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on Microeconomic European Issues |
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Issue of 2014‒09‒25
24 papers chosen by Giuseppe Marotta Università degli Studi di Modena e Reggio Emilia |
| By: | Luthra, Renee Reichl; Platt, Lucinda; Salamonska, Justyna |
| Abstract: | This paper demonstrates the relationship between migration motivations and intended durations of stay and subsequent early integration among recent east-west European migrants. We use a unique, four-country data source covering over 3,500 recently arrived (previous 18 months) Polish immigrants. First we use a data reduction technique to allocate the migrants to six migrant types according to their motivations, intended duration of stay, and previous migration history. Second, we link these migrant types to pre-migration characteristics such as gender, age, and region of origin. Third, we explore how the migrant types are associated with social, subjective, and economic measures of integration. |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2014-18&r=eur |
| By: | Antoine Dechezleprêtre; Caterina Gennaioli; Ralf Martin; Mirabelle Muûls |
| Abstract: | Does climate change policy cause companies to shift the location of production, thereby creating carbon leakage? We examine the impact of the European Union Emissions Trading System (EU ETS) on the geographical distribution of carbon emissions within multinational companies based on data from the Carbon Disclosure Project for the period 2007- 2009. Our data includes regional emissions of 435 companies, of which 47 are subject to EU ETS regulation. We find no evidence that the EU ETS has induced a displacement of carbon emissions from Europe towards the rest of the world. Our results suggest that claims that the EU ETS would cause carbon leakage might have been exaggerated. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp165&r=eur |
| By: | Ron DIRIS; Frank VANDENBROUCKE; Gerlinde VERBIST |
| Abstract: | This study assesses the role of social spending in relation to child poverty in European welfare states. Using macro-level panel data from EU SILC 2005-2012, we analyze the effect of the size of social spending and the effect of how those benefits are targeted. We separately estimate the effect of pension benefits on child poverty, as the prevalence of multigenerational families makes them a relevant income source for families with children, especially in Southern and Eastern European welfare states. Estimating a GLS model including time and country fixed effects, we find that both cash transfers and pensions substantially reduce child poverty. Increased targeting also leads to lower poverty rates, but the effect sizes are more modest by comparison, and strongly depend on how targeting is defined. The estimates for social spending change little across various model specifications and we also obtain similar estimates when we use regional variation within countries to assess the same effects. Where social spending explains a large share of variation in poverty within countries over time, the explanatory power with respect to cross-sectional variation in poverty rates is limited. The complete model does explain a large share of cross-sectional disparities in poverty across European welfare states, but a sizable unexplained variation remains. This unexplained disparity likely relates to factors that are more invariable over time. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces14.20&r=eur |
| By: | Verbist, Gerlinde; Figari, Francesco |
| Abstract: | Over the last few years concern for income inequality in European countries has increased remarkably. In this context, taxation is an important redistributive instrument and we investigate the redistributive role of direct taxes. We focus on the EU-15 countries and the evolution over the period 1998-2008, using EUROMOD, the EU-wide tax-benefit model. The research aim of this paper is twofold. First, we investigate empirically whether there is a link between pre-tax income inequality and redistribution through taxes. Second we hereby test whether there is a relationship between progressivity and the average tax level, the two building stones of the redistributive impact of taxes. |
| Date: | 2014–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em6-14&r=eur |
| By: | Beatrice Scheubel |
