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on Microeconomic European Issues |
| By: | Ketterer, Tobias; Rodríguez-Pose, Andrés |
| Abstract: | This paper delves into the factors which determine the attractiveness of regions in Europe for migrants. Contrary to the literature on the US which has increasingly focused on the role of amenities, existing research in Europe tends to highlight the predominance of economic conditions as the main drivers of migration. Differentiating between economic, socio-demographic and amenity-related territorial features, we examine the appeal of various regional characteristics for migrants by analyzing net migration data for 133 European regions between 1990 and 2006. Our results show that, in addition to economic, human capital-related and demographic aspects, network effects and – in contrast to existing literature – different types of regional amenities exert an important influence on the relative attractiveness of sub-national territories across the European Union (EU). Our findings therefore indicate that locational choices in Europe may be much more similar to place-based preferences in the US than originally thought. |
| Keywords: | amenities; economic conditions; Europe; inter-regional migration; location choice; regions; social networks |
| JEL: | O15 R23 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8964&r=eur |
| By: | Luis Aguiar (Departamento de Economía - Universidad Carlos III de Madrid); Philippe Gagnepain (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | The goal of this paper is to assess the impact on the performance of firms that participate in Research Joint Ventures (RJVs) funded by the Fifth European Framework Programme for Research and Technological Development (EU-FP5). A special emphasis is made on the User-friendly Information Society (IST) programme, one of the most important thematic programmes of the EU-FP5. We use the funding available to the firms as an instrumental variable to account for self-selection and estimate the Local Average Treatment Effect (LATE) of participation by considering labor productivity and profit margin as performance measures. Our results show a large and positive impact of participation on the labor productivity of the firms, whereas the effect on profit margin is weaker. When taking into account the size of the RJV, we find that the positive impact on labor productivity comes mainly from participation in large projects and that participation in smaller RJVs has a negative effect on the profit margin. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00622969&r=eur |
| By: | Catherine Pollak (IRDES institut for research and information in health economics); Nicolas Sirven (IRDES institut for research and information in health economics) |
| Abstract: | “Active Ageing” strategies aim to foster the participation of seniors in the society. Although economic literature has extensively studied the incentives for seniors to increase their labour supply, little is known about the motivations for older people to complement labour with other forms of social participation. Using data from the Survey of Health, Ageing and Retirement in Europe, this article provides empirical evidence of the motivational role of the work environment in the supply of formal and informal productive activities of 50 to 65 year old workers. The results show that intrinsic rewards received at work, such as skill development opportunities and decision latitude, form an incentive for older workers to invest time in social activities outside the labour market. Extrinsic rewards on the other hand, like advancement perspectives, job security and pay, appear independent from non-market outcomes. Therefore, the opportunity for work time arrangements but also intrinsic rewards in the work environment should be developed if one aims to foster participation of older workers in the society. |
| Keywords: | Labour supply, Job quality, Social capital, Informal care. |
| JEL: | J81 J22 J14 C35 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:irh:wpaper:dt48&r=eur |
| By: | Valeria Costantini; Francesco Crespi |
| Abstract: | This paper examines how the last wave of the European Union enlargement process has influenced the export competitiveness of EU countries. A technology-augmented gravity model is applied to distinguished manufacturing sectors to test the effect of the economic integration as well as the role of technological capabilities on export dynamics in old and new EU countries. The main findings reveal that the enlargement process has produced an overall larger positive impact on export flows for new members and that this positive effect appears not to be confined to low-tech sectors. In addition, the study shows that the level of technological capabilities is a crucial driving factor for export dynamics, both for old and new EU countries, and that the interrelations between the EU enlargement process and the level of technological capabilities are relevant. |
| Keywords: | EU enlargement, technological capabilities, innovation, industries, international trade, gravity models |
| JEL: | F14 F15 O14 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0152&r=eur |
| By: | Johansson, Per (IFAU - Institute for Evaluation of Labour Market and Education Policy); Pekkarinen, Tuomas (Aalto University School of Economics); Verho, Jouko (The Social Insurance Institution of Finland) |
