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on Microeconomic European Issues |
| By: | Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Conchita D'ambrosio (Université du Luxembourg - Université du Luxembourg); Simone Ghislandi (Università commerciale Luigi Bocconi - Università commerciale Luigi Bocconi) |
| Abstract: | We consider the link between poverty and subjective well-being, and focus in particular on potential adaptation to poverty. We use panel data on almost 45,800 individuals living in Germany from 1992 to 2011 to show first that life satisfaction falls with both the incidence and intensity of contemporaneous poverty. We then reveal that there is little evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. We cannot identify any causes of poverty entry which are unambiguously associated with adaptation to poverty. |
| Keywords: | Income ; Poverty ; Subjective well-being ; SOEP |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00925542&r=eur |
| By: | Popova, Daria |
| Abstract: | This paper analyses programmes of cash allowances for children and compares their effectiveness in combating child poverty in Russia and four EU countries Sweden, Germany, Belgium and the United Kingdom. These countries are selected as representatives of alternative family policy models. Using microsimulation models (RUSMOD and EUROMOD), this paper estimates the potential gains if the Russian system were re-designed along the policy parameters of these countries and vice versa. Such an exercise rests on the idea of policy learning and provides policy relevant evidence on how a policy would perform, given different national socio-economic and demographic settings. The results confirm that the poverty impact of the program design is smaller than that of the level of spending. Other conditions being equal, the best outcomes for children are achieved by applying the mix of universal and means-tested child benefits, such as those employed by the UK and Belgium. At the same time, the Russian design of child allowances does not appear to be less effective in terms of its impact on child poverty when transferred to European countries in place of their current arrangements. |
| Date: | 2014–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em2-14&r=eur |
| By: | Egebark, Johan (Dept. of Economics, Stockholm University); Kaunitz, Niklas (SOFI) |
| Abstract: | In 2007, the Swedish employer-paid payroll tax was cut on a large scale for young workers, substantially reducing labor costs for this group. Using Difference-in-Differences paired with exact matching, we estimate a small impact, both on employment and on wages, implying a labor demand elasticity for young workers at around -0.31. Since the tax reduction applied also to existing employments, the cost of the reform was sizable, and the estimated cost per created job is at more than four times that of directly hiring workers at the average wage. Hence, we conclude that payroll tax cuts are an inefficient way to boost employment for young individuals. |
| Keywords: | Youth unemployment; Payroll tax; Tax subsidy; Labor costs; Exact matching |
| JEL: | H25 H32 J23 J38 J68 |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2014_0001&r=eur |
| By: | Halkos, George; Papageorgiou, George |
| Abstract: | This paper computes and analyses for the first time environmental efficiencies in waste generation of 160 European regions in NUTS 2 level in seven European countries. For this reason different Data Envelopment Analysis (DEA) model formulations are used modeling the pollutant in the form of waste generation as a regular output and as a regular input. In the latter case we also use the notion of eco-efficiency. The empirical findings reveal environmental inefficiencies among the regions indicating the lack of a uniform regional environmental policy among the European countries. This finding is observed not only between countries but also between regions in the same country, implying the need for implementation of appropriate municipal environmental policies in waste management. |
| Keywords: | Environmental efficiency; Waste generation; European regions; Data Envelopment Analysis |
| JEL: | C6 O13 O52 Q50 Q53 Q56 R11 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53400&r=eur |
| By: | Nicolas Dias Gomes (Faculty opf Economics, University of Coimbra and INESC-Coimbra, Portugal); Pedro André Cerqueira (Faculty opf Economics, University of Coimbra and GEMF, Portugal); Luís Alçada Almeida (Faculty opf Economics, University of Coimbra and INESC-Coimbra, Portugal) |
