nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2017‒07‒30
thirty-six papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Cross national research data: access, legality, ethics and opportunities By German Data Forum; UK Data Forum
  2. Exploring health outcomes by stochastic multi-objective acceptability analysis: an application to Italian regions. By Raffaele Lagravinese; Paolo Liberati; Giuliano Resce
  3. Under the AEGIS∗ of knowledge intensive entrepreneurship: Employment growth and gender of founders among European Firms By Sara, Amoroso; Albert, Link
  4. Immigrant Concentration at School and Natives’ Achievement: Does the Type of Migrants and Natives Matter? By Bossavie, Laurent
  5. Cooperation between higher education institutions and companies from a spatial perspective: An empirical analysis of Germany using Bayesian logistic multilevel models By Warnecke, Christian; Weller, Daniel
  6. Conditions at work: how actual and expected working conditions drive perception By Simona Cicognani; Martina Cioni; Marco Savioli
  7. School Infrastructure Spending and Educational Outcomes in Northern Italy By Alessandro Belmonte; Vincenzo Bove; Giovanna D'Inverno; Marco Modica
  8. Multidimensional Welfare Comparisons of EU Member States Before, During, and After the Financial Crisis: A Dominance Approach By Hussain, M. Azhar; Siersbæk, Nikolaj; Østerdal, Lars Peter
  9. Time devoted by elderly people to physical activities: micro-econometric evidence from Spain By Campaña, Juan Carlos
  10. Going after the Addiction, Not the Addicted: The Impact of Drug Decriminalization in Portugal By Félix, Sónia; Portugal, Pedro; Tavares, Ana
  11. Demographic Change and Labor Mobility By Marius Bickmann
  12. Persistent heterogeneity of R&D intensities within sectors: Evidence and policy implications By Alex Coad
  13. Young, Gifted and Lazy? The Role of Ability and Labor Market Prospects in Student Effort Decisions By Adrian Chadi; Marco de Pinto; Gabriel Schultze
  14. Quantifying Determinants of Immigration Preferences By Hansen, Ole-Petter Moe; Legge, Stefan
  15. The Interconnections Between Services and Goods Trade at the Firm-Level By Ariu, Andrea; Breinlich, Holger; Corcos, Gregory; Mion, Giordano
  16. The Role of the Housing Market in Workers' Resilience to Job Displacement after Firm Bankruptcy By Meekes, Jordy; Hassink, Wolter
  17. Income and Substitution Effects of a Disability Insurance Reform By Eugster, Beatrix; Deuchert, Eva
  18. Tariff diversity and competition policy: Drivers for broadband adoption in the European Union By Lange, Mirjam R. J.
  19. The Exporter Wage Premium When Firms and Workers Are Heterogeneous By Egger, Hartmut; Egger, Peter; Kreickemeier, Udo; Moser, Christoph
  20. Corporate Income Tax as a Genuine own Resource By Fabien CANDAU; Jacques LE CACHEUX
  21. Gender quotas or girls' networks? Towards an understanding of recruitment in the research profession in Italy By Daniele Checchi; Simona Cicognani; Nevena Kulic
  22. The use of large denomination banknotes in Switzerland By Assenmacher, Katrin; Seitz, Franz; Tenhofen, Jörn
  23. The convergence of the gender pay gap: An alternative estimation approach By Castagnetti, Carolina; Rosti, Luisa; Töpfer, Marina
  24. Measuring compliance with minimum wages By Felix Ritchie; Michail Veliziotis; Hilary Drew; Damian Whittard
  25. Simple Statistical Screens to Detect Bid Rigging By Imhof, David
  26. The European electronic communications code: A critical appraisal with a focus on incentivizing investment in next generation broadband networks By Briglauer, Wolfgang; Cambini, Carlo; Fetzer, Thomas; Hüschelrath, Kai
  27. The Influence of Renewable Energy Sources on the Czech Electricity Transmission System By Karel Janda; Jan Malek; Lukas Recka
  28. Limits to Wage Growth: Understanding the Wage Divergence between Immigrants and Natives By Jain, Apoorva; Peter, Klara Sabirianova
  29. Changes in Executive Remuneration after Technology Bubble By Suwina Cheng
  30. A Joint Hazard-Longitudinal Model of the Timing of Migration, Immigrant Quality, and Labor Market Assimilation By Jain, Apoorva; Peter, Klara Sabirianova
  31. The First 2,000 Days and Child Skills: Evidence from a Randomized Experiment of Home Visiting By Orla Doyle
  32. Can Gender Quotas in Candidate Lists Empower Women? Evidence from a Regression Discontinuity Design By Bagues, Manuel F.; Campa, Pamela
  33. Additional career assistance and educational outcomes for students in lower track secondary schools By Fitzenberger, Bernd; Licklederer, Stefanie
  34. Pay cash, buy less trash? – Evidence from German payment diary data By Eschelbach, Martina
