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on Microeconomic European Issues |
| By: | Adena, Maja (WZB - Social Science Research Center Berlin); Myck, Michal (Centre for Economic Analysis, CenEA) |
| Abstract: | Using a sample of Europeans aged 50+ from twelve countries in the Survey of Health, Ageing and Retirement in Europe (SHARE) we analyse the role of poor material conditions as a determinant of changes in health over a four-year period. We find that poverty defined with respect to relative incomes has no effect on changes in health. However, broader measures of poor material conditions such as subjective poverty or low relative value of wealth significantly increase the probability of transition to poor health among the healthy and reduce the chance of recovery from poor health over the time interval analysed. In addition to this the subjective measure of poverty has a significant effect on mortality, increasing it by 40.3% among men and by 58.3% among those aged 50–64. Material conditions matter for health among older people. We suggest that if monitoring of poverty in old age and corresponding policy targets are to focus on the relevant measures, they should take into account broader definitions of poverty than those based only on relative incomes. |
| Keywords: | health transitions, material conditions, poverty, mortality |
| JEL: | I14 I32 J14 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7532&r=eur |
| By: | Jan Abrell; Clemens Gerbaulet; Franziska Holz; Casimir Lorenz; Hannes Weigt |
| Abstract: | The interdependence of electricity and natural gas is becoming a major energy policy and regulatory issue in all jurisdictions around the world. The increased role of gas fired plants in renewable-based electricity markets and the dependence on gas imports make this issue particular striking for the European energy market. In this paper we provide a comprehensive combined analysis of electricity and natural gas infrastructure with an applied focus. We analyze different scenarios of the long-term European decarbonization pathways sketched out by the Energy Roadmap 2050, and identify criteria related to electricity and/or natural gas infrastructure and the interrelation between both markets. |
| Keywords: | Europe, electricity markets, natural gas markets, networks |
| JEL: | L94 L95 C61 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1317&r=eur |
| By: | Olper, Alessandro; Raimondi, Valentina; Cavicchioli, Daniele; Vigani, Mauro |
| Abstract: | The paper deals with the determinants of labour out-migration from agriculture across 149 EU regions over the 1990-2008 period. The central aim is to shed light on the role played by CAP payments on this important adjustment process. Using static and dynamic panel data estimators, we show that standard neo-classic drivers, like the relative income and the relative labour share, represent significant determinants of the inter-sectoral migration of agricultural labour. Overall, CAP payments contributed significantly to job creation in agriculture, although the magnitude of the economic effect was quite moderate. We also found that Pillar I subsidies exerted an effect approximately two times greater than that of Pillar II payments. |
| Keywords: | Out-farm Migration, Labour Markets, CAP Payments, Panel Data Analysis, Agricultural and Food Policy, International Relations/Trade, Labor and Human Capital, Q12, Q18, O13, J21, J43, J60, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152326&r=eur |
| By: | Jürgen Janger; Anna Strauss; David Campbell |
| Abstract: | Asymmetric international mobility of highly talented scientists is well documented. We try contributing to the explanation of this phenomenon, looking at the “competitiveness” of higher education systems in terms of being able to attract talented scientists in their field. We characterise countries’ capability to offer attractive entry positions into academic careers using the results of a large scale experiment on the determinants of job choice in academia. Examined areas refer to the level of salaries, quality of life, PhD-studies, career perspectives, research organisation, balance between teaching and research, funding and probability of working with high quality peers. Our results indicate that overall, the US research universities offer the most attractive jobs for early stage researchers, consistent with the asymmetric flow of talented scientists to the US. Behind the US is a group of well performing European countries, the Netherlands, Sweden, Switzerland and the UK. Austria and Germany are next, closely followed by France, which in turn is followed by Italy. Spain and Poland are, according to our results, least able to offer attractive entry positions to an academic career. |
| Keywords: | Academic careers, academic labour market, university organisation, brain drain |
| JEL: | I23 I25 I28 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:8:d:0:i:37&r=eur |
| By: | Bartelsman, Eric (VU University Amsterdam); Dobbelaere, Sabien (VU University Amsterdam); Peters, Bettina (ZEW Mannheim) |
| Abstract: | This paper examines how productivity effects of human capital and innovation vary at different points of the conditional productivity distribution. Our analysis draws upon two large unbalanced panels of 6,634 enterprises in Germany and 14,586 enterprises in the Netherlands over the period 2000-2008, considering 5 manufacturing and services industries that differ in the level of technological intensity. Industries in the Netherlands are characterized by a larger average proportion of high-skilled employees and industries in Germany by a more unequal distribution of human capital intensity. Except for low-technology manufacturing, average innovation performance is higher in all industries in Germany and the innovation performance distributions are more dispersed in the Netherlands. In both countries, we observe non-linearities in the productivity effects of investing in product innovation in the majority of industries. Frontier firms enjoy the highest returns to product innovation whereas the most negative returns to process innovation are observed in the best-performing enterprises of most industries. In both countries, we find that the returns to human capital increase with proximity to the technological frontier in industries with a low level of technological intensity. Strikingly, a negative complementarity effect between human capital and proximity to the technological frontier is observed in knowledge-intensive services, which is most pronounced for the Netherlands. Suggestive evidence for the latter points to a winner-takes-all interpretation of this finding. |