| Abstract: | This paper explores the relation between levels of taxation among different types of households in the European Union and the levels of software piracy from 1996 to 2010. It extends previous works introducing a large panel data set for the European Union and it´s different regions. We estimate our model using the fixed effect, comparing results from the Euro Area and the Countries that joined EU in 2004 and 2007. Results show that levels of taxation increase the levels of software piracy losses; moreover these results depend on marital status and number of children. The weight of taxation on GDP, namely the taxes on consumption, have a positive effect on piracy losses while the impact of inflation is negative and marginal. Additional to this we also found that the relative importance of these taxes in relation to total taxation can affect this phenomenon. An increase in the weight of capital taxation would decrease software piracy while this effect was opposite when considering the relative importance of consumption taxes. |
| Keywords: | Panel data, personal taxation, software piracy. |
| JEL: | C23 H20 O52 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2014-03.&r=eur |
| By: | Trude Lappegård; Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Daniele Vignoli (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Childbearing within cohabitation has gained considerable ground in recent decades, but existing explanations for this development are not coherent. Proponents of the Second Demographic Transition framework interpret it rather as a pattern of progress driven by processes such as emancipation from traditional social norms. Others see rises in childbearing in cohabitation being related to a “pattern of disadvantage” as they are often concentrated among individuals faced with blocked opportunities. In this paper we argue that these inconsistencies might stem from a gap in knowledge how the relevance of existing theories varies dependent on whether we look at variation in family formation behavior across individuals, subnational regions or countries. To test this hypothesis we revisit the existing theories by analyzing harmonized survey data from 16 European countries using a three-level hierarchical model. Our results suggest that the Second Demographic Transition framework is particularly important to understanding variation between countries, while pattern of disadvantage hypotheses seem more relevant to understanding variation between individuals and subnational regions. |
| Keywords: | Europe, cohabitation, economic conditions, family formation, fertility, social norms |
| JEL: | J1 Z0 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2014-002&r=eur |
| By: | Olivier Thévenon (INED) |
| Abstract: | This paper analyses the response of female labour force participation to changes in labour markets and policies supporting the reconciliation of work and family life, with country-level data from the early 1980s for 18 OECD countries. It includes an original analysis of interactions and complementarity between different policy measures, as well as of potential variations in the influence of policies across different family policy regimes. The results highlight that while employment rates react to changes in tax rates and in leave policies, increased provision of formal childcare services to working parents with children below three years old is a key policy driver of female labour force participation. The coverage of childcare services is found to have a greater effect on women's labour market participation in countries with relatively high levels of employment protection, longer paid leave, and with other measures supporting working mothers. In all, it suggests that policy measures securing the labour market participation of women with young children interact with each other to maximise their overall effect on employment rates. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:idg:wpaper:201&r=eur |
| By: | Bratti, Massimiliano (University of Milan); Conti, Chiara (Sapienza University of Rome) |
| Abstract: | We use small Italian regions (i.e. provinces) to investigate the causal effect of foreign immigration on innovation during 2003-2008. Using instrumental variables estimation (based on immigrants' enclaves), we find that the overall stock of immigrants did not have any effect on innovation. However, decomposing the overall effect into the contributions of low- and high-skilled migrants shows that an increase of 1 percentage point in the share of low-skilled migrants on the population reduces patent applications by about 0.2%. By contrast, the impact of high-skilled immigrants on innovation is positive, in line with the previous literature, but cannot be precisely estimated. |
| Keywords: | immigration, innovation, patent applications, regions, Italy |
| JEL: | O3 J2 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7922&r=eur |
| By: | John Jerrim (Department of Quantitative Social Science, Institute of Education, University of London) |