  35. Cost efficiency and economies of diversification of biogas-fuelled cogeneration plants in Austria: a nonparametric approach By Eder, Andreas
  36. Health Status as a Determinant for Pre-Retirement Savings By Jana Votapkova; Pavlina Zilova

  1. By: German Data Forum; UK Data Forum
    Abstract: This workshop, convened collaboratively by the German Data Forum and the UK Data Forum, was designed to explore recent developments in both countries with respect to improved research access to administrative data. Presentations would give participants an overview of the techniques being developed in Germany and the UK to provide secure access to person-level data. The workshop would also provide an opportunity for discussions about the changing legal environment for research access to personal data and the ethical issues surrounding such uses. The main topic for discussion would be data infrastructure issues and common concerns relating to access, both within Europe and more widely, in terms of access to and linkage between personal data for research into social, economic,environmental and health matters. The ultimate aim is to ensure ways of accessing and analysing data to shed light on policy effectiveness and efficiency at both national and supranational levels. This event was organised by Tim Holtwith Peter Elias(UK Data Forum) and Stefan BenderwithClaudia Oellers (German Data Forum). It was jointly funded by the UK Economic andSocial Research Council (ESRC) and the German Federal Ministry of Education and Research.The agenda for the Workshop can be found at Appendix 1, the list of participants at Appendix 2. A link to the relevant presentation is given after each heading, below. Due to illhealth,Eckart Hohmann was unable to attend. Consequently, the session presented by Dr.Francis Crawley and the subsequent discussion was extended.
    Keywords: Data access, legality, ethics, workshop, report
    Date: 2017
  2. By: Raffaele Lagravinese; Paolo Liberati; Giuliano Resce
    Abstract: This paper introduces the Stochastic Multi-Objective Acceptability Analysis (SMAA) in order to investigate the evolution of mortality rates in the Italian regions over the period 1990-2013. We propose to explore the overall outcome of health care by a Composite Index (CI) of mortality based on the combination of standardized mortality rates for seventeen different diseases. From a methodological standpoint, we propose to overcome the arbitrary of the weighting process, by using the SMAA, which is a methodology that allows to rank regions considering the whole set of possible vectors of weights. Moreover, we explore the spatial segregation in health using the multidimensional generalization of the Gini index, and introducing the multidimensional generalization of ANOGI. The unprecedented use of SMAA in health sector allows to explore regional multidimensional paths beyond the order of importance given to the single dimensions. Our analysis shows that in the 24 years considered there has been no convergence path in terms of health care outcome in Italy, neither between nor within regions.
    Keywords: Stochastic Multi-Objective Acceptability Analysis; Composite Indicators;Health; Spatial Inequality; ANOGI
    JEL: H75 I14 C44
    Date: 2017–07
  3. By: Sara, Amoroso (Joint Research Centre, European Commission); Albert, Link (University of North Carolina at Greensboro, Department of Economics)
    Abstract: An increasing number of theoretical and empirical analyses address the role of innovation as one of the main sources of firm growth. More recently, studies have looked at the role of gen-der diversity as a possible determinant of innovation and entrepreneurial performance. How-ever, the relationship between gender and employment growth —a dimension of entrepreneurial performance— still remains unexplored to a large degree. This paper contributes to the empiri-cal literature on gender and entrepreneurial performance in several ways. First, it examines the role played by both innovation and gender ownership as determinants of employment growth rates of young, knowledge intensive entrepreneurial (KIE) firms. Second, it investigates the indirect impact of contributing factors —such as the characteristics of the market, knowledge-based capital, and human capital— on employment growth. And third, it relies on a rich new cross-sectional data set on young, KIE firms across European Union (EU) countries. The data set contains information not only on the gender of the firm’s founders, but also on the market environment, business strategy, and innovative and economic performance of firms.
