nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2016‒02‒12
twenty-one papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. The impacts of the EU ETS on Norwegian plants' environmental and economic performance By Marit E. Klemetsen; Knut Einar Rosendahl; Anja Lund Jakobsen
  2. Patent litigation in Europe By Katrin Cremers; Max Ernicke; Fabian Gaessler; Dietmar Harhoff; Christian Helmers; Luke Mc Donagh; Paula Schliessler; Nicolas van Zeebroeck
  3. Chronic material deprivation and long-term poverty in Europe in the pre-crisis period By Fotis Papadopoulos; Panos Tsakloglou
  4. Trade, wages, and collective bargaining By Denis Fougere; Erwan Gautier; Juan Carluccio
  5. Old before their time: The role of employers in retirement decisions By Bello, Piera; Galasso, Vincenzo
  6. The French Pension Reforms and their Impact on Unemployed Older Workers By Kadija Charni
  7. Working Hard in the Wrong Place: A Mismatch-Based Explanation to the UK Productivity Puzzle By Patterson, Christina; Sahin, Aysegul; Topa, Giorgio; Violante, Giovanni L.
  8. The Role of Model Specification in Estimating Health Care Demand By Hossein Kavand; Marcel-Cristian Voia
  9. Speed 2.0 - Evaluating access to universal digital highways By Ahlfeldt, Gabriel; Koutroumpis, Pantelis; Valletti, Tommaso
  10. An evaluation of the 1987 French Disabled Workers Act: Better paying than hiring By Thomas Barnay; Emmanuel Duguet; Christine Le Clainche; Yann Videau
  12. Adjusting to Globalization - Evidence from Worker-Establishment Matches in Germany By Dauth, Wolfgang; Findeisen, Sebastian; Südekum, Jens
  14. Innovation Strategies and Firm Growth By Stefano Bianchini; Gabriele Pellegrino; Federico Tamagni
  15. “Technological cooperation in Spanish firms” By Erika Raquel Badillo; Rosina Moreno
  16. The crisis and regional employment in Europe: what role for sheltered economies? By Ugo Fratesi; Andrés Rodríguez-Pose
  17. The mobility of displaced workers: How the local industry mix affects job search strategies By Frank Neffke; Anne Otto; César Hidalgo
  18. The Role of Bequests in Shaping Wealth Inequality: Evidence from Danish Wealth Records By Boserup, Simon H.; Kopczuk, Wojciech; Kreiner, Claus T.
  19. Wage dispersion and technology: A firm-level analysis on European data By Valeria Cirillo; Matteo Sostero; Federico Tamagni
  20. Employment expectations and uncertainties ahead of the new German minimum wage By Bossler, Mario
  21. European Innovations Dynamics and US Economic Impact: Theory and Empirical Analysis By Paul J.J. Welfens; Tony Irawan

  1. By: Marit E. Klemetsen; Knut Einar Rosendahl; Anja Lund Jakobsen (Statistics Norway)
    Abstract: This paper examines the impacts of the EU Emissions Trading System (ETS) on the environmental and economic performance of Norwegian plants. The EU ETS is regarded as the cornerstone climate policy both in the EU and in Norway, but there has been considerable debate regarding its effects due to low quota prices and substantial allocation of free allowances to the manufacturing industry. Both quota prices and allocation rules have changed significantly between the three phases of the ETS. The rich data allow us to investigate potential effects of the ETS on several important aspects of plant behavior. The results indicate a weak tendency of emissions reductions among Norwegian plants in the second phase of the ETS, but not in the other phases. We find no significant effects on emissions intensity in any of the phases, but positive effects on value added and productivity in the second phase. Positive effects on value added and productivity may be due to the large amounts of free allowances, and that plants may have passed on the additional marginal costs to consumers.
