nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2017‒03‒05
thirty-two papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. An Integrated Approach for Top-Corrected Ginis By Charlotte Bartels; Maria Metzing
  2. Identifying the effects of place-based policies – Evidence from Germany By Titze, Mirko; Dettmann, Eva; Brachert, Matthias
  3. Female labour supply and childcare in Italy By Edlira Narazani; Francesco Figari
  4. Mentoring disadvantaged youths during school-to-work transition: evidence from Germany By Boockmann, Bernhard; Nielen, Sebastian
  5. From Labor to Cash Flow? The Abolition of Immigration Restrictions and the Performance of Swiss Firms By Jan Ruffner; Michael Siegenthaler
  6. The productivity effects of worker mobility between heterogenous firms By Wolf, Katja; Stockinger, Bastian
  7. Parental sleep and employment: evidence from a British cohort study By Joan Costa-Font; Sarah Flèche
  8. Wind, Storage, Interconnection and the Cost of Electricity Generation By Valeria Di Cosmo; Laura Malaguzzi Valeri
  9. The causal effect of age at migration on youth educational attainment By Lemmermann, Dominique; Riphahn, Regina
  10. Individual determinants of job-related learning and training activities of employees - An exploratory analysis of gender differences By Bublitz, Elisabeth; Boll, Christina
  11. Infant health and later-life labour market outcomes : Evidence from the introduction of sulfa antibiotics in Sweden By Lazuka, Volha
  12. Coming to work while sick: An economic theory of presenteeism with an application to German data By Hirsch, Boris; Lechmann, Daniel; Schnabel, Claus
  13. Income Support, (Un-)Employment and Well-Being By Wolf, Tobias; Hetschko, Clemens; Schöb, Ronnie
  14. Ready for Take-off? - The Economic Effects of Regional Airport Expansion By Breidenbach, Philipp
  15. Do Financial Incentives Alter Physician Prescription Behavior? Eidence From Random Patient-GP Allocations By Alexander Ahammer; Ivan Zilic
  16. Fertility Effects of Child Benefits By Regina T. Riphahn; Frederik Wiynck
  17. Pitfall in labour market flows modeling: a Reappraisal By Maurizio Baussola; Camilla Ferretti; Chiara Mussida
  18. Migration, Labor Tasks and Production Structure in Europe By Stefania Borelli; Giuseppe De Arcangelis; Majlinda Joxhe
  19. First, Second and Third Tier Universities: Academic Excellence, Local Knowledge Spillovers and Innovation in Europe By Cristian Barra; Ornella Wanda Maietta; Roberto Zotti
  20. Ho to Delay Labor Market Exit and Pension Claiming? By Staubli, Stefan; Lalive, Rafael
  21. The Effect of Far Right Parties on the Location Choice of Immigrants: Evidence from Lega Nord Mayors By Emanuele Bracco; Colin Peter Green; Maria De Paola; Vincenzo Scoppa
  22. The Impact of Later Tracking on Mortality by Parental Income in Finland By Bastian Ravesteijn; Hans van Kippersluis; Mauricio Avendano; Pekka Martikainen; Hannu Vessari; Eddy van Doorslaer
  23. Risk Perception of Climate Change: Empirical Evidence for Germany By Simora, Michael; Frondel, Manuel; Sommer, Stephan
  24. Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees By Dauth, Christine
  25. The Power of Mandatory Quality Disclosure: Evidence from the German Housing Market By Vance, Colin; Frondel, Manuel
  26. Employment and Welfare Effects of Short-Time Work in Germany By Niedermayer, Kilian; Tilly, Jan
  27. Switching Response to Power Prices: Evidence from German Households By Kussel, Gerhard; Frondel, Manuel
  28. Competitiveness and ecological impacts of green energy technologies: firm-level evidence for the DACH region By Spyros Arvanitis; Michael Peneder; Christian Rammer; Tobias Stucki; Martin Wörter
  29. Income taxation and the timing of marriage By Fink, Alexander
  30. The impact of open innovation on employee mobility and entrepreneurship By Simeth, Markus; Mohammadi, Ali
  31. Migrant labor in the Norwegian petroleum sector By Bernt Bratsberg; Oddbjørn Raaum; Ole Rogeberg
  32. The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data By Andersson, Fredrik; Johansson, Dan; Karlsson, Johan; Lodefalk, Magnus; Poldahl, Andreas

  1. By: Charlotte Bartels; Maria Metzing
    Abstract: Household survey data provide a rich information set on income, household context and demographic variables, but tend to under report incomes at the very top of the distribution. Administrative data like tax records offer more precise information on top incomes, but at the expense of household context details and incomes of non-filers at the bottom of the distribution. We combine the benefits of the two data sources and develop an integrated approach for top-corrected Gini coefficients where we impute top incomes in survey data using information on top income distribution from tax data. We apply our approach to European EU-SILC survey data which in some countries include administrative data. We find higher inequality in those European countries that exclusively rely (Germany, UK) or have relied (Spain) on interviews for the provision of EU-SILC survey data as compared to countries that use administrative data.