| Abstract: | The link between family background and labour market outcomes is an issue of great academic, social and political concern. It is frequently claimed that such intergenerational associations are stronger in Britain than other countries. But is this really true? I investigate this issue by estimating the link between parental education and later lifetime income, using three cross-nationally comparable datasets covering more than 30 countries. My results suggest that the UK is broadly in the middle of the cross-country rankings, with intergenerational associations notably stronger than in Scandinavia but weaker than in Eastern Europe. Overall, I find only limited support for claims that family background is a greater barrier to economic success in Britain than other parts of the developed world. |
| Keywords: | intergenerational mobility, parental education, income, PIAAC, EU-SILC |
| JEL: | J62 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1402&r=eur |
| By: | Laszlo Goerke (Institute for Labour Law and Industrial Relations in the EU, University of Trier); Jörn Block (University of Trier, Erasmus Institute of Management, Erasmus University Rotterdam); Jose Maria Millan (Department of Economics, Universidad de Huelva); Concepcion Roman (Department of Economics, Universidad de Huelva) |
| Abstract: | Work effort varies greatly across employees, as evidenced by substantial differences in absence rates. Moreover, absenteeism causes sizeable output losses. Using data from the European Community Household Panel (ECHP), this paper investigates absence behavior of family employees, i.e. workers who are employed in enterprises owned by a relative. Our estimates indicate that being a family employee instead of a regular employee in the private sector significantly reduces both the probability and duration of absence to a substantial degree. |
| Keywords: | absenteeism, family employees, European Community Household Panel, work effort |
| JEL: | I10 J22 M50 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iaa:dpaper:201402&r=eur |
| By: | Beatrice Camaioni; Roberto Esposti; Francesco Pagliacci; Franco Sotte |
| Abstract: | In this task, research is mostly finalised to analyse how EU policies have been distributed across space. Here, the main focus is on Common Agricultural Policy (CAP) expenditure. The same territorial detail adopted in previous tasks is used (i.e., NUTS 3 level). By analysing CAP expenditure at such a territorial disaggregation level, this work has specifically concentrated on rural, agricultural and environmental policies. Actually, specific CAP measures are directly aimed at tackling those issues. CAP also accounts for a large share of overall EU funds, and it represents one of major drivers of EU spatial development. The methodology of analysis is based on the reconstruction of allocation of EU funds across EU-27 NUTS 3 regions. First, an exploratory analysis of the spatial allocation of CAP expenditure across Europe is assessed. Spatial allocation of CAP expenditure is considered by disentangling specific measures as well (e.g., Pillar One and Pillar Two expenditure, Direct Payment and Market Intervention Measures, Pillar Two’s Axes…). Both absolute expenditure levels and expenditure intensity are computed here. Then, through a simple statistical analysis, the correlation between CAP expenditure at NUTS 3 level and regional features, in terms of both rurality and agricultural activity, is assessed. |
| Keywords: | Economic growth path, European economic policy |
| JEL: | O18 Q01 R12 R58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:1:d:0:i:51&r=eur |
| By: | Charlotte Senftleben-König; ; ; |
| Abstract: | This paper investigates the short- and medium-term effects of the deregulation of shopopening hours legislation on retail employment in Germany. In 2006, the legislative competence was shifted from the federal to the state level, leading to a gradual deregulation of shop opening restrictions in most of Germany’s sixteen federal states. The paper exploits regional variation in the legislation in order to identify the effect product market deregulation has on retail employment. We find robust evidence that the deregulation of shop closing legislation had negative effects on retail employment, with considerable heterogeneity in terms of the type of employment as well as establishment size. That is, the employment losses are most pronounced for small retail stores and are almost exclusively borne by full-time employees. |
| Keywords: | Product market regulation, Employment, Retail trade |
| JEL: | J21 L51 L81 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2014-013&r=eur |
| By: | Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group); Kerstin Pull (University of Tübingen, School of Business and Economics); Manfred Stadler (University of Tübingen, School of Business and Economics); Alexandra Zaby (University of Tübingen, School of Business and Economics) |
| Abstract: | Based on the "acquiring-a-company" game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sell- ers. This setting allows us to predict and test the effects of information disclosure as prescribed by two recently implemented directives of the European Union, the Transparency and the Takeover-Bid Directive. Our theoretical and experimental results suggest a welfare-enhancing effect of compulsory information disclosure. Hence, the EU Transparency and the EU Takeover-Bid Directive should both be welfare enhancing. |
