nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2014‒11‒28
twenty-two papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. The Effect of the Hartz Reform on Unemployment Duration and Post-Unemployment Outcomes. A Difference-in-Differences Approach By Bruno Amable; Baptiste Françon
  2. Examining the Relationships between Labour Market Mismatches, Earnings and Job Satisfaction among Immigrant Graduates in Europe By McGuinness, Seamus; Byrne, Delma
  3. The Impact of Intermittent Renewable Production and Market Coupling on the Convergence of French and German Electricity Prices By Boureau, Charlotte; Le Pen, Yannick; PHAN, Sébastien; Keppler, Jan Horst
  4. Employment and Earnings Effects of Awarding Training Vouchers in Germany By Doerr, Annabelle; Fitzenberger, Bernd; Kruppe, Thomas; Paul, Marie; Strittmatter, Anthony
  5. “Job loss among immigrant and native workers: evidence from Spain’s economic downturn” By Elisabet Motellón; Enrique López-Bazo
  6. Evidence and Persistence of Education Inequality in an Early-Tracking System: The German Case By Krause, Annabelle; Schüller, Simone
  7. The Free Movement of Workers in an Enlarged European Union: Institutional Underpinnings of Economic Adjustment By Kahanec, Martin; Pytlikova, Mariola; Zimmermann, Klaus F.
  8. Minimum Wage Systems and Earnings Inequalities: Does Institutional Diversity Matter? By Garnero, Andrea; Kampelmann, Stephan; Rycx, Francois
  9. Innovation and Economic Growth in European Union. Panel Data Analysis By Andrzej Kacprzyk; Wirginia Doryn; ;
  10. The impact of regulation and competition on the migration from old to new communications infrastructure: Recent evidence from EU27 member states By Briglauer, Wolfgang
  11. Net wealth across the euro area - why household structure matters and how to control for it By Fessler, Pirmin; Lindner, Peter; Segalla, Esther
  12. The Impact of Immigration on Native Wages and Employment By Anthony Edo
  13. Early child care and child outcomes: the role of grandparents. By Del Boca, Daniela; Piazzalunga, Daniela; Pronzato, Chiara
  14. Short-run fertility effects of parental leave benefits: Evidence from a structural model By Stichnoth, Holger
  15. The persistence of firms' knowledge base: a quantile approach to Italian data By Alessandra Colombelli; Francesco Quatraro
  16. How Effective Are Energy-Efficiency Incentive Programs? Evidence from Italian Homeowners By Massimo Anna Alberini; Andrea Bigano
  17. The determinants of spatial location of creative industries start-ups: Evidence from Portugal using a discrete choice model approach By Sara Cruz; Aurora A.C. Teixeira
  18. Education capability: a focus on gender and science. By Addabbo, Tindara; Di Tommaso, Maria Laura; Maccagnan, Anna
  19. Does local public ownership matter for the efficiency of water utilities? Evidence from Italy By Meryem Duygun; Silvia Pazzi; Emili Tortosa-Ausina; Simona Zambelli
  20. The discontent cartel member and cartel collapse: The case of the German cement cartel By Harrington, Joseph E.; Hüschelrath, Kai; Laitenberger, Ulrich; Smuda, Florian
  21. Which Schools and Pupils Respond to Educational Achievement Surveys? A Focus on the English PISA Sample By Schnepf, Sylke V.; Durrant, Gabriele B.; Micklewright, John
  22. Consumer complaint behavior in telecommunications: The case of mobile phone users in Spain By Garín-Muñoz, Teresa; Gijón, Covadonga; Pérez-Amaral, Teodosio; López, Rafael

  1. By: Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPREMAP - Centre pour la recherche économique et ses applications - Centre pour la recherche économique et ses applications, IUF - Institut Universitaire de France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique); Baptiste Françon (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: In this paper, we investigate the microeconomic effects of one major feature of the German Hartz Reforms (2003-2005), namely the reduction in compensation duration for older unemployed above 45 years of age. We look at two potential effects of this measure: on job take-up rates, but also on post-unemployment outcomes, through various indicators of matching quality (job stability, skill adequacy) and job quality (type of job contract). Applying difference-in-differences estimators, we show that the effects of this specific feature were rather scant. Regarding unemployment duration, only unemployed within a specific age group (55 to 59 years old) were affected by the reform. Evidence suggests that this is because they previously used unemployment schemes as a bridge to early retirement. In addition, there is some evidence of detrimental effects on job or matching quality.