    Keywords: Gini coefficient, Top income shares, Survey data, Tax record data, Pareto distribution
    JEL: C46 C81 D31 H2
    Date: 2017
  2. By: Titze, Mirko; Dettmann, Eva; Brachert, Matthias
    Abstract: The German government provides discretionary investment grants to structural weak regions to allow them to overcome disadvantages. The legislatives of the European Union (EU) however restrict the number of supported regions: The share of population in assisted regions is not allowed to exceed an arbitrarily defined threshold. We use a regression-discontinuity design that exploits a discrete jump in the probability to receive investment grants. Thus, we identify causal effects of the investment grant treatment on area level economic outcomes. We find positive effects for regional gross value added and productivity growth but no effects for employment and gross wages growth.
    JEL: Z00 A11 D61
    Date: 2016
  3. By: Edlira Narazani (European Commission - JRC); Francesco Figari (Università degli Studi dell'Insubria)
    Abstract: It is widely recognized that childcare has important pedagogical, economic and social effects on both children and parents. This paper is the first attempt to estimate a joint structural model of female labour supply and childcare behavior applied to Italy in order to analyse the effects of relaxing the existing constraints in terms of childcare availability and costs by considering public, private and informal childcare. Results suggest that Italian households might alter their childcare and labour supply behaviors substantially if the coverage rate of formal childcare increases to reach the European targets. Overall, increasing child care coverage is estimated to be more effective in enhancing labor incentives than decreasing existing child care costs, at the same budgetary cost.
    Keywords: childcare, female labour supply, Italy
    JEL: H53 J13 J22 I38
    Date: 2017–02
  4. By: Boockmann, Bernhard; Nielen, Sebastian
    Abstract: In the German school and vocational education systems, there is a wide range of support measures during school-to-work transition. We analyze a novel program providing mentoring to low-achieving school leavers as a bridge between different stages and different institutional systems in secondary and post-secondary education. Using high-quality survey and administrative data and propensity score matching, we find some positive effects on the probability of transiting into the dual vocational education system in the intermediate run. Higher program intensity leads to larger treatment effects. Contrary to the goals of the program, however, there is only weak evidence that it accelerates transitions into vocational training immediately after leaving school.
    JEL: J24 I21 I28
    Date: 2016
  5. By: Jan Ruffner (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Siegenthaler (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: What is the effect of opening the labor market to foreign workers on the success of firms? We address this question by analyzing how firms in Switzerland were affected by the introduction of the free movement of persons with the European Union (EU) countries. This immigration reform granted all EU workers free access to the Swiss labor market. Our firm-level panel data models exploit the exceptional facts that the reform incidentally affected firms at different time periods and had a stronger effect on firmsclosetotheborder. We find that the Reform increased employment, skill intensity, and sales of incumbent firms, especially for those that relied heavily on foreign workers and had reported that they suffered from skill shortages before the reform. In these firms, the reform also increased labor productivity. We explain these effects through the higher innovation performance of incumbent firms and the reallocation of economic activity into highly affected regions, as evidenced by the entry of new establishments and by the changes in establishment size within multi-establishment firms.