    Keywords: Tradable emissions quotas; emissions intensity; productivity; propensity score matching; difference-in-differences
    JEL: C23 C54 D22 Q54 Q58
    Date: 2016–02
  2. By: Katrin Cremers; Max Ernicke; Fabian Gaessler; Dietmar Harhoff; Christian Helmers; Luke Mc Donagh; Paula Schliessler; Nicolas van Zeebroeck
    Abstract: We compare patent litigation cases across four European jurisdictions – Germany, France, the Netherlands, and the UK – covering cases filed during the period 2000-2008. For our analysis, we assemble a new dataset that contains detailed information at the case, litigant, and patent level for patent cases filed at the major courts in the four jurisdictions. We find substantial differences across jurisdictions in terms of case loads. Courts in Germany hear by far the largest number of cases in absolute terms, but also when taking country size into account. We also find important between-country differences in terms of outcomes, the share of cases that is appealed, as well as the characteristics of litigants and litigated patents. A considerable number of patents are litigated in multiple jurisdictions, but the majority of patents are subject to litigation only in one of the four jurisdictions.
    JEL: O34 K11 K41
    Date: 2016
  3. By: Fotis Papadopoulos; Panos Tsakloglou (Athens University of Economics and Business)
    Abstract: In recent years research on the measurement of deprivation focuses increasingly on indices of multi-dimensional disadvantage rather than on more traditional uni-dimensional approaches of earlier studies that were focusing on income poverty. Further, the advent of panel survey data led to a large number of empirical studies that have been devoted to the investigation of dynamic aspects of poverty. Despite the availability of several longitudinal survey datasets that make it possible nowadays to use "smoothed" income distributions and identify persons who are poor in a longitudinal perspective, most empirical studies tend to use distributions of current income, thus ignoring aspects of inter-temporal transfers and income smoothing. The present paper examines the degree of overlap between people who experience chronic material deprivation and those who face long term income poverty (longitudinal poverty) in 22 European Union member states for the period 2005-2008, using the longitudinal data set of the European Union Statistics on Income and Living Conditions (EU-SILC) UDB 2008 version 4. In order to approximate chronic relative material deprivation we use a three-step index of chronic cumulative relative disadvantage. In the first step, population members deprived in three domains of static relative material deprivation are identified. In the second step, the extent of cumulative relative disadvantage of these individuals is examined and, in the final step, persons suffering from chronic cumulative relative disadvantage over the period 2005-2008 are identified, by aggregating the information on static cumulative relative disadvantage in each year covered. Further, we examine the overlap between chronic relative material deprivation and (smoothed) longitudinal poverty. The results reveal considerable differences across EU members regarding both the level and the structure of the population at high risk of chronic relative material deprivation and longitudinal poverty. Then, each country's population is subdivided into mutually exhaustive and exclusive groups according to the characteristics of the population member, when the population is grouped according to seven alternative criteria: sex, age employment status and education level of the household's reference person, age and education of the individual and household type. The results of the analysis reveal a number of qualitative similarities regarding the population groups that tend to be classified as "high risk" groups and quantitative differences regarding the "magnitude" of risk faced by these population groups, across EU member states. In almost all countries, though, under examination, lack of full employment by the individual or, especially, by the household's reference person, low educational qualifications, being a member of a lone parent household or living in a household headed by a woman or by a very young or, to a lesser extent, an elderly person, lead to high risks of chronic relative material deprivation and longitudinal poverty.
    Keywords: chronic relative material deprivation, EU-SILC, Europe, income smoothing, consistent poverty, longitudinal poverty
    JEL: I32 I31 J64
    Date: 2016–02–08
  4. By: Denis Fougere (Observatoire sociologique du changement); Erwan Gautier (Université de Nantes); Juan Carluccio (University of Surrey (UNIS))
    Abstract: Collective bargaining modify the impact of exports and imports on wages? In a seminal paper, Calmfors and Driffill (1988) show that, in firms covered by firm‑level wage agreements, wages are better linked to productivity than in firms covered by industry‑level agreements. Gürtzgen (2009) lends support to these predictions using data for German manufacturing firms. Our study looks at data from individual French firms on wages, exports/imports and collective bargaining over the period 2005‑2009. Our sample comprises more than 8,000 firms (among the largest French exporters/importers) which account for over two thirds of French exports and imports of manufactured goods. Using micro‑econometric techniques, we examine two questions: (i) do exporting and offshoring lead to higher wages and, if so, is the effect heterogeneous across workers? (ii) to what extent does wage bargaining shape the effect of trade on wages? International trade favours exports but also creates opportunities for offshoring. This Rue de la Banque studies the impact of firm-level trade activities on wages, as well as the role of collective bargaining. Both exports and offshoring have a positive impact on wages, but exports increase wages for all occupational categories, while the impact of an increase in offshoring is stronger for executives. The elasticity of wages with respect to exports and offshoring is positive and is higher for firms with collective bargaining. However, we find that collective bargaining reduces only moderately wage inequalities induced by offshoring.