    Keywords: Unemployment benefits; unemployment duration; job matching; job quality; early retirement; difference-in-differences
    Date: 2014–03
  2. By: McGuinness, Seamus (Economic and Social Research Institute, Dublin); Byrne, Delma (National University of Ireland, Maynooth)
    Abstract: This paper uses graduate survey data and econometric methods to estimate the incidence and wage/job satisfaction effects of over-education and overskilling among immigrants graduating from EU 15 based universities in 2005. Female immigrants with shorter durations of domicile were found to have a higher likelihood of overskilling. Newly arrived immigrants incurred wage penalties' which were exacerbated by additional penalties resulting from overskilling in the male labour market and overeducation in the female labour market. Established immigrants were found to enjoy a wage premia, particularly within the male labour market, with no evidence of disproportionate wage impacts arising as a consequence of mismatch. Female immigrants were generally found to have a significantly lower probability of being job satisfied relative to native female graduates.
    Keywords: overeducation, overskilling, immigrants, pay, job satisfaction
    JEL: J31 J61
    Date: 2014–08
  3. By: Boureau, Charlotte; Le Pen, Yannick; PHAN, Sébastien; Keppler, Jan Horst
    Abstract: Interconnecting two adjacent areas of electricity production generates benefits in combined consumer surplus and welfare by allowing electricity to flow from the low cost area to the high cost area. It will lower prices in the high cost area, raise them in the low cost area and will thus have prices in the two areas converge. With unconstrained interconnection capacity, price convergence is, of course, complete and the two areas are merged into a single area. With constrained interconnection capacity, the challenge for transport system operators (TSOs) and market operators is using the available capacity in an optimal manner. This was the logic behind the “market coupling” mechanism installed by European power market operators in November 2009 in the Central Western Europe (CWE) electricity market, of which France and Germany constitute by far the two largest members. Market coupling aims at optimising welfare by ensuring that buyers and sellers exchange electricity at the best possible price taking into account the combined order books all power exchanges involved as well as the available transfer capacities between different bidding zones. By doing so, interconnection capacity is allocated to those who value it most.
    Keywords: Electricity market;
    JEL: L11 L94
    Date: 2014–10
  4. By: Doerr, Annabelle (University of Freiburg); Fitzenberger, Bernd (University of Freiburg); Kruppe, Thomas (Institute for Employment Research (IAB), Nuremberg); Paul, Marie (University of Duisburg-Essen); Strittmatter, Anthony (University of Freiburg)
    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 low-skilled individuals and for degree courses. The strong positive selection effects implied by our estimates are consistent with sizeable cream-skimming effects.
    Keywords: active labor market policies, training vouchers, treatment effects evaluation, administrative data
    JEL: J68 H43 C21
    Date: 2014–09
  5. By: Elisabet Motellón (Department of Econometrics. University of Barcelona); Enrique López-Bazo (Department of Econometrics. University of Barcelona)
    Abstract: The profound crisis that has affected the Spanish economy since mid-2008 has been characterized by significant job losses and a marked rise in the country´s unemployment rate. However, unemployment has had a differential impact on different population groups. Compared to native, immigrant workers have experienced higher rates of job loss. Against this backdrop, this paper examines the differences between immigrants and natives (distinguished by gender) in terms of their probability of suffering job loss in the downturn of late 2008 and 2009. Our results indicate that the higher rate of job loss among female immigrant workers can be fully explained by their lower endowment of human capital. By contrast, human capital endowment and over-representation in certain occupations, sectors and regions in which the crisis had greatest impact do not appear to be the only reason for the penalty suffered by immigrant males in terms of their chances of losing their job in the downturn.
    Keywords: Immigration, Job Loss, Crisis, Labour Market Segregation, Spain JEL classification: I24, J24, J61
    Date: 2014–10
  6. By: Krause, Annabelle (IZA); Schüller, Simone (IRVAPP)
    Abstract: This article reviews empirical evidence on the early tracking system in Germany and the educational inequalities associated with it. Overall, the literature confirms the existence of considerable social, ethnic, gender- and age-related inequalities in secondary school track placement. Studies on tracking timing and track allocation mechanisms reveal that postponement of the selection decision and binding teacher recommendations may reduce certain (mainly social) inequalities. Furthermore, recent evidence concerning long-term consequences of tracking on labor market outcomes suggests that sizeable built-in flexibilities in the German system succeed in compensating for initial (age-related) education inequalities. The paper concludes with an outline and discussion of the most promising pathways for future research in order to help design inequality-reducing policy recommendations.