    Date: 2016–12
  6. By: Wolf, Katja; Stockinger, Bastian
    Abstract: Several empirical studies find that worker inflows from more productive or otherwise superior firms increase hiring firms’ productivity. We conduct a similar analysis for Germany, using a unique linked employer-employee data set, and ranking sending and hiring establishments by their median wage. We find that inflows from superior (higher-paying) establishments do not increase hiring establishments’ productivity, but inflows from inferior establishments seem to. Further analyses suggest this effect is due to positive selectivity of such inflows from their sending establishments. Our findings can be interpreted as evidence of a reallocation process by which the best employees of lower-paying establishments become hired by higher-paying establishments. This process reflects the increasingly assortative pattern of worker mobility in Germany, to which our findings suggest a micro-foundation at the establishment and worker levels.
    JEL: J62 D24 J30
    Date: 2016
  7. By: Joan Costa-Font; Sarah Flèche
    Abstract: We show that sleep deprivation exerts a strong negative effect on labour market performance. We exploit variations in child sleep quality to instrument for parental sleep quality. A one-hour reduction in sleep duration significantly decreases labour force participation, the number of hour’s worked and household income. In addition, we find that low-skilled mothers are more likely to opt out of the labour market and work less hours than high-skilled mothers when exposed to sleep deprivation. We argue that sleep is a major determinant of employment outcomes that needs more attention in designing economic models of time allocation and employment policies.
    Keywords: child sleep; sleep; maternal employment; working hours; job satisfaction; ALSPAC
    JEL: I18 J13 J22 J28
    Date: 2017–02
  8. By: Valeria Di Cosmo (Fondazione Eni Enrico Mattei and Economic and Social Research Institute); Laura Malaguzzi Valeri (Economic and Social Research Institute)
    Abstract: We evaluate how increasing wind generation affects wholesale electricity prices, balancing payments and the cost of subsidies using the Irish Single Electricity Market (SEM) as a test system, with hourly data from 1 January 2008 to 28 August 2012. We model the spot market using a system of seemingly unrelated regressions (SUR) where the regressions are the 24 hours of the day. Wind has a negative impact on the system marginal price, with every MWh increase in wind generation (equal to about 0.2% of the average wind generation in our sample) leading to a decrease of the system marginal price of €0.018/MWh, or about 0.3% of its average value. We use time series models to analyse the balancing market and show that wind generation increases balancing payments, as do the forecast errors of demand and wind. Every MWh of additional wind generation is associated with an increase in constraint payments of €3.2, or about 0.01%. Lack of storage increases the impact of wind on balancing payments whereas the lack of interconnection has no effect. Overall, wind decreases costs through its effect on the electricity price more than it increases constraint payments, even when storage is on outage. The effect of wind remains positive after including the cost of subsidies given to wind generation.
    Keywords: Wind Generation, Constraints, Storage, Interconnection, Subsidies
    JEL: L94 Q42
    Date: 2017–02
  9. By: Lemmermann, Dominique; Riphahn, Regina
    Abstract: We investigate the causal effect of youths' age at immigration on subsequent educational attainment in the destination country. To identify the causal effect we compare the educational attainment of siblings at age 21, exploiting the fact that they typically migrate at different ages within a given family. We consider several education outcomes conditional on family fixed effects. We take advantage of long running and detailed data from the German Socio-Economic Panel, which entails an oversample of immigrants and provides information on language skills. We find significant effects of age at migration on educational attainment and a critical age of migration around age 6. We find that the educational attainment of female immigrants responds more strongly to a high age at immigration than that of males. We can exclude that the causal effect is determined only by language abilities.
    JEL: I21 J61 C21
    Date: 2016
  10. By: Bublitz, Elisabeth; Boll, Christina
    Abstract: Regarding gender differences, theory suggests that in a partnership the individual with the lower working hours and earnings position should exhibit lower training participation rates. Since women are more likely to match this description, we investigate whether systematic group differences explain gender variation. Across all countries, male workers are not affected by their earnings position. Disadvantages for female secondary earners arise only in Germany in the group of part-time workers when compared to single earners but not in the group of full-time workers. The findings hold at the extensive and the intensive margin, suggesting that, compared to the Netherlands and Italy, Germany faces particular obstacles regarding gender differences in job-related training.