    Keywords: innovation; entrepreneurship; employment growth; gender
    JEL: J16 L26 O31
    Date: 2017–07–24
  4. By: Bossavie, Laurent
    Abstract: Using a rich dataset of primary school students in the Netherlands, this paper investigates the hetero- geneous effects of immigrant concentration in the classroom on the academic achievement of natives. To identify the treatment effect, it takes advantage of some features of the Dutch primary school system and uses cohort-by-cohort deviations in immigrant concentration within schools. While we report an insignificant impact of the share of immigrant classmates overall, we show that effects are heterogeneous, both in the type of immigrant classmates, and in the type of native students that are affected. Only immigrants that have been living in the country for a short period of time are found to negatively impact natives’ performance. This negative impact is stronger among natives with low parental education. We also report a negative effect of the concentration of migrants with low parental education, while migrants with high parental education are found to have no impact. The importance of taking into account heterogeneity could explain the mixed findings reported by previous literature on the topic.
    Keywords: Immigration, education, peer effects
    JEL: I21 J15
    Date: 2017–07–20
  5. By: Warnecke, Christian; Weller, Daniel
    Abstract: This research paper aims at highlighting factors which influence the spatial focus of interactions between higher education institutions (HEIs) and the economic system in Germany. In the pursuit of this goal, our research work employs a Bayesian statistical analysis of empirical data gathered from a German-wide online survey of professors (7,500 participants) focused on the extent of knowledge diffusion with respect to their institutions of origin. The results provided by our statistical analysis indicate that some fields of research are favourable in facilitating cooperation between companies and University professors in the region, while others are more prone to cooperate supraregional. In the case of professors at Universities of Applied Sciences (UAS), the results reveal only a low influence concerning the research discipline. These findings are not surprising because of the narrow spectrum of research disciplines at UAS. Beyond these results, the time budget allocated for research poses as a major factor of influence for the cooperation activities of professors at UAS. These findings have been expected since UAS professors have less allocated time for research leading to a more regional focus of cooperation with companies. Surprisingly across all models, only a very few categories in total are credible for the "Application relevance of research" and the "Cooperation intensity".
    Keywords: university-industry links,knowledge transfer,collaborative research,Bayesian multilevel analysis,spatial analysis,German-wide survey
    JEL: I23 I25 O32 O31 O33 R12
    Date: 2017
  6. By: Simona Cicognani (Department of Economics, University of Verona, Italy; The Rimini Centre for Economic Analysis); Martina Cioni (Department of Economics and Statistics, University of Siena, Italy); Marco Savioli (Department of Economics, University of Salento, Italy; The Rimini Centre for Economic Analysis)
    Abstract: Working conditions exert a major influence on accidents and illnesses at work as well as on job satisfaction and health, yet very little research has examined the determinants of working conditions. By exploiting the Italian Labour Force Survey, this paper provides evidence on the underlying factors affecting working conditions. It provides a behavioural interpretation of the results, which stems from the discrepancy between actual and expected working conditions. Workers declare their perceived working conditions influenced by the difference between the actual and the expected working conditions. Variables concerning personal characteristics, such as gender, education and being employed in the first job, shift expectations about working conditions and accordingly perceived working conditions. On the contrary, variables related to work characteristics, such as working full time, with shifts and in a large place, affect actual and thus perceived working conditions (negatively).
    Keywords: Working conditions, Expectations, Perceptions, Actual conditions, Job satisfaction
    JEL: D84 J24 J28
    Date: 2017–07
  7. By: Alessandro Belmonte (IMT School for advanced studies); Vincenzo Bove (University of Warwick); Giovanna D'Inverno (IMT School for advanced studies); Marco Modica (CNR IRCrES)
    Abstract: We explore whether investment in public school infrastructure affects students' achievement. We use data on extra funding to public high schools after the 2012 Northern Italy earthquake and apply a quasi-experimental design and an instrumental variable strategy. We find that spending on school infrastructure increases standardized test scores in mathematics and Italian language, and the effect is stronger for lower-achieving students and in mathematics. These results provide evidence in favor of a positive impact of capital spending in improving the learning environment and performances of high school students.