    Keywords: educational inequality, tracking, school system, Germany
    JEL: I24 I28 J24
    Date: 2014–10
  7. By: Kahanec, Martin (Central European University); Pytlikova, Mariola (VSB Technical University Ostrava); Zimmermann, Klaus F. (IZA and University of Bonn)
    Abstract: The eastern enlargements of the European Union (EU) and the extension of the free movement of workers to the new member states' citizens unleashed significant east-west migration flows in a labor market with more than half a billion people. Although many old member states applied transitional arrangements temporarily restricting the free movement of new member states' citizens, the need for adjustment became ever more important during the Great Recession, which affected EU member states unevenly. This chapter studies whether and how east-west migration flows in an enlarged EU responded to institutional and economic factors. We first develop a simple framework of adjustment through migration of workers between labor markets affected by asymmetric economic shocks. Using a new migration dataset and treating the EU enlargement and labor market openings towards the new EU members as a natural experiment allows us to estimate the effects of the EU accession and economic opportunities on migration. Applying the difference-in-differences and triple differences empirical modeling framework, we subsequently find that east-west migration flows in the EU responded positively to the EU entry and economic opportunities in receiving labor markets. However, this potential through which migration helped to ease the imbalances across EU labor markets was hampered by transitional arrangements, which negatively affected the flows of east-west migrants. We conclude that the free movement of workers is an asset that the EU needs to nurture as a means of adjusting to structural economic asymmetries as well as to short-run shocks across EU member states.
    Keywords: migration policy, difference-in-differences, EU eastern enlargement, free movement of workers, transitional arrangements, determinants of migration, Great Recession, natural experiment
    JEL: F22 J61 J68
    Date: 2014–09
  8. By: Garnero, Andrea (OECD and Paris School of Economics); Kampelmann, Stephan (Free University of Brussels); Rycx, Francois (Free University of Brussels)
    Abstract: This paper explores how the diversity of minimum wage systems affects earnings inequalities within European countries. It relies on the combination of (a) harmonized micro-data from household surveys, (b) data on national statutory minimum wages and coverage rates, and (c) hand-collected information on minimum rates from more than 1,100 sectoral-level agreements across Europe. The analysis covers 18 countries over the period 2007-2009. Empirical results confirm the intuition of many practitioners that the combination of sectoral minimum rates and high coverage of collective bargaining can, at least for earnings inequalities, be regarded as a functional equivalent to a binding statutory minimum wage at the national level. Regression results suggest indeed that both a national statutory minimum wage and, in countries with sectoral-level minima, a higher collective bargaining coverage are significantly associated with lower levels of (overall and inter-industry) wage inequalities and a smaller fraction of workers paid below prevailing minima. Several robustness checks confirm these findings.
    Keywords: wage inequality, collective bargaining, minimum wage systems, Europe
    JEL: J31 J33 J51
    Date: 2014–08
  9. By: Andrzej Kacprzyk (University of Lodz, Faculty of Economics and Sociology); Wirginia Doryn (University of Lodz, Faculty of Economics and Sociology); ;
    Abstract: There seems to be a growing consensus among economists and policy makers that investment in knowledge, which is at the center of the endogenous growth process, is a precondition for achieving permanently high economic growth. This paper examines relationship between economic growth and the various indicators of innovative activity that contribute to new knowledge creation. Our study differs from previous analyses, which mainly employed data from OECD countries. To the best of our knowledge, this is the first attempt to test whether the impact of innovative activity on growth differs between old and new European Union member states. Based on the panel data regression model we examine the interaction between economic growth and innovation, the latter proxied by R&D expenditures and patent statistics. We distinguish between publicly and privately-funded R&D and try to answer the question whether private and public R&D investments differ in terms of fostering economic growth. The results are sensitive to the sample analyzed and indicate that the relationship between innovation efforts and growth is more complex and ambiguous than expected.