    Keywords: Wages; Micro‑econometric techniques; Firm-level trade activities; Collective bargaining
    Date: 2016–01
  5. By: Bello, Piera; Galasso, Vincenzo
    Abstract: Do elderly workers retire early voluntarily, or are they induced (or even forced) by their employees? To establish the relevance of the labor demand component in retirement decisions, we consider a trade liberalization between Switzerland and the EU -- the Mutual Recognition Agreement (MRA). A vast literature suggests that these trade liberalizations induce firms to relocate and to restructure, with large compositional effects on the labor market particularly for the elderly workers, who face higher mobility costs. Using Swiss Labor Force Survey data, we use a difference in differences approach to compare early retirement behavior in three periods (pre-liberalization, announcement, and implementation) for three groups of industries. MRA industries represent our treatment group; control groups are non-MRA manufacturing industries, and services. Our empirical results show that elderly workers are more likely to retire early in the MRA sector during the announcement period, and that the employment of young (30-years old) male workers increases. The distribution of wages by age is instead unaffected. Additional empirical evidence using Swiss Business Census and UN Comtrade data suggests that the increase in early retirement in MRA is not explained by more firms' exits, nor by more early retirement among the exiting firms. It is rather the surviving MRA firms, which react to the increase in competition by adjusting their labor force and use more early retirement.
    Keywords: early retirement; firms' restructuring; labor demand of elderly workers
    JEL: H55 J14 J23 J26
    Date: 2015–12
  6. By: Kadija Charni (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université)
    Abstract: This paper analyzes labour market position of unemployed older individuals after the implementation of two major pension reforms in France. We use the French Force Labour Survey for the period 2003-2011 to assess the effects of the 2003 and the 2010 pension reforms on the exit rate from unemployment of individuals aged over 54. Using a difference-in-differences approach, we look at the effects of these reforms on the exit from unemployment to employment, and into inactivity. We find that the 2003 pension reform reduces significantly the exit to employment, while there is no significant impact of the pension reform on the exit to inactivity. For the 2010 reform, we show that the reform leads to an increase of the probability to go back to work. At the same time, the transition out of labour force through inactivity exit also rises. Unemployment and other social schemes are used as a bridge to retire early.
    Keywords: difference-in-differences estimation,unemployed older workers,pension reforms
    Date: 2016–01
  7. By: Patterson, Christina; Sahin, Aysegul; Topa, Giorgio; Violante, Giovanni L.
    Abstract: The UK experienced an unusually prolonged stagnation in labor productivity in the aftermath of the Great Recession. This paper analyzes the role of sectoral labor misallocation in accounting for this “productivity puzzle.” If jobseekers disproportionately search for jobs in sectors where productivity is relatively low, hires are concentrated in the wrong sectors, and the post-recession recovery in aggregate productivity can be slow. Our calculations suggest that, quantified at the level of three-digit occupations, this mechanism can explain up to two thirds of the deviations from trend-growth in UK labor productivity since 2007.
    Keywords: Mismatch; Occupation; Productivity
    JEL: E24 J24 J63
    Date: 2016–01
  8. By: Hossein Kavand (Department of Economics, Carleton University); Marcel-Cristian Voia (Department of Economics, Carleton University)
    Abstract: Zero inflation and over-dispersion issues can significantly affect the predicted probabilities as well as lead to unreliable estimations in count data models. This paper investigates whether considering this issue for German Socioeconomic Panel (1984-1995), used by Riphahn et al (2003), provides any evidence of misspecification in their estimated models for the adverse selection and moral hazard effects. The paper has the following contributions: first, it shows that estimated parameters for adverse selection and moral hazard effects are sensitive to the model choice; second, the random effects panel data as well as standard pooled data models do not provide reliable estimates for health care demand (doctor visits); third, it shows that by appropriately accounting for zero inflation and over-dispersion there is no evidence of adverse selection behaviour and that moral hazard plays a positive and significant role for the number of doctor visits. These results are robust for both males and females’ subsamples as well as for the full data sample.