| Abstract: | This paper studies the cross-border health and productivity effects of alcohol taxes. We estimate the effect of a large cut in the Finnish alcohol tax on mortality, alcohol related illnesses and work absenteeism in Sweden. This tax cut led to large differences in the prices of alcoholic beverages between these two countries and to a considerable increase in cross-border shopping. The effect is identified using differences-in-differences strategy where changes in these outcomes in regions near the Finnish border are compared to changes in other parts of northern Sweden. We use register data where micro level data on deaths, hospitalisations and absenteeism is merged to population-wide micro data on demographics and labour market outcomes. Our results on the effect of the Finnish tax cut on mortality and alcohol-related hospitalisations in Sweden are very imprecise. However,we find that workplace absenteeism increased by 5% for males and by 13% for females near the Finnish border as a result of the tax cut. |
| Keywords: | Cross-border shopping; Alcohol taxes; Health effects of alcohol |
| JEL: | H23 H73 I18 |
| Date: | 2012–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2012_010&r=eur |
| By: | Francesco Bogliacino (JRC-IPTS); Mariacristina Piva (Università Cattolica de Milano); Marco Vivarelli (Università Cattolica de Milano) |
| Abstract: | In this paper we assess the job creation effect of R&D expenditures, using a unique longitudinal database of 677 European companies over the period 1990-2008. We estimate a dynamic labour demand specification using a Least Squares Dummy Variable Corrected (LSDVC) technique. The labour-friendly nature of R&D emerges from the empirical analysis on the overall sample. However, this positive significant effect corresponds to the high-tech sector and services, while the effect is not significant for traditional manufacturing. The results support the policy agenda of promoting structural change in European economies. |
| Keywords: | innovation, employment, manufacturing, services, LSDVC |
| JEL: | O33 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201110&r=eur |
| By: | Dachs, Bernhard; Biege, Sabine; Borowiecki, Marcin; Lay, Gunther; Jäger, Angela; Schartinger, Doris |
| Abstract: | This paper provides new evidence for the servitization of European manufacturing – the trend that manufacturing firms increasingly offer services along with their physical products. We employ input-output data as well as data from a company survey to give a comprehensive picture of servitization across countries and industries. The share of services in the output of manufacturing industries increased in the large majority of European countries between 1995 and 2005 and between 2000 and 2005. Service output of manu-facturing, however, is still small compared to the output of physical products. The highest service shares are found in small countries with a high degree of openness and R&D intensity. EU-12 Member States have lower shares of service output compared to the EU-15. There is a strong link between servitization and technological innovation at different levels. Countries with the highest shares of services on manufacturing output have also the highest R&D intensities at the aggregate level. The service output of these countries consists predominantly of knowledge-intensive services. Highly innovative sectors reveal also the highest share of firms that offer services and the highest turnover generated with services. Examples are electrical and optical equipment, machinery, or the chemical and pharmaceutical industry. At the firm level, we find a U-shaped relationship between firm size and service output, which indicates that small, but also large manufacturing firms have advantages in servitization. Producers of complex, customized products tend to have a higher share of services in output than producers of simple, mass-produced goods. Moreover, firms which have launched products new to the market during the last two years are more likely to realize higher shares of turnover from services compared to companies which launched no products new to the market. |
| Keywords: | Servitization; structural change; manufacturing; input-output tables; innovation; knowledge-intensive services |
| JEL: | L16 O30 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38873&r=eur |
| By: | Eva Valeri (University of Trieste); Amanda Stathopoulos (University of Trieste); Edoardo Marcucci (University of Roma Tre) |
| Abstract: | In the last years Energy Efficiency (EE) has become an important issue in the public policy makers’ agenda due to ambitious objectives of the European Commission to reduce energy consumption by 20% in 2020. Many countries have adopted state-level EE programs targeted to include Energy Saving (ES) policy mixes in different sectors including transportation that is among the most energy intensive ones. The aims of this paper are to: i) report briefly the macro-areas of state-level transport EE policies related to the transport sector, ii) verify the level of implementation of these policies among some European countries, iii) highlight, for each country considered, the EE measures adopted up to 2007 and compare the results obtained, iv) evaluate the implementation of EE transport successful measures adopted by each respective National Energy Agency (NEAs), and finally v) compare the main results deriving from EE policy implementation. In particular, in this last objective we adapted the good practice policy mix framework for car passenger transport proposed by the AID-EE Project at the information obtained from countries’ National Energy Programmes (NEPs) updated to 2007. |
| Keywords: | Transport Sector, Energy Sector, Energy Efficiency, Energy Saving, Energy Policy mix |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rcr:wpaper:03_12&r=eur |