    Keywords: Economic growth, innovation, R&D, patents, panel data
    JEL: O33 O30 O47
    Date: 2014–10
  10. By: Briglauer, Wolfgang
    Abstract: Fibre-deployment of next-generation communications networks is currently a major challenge for investing firms as well as for national regulators and is also subject to hot debates at EU level. This work examines the role of regulatory policies and competition controlling for relevant supply and demand side factors. Our econometric model employs dynamic panel data methods that take into account potential endogeneity due to omitted heterogeneity, reverse causality and the dynamic investment specification. Our results indicate that relevant forms of previous broadband access regulations have had a negative impact on investment in new infrastructure. Furthermore, infrastructure-based competition from mobile operators and the replacement effect stemming from the incumbents' existing infrastructure exert a negative impact on ex ante investment incentives. As regards the dynamics of the adjustment process, we find that there are both short-term and long-term effects towards the desired infrastructure level.
    Keywords: next-generation communications networks,sector-specific regulation,infrastructure competition,investment conditions,adjustment process,EU27 panel data
    JEL: H5 L38 L43 L52
    Date: 2014
  11. By: Fessler, Pirmin; Lindner, Peter; Segalla, Esther
    Abstract: We study the link between household structure and cross country differences in the wealth distribution using a recently compiled data set for the euro area (HFCS). We estimate counterfactual distributions using non-parametric re-weighting to examine the extent to which differences in the unconditional distributions of wealth across euro area countries can be explained by differences in household structure. We find that imposing a common household structure has strong effects on both the full unconditional distributions as well as its mappings to different inequality measures. For the median 50% of the differences are explained for Austria, 15% for Germany, 25% for Italy, 14% for Spain and 38% for Malta. For others as Belgium, France, Greece, Luxembourg, Portugal, Slovenia and Slovakia household structure masks the differences to the euro area median and Finland and the Netherlands change their position from below to above the euro area median. The impact on the mean and percentile ratios is similarly strong and varies with regard to direction and level across countries and their distributions. We can confirm the finding of Bover (2010) that the effect on the Gini is somewhat less pronounced, but might mask relevant information by being a net effect of different accumulated effects along the distribution. Country rankings based on almost all of these measures are severely affected alluding to the need for cautious interpretation when dealing with such rankings. Furthermore, the explanatory power of household structure changes along the net wealth distribution. Therefore we argue for more flexible controls for household structure. We provide such a set of controls to account for household type fixed effects which are based on the number of household members as well as possible combinations of age categories and gender. JEL Classification: D30, D31
    Keywords: counterfactuals, household structure, non-parametric re-weighting, survey methodology, unconditional distribution, wealth distribution
    Date: 2014–04
  12. By: Anthony Edo (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper investigates the immigration impact on native outcomes using micro-level data for France. I find that immigration does not affect the wages of competing natives, but induces adverse employment effects. This finding is consistent with a wage structure that is much less flexible in France. The quality of the data allows to dig more deeply into the interpretation of the immigration impact. First, I show that immigrants displace native workers because they are more willing to have bad employment conditions. Second, I find that natives on short-term contracts, who are less subject to wage rigidities, do experience wage losses due to immigration.
    Keywords: Immigration; wage rigidities; employment; naturalization
    Date: 2013–09
  13. By: Del Boca, Daniela; Piazzalunga, Daniela; Pronzato, Chiara (University of Turin)
    Abstract: In this pap er, we fo cus on the impact of early grandparents' care on child cognitive out- comes, in the short and medium term, using data from the Millennium Cohort Study (UK). Compared with children lo oked after in a formal care centre, children cared by grandparents (as well as parents) are b etter in naming ob jects, but worse in tests concerning basic concepts development, problem-solving, mathematical concepts and constructing ability. In order to assess a causal link b etween early care and child outcomes, we employ panel metho ds and in- strumental variables techniques that conrm that grandparental care matters more for naming ability while formal care is more imp ortant for problem-solving ability and basic concepts de- velopment. These results hide strong heterogeneities: on the one hand, the p ositive asso ciation b etween grandparents' care and child outcomes is stronger for children in more advantaged households; on the other hand, the negative asso ciation is signicant only for children in more disadvantaged households
    Date: 2014–10
  14. By: Stichnoth, Holger
    Abstract: Based on a structural model of fertility and female labour force supply with unobserved heterogeneity and state dependence, we evaluate the 2007 reform of parental leave benefits in Germany, which replaced a flat, means-tested benefit by a generous earnings-related transfer. The model predicts a short-term fertility effect of about 4%, which is consistent with recent quasi-experimental evidence. The fertility effect is strongest for first births and increases with income. We use the model for a number of counterfactual policy experiments in which we vary the generosity of parental leave benefits.