    Keywords: over-dispersion, zero-inflated distribution, adverse selection, moral hazard
    Date: 2016–01
  9. By: Ahlfeldt, Gabriel; Koutroumpis, Pantelis; Valletti, Tommaso
    Abstract: This paper shows that having access to a fast Internet connection is an important determinant of capitalization effects in property markets. Our empirical strategy combines a boundary discontinuity design with controls for time-invariant effects and arbitrary macro-economic shocks at a very local level to identify the causal effect of broadband speed on property prices from variation that is plausibly exogenous. Applying this strategy to a micro data set from England between 1995 and 2010 we find a significantly positive effect, but diminishing returns to speed. Our results imply that disconnecting an average property from a high-speed first-generation broadband connection (offering Internet speed up to 8 Mbit/s) would depreciate its value by 2.8%. In contrast, upgrading such a property to a faster connection (offering speeds up to 24 Mbit/s) would increase its value by no more than 1%. We decompose this effect by income and urbanization, finding considerable heterogeneity. These estimates are used to evaluate proposed plans to deliver fast broadband universally. We find that increasing speed and connecting unserved households passes a cost-benefit test in urban and some suburban areas, while the case for universal delivery in rural areas is not as strong.
    Keywords: capitalization; digital speed; Internet; property prices; universal access to broadband
    JEL: H4 L1 R2
    Date: 2016–01
  10. By: Thomas Barnay (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique); Emmanuel Duguet (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Christine Le Clainche (LEM - Lille - Economie et Management - Université Lille 1 - Sciences et technologies - Fédération Universitaire et Polytechnique de Lille - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Yann Videau (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The French Disabled Workers Act set up a legal quota of disabled workers in more than 20 employees companies. This law decreed financial penalties for non-compliance. We evaluate the impact of this law on the employment of disabled people. We use a triple difference approach combined with dynamic exact matching and weighting methods in order to disentangle the pure effect of the legislation by controlling for both observable and unobservable correlated heterogeneities. Using a panel data set built from the "Sante et itineraire professionnel" ("Health and Labour Market Histories") survey, we investigate whether disabilities have a significant impact on people's employment, by distinguishing between the public and private sectors. We compare the labour trajectories of disabled people before and after the implementation of the law. Our findings highlight a negative impact of the Disabled Workers Act on the employment of disabled people. By enabling firms to abide by the legal employment obligation without hiring any disabled workers, this measure has probably had a counterproductive impact on the employment of disabled people. Nevertheless, this negative effect is restricted to the private sector; we find that the public sector shelters the disabled workers.
    Keywords: weighting, matching,employment policy, triple difference,disability
    Date: 2016–01–21
  11. By: Paola Cardamone; Valeria Pupo; Fernanda Ricotta (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)
    Abstract: This study provides empirical evidence on the role of universities’ Technological Transfer (TT) activities in the Italian manufacturing sector, with particular attention to the food industry. By using the UniCredit-Capitalia database (2008) for firms and data from the Ministry of Education, University and Research (MIUR) to obtain the university TT indicator, we estimate a probit model to assess the effect of universities’ TT activities on a firm’s likelihood to innovate. Results show that university TT activities seem to stimulate food industry firms innovation and the impact appears significantly higher than for the manufacturing sector.
    Keywords: Universities, Technology transfer, Food firms, Innovation, Spillovers
    JEL: O30 C25 D22
    Date: 2016–02
  12. By: Dauth, Wolfgang; Findeisen, Sebastian; Südekum, Jens
    Abstract: This paper addresses the impact of rising international trade exposure on individual earnings profiles in heterogeneous worker-establishment matches. We exploit rich panel data on job biographies of manufacturing workers in Germany, and apply a high-dimensional fixed effects approach to analyze endogenous mobility between plants, industries, and regions in response to trade shocks. Rising import penetration reduces earnings within job spells, and it induces workers to leave the exposed industries. Intra-industry mobility to other firms or regions are far less common adjustments. This induced industry mobility mitigates the adverse impacts of import shocks in the workers' subsequent careers, but their cumulated earnings over a longer time horizon are still negatively affected. By contrast, we find much less evidence for sorting into export-oriented industries, but the earnings gains mostly arise within job spells. These results point at an asymmetry in the individual labour market response to trade shocks: Import shocks trigger substantial ``push effects'', whereas the ``pull effects'' of export shocks are weaker.