    JEL: J16 J24 M53
    Date: 2016
  11. By: Lazuka, Volha (Department of Economic History, Lund University)
    Abstract: There is a growing body of literature showing that health in infancy has a strong influence on health and productivity later in life. This paper uses exogenous improvements in infant health generated by the introduction of a medical innovation in the late 1930s as treatment against several infectious diseases, in particular pneumonia reduced by the advent of the sulfa medicaments. Based on rich administrative population data for Sweden 1968–2012 and archival data on the availability of sulfa antibiotics, it explores the effect of reduction in exposure to pneumonia in infancy on labour market outcomes discerned in adulthood of the affected cohorts. Our findings suggest that mitigation of pneumonia disease burden in infancy substantially reduced probability of working disability and increased labour income in late adulthood. Regarding the mechanisms, the beneficial effects are strong for health, measured with reduced number of hospital admissions, and somewhat weaker for years of schooling. These effects are fairly equal among males and females, and larger among individuals from disadvantaged backgrounds. All effects are robust to various specifications including regional and family factors.
    Keywords: medical innovation; sulfa antibiotics; early-life effects; infancy; labour productivity; Health; human capital; Sweden
    JEL: H41 I15 I18 N34
    Date: 2017–02–28
  12. By: Hirsch, Boris; Lechmann, Daniel; Schnabel, Claus
    Abstract: Presenteeism, i.e. attending work while sick, is widespread and associated with significant costs. Still, economic analyses of this phenomenon are rare. In a theoretical model, we show that presenteeism arises due to differences between workers in the disutility from workplace attendance. As these differences are unobservable by employers, they set wages that incentivise sick workers to attend work. Using a large representative German data set, we test several hypotheses derived from our model. In line with our predictions, we find that stressful working conditions and bad health status are positively related to presenteeism. Better dismissal protection, captured by higher tenure, is associated with slightly fewer presenteeism days, whereas the role of productivity and skills is inconclusive.
    JEL: I19 J22 J29
    Date: 2016
  13. By: Wolf, Tobias; Hetschko, Clemens; Schöb, Ronnie
    Abstract: Using specific panel data of German welfare benefit recipients, we investigate the nonpecuniary life satisfaction effects of in-work benefits. Our empirical strategy combines difference-in-difference designs with synthetic control groups to analyze transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working makes people generally better off than being unemployed, but employed welfare recipients do not reach the life satisfaction level of regular employees. This implies that welfare receipt entails non-compliance with the norm to make one’s own living. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits.
    JEL: I31 I38 J68
    Date: 2016
  14. By: Breidenbach, Philipp
    Abstract: This paper analyzes whether the expansion of regional airports in Germany caused positive spillover effects on the surrounding economies, exploiting the deregulation of the European aviation market as a quasi-experiment. Such potential spillovers are often used as an argument for the substantial annual subsidies to airports. Previous evaluations often suffer from the problem of reverse causality, since Investment decisions are based on the economic conditions of the region. By contrast, the aviation deregulation under the Single European Market-initiative provides an exogenous incentive for investing in the expansion of existing regional airports. A difference in- differences approach is used to estimate the causal effects of this expansion on regional growth. The results are sobering, though, as there is no evidence for any positive spillover effects.