    Keywords: education; school infrastructure spending; high school
    JEL: I22 I24 H75
    Date: 2017–07
  8. By: Hussain, M. Azhar (Department of Social Sciences and Business); Siersbæk, Nikolaj (Department of Business and Economics); Østerdal, Lars Peter (Department of Economics)
    Abstract: How did the financial crisis affect population welfare in EU member states in key dimensions such as income, health, and education? Using EU-SILC data, we seek to answer this question by way of first order dominance comparisons between countries and over time. The novel feature of our study is that we perform welfare comparisons on the basis of multi-level multidimensional ordinal data. We find that the countries most often dominated are southern and eastern European member states, and the dominant countries are mostly northern and western European member states. However, for most country comparisons, there is no dominance relationship. Moreover, only a few member states have experienced a temporal dominance improvement in welfare, and no member states have experienced a dominance deterioration.
    Keywords: First order dominance; Multidimensional well-being; Multi-level indicators; EU-SILC
    JEL: I31 O52
    Date: 2017–07–20
  9. By: Campaña, Juan Carlos
    Abstract: In this paper, I analyse the differences in the time devoted to walking, cycling, gymnastics, and hunting by the elderly in Spain, considering own and socio-demographic characteristics. Using data from the Spanish Time-Use Survey (STUS) 2009-10, I estimate a simultaneous SUR model with data from the 4,036 individuals aged 65 years and over (inclusive), finding that men devote more time to the four physical activities than do women, that good health positively influences the time devoted to these activities, and that living in a large municipality positively influences the time devoted to walking, while living in a very large municipality negatively influences the time devoted to cycling. The work is important in terms of public policy, since inactive lifestyles are a major public health challenge, and an analysis of these activities may provide guidance toward better solutions. An increase in the frequency of physical activity in the Spanish population in this age range would lead to a significant reduction of health expenditure.
    Keywords: Elderly, Physical activities, Time use, SUR model
    JEL: J14 J22
    Date: 2017–07–26
  10. By: Félix, Sónia (Banco de Portugal); Portugal, Pedro (Banco de Portugal); Tavares, Ana (Universidade Nova de Lisboa)
    Abstract: This paper investigates the impact of drug decriminalization in Portugal using the Synthetic Control Method. The applied econometric methodology compares Portuguese drug-related variables with the ones extracted from a convex combination of similar European countries. The results suggest that a policy change implemented in Portugal contributed to a decrease in the number of heroine and cocaine seizures, a decrease in the number of offenses and drug-related deaths, and a decrease in the number of clients entering treatment. Moreover, the policy change contributed to a reduction in the incidence of drug addicts among HIV individuals.
    Keywords: drug decriminalization policy, illicit drugs, synthetic control method
    JEL: C21 D04 K42
    Date: 2017–07
  11. By: Marius Bickmann (TU Dortmund)
    Abstract: This paper provides a quantitative analysis of intra-European migration flows between Germany, Southern Europe and Poland along the demographic transition. Migration movements evolve endogenously as a reaction to changes in relative prices induced by population aging. Immigration from Southern Europe and Poland reduces wages in Germany slightly, but alleviates the distortions from social security significantly. This lower elasticity of wages is caused by a large inflow of capital accompanying immigration which counteracts the downward pressure on wages due to a higher labor supply. Welfare effects of endogenous migration flows depend crucially on the policy scenario. If contribution rates remain constant and the burden of adjustment lies on benefits, the negative wage effect dominates leading to moderate welfare losses for future generations in Germany. On the contrary, if tax rates adjust, welfare effects are both positive and larger since immigration serves to stabilize net wages. However, these positive welfare effects in Germany come at the expense of significant welfare losses in the sending regions.
