that greater competition—proxied through a decline in corporate market power—is associated with an increase in firm’s investment and the labor’s share in output. These effects are more pronounced in the manufacturing sector and among domestic firms compared to foreign firms.
    Keywords: Economic integration;Trade policy;Global competitiveness;Total factor productivity;International trade agreements;Markups,Market Power,Competition,Sub-Saharan Africa,WP,sub-Saharan African country,markup,sub-Saharan,effect of competition,emerge market economy
    Date: 2020–02–14
  18. By: Liis Roosaar; Urmas Varblane; Jaan Masso
    Abstract: The purpose of this paper is to clarify whether domestic or foreign firms gained more from labour churning while adjusting to the Great Recession in Estonia. During times of high unemployment, all firms can raise their requirements for new employees, but in times of crisis foreign firms may have more resources available for restructuring. We analysed matched employee-employer data from Estonian firms from 2006 to 2013, and show that an increase in labour churning is related to a positive change in labour productivity during economic crisis. During boom years churning is related to a negative change in labour productivity. In both cases a slightly upward convex pattern can be noticed. Only in services during the crisis did foreign firms have a stronger positive relationship between labour churning and labour productivity changes than domestic firms. However, our analysis at the individual level does not confirm that during a crisis foreign firms hire more employees with characteristics that have been found to be related to productivity increases. We also show empirically that hiring employees who relatively often change jobs is negatively related to changes in labour productivity. In light of the world-wide virus-related crisis of 2020, this paper proves that economic downturns can be a good opportunity to restructure the pool of employees.
    Keywords: labour productivity, labour churning, economic recession/crisis, Estonia
    Date: 2020
  19. By: Daniel Garcia-Macia
    Abstract: The recovery of private investment in Italy has lagged its euro area peers over the past decade. This paper examines the role of elevated labor costs in hindering the recovery. Specifically, labor costs rose faster than labor productivity prior to the global financial crisis and have remained high since, weighing on firms’ profits, capital returns, and thus capacity to invest. Empirical analysis provides evidence for the impact of wages on investment at the sectoral and firm levels. Sectoral wage growth seems unrelated to sectoral productivity growth, but is negatively associated with investment. Firm-level data permit a better identification—by exploiting the interaction between sectoral wage growth (exogenous to the firm) and the lagged labor share of the firm. A 1 percent increase in real wages is estimated to cause a 1/3 percent fall in fixed capital. Profits absorb only ½ of the cost increase, pointing to the role of liquidity constraints. These results highlight the need for labor market reform to reinvigorate investment, and thus labor productivity and job creation.
    Keywords: National accounts;Labor costs;Financial crises;Capital formation;Unit labor cost;corporate investment,capital returns,corporate profitability.,WP,wage growth,capital return,Orbis,labor cost,capital growth
    Date: 2020–02–21
  20. By: Kseniya Bortnikova (Institute of Economic Studies, Faculty of Social Sciences, Charles University Opletalova 26, 110 00, Prague, Czech Republic)
    Abstract: The economics of beauty is now a burgeoning field of research. Not only the magnitude but also the direction of the beauty effect on labor outcomes is a matter of discussion. In this work, I conduct a quantitative synthesis of 418 estimates of the effect of beauty on worker’s productivity, as reported in 37 studies. The estimates are tested for publication selection using informal testing of the funnel plot as well as formal testing methods. The results provide substantial evidence of selective reporting: positive estimates of the beauty effect are preferred in literature. The set of 21 explanatory variables was collected to determine the sources of heterogeneity in the reported estimates. To account for the model uncertainty, I employ the Bayesian and Frequentist model averaging. The results indicate that differences in the reported estimates appear to be driven by choice of study design and sources of real heterogeneity, such as geographical regions and individual characteristics of respondents. The type of occupation and gender of respondents have no impact on the estimates of beauty effect concerning productivity. The average beauty effect is probably much lower than commonly believed based on the available empirical literature.
    Keywords: Beauty bias, productivity, discrimination, meta-analysis, publication bias
    JEL: C83 J3 J7 M51
    Date: 2020–06

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