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on Microeconomic European Issues |
| By: | Brücker, Herbert; Bertoli, Simone; Fernández-Huertas Moraga, Jesús |
| Abstract: | The analysis of how the economic crisis in Europe has reshaped migration flows faces two challenges: (i) the confounding influence of correlated changes in the attractiveness of alternative destinations, and (ii) the role of rapidly changing expectations about the evolution of the economic conditions in various countries. This paper addresses the first challenge by controlling for multilateral resistance to migration, and the second one by incorporating 10-year bond yields as an explanatory variable in a study of European bilateral migration flows to Germany between 2006 and 2012. We show that, while expectations and current economic conditions at origin are significant determinants of migration, diversion effects account for 78 percent of the observed increase in German gross migration inflows. -- |
| JEL: | F22 O15 J61 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79693&r=eur |
| By: | Schiersch, Alexander; Gornig, Martin; Belitz, Heike |
| Abstract: | Previous research shows that technical progress at the industry level, measured by sectoral TFP growth, is more localized in continental European countries than in Anglo-Saxon coun-tries. We use EU KLEMS data sets to decompose sectoral TFP for nine European countries by means of a Malmquist approach, in order to separate technical change. Applying Harberger diagrams, we describe the sectoral patterns of technical progress. The analysis reveals that in most European countries technological progress is much more evenly distributed across sectors than TFP. -- |
| JEL: | O14 O47 E23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79725&r=eur |
| By: | Magali Dauvin and Lukasz Grzybowski |
| Abstract: | In this paper we use panel data on NUTS 1 regional data for 27 EU countries in the years 2006-2010 to analyze determinants of broadband diffusion. We estimate both linear demand specification and the logistic diffusion function. We find that, after controlling for regional differences due to socioeconomic factors, inter-platform competition approximated by an inter-platform Herfindahl index has a significant positive impact on broadband diffusion. Broadband deployment is lower in countries in which DSL has a greater share in Internet access and it is higher in countries in which cable modem has a greater share in Internet access. Moreover, we find that competition between DSL providers has a significant and positive impact on broadband penetration. First, higher prices for a fully unbundled local loop connection, which represent the cost of providing copper-based Internet services, have a significant and negative impact on broadband penetration. Second, a greater incumbent share in DSL connections has a significant and negative impact on broadband penetration. |
| Keywords: | Broadband diffusion, Inter-platform competition, Intra-platform competition |
| JEL: | L1 L96 L51 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:407&r=eur |
| By: | Aretz, Bodo |
| Abstract: | This paper analyzes the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. Using a large administrative data set which covers the years 1975 to 2008, I find that wage inequality increased and wage mobility decreased for male and female workers in East and West Germany. Women faced a higher level of wage inequality and a lower level of wage mobility than men in both parts of the country throughout the entire observation period. The mobility decline was sharper in East Germany so that the level of wage mobility has fallen below that of West Germany over time. Looking at long-term mobility, a slowly closing gap between men and women is observed. -- |
| JEL: | J31 D63 D00 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80003&r=eur |
| By: | GUIO Anne-Catherine; MARLIER Eric |
| Abstract: | Guio, Gordon and Marlier (2012) have proposed a theory based analytical framework for developing robust (i.e. suitable, reliable, valid and additive) aggregate indicators that could be used for analytical and monitoring purposes at national and EU levels. They have applied this framework to EU-SILC data collected in 2009, and as a result of their systematic item by item analysis carried out at both EU and country levels, they have suggested an alternative material deprivation (MD) indicator which consists of 13 items ? six are common to the current 9-item MD indicator and seven are new. This paper discusses the impact of the move from the current EU definition of MD to this alternative 13-item indicator ? impact in terms of the size of the population deprived throughout the EU, impact in terms of the composition (socio-demographic characteristics) of this population as well as impact on the Europe 2020 social inclusion target. |
| Keywords: | poverty; Europe 2020; material deprivation; EU social inclusion target; EU-SILC |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2013-29&r=eur |
| By: | Schmitt, Stephan; Kucsera, Denes |
| Abstract: | The aim of this paper is to give deeper insights into the impact of regulatory reforms and privatization on R&D spending of electricity utilities. Building on a panel data set including the biggest European utilities from eight EU-countries over a period from 1985 until 2010, we find a strong negative influence of privatization and also a negative overall impact of regulation on R&D investment. Nearing competition has a dampening effect on R&D spending, but once the market and regulatory framework conditions have been established, higher levels of competition positively influence R&D. Our results further indicate that the relation between competition and innovative investment can be described as inverted U-shaped. Finally, we could not find any evidence that (ownership) unbundling and incentive regulation affect R&D expenditures of the utilities. -- |