| Abstract: | In countries with strong employment protection laws it is often considered to be unwise to hire a woman in childbearing age because she might get pregnant. However, such labour demand e ects of job protection measures related to maternity leave are often rather anecdotal. To provide analytical evidence, this paper studies the impact of changes in maternity-related job protection in Germany on employment opportunities for women in childbearing age without children for whom the observed e ects should be largely demand-related. Exogenous, discrete policy changes in the German labour market of the 1980s and 1990s constitute the setting for a difference-in-differences analysis of the transition into employment as well as wages. The data for this study are taken from the German Socio-Economic Panel and from the German Microcensus. Doubling the job-protected leave period from 6 months to 12 months between 1986 and 1988 led to an approximately 6% lower probability of being hired for women in childbearing age without a university degree.In addition, I nd a 5-10% increase in wages for women in childbearing age associated with the latter reform. Since this effect disappears when controlling for having a child in the future, this may indicate an increased need to signal commitment by increased effort after the reform. |
| Keywords: | Maternity leave legislation, gender pay gap, education, unemployment, difference-in-differences with group-correlated errors, quasi-natural experiment |
| JEL: | J64 J18 J16 J31 K31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp685&r=eur |
| By: | Avram, Silvia; Levy, Horacio; Sutherland, Holly |
| Abstract: | The systems of direct taxes and cash benefits in the 27 Member States of the European Union (EU) vary considerably in size and structure. We explore their redistributive effects using EUROMOD, the tax-benefit microsimulation model for the EU. As well as describing redistributive effects in aggregate this allows us to assess and compare the effectiveness of individual types of policy in reducing income disparities. We consider the following categories of benefits and taxes: income taxes, tax allowances, tax credits, social contributions, cash benefits designed to target the poor or redistribute inter-personally (through means-testing) as well as cash benefits intended to redistribute intra-personally across the lifecycle (through social insurance or contingency-based entitlement). We derive results for the 27 members of the European Union using policies in effect in 2010 and present them for each country separately as well as for the EU as a whole. |
| Date: | 2014–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em8-14&r=eur |
| By: | Guastella, Gianni; Moro, Daniele; Sckokai, Paolo; Veneziani, Mario |
| Abstract: | Following the decoupling of agricultural support from productions, the likelihood that payments get capitalised into farmland rent or sale prices has increased. In this study, the issue of capitalisation is examined for the case of regions in the EU and the three year (2006-2008) time span following the introduction of the reform is considered in an attempt to disentangle the effect of the decoupling. Evidence put forward in this study confirms the results of previous literature at the micro-level, suggesting that an additional 1% granted to farmers translates into an increase of 0.22% in farmland rents. |
| Keywords: | European Union, subsidies capitalisation, land rents, spatial panel econometrics, Agricultural and Food Policy, Q18, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea14:173093&r=eur |
| By: | Doerr, Annabelle; Fitzenberger, Bernd; Kruppe, Thomas (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Paul, Marie; Strittmatter, Anthony |
| Abstract: | In 2003, Germany moved from a system in which participants in training programs for the unemployed are assigned by caseworkers to an allocation system using vouchers. Based on the rich administrative data for all vouchers and on actual program participation, we provide inverse probability weighting and ordinary least squares estimates of the employment and earnings effects of a voucher award. Our results imply that after the award, voucher recipients experience long periods of lower labor market success. On average, there are only small positive employment effects and no gains in earnings even four years after the voucher award. However, we do find significantly positive effects both for lowskilled individuals and for degree courses. The strong positive selection effects implied by our estimates are consistent with sizeable cream-skimming effects. |
| JEL: | J68 H43 C21 |
| Date: | 2014–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201423&r=eur |
| By: | Florian Smuda (ZEW Centre for European Economic Research; MaCCI Mannheim Centre for Competition and Innovation); Patrice Bougette (University of Nice Sophia Antipolis, France; GREDEG CNRS; LAMETA CNRS); Kai Hüschelrath (ZEW Centre for European Economic Research; MaCCI Mannheim Centre for Competition and Innovation) |
| Abstract: | The duration of appellate court proceedings is an important determinant of the efficiency of a court system. We use data of 234 firm groups that participated in 63 cartels convicted by the European Commission between 2000 and 2012 to investigate the determinants of the duration of the subsequent one- or two-stage appeals process. We find that while the speed of the first-stage appellate court decision depends on the court’s appeals-related workload, the complexity of the case, the degree of cooperation by the firms involved and the clarity of the applied rules and regulations, the second-stage appellate court proceedings appear to be largely unaffected by those drivers. We take our empirical results to derive conclusions for both firms that plan to file an appeal as well as public policy makers. |