    Keywords: endogenous worker mobility; Individual labour market responses; International trade; work biographies
    JEL: F16 J31 R11
    Date: 2016–01
  13. By: Fernanda Ricotta (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)
    Abstract: This paper investigates differences in productivity by destination market of firms exports. The total factor productivity (TFP) is used as measure of productivity. The productivity differences by export destination are estimated using multilevel approach considering the first destination country of the firm’s exports as the second level group of the model. The analysis is based on a dataset that provides comparable cross-country data of manufacturing firms in seven European countries (Austria, France, Germany, Hungary, Italy, Spain and the United Kingdom). The results are as follows. Productivity differs from market to market and, thus, it gives support to the expectations derived from Chaney’s model (2008). The estimates confirm that non-exporters are, on average, the less productive. On the contrary, the European firms that export to China and India register the highest positive difference. A positive difference also exists for firms that export to the USA and Canada. On the contrary, there is no relevant TFP difference for firms exporting to the EU-15 area. The difference is positive but slight for the Other Asian countries and Other EU countries, while it is negative for Other areas, Other non EU countries and Central and South America. Among firm-specific characteristics only size and sector membership help to explain the productivity differences by destination market and the role of size is by far the most dominant factor.
    Keywords: Productivity, Heterogeneous firms, Export, Market of destination, Multilevel model
    JEL: D22 F10 F14 C31
    Date: 2016–01
  14. By: Stefano Bianchini; Gabriele Pellegrino; Federico Tamagni
    Abstract: In this work, we explore the relations between sales growth and a set of innovation indicators that capture the different sources, modes and results of the innovative activity undertaken within firms. We exploit a rich panel on innovation activity of Spanish manufacturing firms, reporting detailed CIS-type information continuously over the period 2004-2011. Standard GMM-panel estimates of the average effect of innovation activities reveal significant and positive effect for internal R&D, while no effect is found for external sourcing of knowledge (external R&D, acquisition of embodied and disembodied technologies) as well as for output of innovation (process and product innovation). However, fixed-effects quantile regressions reveal that innovation activities, apart from process innovation and disembodied technical change, display a positive effect on high-growth performance. Finally, we find evidence of super-modularity of the growth function, revealing complementarities of internal R&D with product innovation, and between product and process innovation.
    Keywords: firm growth, product and process innovation, internal and external R&D, embodied and disembodied technical change, fixed-effects quantile regressions, complementarity
    Date: 2016–03–02
  15. By: Erika Raquel Badillo (AQR Research Group-IREA. University of Barcelona); Rosina Moreno (AQR Research Group-IREA. University of Barcelona)
    Abstract: This paper aims to study to what extent participating in technological cooperation agreements can be a useful mechanism for improving the innovative capacity of Spanish firms, specially in the context of the economic recession. We analyse if there are differences in the returns obtained from cooperation alliances according to the firm’s size as well as different geographical scopes of such alliances. In addition, we want to study to what extent innovation cooperation may have a different effect on incremental innovations than on radical/breakthrough innovations. We use the Spanish Technological Innovation Panel from 2004 to 2012 to provide evidence on the above issues.
    Keywords: Innovation cooperation; Technological partners; Performance; Spanish firms JEL classification:L25; O31; O33; R1
    Date: 2016–01
  16. By: Ugo Fratesi; Andrés Rodríguez-Pose
    Abstract: This paper examines how the evolution of employment trends in the regions of Europe since the outbreak of the crisis may have been shaped by the emergence of sheltered economies in certain regions of Europe in the pre-crisis period. The paper uses descriptive and econometric analysis to determine the relationship between the level of protection from the market of regional economies in the years of economic boom between 1995 and 2007 and employment trends in the first four years of the crisis (2008-2012). The analysis covers 272 NUTS2-level regions in 27 EU countries. The results of the analysis show that regions which had developed more sheltered economies during the boom years have not weathered the employment shock associated with the crisis well, while pre-crisis dynamism in employment generation has been connected to lower post-crisis employment destruction. The only exception are the most highly sheltered economies in the pre-crisis period, which have endured a lower level of job destruction than any other type of region. The question is whether this early resistance to job destruction can be maintained once the recovery starts.