| JEL: | L43 L51 L94 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80035&r=eur |
| By: | Peter Huber (WIFO); Doris A. Oberdabernig (WIFO) |
| Abstract: | We study differences in contributory and non-contributory welfare benefit receipt between immigrants and natives for 16 EU countries. In contrast to previous studies we analyse differences in benefit levels allowing for potentially different takeup rates between immigrants and natives and use Oaxaca-Blinder decompositions to discuss residual welfare dependence. Results point to substantial heterogeneity in welfare dependence between countries when not controlling for observed characteristics of immigrants and natives. This is primarily due to different selection into benefits between immigrants and natives and differences in their characteristics (mainly income, personal, and household characteristics). Once this is controlled for, immigrants participate at most equally often in both types of benefits as natives and usually also receive lower or comparable benefit levels. |
| Keywords: | EU countries, immigration, Oaxaca-Blinder decompositions, welfare benefits |
| Date: | 2014–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2014:i:459&r=eur |
| By: | Wolf, Elke |
| Abstract: | Despite the increasing occurrence of part-time employment in Germany, the effects on wage rates are rarely studied. I therefore use GSOEP panel data from 1984 to 2010 and apply different econometric approaches and definitions of part-time work to measure the so-called part-time wage gap of both, men and women. A very robust finding is that part-time working men are subject to higher wage cuts than women. The specification accommodating all available information and the biasing effect of unobserved individual characteristics yields a wage cut of about 10 percent in West and East Germany. Furthermore, the type of contract makes a big difference. While marginal employees own lower wage rates, irrespective of region and sex, female part-time employees covered by social security have no significant drawback once differences in firm and job characteristics (in OLS regressions) or individual fixed-effects (in panel regressions) are taken into account. The results also reveal that work experience in part-time employment generates no positive returns, implying that reduced working hours do not only cause short-term effects. Another novel of my study is the look at the part-time wage gap over time. While there are good reasons to believe that the part-time wage gap shrinks, the empirical evidence reveals that wage differentials in West-Germany increased over time. This finding also surprises in light of the supposition that the wage penalty tends to be lower in times when part-time work is widespread and employers get accustomed to alternative working time schemes. -- |
| JEL: | J22 J24 J31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79969&r=eur |
| By: | Duso, Tomaso; Argentesi, Elena; Aguzzoni, Luca; Ciari, Lorenzo; Tognoni, Massimo |
| Abstract: | This paper empirically evaluates the effects of a merger between the two largest book retail chains in the UK. We build an original dataset of book titles with data on the prices at the store level and at the national level. We then apply difference-in-differences techniques to assess the impact of the merger. A key feature of the books market is that titles become obsolete very quickly. Therefore, we compare different titles before and after the merger in an hedonic approach. Since retail mergers may have either local or national effects (or both) according to the level at which retail chains set prices, we undertake an ex post assessment of the impact of the merger at both aggregation levels. At the local level, we compare the changes in the average price charged before and after the merger in the shops located in overlap areas (i.e. areas where both chains were present before the merger) and in non-overlap areas (i.e. areas where only one chain was present before the merger). Our results do not show any significant difference between non-overlap and overlap areas where the merger could have been expected to generate the strongest effect. To investigate the effects of the merger at the national level, we employ two distinct control groups, namely the competitors and the top-selling titles. In both cases we find that the merger did not result in an increase in prices at the national level. -- |
| JEL: | K21 L44 D22 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80025&r=eur |
| By: | Beblo, Miriam; Beninger, Denis; Cochard, Francois; Couprie, Helene; Hopfensitz, Astrid |
| Abstract: | We present the results of an experiment that measures social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a cross-country comparison between France and Germany. In particular, we show that German households are more inequality averse and are thus less efficient than French households. A decomposition of this difference reveals that approximately 40% is driven by diverging sample compositions in the two countries, while 60% of the initial French/German difference remains unexplained. Beliefs differ significantly from observed behavior in both countries. Efficient choices are overestimated in the German sample and underestimated in the French. -- |
| JEL: | D13 C91 C92 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79759&r=eur |
| By: | David Richter; Sakari Lemola |
| Abstract: | We analyzed whether individuals reared in institutions differ in their general life satisfaction from people raised in their families. The data comprised of 19,210 German adults (51.5% female) aged from 17 to 101 years and were provided by the SOEP, an ongoing, nationally representative longitudinal study in Germany. Compared to people raised in families, individuals reared in institutions reported lower general life satisfaction in the manner of a dose response relationship controlling their parents' education and occupational prestige. The association was moderated by participants' age such that with increasing age the association between institutional rearing and lower general life satisfaction decreased. Further, the relationship was partly mediated by the individuals own education/socioeconomic attainment in adulthood, physical health, and relationship status. |