| By: | Richard Frensch; Jan Hanousek; Evžen Kocenda |
| Abstract: | Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has been done by analyzing gross trade flows related to offshore activities using gravity equations augmented by ad hoc measures of supply-side country differences. This paper suggests that gravity formulations of this sort are mis-specified, due to theoretically unmotivated attempts to allow for both complete and incomplete specialization influences on gross trade flows within the same gravity framework. We suggest an alternative specification rooted in incomplete specialization that views bilateral gravity equations as statistical relationships constrained on countries’ multilateral specialization patterns. This view reveals that countries’ multilateral specialization incentives drive bilateral trade, corresponding to and competing with the role of multilateral trade resistance. Our results support evidence for offshoring activities across Europe, driven by countries’ multilateral specialization incentives, as expressed by supply-side country differences relative to the rest of the world. |
| Keywords: | International trade, gravity model, offshoring, panel data, European Union |
| JEL: | F14 F16 L24 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2012:i:091&r=eur |
| By: | Dell'Aringa, Carlo (Università Cattolica del Sacro Cuore); Lucifora, Claudio (Università Cattolica del Sacro Cuore); Pagani, Laura (University of Milan Bicocca) |
| Abstract: | This paper investigates earnings differentials between immigrants and natives. We focus on returns and on the (imperfect) international transferability of human capital. Data are drawn from the 2009 Italian Labour Force Survey (LFS). We show that returns to human capital are considerably lower for immigrants as compared to natives and that there is no return to pre-immigration work experience, suggesting imperfect transferability of human capital. We also explored the role of human capital, for immigrants and natives, in explaining inter-occupational and intra-occupational earnings progression (differentials). Our findings suggest that the returns on human capital (main source of wage progression) for immigrants (is) are mainly driven by intra-occupational earnings progression. Moreover, and contrary to what is observed for natives, we detect through quantile analysis a "glass-ceiling" effect for immigrant workers, who appear to face a large penalty in accessing high paying occupations. A number of robustness checks confirm our main results. |
| Keywords: | migration, earnings, human capital portability, occupational attainment, wage differentials, human capital |
| JEL: | J31 J24 J61 F22 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6555&r=eur |
| By: | Bartz, Kevin; Fuchs-Schündeln, Nicola |
| Abstract: | Based on a modified Spatiotemporal Autoregressive Model (STAR), we analyze whether borders still constitute significant impediments to labor market integration in the European Union, despite the formal law of free movement of labor. Using regional data from the EU-15 countries over 21 years, we find that this is the case. We further investigate whether the abolishment of border checks through the Schengen agreement or the introduction of the Euro improved our measure of labor market integration across borders, and do not find evidence in favor. Last, we investigate the role of languages, and potentially cultures, as obstacles to labor market integration. We find that indeed language borders play a larger role than country borders in explaining the lack of labor market integration across borders. |
| Keywords: | European integration; labor market integration; spatial econometrics |
| JEL: | C4 J4 J6 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8987&r=eur |
| By: | Cilem Selin Hazir (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon) |
| Abstract: | This paper studies multilateral cooperation networks among organizations and work on a two-mode representation to study the decision to participate in a consortium. Our objective is to explain the underlying processes that give rise to multilateral collaboration networks. Particularly, we are interested in how heterogeneity in organizations' attributes plays a part and in the geographical dimension of this formation process. We use the data on project proposals submitted to the 7th Framework Program (FP) in the area of Life sciences, Biotechnology and Biochemistry for Sustainable Non-Food. We employ exponential random graph models (p* models) (Frank and Strauss, 1986 ; Wasserman and Pattison, 1996) with node attributes (Agneessens et al., 2004), and we make use of extensions for affiliation networks (Wang et al., 2009). These models do not only enable handling variability in consortium sizes but also relax the assumption on tie/triad independence. We obtained some preliminary results indicating institutional types as a source of heterogeneity affecting participation decisions. Also, these initial results point out that organizations take their potential partners' participations in other projects into account in giving their decision ; organizations located in the core European countries tend to participate in the same project ; the tendency to preserve the composition of a consortium across projects and the tendency of organizations with the same institutional type to co-participate are not significant. |
| Keywords: | Multilateral R&D collaboration; affiliation networks; exponential random graph models; geographical dimension of networks; biotechnology |