    Keywords: economic crisis, employment, sheltered economies, regions, Europe
    JEL: R11 R58
    Date: 2016–02
  17. By: Frank Neffke; Anne Otto; César Hidalgo
    Abstract: Establishment closures leave many workers unemployed. Based on employment histories of 20 million German workers, we nd that workers often cope with their displacement by moving to dierent regions and industries. However, which of these coping strategies is chosen depends on the local industry mix. A large local presence of predisplacement or related industries strongly reduces the rate at which workers leave the region. Moreover, our ndings suggest that a large local presence of the predisplacement industry induces workers to shift search eorts toward this industry, reducing the spatial scope of search for jobs in alternative industries and vice versa.
    Keywords: Displacement, local industry mix, agglomeration externalities, matching, mobility
    JEL: J24 J61 J64 R12
    Date: 2016–01
  18. By: Boserup, Simon H.; Kopczuk, Wojciech; Kreiner, Claus T.
    Abstract: Using Danish administrative data, we estimate the impact of bequests on the level and inequality of wealth. We employ an event study design where we follow the distribution of wealth over time of people who are 45-50 years old, and divided into treatment group and control group depending on whether a parent dies or not. Bequests account for 26 percent of the average post-bequest wealth 1-3 years after parental death and significantly affect wealth throughout the distribution. We find that bequests increase measures of absolute wealth inequality (variance), but reduce relative inequality (top wealth shares). Following the receipts of bequests, variance of the distribution censored at the top/bottom 1% increases by 33 percent, but the top 1% share declines by 6 percentage points from an initial level of 31 percent and the top 10% share declines by 10 percentage points from a base of around 81 percent.
    Keywords: bequests; intergenerational mobility; wealth; wealth inequality
    JEL: D31 E21 J62
    Date: 2016–01
  19. By: Valeria Cirillo; Matteo Sostero; Federico Tamagni
    Abstract: Within-firm wage dispersion represents a relevant dimension of the overall wage inequality. A large stream of literature has analysed the wage-technology link without explicitly taking into account within-firm wage dispersion. In this work we aim to empirically investigate how technology affects within-firm wage dispersion and how it changes according to employer size. By exploiting employer-employee data from a survey of European firms (Eurostat's Structure of Earnings Survey - 2010) matched with information on sector innovation derived from the Community Innovation Survey, we look at the impact of innovation across small and medium-large firms, both on the average wages paid by firms and on the degree of within-firm wage inequality. Furthermore, we distinguish between high-paying and low-paying firms and more equal and unequal firms by means of a quantile regression approach.
    Keywords: wage inequalities, innovation, quantile regressions, employer-employee matched data
    Date: 2016–03–02
  20. By: Bossler, Mario (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Followed by an extensive policy discussion late 2013 and early 2014, the new German minimum wage was introduced on 1 January 2015. This article analyzes announcement effects of the new statutory minimum wage on employer expectations in 2014. The IAB Establishment Panel allows for a difference-in-differences comparison between affected and unaffected employers and entails variables that address the employers' employment expectations. In 2014, affected employers show an increased employment uncertainty and a drop in their expected employment development. They also more likely report wage costs to become a problem. In size, the employment expectations translate into a loss of about 12 800 jobs." (Author's abstract, IAB-Doku) ((en))
    JEL: D22 J23 J38
    Date: 2016–01–27
  21. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Tony Irawan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: The analysis explains innovations in EU25 for the period 2006-2012, namely through R&D (relative to GDP), cumulated FDI inflows – relative to the host country capital stock - , joint internet intensity, broadband intensity and potential competition. For the first time we can offer a broad analysis of innovation dynamics in Europe that should be the basis not only for better supply-side policy in EU countries and growth policy, respectively, it also suggests a strong role of international digital communication for innovation dynamics. Moreover, the approach gives new important arguments in favor of the TTIP negotiations between the US and the EU.
    Keywords: Innovation, TTIP, Foreign Direct Investment, EU, Internet
    JEL: O11 O32 F40 F10 F15
    Date: 2015–06

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