| Keywords: | life satisfaction; set point theory; early adversity; institutional rearing |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp616&r=eur |
| By: | Bertsch, Joachim; Growitsch, Christian; Lorenczik, Stefan; Nagl, Stephan |
| Abstract: | The EU member states have declared to strongly increase the share of Renewable Energy Sources in the next decades. Given a large deployment of wind and solar capacities as well as limited cost-efficient storage technologies, this has two major impacts on electricity systems. First, the electricity system has to be flexible enough to cope with the volatile RES-E generation i.e. ramp up supply or ramp down demand on short notice. Second, sufficient back-up capacities are needed for times with low feed-in from wind and solar capacities. The provision of both back-up capacity has been intensively discussed in the previous literature of recent years (for instance Cramton and Stoft, 2008 and Joskow, 2008). In addition, Lamadrid et al (2011) argue that with increasing volatility, incentives to invest in flexible resources should be implemented in market design. However, they did not have a look at the dynamic view in an integrated analysis necessary to to answer the questions of how an electricity system can adapt to an increasing share of renewables. This paper therefore analyses the flexibility requirements of the future European electricity system and the policy implications for market design with a system-economic dynamic approach. For this purpose, we simulate the development of the European electricity markets up to 2050 by using a linear investment and dispatch optimization model. Flexibility requirements are implemented in the model via constraints for ramping and provision of balancing power. We find that although an increase of fluctuating renewables has a tremendous impact on volatility and therefore flexibility requirements, the main trigger for investments into flexible conventional capacity are the achievable full load hours rather than ramping capabilities. Therefore any market design with investment incentives of achievable full load hours does not need additional incentives for flexibility. -- |
| JEL: | D02 C63 Q40 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79944&r=eur |
| By: | HAURET Laetitia; WILLIAMS Donald R. |
| Abstract: | Research over the past two decades has found significant gender differences in subjective job-satisfaction, with the result that women report greater satisfaction than men in some countries. This paper examines the so-called ?gender paradox? using data from the European Social Survey for a subset of fourteen countries in the European Union. We focus on the hypothesis that women place higher values on certain work characteristics than men, which explains the observed differential. Using estimates from Probit and ordered Probit models, we conduct standard Blinder-Oaxaca decompositions to estimate the impact that differential valuations of characteristics have on the gender difference in self-reported job satisfaction. The results indicate that females continue to report higher levels of job satisfaction than do men in some countries, and the difference remains even after controlling for a wide range of personal and job characteristics and working conditions. The decompositions suggest that a relatively small share of the gender differential is attributable to gender differences in the weights placed on working conditions in most countries. Rather, gender differences in job characteristics contribute relatively more to explaining the gender job-satisfaction differential. |
| Keywords: | job satisfaction; gender; Oaxaca decomposition |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2013-27&r=eur |
| By: | Walter, Thomas; Butschek, Sebastian |
| Abstract: | In this paper, we provide a quantitative answer to the question what types of active labour market programmes (ALMPs) work for immigrants. From the existing literature, we identify 24 research papers estimating 79 short-run treatment effects of ALMPs on immigrants. We perform a meta-analysis of these findings based on the sign and significance of the estimates. This allows us to present quantitative evidence for the relative effectiveness for immigrants of different types of ALMPs. Our finding that only subsidised private-sector employment can be recommended is relevant to European policymakers allocating scarce resources in the face of high immigrant unemployment. -- |
| JEL: | J15 J61 I38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79745&r=eur |
| By: | Heijke J.A.M.; Ioakimidis M. (ROA) |
| Abstract: | This study investigated whether earnings inequality is associated with social capital as measured by active membership in organizations and interpersonal trust. Pearson product-moment correlation analysis showed that greater earnings inequality was associated with lower values on both measures of social capital in 14 European countries. While causality in either direction cannot be inferred from this result, it does suggest the possibility that earnings inequality negatively affects social capital. To test this idea further, we also tentatively examined whether other societal indicators related to earnings inequality are associated with social capital. These alternative indicatorsthe countrys percentage of urban residents, percentage of residents with tertiary education, and government spending as a percentage of GDPdid not show stronger relationships with social capital than did earnings inequality. Further analysis of the data by excluding specific groups of countries indicated little association between earnings inequality and measures of social capital. These results suggested that country-specific economic or cultural values play a large role in how earnings inequality and social capital are related. |