| Keywords: | Law and economics, antitrust policy, cartels, appeals, European Union |
| JEL: | K21 K41 K42 L41 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-25&r=eur |
| By: | Azzolini, Davide; Bazzoli, Martina; De Poli, Silvia; Fiorio, Carlo; Poy, Samuele |
| Abstract: | This paper presents the main characteristics of TREMOD, a tax-benefit microsimulation model for the Italian province of Trento (Italy). TREMOD is based upon the EUROMOD platform microsimulation model, and its purpose is to inform local tax and welfare policies. TREMOD is a flexible tool that allows simulation of the effects of different types of public policies on a plurality of outcomes such as, for example, individuals’ and households’ income and well-being. The main strength of TREMOD is the high quality of the data used for its construction. The input database has been obtained by matching survey data (derived from a local representative survey on households’ life conditions, Indagine sulle condizioni di vita delle famiglie trentine, ICFT) with administrative data on individual income tax returns. This aspect is one of the main strengths of TREMOD compared with other experiences in microsimulation modelling. As we show in this paper, the combination of survey and administrative data ensures good precision in the simulations and will allow for the integration of other administrative data sources including pension and labour market records. The first version of TREMOD is a ‘static’ microsimulation model. |
| Date: | 2014–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em15-14&r=eur |
| By: | Lars-H. R. Siemers |
| Abstract: | The sales taxes in the EU - and in several other countries - are practiced as value- added tax of the consumption type with invoice method. Literature on microsimulation models (MSM) for this type of VAT is rare, though the importance of VAT has continuously increased. We discuss the issues of VAT-MSM in detail and develop a basic general VAT-MSM, applicable to the EU member states (and beyond). To illustrate the functioning of the general model, we apply it in detail to the specific case of Germany. We provide comprehensive estimation results for the distributional and fiscal effects of the German VAT. Finally, we simulate the effects of a small VAT reform in 2010, comparing static and behavioral response simulations. |
| Keywords: | VAT microsimulation, VAT exemption, RWI-VAT-SIM, EU |
| JEL: | H22 H23 H24 C6 D12 D31 D63 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:sie:siegen:167-14&r=eur |
| By: | Camaioni, Beatrice; Esposti, Roberto; Pagliacci, Francesco; Sotte, Franco |
| Abstract: | The Common Agricultural Policy (CAP) is the most important EU Policy in terms of total expenditure. Nevertheless, its impact on EU-27 regions is rather uneven: actually, some regions have historically received a larger support than others. Territorial imbalances, however, represent only part of the story. The CAP comprises a wide range of agricultural and rural measures, from agricultural market interventions to agro-environmental payments and rural development measures. Due to their underlying objectives, expenditures from different CAP Pillars are allocated according to different territorial patterns at local level. In this paper, CAP real expenditures for years 2007-2011 are analysed at EU-27 NUTS 3 level, by considering expenditure intensity per hectare of utilised agricultural area (UAA). Several CAP expenditure typologies (Direct Payments, Market Intervention Measures and RDP’s Axes, i.e., Axis 1, Axis 2 and Axis 3) are considered. Their spatial allocation highlights different territorial patterns and suggests the existence of well defined spatial clusters. They seem to be determined by the nature of CAP itself. Indeed, despite being a single EU policy, the heterogeneous nature of its measures and their spatial allocation make the CAP a combination of several territorial policies. |
| Keywords: | CAP, rural development, regional patterns, Agricultural and Food Policy, Community/Rural/Urban Development, O18, Q01, R58, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea14:173088&r=eur |
| By: | Gurleen Popli (Department of Economics, University of Sheffield); Aki Tsuchiya (Department of Economics, University of Sheffield) |