    Keywords: Fertility,female labour supply,family policy,parental leave,latent class models,state dependence
    JEL: C25 C53 J13 J22
    Date: 2014
  15. By: Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: The paper investigates the patterns of persistence of innovation and of the properties of firms' knowledge base (KB) across a sample of Italian firms in the period 1998-2006. The analysis draws upon a theoretical representation of knowledge as a collective good, stemming from the recombination of knowledge bits that are fragmented and dispersed across economic agents. On this basis, we derived properties of the KB like the coherence, the cognitive distance and the variety, and investigated their patterns of persistence over time. The empirical analysis is implemented by exploring the autocorrelation structure of such properties within a quantile regression framework. The results suggest that the properties of knowledge are featured by somewhat peculiar patterns as compared with knowledge stock, and that such evidence is also heterogeneous across firms in different quantiles.
    Keywords: persistence, innovation, knowledge coherence, variety, cognitive distance, quantile regression, autocorrelation
    Date: 2014–04–23
  16. By: Massimo Anna Alberini (University of Maryland,USA); Andrea Bigano (CIP - Climate Impacts and Policy Division)
    Abstract: We evaluate incentives for residential energy upgrades in Italy using data from an original survey of Italian homeowners. In this paper, attention is restricted to heating system replacements, and to the effect of monetary and non-monetary incentives on the propensity to replace the heating equipment with a more efficient one. To get around adverse selection and free riding issues, we ask stated preference questions to those who weren’t planning energy efficiency upgrades any time soon. We argue that these persons are not affected by these behaviors. We use their responses to fit an energy-efficiency renovations curve that predicts the share of the population that will undertake these improvements for any given incentive level. This curve is used to estimate the CO2 emissions saved and their cost-effectiveness. Respondents are more likely to agree to a replacement when the savings on the energy bills are larger and experienced over a longer horizon, and when rebates are offered to them. Reminding about CO2 (our non-monetary incentive) had little effect. Even under optimistic assumptions, the cost-effectiveness of incentives of size comparable to that in the Italian tax credit program is generally not favorable.
    Keywords: Energy-efficiency incentives; Free riding; Adverse selection; Stated Preferences; CO2 emissions reductions; CO2 emissions reductions supply curves; residential energy consumption.
    JEL: Q41 Q48 Q54 Q51
    Date: 2014–11
  17. By: Sara Cruz (CEF.UP, Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC TEC; OBEGEF)
    Abstract: This paper assesses the location determinants of the newly created firms in the creative sector within the framework of Discrete Choice Models. Estimations using a conditional logit model, which incorporate spatial effects of neighbouring regions in the location choices of firms, yield the following results: i) the concentration of creative and knowledge-based activities, due to agglomeration economies, play an important role in location decisions of new creative establishments; ii) in contrast, the concentration of service-business activities has a negative impact on location choices, which may be due to the fact that creative firms privilege interdependencies with other activity sectors, such as innovation/ knowledge-based activities; iii) creative firms tend to favour a diversified industrial tissue and related variety, in order to enjoy from inter-sectorial synergies; iv) higher education at a regional level has a highly significant, positive effect on location decisions, while lower educational levels of human capital negatively affect those decisions, explained by the specific requirements that creative firms usually have of a highly skilled labour force; v) tolerant/ open environments attract creative activities; vi) creative firms tend to favour municipalities where the stock of knowledge and conditions for innovative activity are higher. Location decisions of creative firms also vary according to the creative sector they belong to and to their own characteristics, firm’s educational level or technology-intensity. Finally, municipality attributes are more important in terms of firms’ location decisions than the characteristics of nearby regions.
    Keywords: Spatial economics; industrial location; econometric models; creative industries.