    Date: 2017
  12. By: Alex Coad (CENTRUM-Catolica Graduate Business School, Pontificia Universidad Catolica del Peru, Lima, Peru.)
    Abstract: Do firms in the same sector converge towards the same R&D intensities? Previous research has often assumed this to be true. A closer examination, using microdata from the EU Industrial R&D Investment Scoreboard for the years 2000-2015, shows a large amount of heterogeneity in R&D intensities among firms in the same sector, and that this heterogeneity persists over time. Statistical tests of convergence show that the variation in R&D intensities does not decrease over time (i.e. no ?-convergence), although firms with an R&D intensity below the industry average do seem to catch up with the leaders (i.e. evidence of ?-convergence). Overall, firms in the same industry do not converge to a common R&D intensity. Policy implications are discussed.
    Keywords: R&D investment, R&D intensity, convergence, benchmarking
    JEL: O3 L2
    Date: 2017–07
  13. By: Adrian Chadi (Institute for Labour Law and Industrial Relations in the European Union (IAAEU)); Marco de Pinto (Institute for Labour Law and Industrial Relations in the European Union (IAAEU)); Gabriel Schultze (Institute for Labour Law and Industrial Relations in the European Union (IAAEU))
    Abstract: This paper examines the decision-making process of students from an economic perspective in order to understand what determines an in- dividual’s willingness to provide effort. Our theoretical model predicts that ability and job market prospects are positive determinants. Ana- lyzing a novel dataset on thousands of German students, however, we instead find that ability has a significantly negative effect on effort. It seems that the marginal gain of increasing effort in terms of higher ex- pected income after studying is lower for high-ability students compared to low-ability students. In regard to the second determinant, the evi- dence rejects a similar argument, according to which great job market prospects may impair student effort. Applying an instrumental vari- able approach based on official unemployment data on regional labor markets, we can confirm our prediction on the positive role of perceived employment prospects in actual student behavior.
    Keywords: higher education, effort, study time, leisure, ability, labor market data
    JEL: I23 J22 J24
    Date: 2017–05
  14. By: Hansen, Ole-Petter Moe; Legge, Stefan
    Abstract: This paper quantifies the relative importance of determinants of individual-level immigration preferences. We develop and estimate a new latent-factor model using survey data on eighteen countries from the European Social Survey from 2014 and 2015. On a metho-dological level, we address several potential problems causing biased estimates. Identifying individual-level economic concerns about immigration, worries about compositional amenities, racism, and altruism as drivers of immigration-related preferences, the estimation results show that racism is quantitatively the most important factor. It is about as important as the joint effect of worries about the economic and non-economic effects of immigration. Furthermore, we document that altruism raises significantly the support for immigration, although it is quantitatively less important than the other factors.
    Keywords: Altruism, Compositional Amenities, Economic Concerns, Immigration Preferences, Racism
    JEL: F22 H2 O15
    Date: 2017–07
  15. By: Ariu, Andrea; Breinlich, Holger; Corcos, Gregory; Mion, Giordano
    Abstract: In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to design our econometric strategy and use the estimated model for counterfactual analysis. In particular, we look at the quantitative impact of reductions in goods and services barriers between the US and the EU. Our findings have important implications for the design of trade policy. They suggest that a liberalization of service trade can have quite direct and sizable effects on goods trade and vice-versa, and that jointly liberalizing goods and services trade brings about substantial complementarities.
    Keywords: Complementarity; Discrete Choice Models; Firm-level Analysis; Trade in Goods; Trade in Services
    JEL: F10 F13 F14 L60 L80
    Date: 2017–07
  16. By: Meekes, Jordy (Utrecht University); Hassink, Wolter (Utrecht University)
    Abstract: We examine the role of the housing market in workers' adjustment to job displacement. Dutch administrative data were used and analysed with a quasi-experimental design involving job displacement. The empirical design eliminates the potential of endogenous selection into labour turnover. The estimates show that displaced workers experience, in addition to substantial losses in employment and wage, an increase in the commuting distance and a decrease in the probability of moving home. These patterns change over the worker's post-displacement period – the negative displacement effect on wages becomes more pronounced, whereas the increase in the commuting distance diminishes. Also, we examine the role of workers' housing tenure in the displacement effects. Compared with displaced tenants and outright owners, we find that more leveraged displaced owners are more rapidly re-employed and experience a smaller increase in the commuting distance, but experience also a higher loss in wage.