| Abstract: | An extensive literature exists exploring the determinants of child behaviour, with increasing interest in its links with parental characteristics and beliefs. In this paper we explore a particular aspect of this relationship by looking at the parents' beliefs regarding how to treat boys and girls. A question in the third wave of the UK Millennium Cohort Study asks both the mother and father of 5-year olds whether they agree to the statement: 'Sons in families should be given more encouragement than daughters to do well at school'. We model both the determinants of parent's beliefs, as captured by this question; and the impact of these beliefs on the behaviour of 7 year old boys and girls, separately. The key findings of the paper suggest that parental agreement to the above statement does not have an impact on boys' behaviour; however, it has a detrimental impact on the behaviour of girls. |
| Keywords: | non-cognitive outcomes; parental beliefs; gender; ethnicity |
| JEL: | J13 J16 I31 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:shf:wpaper:2014013&r=eur |
| By: | Darragh Flannery (Department of Economics, University of Limerick); Cathal O'Donoghue (Rural Economic Research Centre (RERC), Teagasc, National University of Ireland, Athenry, Galway) |
| Abstract: | In this paper we utilise microsimulation techniques in the form of an income generation model and a tax/benefit model to estimate both the fiscal and net private return to education at a marginal level. This is carried out empirically using Irish data across the period 1987-2011 and is the first study to utilise these techniques in such a manner. The results indicate that a more generous tax/benefit system, combined with a greater state burden of the cost of education over the period 2000-2005 may have helped increase the individual’s return to education, while reducing the state return from investing in education. However, this trend is revered between 2005-2011, as the fiscal crisis in Ireland forces significant changes to the Irish tax/benefit system. The methodology employed allows us to specifically analyse the impact of various components of the tax/benefit system upon these returns across time and show the role of income tax changes upon the return to education for the individual and the state. |
| Keywords: | returns to education, income generation, tax/benefit, Ireland |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:lim:wpaper:042012&r=eur |
| By: | Agustí Segarra (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili); Mercedes Teruel (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili); Miquel Angel Bove (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili) |
| Abstract: | Using a database of 2,263 responses to R&D public calls in Catalonia, during the period 2007–2010, this paper proceeds to analyse the potential interaction of the territorial and policy dimensions with the propensity to apply for, and be awarded, a public R&D subsidy. Controlling for characteristics at the firm and project level, we estimate models using a twostep procedure. In the first step, our results suggest that large firms which export and which belong to high-tech manufactures are more likely to participate in a public R&D call. Furthermore, both urban location and past experience of such calls have a positive effect. Our territorial proxy of information spillovers shows a positive sign, but this is only significant at intra-industry level. Membership of one of the sectors prioritized by the Catalan government, perhaps surprisingly, does not have a significant impact. In the second step, our results show that cooperative projects, SMEs or old firms shows a positive effect on the probability of obtaining a public subsidy. Finally, the cluster policy does not show a clear relationship with the public R&D call, suggesting that cluster policies and R&D subsidies follow different goals. Our results are in line with previous results in the literature, but they highlight the unequal territorial distribution of the firms which apply and the fact that policymakers should interlink the decision criteria for their public call with other policies. |
| Keywords: | Evaluation, R&D policies, territorial approach, clusters |
| JEL: | L53 L25 O38 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2014-07&r=eur |
| By: | Sylvain Weber (Institute of economic research IRENE, Faculty of Economics, University of Neuchâtel, Switzerland); Mehdi Farsi (Institute of economic research IRENE, Faculty of Economics, University of Neuchâtel, Switzerland) |
| Abstract: | We estimate the rebound effect for private transportation using cross-section micro-level data in Switzerland for 2010. Our simultaneous equations model accounts for endogeneity of travel distance, vehicle fuel intensity and vehicle weight. Compared to the literature, our paper provides an important contribution as micro-level data and simultaneous equations models have seldom been used to estimate the rebound effect. Moreover, among the distance measures we use, one is highly reliable as it was recorded using GIS (Geographical Information System) software. Our results, obtained by 3SLS, point to substantial direct rebound effects between 75% and 81%, which lie at the higher end of the estimates found in the literature. OLS estimates are however much lower and seem to under-estimate the rebound effect. |