    JEL: R51 R42 H54
    Date: 2016
  15. By: Alexander Ahammer; Ivan Zilic
    Abstract: Do physicians respond to financial incentives? We address this question by analyzing the prescription behavior of physicians who are allowed to dispense drugs themselves through onsite pharmacies. Using administrative data comprising over 16 million drug prescriptions between 2008 and 2012 in Upper Austria, a naïve comparison of raw figures reveals that self-dispensing GPs induce 33.2% higher drug expenses than others. Our identification strategy rests on multiple pillars: First, we use an extensive array of covariates along with multi-dimensional fixed effects which account for patient and GP-level heterogeneity as well as sorting of GPs into onsite pharmacies. Second, we use a novel approach that allows us to restrict our sample to randomly allocated patient-GP matches which rules out endogenous sorting as well as principal-agent bargaining over prescriptions between patients and GPs. Contrary to our descriptive analysis, we find evidence that onsite pharmacies have a small negative effect on prescriptions. Although self-dispensing GPs seem to prescribe sligthly more expensive medication, this effect is absorbed by a much smaller likelihood to
    Keywords: Physician dispensing, drug expenses, physician agency, moral hazard
    JEL: I11 I12
    Date: 2017–02
  16. By: Regina T. Riphahn; Frederik Wiynck
    Abstract: We exploit the 1996 reform of the German child benefit program to identify the causal effect of heterogeneous child benefits on fertility. While generally the reform increased child benefits, the exact amount of the increase varied by household income and the number of children. We use these heterogeneities to identify their causal effects on fertility in a difference-in-differences setting. We apply the large samples of the German Mikrozensus and the rich data of the German Socio-economic Panel (SOEP). The reform effects on low income couples are not statistically significant. We find some support for positive fertility effects for higher as opposed to lower income couples deciding on a second birth.
    Keywords: child benefits, fertility, tax allowance, causal effect, difference-in-differences, Mikrozensus, SOEP
    JEL: J13 I38 C54
    Date: 2017
  17. By: Maurizio Baussola (DISCE, Università Cattolica); Camilla Ferretti (DISCE, Università Cattolica); Chiara Mussida (DISCE, Università Cattolica)
    Abstract: We discuss the relevance of the methodology adopted internationally to compare labor market flexibility, which is based on a two-state labor market model and uses stock data to derive transition rates. This model neglects inactivity, and thus it may crucially affect the results. Therefore, we compare these results with transition rates derived by using a three-state labor market model for France, Italy, Spain and the UK. These countries represent, respectively, the continental Europe and the Anglo-Saxon institutional settings. The implied transition rates are much higher even in continental Europe when inactivity is explicitly considered, thus suggesting that conclusions derived using an incomplete representation of the labor market are flawed.
    Keywords: labour market flows, labour market transition matrices, inactivity, comparison across countries
    JEL: J60 J62 C14 C15
    Date: 2017–02
  18. By: Stefania Borelli (Sapienza University of Rome); Giuseppe De Arcangelis (Sapienza University of Rome); Majlinda Joxhe (CREA, Université du Luxembourg)
    Abstract: This paper assesses the effect of the immigration on the production structure in a selection of European countries in 2001-2009 with a task-based approach. The inflow of immigrants represents an increase in the relative supply of manual-physical (or simple) tasks, hence favoring simple-task intensive sectors. We use a new OECD dataset, PIAAC, to calculate the index of simple-task intensity at the country-industry level. The analysis confirms that the increase in migration stocks caused a positive impact on the value added of sectors that use more intensively simple tasks. These effects are more intense when considering countries as Italy and Spain characterized by a recent, rapid and intense inflow of migrants. Endogeneity issues are discussed and instruments based on a gravity approach are used in estimation.
    Keywords: Rybczynski Effect, International Migration, PIAAC, Gravity Equation
    JEL: F22 C25
    Date: 2017
  19. By: Cristian Barra (Università di Salerno); Ornella Wanda Maietta (Università di Napoli Federico II and CSEF); Roberto Zotti (Università di Salerno)
    Abstract: This paper aims to study the drivers of innovation and of university-industry collaboration in the European manufacturing sector, specifically focusing on the extent to which academic excellence may enhance the capacity of firms to develop new products and processes. It shows that academic research has an important direct impact on the firm’s propensity to develop innovation, apart from the indirect effect of academic excellence on partner choice in university-industry R&D collaboration. The results also suggest that the research at lower tier universities has an impact on business innovation and that there is a strong case in favour of public funding also to less prestigious academic institutions.