    Keywords: commuting distance, geographic mobility, housing tenure, employment, wages
    JEL: J31 J32 J63 J65 R21 R23
    Date: 2017–07
  17. By: Eugster, Beatrix; Deuchert, Eva
    Abstract: Disability insurance (DI) systems are widely criticized for their inherent work disincentives. This paper evaluates the effects of a Swiss DI reform that aims to lower pensions for a group of existing DI bene?ciaries and introduces an additional notch to the pension schedule. The reform does not signi?cantly affect average earnings and employment, but increases the disability degree of those threatened by a pension decline. We estimate bounds on the income and substitution effects employing the principal strati?cation framework. The in-come effect is quantitatively important, while the substitution e?ect is smaller and bounds include zero.
    Keywords: Disability insurance, work disincentives, income and substitution effects, partial bene?t system
    JEL: C30 I13 J01
    Date: 2017–07
  18. By: Lange, Mirjam R. J.
    Abstract: While second-degree price discrimination is standard in commercial practice in many industries, consumer advocates and public interest groups have reacted with skepticism against tendencies to move away from flat rates and introduce greater tariff diversity. This paper provides an empirical analysis how the differentiation of broadband tariffs with respect to retail prices affects fixed broadband subscription using time-series data. The empirical analysis is based on a unique dataset of 10,200 retail broadband offers spanning the 2003-2011 period and including 23 EU member states. Results show that an increase in tariff diversity provides a significant impetus to broadband adoption, wherefore demands by some public interest groups to limit price discrimination in broadband markets should be viewed with some caution as reduced price discrimination may come at the cost of lower penetration rates.
    Keywords: Broadband demand,Tariff diversity,Price discrimination,Dynamic panel data analysis
    JEL: L86 L96
    Date: 2017
  19. By: Egger, Hartmut; Egger, Peter; Kreickemeier, Udo; Moser, Christoph
    Abstract: We set up a trade model with heterogeneous firms and a worker population that is heterogeneous in two dimensions: workers are either skilled or unskilled, and within each skill category there is a continuum of abilities. Workers with high abilities, both skilled and unskilled, are matched to firms with high productivities, and this leads to wage differentials within each skill category across firms. Self-selection of the most productive firms into exporting generates an exporter wage premium, and our framework with skilled and unskilled workers allows us to decompose this premium into its skill-specific components. We employ linked employer-employee data from Germany to structurally estimate the parameters of the model. Using these parameter estimates, we compute an average exporter wage premium of 5 percent. The decomposition by skill turns out to be quantitatively highly relevant, with exporting firms paying no wage premium at all to their unskilled workers, while the premium for skilled workers is 12 percent.
    Keywords: Ability differences; Exporter wage premium; Heterogeneous Firms
    JEL: C31 F12 F15 J31
    Date: 2017–07
  20. By: Fabien CANDAU; Jacques LE CACHEUX
    Abstract: This article proposes an original review of the literature on tax competition, providing new evidence on tax competition concerning different types of capital (intangibles, industrial building, etc). We also present fiscal optimization of Multi-National Firms (MNFs) and document some case studies regarding the foregone tax revenue due to evasion. Amounts saved by firms are comparable to the contributions to the EU budget by countries like the UK, Ireland, the Netherlands or Luxembourg. We estimate the revenue losses for the national governments of EU15 due to corporate tax avoidance through profit shifting under three scenarios considering different levels of `CIT efficiency' to raise revenue for the year 2015. The 'intermediate' scenario predicts that the revenue losses for the EU governments due to corporate tax avoidance amount to approximately 98 billion euros. After this description of the failure of the current system of taxation, the defense of corporate income tax at the European level as a genuine own resource for the EU budget, this article analyzes alternative schemes such as the Common Consolidated Corporate Tax Base (CCCTB).