    JEL: C01 R12 R30
    Date: 2014–10
  18. By: Addabbo, Tindara; Di Tommaso, Maria Laura; Maccagnan, Anna (University of Turin)
    Abstract: The focus of the paper is on the measurement of science education capability with a gender perspective. Measuring science education capability implies going beyond the measurement of children test scores. In the capability approach, we aim at the real opportunities that children can develop later in life and therefore it is important to include some measures of non-cognitive skills. We utilize, therefore, different indicators in addition to test scores in science: enjoyment in science, interest in science, general and personal values of science, self - confidence in performing science related tasks, awareness and perception of environmental issues, and responsibility for sustainable development. We utilize the 2006 PISA survey for Italian 15 year old children because it contains a particular focus on science and we estimate a Structural Equation Model to take into account that capabilities are latent constructs of which we only observe some indicators. We also investigate the determinants of children’s science education capability in Italy taking into account household, individual and school factors. Results confirm that boys outperform girls in science education capability. Our theoretical construct for the science education capability confirms that all the indicators are relevant to measure this capability. School activities to promote sciences improve girls’ capability and interactive methods of teaching improve both girls and boys capability. The household educational resources and the household educational possession are also positively correlated with girls’ and boys’ science education capability.
    Date: 2014–10
  19. By: Meryem Duygun (Business School, Hull University, UK); Silvia Pazzi (School of Management, University of Leicester, UK); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universidad Jaume I, Castellón, Spain); Simona Zambelli (Dipartimento di Scienze Aziendali, Università di Bologna, Italy)
    Abstract: This study explores the impact of ownership types on efficiency of Italian water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, a recent study argues that this relationship can be further complicated by the effect of organisational and environmental variables. The current study aims to contribute to the debate about the impact of ownership structure on efficiency by including the effect of size and geographical location combining efficiency (obtained via nonparametric methods) with cluster analysis. The results show that ownership does not have a significant effect on efficiency per se; however the combination of size and geographical location provides interesting insights on the difference observed in the efficiency. Therefore, the paper argues that administrative reforms for institutional settings should consider a set of variables that characterise each organisation.
    Keywords: efficiency, water utilities, ownership, size, geographical location
    JEL: H4 H7 H83
    Date: 2014
  20. By: Harrington, Joseph E.; Hüschelrath, Kai; Laitenberger, Ulrich; Smuda, Florian
    Abstract: We hypothesize a particular source of cartel instability and explore its relevance to understanding cartel dynamics. The cartel instability is rooted in the observation that, upon cartel formation, the relative positions of firms are often fixed which may lead some growthconscious members to be discontent. This incongruity between a cartel member's allocated market share and its desired market share may result in systematic deviations and the eventual collapse of the cartel. This hypothesis is then taken to the German cement cartel of 1991-2002. We argue that Readymix was such a discontent cartel member and, using a rich pricing data set, are able to characterize how Readymix deviated, how other firms responded, and how it led to the collapse of the cartel.
    Keywords: collusion,cartel,antitrust enforcement,cement
    JEL: L41 K21
    Date: 2014
  21. By: Schnepf, Sylke V. (European Commission); Durrant, Gabriele B. (University of Southampton); Micklewright, John (Institute of Education, University of London)
    Abstract: Using logistic and multilevel logistic modelling we examine non-response at the school and pupil level to the important educational achievement survey Programme for International Student Assessment (PISA) for England. The analysis exploits unusually rich auxiliary information on all schools and pupils sampled for PISA whether responding or not, including data from two large-scale administrative sources on pupils' results in national public exams, which correlate highly with the PISA target variable. Results show that characteristics associated with non-response differ between the school and pupil levels. The findings have important implications for the survey design of education data.
    Keywords: Programme for International Student Assessment (PISA), survey design, data linkage, non-response, educational achievement survey
    JEL: I21 C83
    Date: 2014–08
  22. By: Garín-Muñoz, Teresa; Gijón, Covadonga; Pérez-Amaral, Teodosio; López, Rafael
    Abstract: This work analyzes the post-purchase behavior of mobile phone users once they have experienced a service failure. Taking into account the existing literature on Consumer Complaint Behavior (CCB), a survey for 4249 individuals in Spain is used for specifying econometric equations explaining the determinants of the complaining decision and the impact of a proper management of complaints on overall satisfaction. The results suggest that dissatisfaction is not a necessary condition for complaining and that the propensity to complain is different depending on the type of problem experienced by the customer. Another relevant finding of this study is that a good handling of complaints by the company may constitute a source of improvement in the overall user satisfaction and profitabity of the firm. This result is of great interest for its implications when designing the marketing strategy of companies. Accordingly it seems reasonable to use the complaint management as a powerful tool to retain customers.
    Keywords: Consumer Complaint Behavior,Mobile phones,Consumer Retention,Consumer Satisfaction Consumer Loyalty,Voice,Exit,Service Failure,Complainers
    Date: 2014

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