| Keywords: | Acquisition of firms, disclosure of private information, experimental economics |
| JEL: | C91 D61 D82 |
| Date: | 2014–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-003&r=eur |
| By: | Hospido, Laura (Bank of Spain); Zamarro, Gema (University of Southern California) |
| Abstract: | In this paper we study the retirement patterns of couples in a multi-country setting using data from the Survey of Health, Aging and Retirement in Europe. In particular we test whether women's (men's) transitions out of the labor force are directly related to the actual realization of their husbands' (wives') transition, using the institutional variation in country-specific early and full statutory retirement ages to instrument the latter. Exploiting the discontinuities in retirement behavior across countries, we find a significative joint retirement effect for women of 21 percentage points. For men, the estimated effect is insignificant. Our empirical strategy allows us to give a causal interpretation to the effect we estimate. In addition, this effect has important implications for policy analysis. |
| Keywords: | joint retirement, social security incentives |
| JEL: | J26 D10 C21 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7926&r=eur |
| By: | Rita Sousa (CENSE, Universidade Nova de Lisboa e Universidade do Minho); Luís Aguiar-Conraria (Universidade do Minho - NIPE) |
| Abstract: | Using data from Phase II-III of the European Union Emission Trading Scheme, we characterize CO2 prices interrelation with energy prices (gas, electricity and coal), carbon allowances substitute prices and with economic activity index. We estimate a vector autoregressive model and the responses of CO2 prices to impulses in other variables, observing duration and direction of the impact. Our main findings include significant positive impact of returns in CO2 of peak electricity, gas, and economy index, and CO2 returns itself. The impact is visible during ten days in case of an electricity innovation, and during one day in case of gas. A shock in economy index prices has 2 days impact, and finally a substitute good for carbon licences in the European market does not have a significant impact. |
| Keywords: | Carbon price; Emission allowances and trading; VAR model |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:02/2014&r=eur |
| By: | Mario Mariniello |
| Abstract: | The issue: Excluding cartels, most investigations into suspected infringements of European Union competition law are resolved with â??commitment decisionsâ??. The European Commission drops the case in exchange for a commitment from the company under investigation to implement measures to stop the presumed anti-competitive behaviour. Commitment decisions are considered speedier than formal sanctions (prohibition decisions) in restoring normal competitive market conditions. They have a cost, however: commitments are voluntary and are unlikely to be subject to judicial review. This reduces the European Commissionâ??s incentive to build a robust case. Because commitment decisions do not establish any legal precedent, they provide for little guidance on the interpretation of the law. Policy challenge: The European Commission relies increasingly on commitment decisions. More transparency on the substance of allegations, and the establishment of a higher number of legal precedents, are however necessary. This applies in particular to cases that tackle antitrust issues in new areas, such as markets for digital goods, in which companies might find it difficult to assess if a certain behaviour constitutes a violation of competition rules. To ensure greater transparency and mitigate some of the drawbacks of commitment decisions, while retaining their main benefits, the full detail of the objections addressed by the European Commission to defendants should be published. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polbrf:809&r=eur |
| By: | Cavaco, Sandra; Eriksson, Tor; Skalli, Ali |
| Abstract: | This paper empirically examines the role and relative importance of parents’ and individuals’ own socioeconomic status and how their impacts on the probability of overweight and obesity evolve over the life cycle. The impact of individuals’ health behaviours on their obesity status later in life is also studied. We use data from Denmark, Finland, France, Greece, the Netherlands and the U.K. in which about 6,000 individuals aged 50 to 65 are surveyed and where individuals’ height and weight at different ages (25, 25, 45 and current age) are available. We perform “repeated cross-sections” analyses as well as dynamic probit analyses of the individuals’ obesity histories. Key findings are: (i) parents’ socioeconomic status predicts obesity in early adulthood whereas the individual’s own socioeconomic status as adult is more important in explaining obesity at later stages of the life cycle, (ii) changes in obesity status are associated with changes in health behaviours, (iii) obesity in late adulthood is strongly and positively correlated with overweight and obesity in younger ages, and (iv) cross-country differences in obesity and overweight largely remain after controlling for parental and childhood factors and individuals’ health behaviours. |