    Keywords: University–industry interaction; R&D collaboration; Product and process innovation; Academic research quality; University education
    JEL: O3 I23 D22 R1
    Date: 2017–02–25
  20. By: Staubli, Stefan; Lalive, Rafael
    Abstract: Understanding labor market exit and pension claiming is central to pension reform. We study a Swiss reform delaying access to a full retirement pension by two years, from 62 to 64 years, by reducing early pensions by 3.4 % initially, then by 6.8 %, per year of early claiming. We find that increasing the full retirement age (FRA) by one year delays labor market exit by 4 to 6 months, affecting women who leave the labor force at the FRA. Increasing the FRA by one year delays claiming of retirement benefits by 6 to 8 months. Doubling the early retirement penalty, from 3.4% to 6.8%, delays pension claiming by almost 4 months but has no effect on labor market exit. Raising the FRA lowers social security benefits and social security wealth, by about 3 %. Doubling the early retirement penalty neither affect benefits nor social security wealth. An FRA that acts as a default retirement age generates strong effects on work and pension decisions.
    JEL: H55 J21 J26
    Date: 2016
  21. By: Emanuele Bracco; Colin Peter Green; Maria De Paola; Vincenzo Scoppa
    Abstract: Immigration has increasingly taken centre-stage in the political landscape. Part of this has been rise in far-right, anti-immigration parties in a range of countries. Existing evidence suggests that the presence of immigrants has a substantial effect on the political views of the electorate, generating an advantage to these parties with anti-immigration or nationalist platforms. This paper explores a closely related issue but overlooked issue: how immigrant behavior is influenced by these parties. We focus on immigrant location decisions in Northern Italy which has seen the rise of the anti-immigration party Lega Nord. We construct a dataset of mayoral elections in Italy for the years 2002-2014, and calculate the effect of electing a mayor belonging to, or supported by Lega Nord. To identify this relationship we focus on mayors who have been elected with narrow margins of victory in a Regression Discontinuity framework. The election of Lega Nord mayor discourages immigrants from moving into the municipality.
    Keywords: Immigration, Geographical Mobility, Voting Behavior, Political economy, Regression Discontinuity Design
    JEL: J15 J61 D72
    Date: 2017
  22. By: Bastian Ravesteijn (Erasmus School of Economics, Erasmus University Rotterdam, the Netherlands; Department of Health Care Policy, Harvard Medical School, USA; LIRAES (EA4470), Université Paris Descartes -Sorbonne Paris Cité, France); Hans van Kippersluis (Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute, The Netherlands); Mauricio Avendano (Department of Social Science, Health and Medicine at King’s College London, United Kingdom;); Pekka Martikainen (Department of Sociology, University of Helsinki, Finland); Hannu Vessari (Novo Nordisk, Aalto, Finland); Eddy van Doorslaer (Institute of Health Policy and Management, Erasmus University Rotterdam, Rotterdam, the)
    Abstract: We investigate whether later educational tracking reduced the intergenerational persistence of socioeconomic disparities in mortality in Finland,where the tracking age was raised from 11 to 16 in the 1970s. We use a difference-in-differences approach that exploits the gradual rollout of the reform. We find that late tracking did reduce disparities in mortality around the age of 50 by parental income for men. However, the longevity gains of men from low-income families seem to have come at the cost of increased mortality among men who grew up in high-income families. This raises questions about the welfare implications of the reform.
    Keywords: Education; mortality; tracking; Difference-in-Difference; Finland
    JEL: C21 I14 I24
    Date: 2017–02–27
  23. By: Simora, Michael; Frondel, Manuel; Sommer, Stephan
    Abstract: The perception of risks accruing from climate change is a key factor for individual adaptation and prevention behavior, as well as for the willingness to support climate policy measures. Using a generalized ordered logit approach and drawing on a large data set originating from two surveys among more than 6,000 German households, respectively, we analyze the determinants of the perception of the personal risk that is due to heat waves, storms, and floods. We focus on the role of (damage) experience and objective risk measures for these natural hazards, whose frequency is likely to be affected by climate change. In line with the received literature, our results suggest that the personal experience with adverse events, most notably experienced personal damage, is a strong determinant of individual risk perception.