| Keywords: | Rebound effect, Travel demand, Simultaneous equations model. |
| JEL: | C31 D12 Q41 R41 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:14-03&r=eur |
| By: | Anna Makles (Wuppertal Research Institute for the Economics of Education (WIB), University of Wuppertal, Gaußstraße 20, 42119 Wuppertal, Germany); Kerstin Schneider (Wuppertal Research Institute for the Economics of Education (WIB), University of Wuppertal, Gaußstraße 20, 42119 Wuppertal, Germany) |
| Abstract: | This paper adds to the literature on extracurricular early childhood education and child development by exploiting unique data on an educational project in Germany, the Junior University (JU). Utilizing a quasi-experimental study design, we estimate the causal short-term effect of JU enrollment on cognitive outcomes and show that attending extra science courses with preschool classes leads to significantly higher school readiness. Although the size of the effect is relatively small, the results are plausible and pass various robustness checks. Moreover, in comparison with other programs this intervention is cost-effective. |
| Keywords: | early childhood education, early interventions, school readiness |
| JEL: | I20 I21 I28 J13 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp14012&r=eur |
| By: | Francesco Porcelli (Business School, University of Exeter, UK); Riccardo Trezzi (Faculty of Economics, University of Cambridge, UK) |
| Abstract: | Although earthquakes are large idiosyncratic shocks for affected regions, little is known of their impact on economic activity. Seismic events are rare, the data is crude (the Richter scale measures the magnitude but says nothing of the associated damages) and counterfactuals are often entirely absent. We suggest an innovative identification strategy to address these issues based on the so-called ’Mercalli scale’ ranks - a geophysical methodology devised to gauge seismic damages relying on a newly compiled dataset following 95 Italian provinces from 1986 to 2011 (including 22 seismic episodes) offering an ideal ground for identification. Also, we carry out counterfactuals taking advantage of ex ante identical neighboring provinces that only differ ex post in terms of damages. Contrary to conventional views, we find that the impact of seismic events on output is negligible (or even positive) including after the most devastating events. |
| Keywords: | Natural disasters, Mercalli scale |
| JEL: | Q54 E00 J01 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipu:wpaper:7&r=eur |
| By: | Hornuf, Lars; Schwienbacher, Armin |
| Abstract: | This paper first presents the development of the crowdinvesting market in Europe since its start in 2007. Then, using hand-collected data on the complete set of crowdinvesting campaigns run in Germany, the paper shows that successful campaigns tend to be launched by new startups and when the minimum ticket size is small so that more crowd investors can participate. Moreover, the use of the partiarisches Darlehen (a specific form of equity-linked notes not subject to prospectus regulation) adopted at the end of 2012 in Germany (as a response to alleviating regulatory constraints) has led to larger amounts being raised but also campaigns becoming more likely to achieve their targets. These two results combined indicate that contractual arrangements that enable more participation from the crowd tend to work best. Finally, campaigns launched on portals already having some experience are more likely to raise larger amounts. These findings should be of use to entrepreneurs who need to choose among a larger range of different crowdinvesting portals. |
| Keywords: | entrepreneurial finance; business finance; crowdinvesting; equity crowdfunding |
| JEL: | G3 L26 M13 K22 |
| Date: | 2014–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:21388&r=eur |
| By: | Gałkiewicz, Dominika |
| Abstract: | This study analyzes current regulation with respect to the use of derivatives and leverage by mutual funds in the U.S. and Germany. After presenting a detailed overview of U.S. and German regulations, this study thoroughly compares the level of flexibility funds have in both countries. I find that funds in the U.S. and Germany face limits on direct leverage (amount of bank borrowing) of up to 33% and 10% of their net assets, respectively. Funds can extend these limits indirectly by using derivatives beyond their net assets (e.g., by selling credit default swaps protection with a notional amount equal to their net assets). Additionally, issuer-oriented rules in the U.S. and Germany account for issuer risk differently: U.S. funds have greater discretion to undervalue derivative exposure compared to German funds. All analyses of this study reveal that under existing derivative and leverage regulation, funds in both countries are able to increase risk by using derivatives up to the point at which it is possible for them to default solely due to investments in derivatives. The results of this study are highly relevant for the public and regulators. |