| Keywords: | human capital, innovation, productivity, quantile regression |
| JEL: | C10 I20 O14 O30 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7540&r=eur |
| By: | Loughrey, Jason; Hennessy, Thia; Hanrahan, Kevin; Donnellan, Trevor; Raimondi, Valentina; Olper, Alessandro |
| Abstract: | This paper examines the effect of the decoupling of farm direct payments upon the off-farm labour supply decisions of farmers in both Ireland and Italy. We use panel data from the Farm Business Survey (REA) and FADN database covering the period from 2002 to 2009 to model these decisions. Drawing from the conceptual agricultural household model, we hypothesise that the decoupling of direct payments led to an increase in off-farm labour activity despite some competing factors. This hypothesis rests largely upon the argument that the effects of changes in relative wages have dominated other factors. At a micro level, the decoupling induced decline in the farm wage relative to the non-farm wage ought to have provoked a greater incentive for off-farm labour supply. The main known competing argument is that decoupling introduced a new source of non-labour income i.e. a wealth effect. This may in turn have suppressed or eliminated the likelihood of increased off-farm labour supply for some farmers. For the purposes of comparative analysis, the Italian model utilises the data from the REA database instead of the FADN as the latter has a less than satisfactory coverage of labour issues. Both models are developed at a national level. We draw from the literature on female labour supply and use a sample selection corrected ordinary least squares model to examine both the decisions of off farm work participation and the decisions regarding the amount of time spent working off-farm. The preliminary results indicate that decoupling has not had a significant impact on off-farm labour supply in the case of Ireland but there appears to be a significantly negative relationship in the Italian case. It still remains the case in both countries that the wealth of the farmer is negatively correlated with the likelihood of off-farm employment. |
| Keywords: | Labour Supply, Off Farm Employment, Farm Holder, Italy, Ireland, Agribusiness, Farm Management, International Relations/Trade, Labor and Human Capital, J22, J43, Q12, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152331&r=eur |
| By: | Tocco, Barbara; Bailey, Alastair; Davidova, Sophia |
| Abstract: | The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected NMS and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour. |
| Keywords: | Agricultural Employment, Labour mobility, Sample Selection Bias, Agricultural and Food Policy, Labor and Human Capital, Research Methods/ Statistical Methods, J24, J43, J62, Q12, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152324&r=eur |
| By: | Sjaak Braster (Erasmus University Rotterdam); Jaap Dronkers (Maastricht University) |
| Abstract: | According to Robert Putnam (2007) ethnic diversity in cities and neighborhoods does not lead to an increase of trust and social capital as previously predicted by intergroup contact theory (Pettigrew, 1998); instead it triggers a reaction of hunkering down that leads to a decrease in trust and social capital of both in-group and out-groups. But what happens if we focus on youngsters that are growing up in a multi-ethnic metropole, that are considering ethnic diversity as a something "normal", and that are bridging their ethnic differences by sharing a common street culture and language? In this article we use data about 905 pupils, 41 classes and 11 schools in a European metropole to confirm the hypothesis that in this specific context ethnic diversity in classrooms does lead to positive effects on educational performance. |
| Keywords: | ethnic diversity, educational performance, classroom effects, multi-ethnic cities |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1318&r=eur |
| By: | Hendrik Jürges; Juliane Köberlein |
| Abstract: | Since 2003 German hospitals are reimbursed according to diagnosis related groups (DRGs). Patient classification in neonatology is based inter alia on birth weight, with substantial discontinuities in reimbursement at eight different thresholds. These discontinuities create strong incentives to upcode preterm infants into classes of lower birth weight. Using data from the German birth statistics 1996 to 2010 and German hospital data from 2006 to 2011, we estimate that since the introduction of DRGs, hospitals have upcoded at least 12,000 preterm infants and gained additional reimbursement in excess of 100 million Euro. The scale of upcoding in German neonatology enables us to study the anatomy of cheating in a profession that otherwise claims to have high ethical standards. We show that upcoding is not only positively linked with the strength of financial incentives but also with expected treatment costs measured by poor newborn health conditional on weight. This suggests that doctors and midwives do not indiscriminately upcode any potential preterm infant as a rational model of crime would predict. Rather, they may find it easier to cheat when this helps aligning the lump-sum reimbursement with the expected actual treatment costs. |
| Keywords: | Neonatal care, DRG upcoding |