| Date: | 2012–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00697556&r=eur |
| By: | Favaro, Donata; Ninka, Eniel; Turvani, Margherita |
| Abstract: | We study the transmission of knowledge arising from working relationships established by inventors, and its impact on firms’ innovation production. The study’s contribution to the literature is twofold. First, we consider those relationships that originate through inventor connections (”multi-applicant” inventors) and inventor mobility. Second, we analyse their effect on companies’ innovation production. The study focuses on the role played by geographical proximity, and the dynamic effects of knowledge flows. The geographical question is dealt with on a detailed level, by measuring knowledge spillovers observed within the same Local Labour System (LLS), between different LLSs of the region and, finally, with extra-regional LLSs. Dynamics are captured by measuring inventor mobility and connections occurring up to 20 years before patent filing. The analysis is carried out on the Italian region of Veneto and is based upon the original OECD REGPAT database of patent applications filed at the European Patent Office. The manual procedure we used to clean the data allows us to resolve some issues raised in the literature. Our results show that the impact of working relationships on innovation production depends on both geography and dynamics. Therefore, we can not conclude that productivity effects of knowledge flows occurring through the labour market are localized. However, we can conclude that working relationships have sizable productivity effects on innovation, either in the short or in the long run, depending on the geographical distance. |
| Keywords: | labour mobility; inventor connections; knowledge diffusion; innovation; geographical proximity; |
| JEL: | J61 J24 O3 |
| Date: | 2012–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38950&r=eur |
| By: | Franz Hubert; Onur Cobanli |
| Abstract: | We use cooperative game theory to analyze the strategic impact of three controversial pipeline projects. Two of them, Nord Stream and South Stream, allow Russian gas to bypass transit countries, Ukraine and Belarus. Nord Stream’s strategic value turns out to be huge, justifying the high investment cost for Germany and Russia. The additional leverage obtained through South Stream, in contrast, appears small. The third project, Nabucco, aims at diversifying Europe’s gas imports by accessing producers in Middle East and Central Asia. The project has a large potential to curtail Russia’s power, but the benefits accrue mainly to Turkey, while the gains for the EU are negligible. |
| Keywords: | Bargaining Power, Transport Network, Natural Gas |
| JEL: | L5 L9 O22 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2012:i:093&r=eur |
| By: | Pietro Moncada-Paternò-Castello (JRC-IPTS); Peter Voigt (JRC-IPTS) |
| Abstract: | The paper investigates how sector composition and the magnitude of R&D investment in the EU may differ in 2020 in comparison to the past, if a selection of top R&D-investing SMEs were assumed to be on a fast growth track while the top R&D-investing large-scale companies continue to grow as before. The background of this research objective is the emerging focus on SMEs – and in particular the fast-growing among them – with regard to the "Europe 2020" policy strategy. The study relies on the sample of top R&D-investing firms as given by the latest available "EU Industrial R&D Investment Scoreboard" editions, building there from an unbalanced panel. Scenarios were developed by distinguishing SMEs' assumed growth paths vs. that of large scale companies. A linear prediction model has been used to calculate the scenario simulations. Overall, the study indicates that if one expects the (R&D-intensive) small firms to be a driving force for a substantial structural change in the EU economy, from being driven by medium-tech sectors towards a high-tech based economy, it requires either a significant longer-term horizon of the assumed fast growth track than the simulated 10 years, or small firms' growth figures which even exceed the assumed annual 30% (as in the most optimistic scenario). Neither case appears to be particularly realistic. Hence, we need more top R&D investors in Europe to further intensify their engagement in R&D (increasing volume and R&D intensity) as well as numerous small firms that start and/or significantly increase their existing R&D activities and thus seek to become large firms and (global) leading R&D investors. Accordingly, a broad R&D and innovation (policy) strategy is needed with policy interventions which also target well all these options; i.e. stimulating firm growth and R&D and innovation-intensity across firm-sized classes. |
| Keywords: | SME, company growth, industrial dynamics, structural change, R&D/ innovation policy, Barcelona target, Europe 2020 |
| JEL: | L11 L25 R38 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201201&r=eur |
| By: | Luc Behaghel (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CREST - Centre de Recherche en Économie et Statistique - INSEE - École Nationale de la Statistique et de l'Administration Économique); Julie Moschion (Melbourne Institute of Applied Economic and Social Research - Melbourne Institute of Applied Economic and Social Research) |