    JEL: F23 H26 H61
    Date: 2017–03
  21. By: Daniele Checchi (University of Milan, Italy); Simona Cicognani (Department of Economics, University of Verona, Italy; The Rimini Centre for Economic Analysis); Nevena Kulic (Department of Political and Social Sciences, European University Institute, Italy)
    Abstract: This article investigates the role of the gender composition of selection committees and networks in promoting women in research activities. We exploit a novel data set on recruitment processes at entry-level research positions in a leading Italian research centre that mainly operates in hard science. We find some evidence of discrimination against women at non-tenured entry levels, which is attenuated (or even reversed) by the presence of a woman on the selection committee. However, the most important predictor for recruitment seems to be previous connections with the research centre, which also serves as an important mechanism for women to enter the research profession. We conclude that quotas could be a solution for gender-biased preferences towards same-sex candidates in selection committees for non-tenure-track positions. Moreover, more gender-neutral networks would be another mechanism to bring more equality between men and women in research.
    Keywords: Gender quotas, Discrimination, Research recruitment, Connections
    JEL: J16 J71 J45
    Date: 2017–07
  22. By: Assenmacher, Katrin; Seitz, Franz; Tenhofen, Jörn
    Abstract: We study the demand for Swiss banknotes over the period from 1956 to 2015 and present stylized facts on different banknote denominations since the inception of the Swiss National Bank (SNB) in 1907. Employing the so-called seasonal method, we focus on the demand for banknotes used as a store of value (“hoarding”), which can be expected to be particularly relevant for Switzerland against the backdrop of its status as a safe-haven country, its currently and historically low level of interest rates, and a banknote denomination with the largest value among advanced countries. Due to the pronounced seasonal pattern of CHF 1000 banknotes, which might not be related to transactions, we cannot rely on seasonal ranges including the December peak. Instead, we employ other peak dates as well as a method to correct for the excess seasonality, using institutional features of the tax system. The latter approach is not sufficient to eliminate the excess seasonality and thus does not lead to plausible estimates for the hoarding share of CHF 1000 banknotes. Employing other peak dates, however, indicates that since the turn of the millennium the share of CHF 1000 banknotes that is hoarded increased steadily from around 30% in the mid-1990s to over 70% in recent years.
    Keywords: currency in circulation,banknotes,hoarding
    JEL: E41 E52 E58
    Date: 2017
  23. By: Castagnetti, Carolina; Rosti, Luisa; Töpfer, Marina
    Abstract: So far, little work has been done on directly estimating differences of wage gaps. Stud- ies estimating pay differentials, generally compare them across different subsamples. This comparison does not allow to conduct any inference or, in the case of decompositions, to confront the respective decomposition components across subsamples. We propose an exten- sion of an Oaxaca-Blinder type decomposition based on the omitted variable bias formula to directly estimate the change in pay gaps across subsamples. The method proposed can be made robust to the index-number problem of the standard Oaxaca-Blinder decomposition and to the indeterminacy problem of the intercept-shift approach. Using Italian micro data, we estimate the difference in the gender pay gap across time (2005 and 2014). By applying our proposed decomposition, we find that the convergence of the gender pay gap over time is only driven by the catching-up of women in terms of observable characteristics, while the impact of anti-discrimination legislation is found to be negligible.
    Keywords: Pay Gap,Omitted Varibale Bias Formula,Oaxaca-Blinder Decomposition
    JEL: J7 J13 J31
    Date: 2017
  24. By: Felix Ritchie (University of the West of England, Bristol); Michail Veliziotis (University of the West of England, Bristol); Hilary Drew (University of the West of England, Bristol); Damian Whittard (University of the West of England, Bristol)
    Abstract: Many countries have a statutory minimum wage for employees. There is a strong policy interest in knowing the degree of compliance with the law. Quantitative analysis is ideally suited to this, and many countries have rich datasets for employment research. However, identifying genuine underpayment of wages is not straightforward: data quality, statistical factors and processing errors can all contribute to the under- or over-estimation of the true level of compliance. The impact is exacerbated by the binary ‘yes-no’ nature of compliance. We consider the statistical measurement of non-compliance in the UK. UK minimum wages have been extensively studied, using large-scale high-quality datasets whose characteristics are well understood and whose overlapping coverage allows triangulation of results. We focus particularly on apprentices: a survey of apprentice wages was introduced in 2011, throwing further light on measurement issues, even in a purpose-built survey instrument. We identify several problems leading to under- and over-estimation of compliance rates. Some are well-known statistical or methodological issues, but others relate to the way that survey data is processed; this is rarely considered by data users. The binary nature of compliance makes such problems easier to identify and evaluate. In particular, we demonstrate the value of a very detailed knowledge of the data at crucial points in the distribution, and the importance of triangulation for understanding the reliability of estimates. While concentrating on compliance with a statutory minimum wage, the paper has some wider lessons for the understanding the characteristics of large and complex datasets. We also show how the use of quantitative data can be used to effectively target complementary qualitative data collection.