    JEL: D81 H31 Q54
    Date: 2016
  24. By: Dauth, Christine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "I analyze the effects of further training subsidies for low-skilled employees on individual labor market outcomes in Germany for the period from 2007 to 2012. Using detailed administrative data, I exploit cross-regional variation in the conditional policy styles of local employment agencies and use this fuzzy discontinuity as an instrument for program participation. I find that subsidies significantly increase cumulative employment duration and earnings for the subgroup of compliers. These gains are particularly pronounced for workers who are women, younger than 35 years old, non-German citizens and participated before the economic crisis of 2009." (Author's abstract, IAB-Doku) ((en))
    Keywords: Weiterbildung, Teilnehmer, Niedrigqualifizierte, Arbeitsmarktchancen, Weiterbildungsförderung, regionale Disparität, Einkommenseffekte
    JEL: J18 J24 J31 I21
    Date: 2017–02–27
  25. By: Vance, Colin; Frondel, Manuel
    Abstract: To mitigate information asymmetry problems with respect to the thermal quality of houses, many countries have introduced Energy Performance Certificates (EPCs). Using big data on real estate advertisements that cover large parts of the German housing market, this paper empirically investigates the consequences of a shift from a voluntary to a mandatory quality disclosure regime on the offer prices of houses. Motivated by a stylized theoretical model, we test the following key hypothesis: Prices for houses whose owners would not voluntarily disclose their house’s energy consumption in real estate advertisements should decrease upon a shift to a mandatory disclosure scheme. Employing an instrumental variable approach to cope with the endogeneity of disclosure decisions, our analysis demonstrates the relative advantage of mandatory over voluntary disclosure rules.
    JEL: D82 L15 Q58
    Date: 2016
  26. By: Niedermayer, Kilian; Tilly, Jan
    Abstract: We study the employment and welfare effects of short-time work in Germany during the recession between 2008 and 2010. Using a unique matched employer-employee data set that contains the universe of workers and employers for the metropolitan area of Nuremberg, we document the intensive and extensive margin of short-time work. We then develop and estimate an equilibrium search model in which worker-firm matches are subject to productivity shocks that differ in expected duration. After observing the realization of productivity, a worker-firm match decides whether to work full-time, lay off the worker, or use short-time work. Employed workers accumulate human capital whereas unemployed workers’ human capital depreciates. Laid off workers can be recalled by their previous employers. We find that for every four workers on short-time work, one job was saved during the recession.
    JEL: J64 J08 J38
    Date: 2016
  27. By: Kussel, Gerhard; Frondel, Manuel
    Abstract: Empirical evidence on the response of German households to electricity price changes is largely lacking. Using data from Germany's Residential Energy Consumption Survey (GRECS), we fill this void by employing an instrumental variable approach to cope with the endogeneity of the consumers' tariff choice. Exploiting our information on the households' knowledge about power prices, we additionally employ an Endogenous Switching Regression Model to estimate price elasticities for two groups of households: those that are informed about prices and those that are price-ignorant. With elasticity estimates falling between -0.91 and zero, we find residential electricity demand to be quite inelastic. Households with price information are sensitive to price changes while the demand of uninformed household is entirely price inelastic.
    JEL: Q41 D12 C26
    Date: 2016
  28. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Peneder (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Christian Rammer (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: For a large sample of enterprises in Germany, Austria and Switzerland (the “DACH“ region) we study the impact of various policy instruments, such as energy related taxes, subsidies, regulations and standards or negotiated agreements on the firm’s ecological and economic performance. To identify the causal linkages, we build a system of twelve equations, tracking first the impacts of policy on the adoption of green energy technologies for distinct areas. In a second set of equations, we estimate the perceived impacts of adoption on the firm’s (i) energy efficiency, (ii) carbon emissions and (iii) competitiveness. The results confirm a differentiated pattern of channels for policy to affect the firm’s energy efficiency and carbon emissions, while having a neutral impact on its competitiveness.
    Keywords: Environmental policy, Energy policy, Technology adoption, Innovation, Porter hypothesis
    Date: 2016–11
  29. By: Fink, Alexander
    Abstract: By modifying the incentive structure, taxes affect human behavior. I investigate how the German income tax code influences the timing of civil marriages. The German income tax code contains provisions from which married couples stand to benefit relative to unmarried couples. If their individual incomes differ, legally married couples may benefit from filing their income taxes jointly due to a progressive income tax. The gain from joint taxation for married couples accrues in every year. Couples also enjoy it in the year in which they marry, independent of the month of the marriage. I use data from the German Socio-Economic Panel to the hypothesis that couples with larger gains from joint taxation are more likely to marry late in the current year instead of early in the subsequent year. The results provide strong support for the hypothesis that pecuniary gains from joint taxation incentivize couples to prepone their marriages to the current year.