| Keywords: | Wage Level and Structure; Wage Differentials; Economic Sociology; Economic Anthropology; Social and Economic Stratification; |
| JEL: | J31 Z13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umarot:2013003&r=eur |
| By: | Montizaan R.M.; Fouarge D.; Grip A. de (GSBE) |
| Abstract: | This paper investigates the causal effects of the announcement of an increase in the statutory pension age on employee retirement expectations. In June 2010, the Dutch government signed a new pension agreement with the employer and employee organizations that entailed an increase in the statutory pension age from 65 currently to 66 in 2020 for all inhabitants born after 1954. Given the expected increase in average life expectancy, it was also decided that in 2025 the pension age would be further increased to 67 for those born after 1959. This new pension agreement received huge media coverage. Using representative matched administrative and survey data of public sector employees, we find that the proposed policy reform increased the expected retirement age by 3.6 months for employees born between 1954 and 1959 and by 10.8 months for those born after 1959. This increase is reflected in a clear shift in the retirement peak from age 65 to ages 66 and 67 for the respective treated cohorts. Men respond less strongly to the policy reform than women, but within couples we find no evidence that the retirement expectations of one spouse are affected by an increase in the statutory pension age of the other. Furthermore, we show that treatment effects are largely driven by highly educated individuals but are lower for employees whose job involves physically demanding tasks or managerial and supervisory tasks. |
| Keywords: | Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination; Retirement; Retirement Policies; |
| JEL: | J14 J26 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2013020&r=eur |
| By: | Schlenker, Eva |
| Abstract: | The purpose of this paper is to assess the determinants of female labour supply in science, technology, engineering and mathematics (STEM). Using data from the European Statistics on Income and Living Conditions (EU-SILC), the author finds that women in STEM work more hours, but have a higher probability to be out of the labour force. Additionally, empirical evidence is found that maternal employment in STEM is also significantly more pronounced. To account for selection problems, a special type of grouping estimator and a control function approach is used. The estimation results show, that women in STEM work less hours in countries with higher levels of family allowances. However, this effect is only weakly significant and small compared to the overall effects of larger levels of expenditures on family allowance and child benefits. -- |
| JEL: | J22 J24 J16 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79981&r=eur |
| By: | Vasilakis, Chrysovalantis (Department of Economics, University of Warwick) |
| Abstract: | Complex interactions between high-skilled migration and aggregate performance govern the dynamics of growth and inequality across nations. Due to lack of data, these interdependencies have not been extensively studied in the economics literature. This paper takes advantage of the availability of rich panel data on the mobility of talented football players, and the performances of national leagues and teams to quantify the effect of a "globalization" shock, the 1995 Bosman rule, on global efficiency and cross-country inequality in football. I built a micro-founded model endogenizing migration decisions, inequality and training; I estimated its structural parameters; and I used numerical simulations to compare actual data with a counterfactual no-Bosman trajectory. My analysis reveals that the Bosman shock (i) increased global efficiency in football, (ii) increased inequality across leagues, and (iii) decreased inequality across national teams. I quantify the effect of the Bosman rule on the football hierarchy of UEFA and FIFA. Countries from Africa, South (except Argentina and Brazil) and Central America have produced more talents and benefitted from brain-gain type effects. My results also show that this brain-gain mechanism is the major source of efficiency gains. However, it plays only a minor role in explaining the rising inequality. JEL classification: International Migration ; Brain Drain ; Globalization ; Inequality ; European Football JEL codes: F22 ; J61 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1034&r=eur |
| By: | Massimiliano Mazzanti; Susanna Mancinelli; Marianna Gilli |
| Abstract: | Innovation is a key element behind the achievement of desired environmental and economic performances. Regarding CO2, mitigation strategies would require cuts in emissions of around 80-90% with respect to 1990 by 2050 in the EU. We investigate whether complementarity, namely integration, between the adoption of environmental innovation measures and other technological and organizational innovations is a factor that has supported reduction in CO2 emissions per value added, that is environmental productivity. We merge new EU innovation and WIOD data to assess the innovation effects on sector CO2 performances at a wide EU level. We find that jointly adopting different innovations is not a widespread factor behind increases in environmental productivity. Nevertheless, even though complementarity is not a low hanging fruit, a case where ‘innovation complementarity’ arises is for manufacturing sectors, that integrate eco innovations with product innovations. One example of this integrated action is a strategy that pursue energy efficiency with product value enhancement. We believe that the lack of integrated innovation adoption behind environmental productivity performance is a signal of the current weaknesses economies face in tackling climate change and green economy challenges. Incremental rather than more radical strategies have predominated so far. The latter have been confined to industrial ‘niches’, in terms of number of involved firms. This is probably insufficient when we look at long-term economic and environmental goals. |