| JEL: | I11 I18 D20 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1314&r=eur |
| By: | Latruffe, Laure; Piet, Laurent; Dupraz, Pierre; Mouël, Chantal Le |
| Abstract: | We investigate the determinants of agricultural land price in several regions in France over the period 1994-2011 using individual plots transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. We found a positive but relatively small capitalisation effect of the total subsidies per hectare. We found evidence that agricultural subsidies capitalised at least to some extent. However, the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate surplus zone. |
| Keywords: | Farm land price, agricultural subsidies, capitalisation, regulations, nitrate surplus area, France, Agricultural and Food Policy, Farm Management, International Development, Land Economics/Use, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152372&r=eur |
| By: | Carlos Noton |
| Abstract: | This paper characterizes the price adjustment costs that are consistent with observed price dynamics in the European car market. Using the methodology developed by Bajari, Benkard, and Levin (2007), I estimate a dynamic model of international multiproduct firms that set prices in different currencies while facing price adjustment costs. There are three main results. First, the incomplete degree of exchange rate pass-through can be explained by a sizable destination-currency cost component. Second, large price adjustment costs are not needed to rationalize the large degree of price inertia in a highly autocorrelated economic environment. In fact, small adjustment costs can rationalize the persistent prices observed. Third, the paper identi.es an unexplored temporal dimension of "pricing-to-market" behavior, that is the practice of setting prices differently across segmented markets. Estimates of the price adjustment cost suggest that a uniform cost structure is not consistent with the pricing behavior observed. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:edj:ceauch:303&r=eur |
| By: | Olper, A.; Raimondi, V.; Cavicchioli, D.; Vigani, M. |
| Keywords: | International Relations/Trade, Labor and Human Capital, Research Methods/ Statistical Methods, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152328&r=eur |
| By: | Guastella, G.; Moro, D.; Sckokai, P.; Veneziani, M. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152256&r=eur |
| By: | Rizov, Marian; Pokrivcak, Ján; Ciaian, Pavel |
| Keywords: | Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152259&r=eur |
| By: | Kamińska, Aldona Mrówczyńska |
| Keywords: | Agribusiness, International Relations/Trade, Labor and Human Capital, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152389&r=eur |
| By: | Bas ter Weel; Tyas Prevoo |
| Abstract: | This research estimates models of the importance of conscientiousness for socio-economic outcomes. We use measures of conscientiousness at age 16 to explain adult wages and other outcomes, such as crime, health and savings behaviour. <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: NL; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><span style="color: #000000;"><span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: NL; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">We use several waves from the 1970 British Cohort Study. Our estimates suggest a significant and sizeable correlation between early conscientiousness and adult outcomes. Measurement error is corrected for by applying IV-techniques, errors-in-variables estimators and structural equation modelling. Investigation of the lower-order structure of conscientiousness suggests that facets related to reliability, decisiveness and impulse control are most strongly correlated with outcomes. We also investigate changes in early conscientiousness and find that persons who experience declines in the personality distribution between the ages 10 and 16 seem to be worse off in terms of a variety of socio-economic outcomes.</span></span></span> |
| JEL: | J24 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:251&r=eur |
| By: | Petrick, Martin |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, Production Economics, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152337&r=eur |
| By: | Loughrey, Jason; Donnellan, Trevor; Hanrahan, Kevin; Hennessy, Thia |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, Labor and Human Capital, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152330&r=eur |
| By: | Telegdy, Álmos (Institute of Economics, Budapest) |
| Abstract: | I identify wage spillovers from the public to the corporate sector with the help of a large and sudden public sector wage increase, which raised real compensation by 40 percent in two years, changing the average public wage premium from minus 10 to plus 12 percent. Using a dataset covering about 7 percent of Hungarian workers and their employer, the spillover effect is identified with the variation of the share of public sector employment within groups defined by gender, experience and occupation. The analysis shows that 10 percent higher share of public sector workers within worker-type induces an additional wage growth of 15-20 percent around the wage increase. Controlling for firm (worker spell) fixed effects does not change the results qualitatively and results in a spillover effect of 11-14 (7.5-12) percent. The spillover effect is positively correlated with the public wage premium within worker type, with occupations which are abundant in the public sector, with the availability of public sector jobs and being hired after the wage increase. |
| Keywords: | wage spillover, public sector, Hungary |
| JEL: | J31 J45 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7524&r=eur |
| By: | Emvalomatis, Grigorios; Lansink, Alfons Oude; Stefanou, Spiro E. |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, Production Economics, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatr13:152264&r=eur |