    JEL: J12 D10 H24
    Date: 2016
  30. By: Simeth, Markus (Universidad Carlos III de Madrid (UC3M)); Mohammadi, Ali (Royal Institute of Technology (KTH), Centre of Excellence for Science and Innovation Studies (CESIS) & Swedish House of finance)
    Abstract: Prior research shows that firms can increase their innovation performance by leveraging external sources of knowledge. However, insights related to potential drawbacks of open collaborative approaches for innovation remain scarce. In this paper, we investigate the relationship between R&D collaboration and the departure of skilled employees. Highly qualified scientists and engineers who interact with external partners in the context of R&D collaborations may increase their outside options, resulting in higher rates of employee mobility to other firms and employee entrepreneurship. We analyze our research question using data from the Swedish edition of the Community Innovation (CIS) survey combined with employer-employee register data. Our econometric analysis suggests that a stronger use of research collaborations by firms leads to an increasing number of employee departures. Moreover, we detect heterogeneity for this relationship with respect to the types of employee exits and different collaboration partners.
    Keywords: R&D employees; Open Innovation; R&D Collaboration; Employee mobility; Employee Entrepreneurship
    JEL: J62 O32
    Date: 2017–03–01
  31. By: Bernt Bratsberg (Frisch Centre); Oddbjørn Raaum (Frisch Centre); Ole Rogeberg (Frisch Centre)
    Abstract: Drawing on comprehensive sets of administrative register data, we examine employment and pay structures in the Norwegian petroleum sector between 1992 and 2013, with a particular emphasis on foreign workers. The period covers a number of important changes taking place, with rising oil prices and growing investments during the 2000s and a large influx of labor migrants into Norwegian labor markets following the 2004 expansion of the European Union. Relative to foreign workers in other private†sector industries, we find that the petroleum sector is characterized by greater use of posted workers, a higher occupational skill mix of immigrants, and, for those in skilled occupations, wages on par with native workers. Migrant petroleum workers have shorter durations in the country than other migrants, and the data reveal only modest job mobility to other industries, particularly among high†skilled workers. Nonetheless, the evidence points to spillover effects from the petroleum sector as workers who move on to jobs in mainland industries earn a wage premium relative to those without petroleum experience.
    Date: 2017–02–23
  32. By: Andersson, Fredrik (Statistics Sweden); Johansson, Dan (Örebro University School of Business); Karlsson, Johan (Örebro University School of Business); Lodefalk, Magnus (Örebro University School of Business); Poldahl, Andreas (Statistics Sweden)
    Abstract: Family firms are often considered characteristically different from non-family firms, and the economic implications of these differences have generated significant academic debate. However, our understanding of family firms suffers from an inability to identify them in total population data, as this requires information on owners, their kinship and involvement in firm governance, which is rarely available. We present a method for identifying domiciled family firms using register data that offers greater accuracy than previous methods. We then apply it to data from Statistics Sweden concerning firm ownership, governance and kinship over the years 2004-2010. Next, we use Swedish data to estimate these firms’ economic contribution to total employment and gross domestic product (GDP) and compare them to private domiciled non-family firms in terms of their characteristics and economic performance. We find that the family firm is the prevalent organizational form, contributing to over one-third of all employment and GDP. Family firms are common across industries and sizes, ranging from the smallest producers to the largest multinational firms. However, their characteristics differ across sizes and legal forms, thereby indicating that the seemingly contradictory findings among previous studies on family firms may be due to unobserved heterogeneity. We furthermore find that they are smaller than private non-family firms in employment and sales and carry higher solidity, although they are more profitable. These differences diminish with firm size, however. We conclude that the term ‘family firm’ contains great diversity and call for increased attention to their heterogeneity.
    Keywords: entrepreneur; family firms; employment; GDP; register data
    JEL: D22 G32 J21
    Date: 2017–02–21

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