| Keywords: | Regulation; mutual funds; leverage; derivative; credit default swaps |
| JEL: | G15 G18 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:474&r=eur |
| By: | John T. Addison (University of South Carolina, Durham University, University of Coimbra and IZA Bonn); Arnd Kölling (Berlin School of Economics and Law); Paulino Teixeira (GEMF/Faculty of Economics, University of Coimbra and IZA Bonn) |
| Abstract: | Recent studies have pointed to the association between declining collective bargaining coverage and rising overall wage inequality. This association holds more or less across-the-board, at least for broad swathes of recent history. That said, the exact contribution of deununionization is a matter of debate, perhaps no more so than in Germany, our case study. The present paper takes a less conventional approach to this particular source of rising inequality by examining intra-plant wage dispersion in the wake of establishments either exiting from or entering into collective agreements. Several measures of inequality are constructed for German establishments over the twelve-year period 1996-2008, an interval of continuously declining union representation. Using linked employer-employee data, our estimation strategy hinges upon the identification of comparable groups of establishments and on both instantaneous and medium- to long-term changes in the wage structure. A modest widening effect on dispersion of exiting from a sectoral agreement is detected in the data once we effect a comparison across observationally-equivalent individuals. The converse does not apply in respect of joiners. The scale of the former effect casts doubt on some of the more exaggerated claims of the importance of deunionization to wage inequality and the resurgence of Germany more generally. |
| Keywords: | Germany, collective bargaining, deunionization, intra-plant wage inequality, sectoral agreement exits and accessions. |
| JEL: | J31 J51 J53 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2014-15.&r=eur |
| By: | Pierre-Jean Messe; Eva Moreno-Galbis; François-Charles Wolf |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tep:teppwp:wp14-04&r=eur |
| By: | Andrea Bonaccorsi (DESTEC, University of Pisa, Italy); Cinzia Daraio (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza") |
| Abstract: | The need for new indicators on universities is growing as governments and decision makers at all levels are faced with the huge opportunities generated by new knowledge, but at the same time are pressed hard by budget constraints. University rankings are attracting policy and media attention, but at the same time receive harsh methodological criticism. After reviewing the critical literature on rankings, we suggest that a change in the paradigm of design and production of indicators is needed. The traditional approach is one that leverages on existing data but also suggests heavy investment to integrate existing databases and build up tailored indicators. We show how the intelligent integration of existing data may lead to an open linked data platform that permits the construction of new indicators. The power of the approach derives from the ability to combine heterogeneous sources of data in order to derive indicators that address a variety of user needs,without designing the indicators on a custom basis. |
| Keywords: | university; rankings; indicators design; data integration |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2014-12&r=eur |
| By: | Daniel Arnold (Institute for Labour Law and Industrial Relations in the EU, University of Trier); Tobias Brändle (Institut für Angewandte Wirtschaftsforschung (IAW), University of Tübingen); Laszlo Goerke (Institute for Labour Law and Industrial Relations in the EU, University of Trier) |
| Abstract: | Using both household and linked employer-employee data for Germany, we assess the effects of non-union representation in the form of works councils on (1) individual sickness absence rates and (2) a subjective measure of personnel problems due to sickness absence as perceived by a firm's management. We find that the existence of a works council is positively correlated with the incidence and the annual duration of absence. We observe a more pronounced correlation in western Germany which can also be interpreted causally. Further, personnel problems due to absence are more likely to occur in plants with a works council. |
| Keywords: | Absenteeism, LIAB, personnel problems, sickness absence, SOEP, works councils |
| JEL: | J53 I18 M54 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:iaa:dpaper:201410&r=eur |