| Keywords: | Obesity, socioeconomic status, life cycle, cross-country differences |
| JEL: | I12 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2013-08&r=eur |
| By: | Pouliakas, Konstantinos (European Centre for the Development of Vocational Training (Cedefop)) |
| Abstract: | This paper provides an evidence-based assessment of the current situation prevailing in the Greek market for skills and jobs. The synthesis of available skills intelligence for Greece, the country most severely affected by the global economic crisis of 2008, is crucial as it is currently faced with tough decisions regarding the allocation of limited resources in the face of economic austerity. The paper engages in a comparative overview of Greece's performance on flagship Europe 2020 indicators on education and employment in relation to the EU. An empirical analysis of the incidence and determinants of skill mismatches in the Greek and EU job markets is also undertaken, using data from several European data sources. It is argued that a stronger vocational education and training pillar may constitute a valuable option for strengthening the links between the initial educational system and the labour market in Greece. But tackling skill mismatch requires skill development and skill utilization policies in the workplace. A stronger commitment to enhancing the skill content of jobs by employers via the adoption of high performance workplace practices, investment in continuous training, less reliance on casual labour and policies to support small and medium-sized enterprises in the war for talent are necessary if Greece is to make the most of its rich skills reserves. |
| Keywords: | skills, skill mismatch, Greece, vocational education and training, overeducation, shortages |
| JEL: | C25 I29 J11 J20 J24 J69 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7915&r=eur |
| By: | Katharina Wolf |
| Abstract: | This study examines the fertility behavior of male and female Turkish migrants in Germany. Our main objective in this paper is to investigate the role of duration since migration in first and higher order birth risks. We use data from the 2nd wave of the German Generations and Gender Survey (GGS) that was conducted in 2005/06. In a first step, the age-specific fertility rates and the total fertility rates are estimated and compared for the German and the Turkish respondents following a method suggested by Toulemon (2004). Second, discrete-time hazard rate models are calculated. We find strongly elevated birth risks among the Turkish respondents in the years immediately following migration. This effect is found to be stronger for the females than for the males. The role of age at migration is also investigated. We find here that migrants who were older than age 30 at migration had significantly lower birth rates than other migrants, particularly those who migrated in young adulthood. We conclude that the fertility of Turkish migrants in Germany is strongly associated with their migration history. It is therefore important to take into account both the age at migration and the duration of stay when studying migrant fertility. |
| Keywords: | migrants |
| JEL: | J1 Z0 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2014-001&r=eur |
| By: | Konstantin A. Kholodilin; Boriss Siliverstovs |
| Abstract: | In this paper, we evaluate the forecasting ability of 115 indicators to predict the housing prices and rents in 71 German cities. Above all, we are interested in whether the local business confidence indicators can allow substantially improving the forecasts, given the local nature of the real-estate markets. The forecast accuracy of different predictors is tested in a framework of a quasi out-of-sample forecasting. Its results are quite heterogeneous. No single indicator appears to dominate all the others for all cities and market segments. However, there are several predictors that are especially useful, namely the business confidence at the national level, consumer confidence, and price-to-rent ratios. Given the short sample size, the combinations of individual forecast do not improve the forecast accuracy. On average, the forecast improvements attain about 20%, measured by reduction in RMSFE, compared to the naïve model. In separate cases, however, the magnitude of improvement is about 50%. |
| Keywords: | Housing prices, housing rents, forecasting, spatial dependence, German cities, confidence indicators, chambers of commerce and industry |
| JEL: | C21 C23 C53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1360&r=eur |