| Abstract: | In this paper, we provide empirical evidence on the impact of IT diffusion on the stability of employment relationships. We document the evolution of the different components of job instability over a panel of 350 local labor markets in France, from the mid 1970s to the early 2000s. Although workers in more educated local labor markets adopt IT faster, they do not experience any increase in job instability. More specifically, we find no evidence that the faster diffusion of IT is associated with any change in job-to-job transitions, and we find that it is associated with relatively less frequent transitions through unemployment. Overall, the evidence goes against the view that the diffusion of IT has spurred job instability. Combining the local labor market variations with firm data, we argue that these findings can be explained by French firms' strong reliance on training and internal promotion strategies in order to meet the new skills requirement associated with IT diffusion. |
| Keywords: | Technical change; labor turnover; Skill bias; Job security; Internal labor markets |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00646595&r=eur |
| By: | Ejermo, Olof (CIRCLE, Lund University); Jung, Taehyun (CIRCLE, Lund University) |
| Abstract: | This paper uses register-linked patent records covering an extended period 1985-2007 to analyze detailed demographic profiles of inventors. The analysis covers about 80 percent of all inventors with Swedish addresses listed on European Patent Office records. Examining temporal trends of gender, age, and education shows that the body of inventors is becoming more balanced in gender, younger, and more educated. However, the rate at which female inventors are entering into patenting has slowed down since the early 2000’s compared to the mid-1990s. Moreover, comparing the inventor sample with the entire population of Sweden reveals that 1) the closing of the gender gap in inventing is not taking place at the same rate as among Ph.D. holders and that 2) the dependence of inventing on the highly educated (especially, Ph.D. holders) is being intensified over time, but the number of highly educated is growing faster among the general population than among inventors. Finally, the analysis shows that there is significant heterogeneity in the composition and tendency of gender, age, and education of inventors across technology fields. |
| Keywords: | inventor; patent; gender; age; education |
| JEL: | I23 J16 O31 O34 |
| Date: | 2012–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2012_005&r=eur |
| By: | Markus Kelle , Jörn Kleinert , Horst Raff , Farid Toubal |
| Abstract: | We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial services at the firm level. We use these data to study export market participation and the choice of export mode: cross-border versus foreign affiliate sales. We find that for firms in our sample productivity is both a statistically significant and economically important determinant of the export participation and export mode choice. We also identify the role of industry- and country-specific determinants |
| Keywords: | international trade, trade in services, supply modes, commercial presence, foreign direct investment, multinational enterprises, firm heterogeneity |
| JEL: | F12 F15 L13 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1771&r=eur |
| By: | Olivier Brossard; Inès Moussa |
| Abstract: | We suggest three theoretical propositions on the nature, channels and boundaries of knowledge spillovers, and we test them with knowledge production functions estimated on French NUTS 3 regions over 2002–2008. Several novelties are introduced. First, we quantify external R&D to complement the usual internal R&D variable and assess the effect of knowledge nature on knowledge spillovers. Second, we construct several measures of the quantity and quality of regional knowledge diffusion channels and introduce them in our knowledge production functions. Third, we test several spatial panel specifications to assess robustness and evaluate the geographical boundaries of various types of knowledge spillovers. All methods converge to provide evidence for the following: 1) spillovers from internal R&D are larger than spillovers from external R&D; 2) the quantity and quality of regional knowledge transmission channels are important determinants of regional innovation; and 3) industrial and technological diversity produce positive knowledge externalities, not only locally but also in the neighbourhood of French regions. |
| Keywords: | Knowledge spillovers, innovation, R&D, clusters |
| JEL: | R12 R15 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1207&r=eur |
| By: | S Bradley; Jim Taylor |
| Abstract: | This paper investigates the extent to which exam performance at the end of compulsory education has been affected by three major education reforms: the introduction of a quasi-market following the Education Reform Act (1988); the specialist schools initiative introduced in 1994; and the Excellence in Cities programme introduced in 1999. We use data for all state-funded secondary schools in England over the period 1992-2006. The empirical analysis, which is based on the application of panel data methods, indicates that the government and its agencies have substantially overestimated the benefits flowing from these three major reforms. Only about one-third of the improvement in GCSE exam scores during 1992-2006 is directly attributable to the combined effect of the education reforms. The distributional consequences of the policy, however, are estimated to have been favourable, with the greatest gains being achieved by schools with the highest proportion of pupils from poor families. But there is evidence that resources have not been allocated efficiently. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:984&r=eur |