| Keywords: | Complementarity; Innovation; Climate Change; Sector Performance |
| JEL: | L6 O3 Q55 |
| Date: | 2014–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:2014043&r=eur |
| By: | Klein, Gordon J.; Günster, Andrea |
| Abstract: | The study analyzes the impact of European antitrust enforcement on industry performance measured as competition intensity (Price Cost Margin) and productivity (labor productivity and distance to the frontier). For a panel of OECD countries on the industry level since 1988, we estimate the impact of an infringement decision by the European Commission on the competitive market structure. We find that enforcement has a considerable e ffect, both on competition intensity and on productivity. However, the impact di ffers with the anticompetitive economic conduct. Cartels behave as theoretically predicted with an increase in competition and productivity after the cartel break-up. The impact of vertical conduct is more complex, with positive and negative effi ciency eff ects of antitrust enforcement depending on the exclusivity of the vertical restraint. -- |
| JEL: | L40 K21 K20 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79989&r=eur |
| By: | Wim Van Lancker; Natascha Van Mechelen |
| Abstract: | The long-standing wisdom that universally designed benefits outperform targeted benefits in terms of poverty reduction has come under siege. Recent empirical studies tend to find that targeting is not necessarily associated anymore with lower levels of poverty reduction. In this study, we investigate for a broad set of European countries (1) the relationship between child benefits and child poverty reduction; (2) whether a universal or targeted approach is more effective in reducing child poverty; and (3) the causal mechanisms explaining the link between (1) and (2). In doing so, we take into account the general characteristics of the child benefit system, the size of the redistributive budget and the generosity of benefit levels. In contrast to previous studies, we construct an indicator of targeting that captures the design instead of the outcomes of child benefit systems. We find that targeting towards lower incomes is associated with higher levels of child poverty reduction, conditional on the direction of targeting and the characteristics of the benefit system. |
| Keywords: | Child benefits, child poverty, paradox of redistribution, targeting, universalism, comparative social policy |
| JEL: | I32 I38 J13 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hdl:wpaper:1401&r=eur |
| By: | Heike Belitz; Anna Lejpras |
| Abstract: | We analyze the role of public support in the financing pattern of R&D in German SMEs and their assessment of financing conditions in the context of other framework conditions for innovation. In Germany, there is a diversity of overall well-funded technology-neutral and technology-specific programs providing grants to R&D and innovation projects. Different types of SMEs access public funding for R&D and innovation activities to varying degrees. Using an extensive sample of 2,700 German SMEs that participated in public R&D promotion programs during the 2005-2010 period, we identify four groups of companies with different patterns of public and private sources of R&D finance, such as own capital, grants, private and subsidized loans. The firms in our sample are generally positive about public financing of R&D in Germany in 2010. Despite the different funding patterns, we find only slight variations in this assessment across the four groups of subsidized SMEs. Nevertheless, medium-sized R&D companies (often with external equity investment) that have to finance the market introduction of innovations without a track record, appear to suffer from deficiencies in the provision of loans. Further, the companies perceive obstacles to innovation primarily in the non-financial sphere, namely the supply of skilled personnel, market regulation and competition conditions. Therefore, future work on innovation policies for SMEs should put greater emphasis on the non-financial external framework conditions for firm R&D and innovative activities. |
| Keywords: | R&D promotion, financing of R&D, small and medium sized enterprises, barriers to innovation |
| JEL: | O14 O25 O38 L20 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1353&r=eur |
| By: | Mariana Tomova; Andras Rezessy; Artur Lenkowski; Emmanuelle Maincent |
| Abstract: | The objective of this paper is to empirically analyse whether sound fiscal and macroeconomic policies are beneficial to the achievement of the socio-economic development objectives enshrined in the Treaty on the Functioning of the European Union, and in particular whether sound policies have an impact on the effectiveness of European Structural and Investment Funds (ESI funds) in helping Member States to progress towards these socio-economic development objectives. Our econometric results show that sound fiscal policies proxied by low levels of government debt and deficit and sound macroeconomic policies proxied by low levels of net foreign liabilities are beneficial to socio-economic development. Furthermore, we find evidence that ESI funds are effective in helping Member States to enhance socio-economic development and this effectiveness is higher when combined with sound national fiscal and macroeconomic policies. |
| JEL: | D62 E61 E62 H5 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:euf:ecopap:0510&r=eur |