    Keywords: minimum wage; non-compliance; measurement error; data quality
    JEL: C18 C55 C81 C83 J31 J38
    Date: 2016–01–08
  25. By: Imhof, David
    Abstract: The paper applies simple statistical screens to a bid-rigging cartel in Switzerland, and shows how well the screens detect it by capturing the impact of collusion on the discrete distribution of the bids. In case of bid rigging, the support for the distribution of the bids decreases involving a lower variance, illustrated by the coefficient of variance and the kurtosis statistic. Furthermore, when firms rig bids without side-payment, the difference between the first and the second lowest bids increases whereas the difference between the losing bids decreases, involving a negatively skewed distribution of the bids, highlighted by the relative distance and the skewness statistic. Finally, the collusive interaction screen shows that the behaviour of firms changed radically between the cartel and post-cartel periods. Therefore, the simple statistical screens proposed in this paper purpose to screen large dataset and to detect bidrigging cartels by using only information on bids.
    Keywords: bid rigging detection; screening methods; variance screen; cover bidding screen; structural and behavioural screens
    JEL: C00 C40 D22 D40 K40 L40
    Date: 2017–07–17
  26. By: Briglauer, Wolfgang; Cambini, Carlo; Fetzer, Thomas; Hüschelrath, Kai
    Abstract: In September 2016, the European Commission (EC) published its proposal for a directive establishing the European Electronic Communications Code (EECC) - with one key aim being the provision of sufficient incentives for infrastructure investments into high-speed communication networks. Based on a detailed review of the theoretical and empirical literature of the most relevant regulatory measures - that is, co-investment models as well as different types of access regulation - we provide a critical appraisal of the respective provisionsin the EECC. We find that, although the EECC can generally be seen as step into the right direction, the expected effects on investment incentives as well as substantial implementation challenges in combination with a high degree of complexity of the envisaged measures contain substantial potential for improvement.
    Keywords: Telecoms' Review,Regulatory Framework,European Union,Investment,Infrastructure,Next Generation Networks,Broadband,Access Regulation,Co-Investment
    JEL: L96 L51
    Date: 2017
  27. By: Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Namesti Winstona Churchilla 4, 13067 Prague, Czech Republic); Jan Malek (Universiteit van Amsterdam, Amsterdam); Lukas Recka (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic)
    Abstract: This paper provides the first academic economic simulation analysis of the impact of increase in predominantly German wind and solar energy production on the Czech electricity transmission network. To assess the exact impact on the transmission grid, updated state-of-the-art techno-economic model ELMOD is employed. Two scenarios for the year 2025 are evaluated on the basis of two representative weeks. The first scenario is considered as baseline and models currently used production mix. The second scenario focuses on the effect of German Energiewende policy on the transmission networks as expected in 2025. The results confirm that higher feed-in of solar and wind power increases the total transport of electricity between transmission system operator areas as well as the average load of lines and volatility of flows. Also, an increase in number of critical high-load hours is observable. Taking into account only the Czech transmission system, considerable rise both in transported volume and volatility are observed only on border transmission lines, not inside the country. Moreover, our qualitative analysis shows that all these mentioned effects are strenghtened by the presence of German-Austrian bidding zone.
    Keywords: Energiewende, wind, solar, transmission networks, ELMOD
    JEL: L94 Q21 Q48 C61
    Date: 2017–03
  28. By: Jain, Apoorva (University of North Carolina, Chapel Hill); Peter, Klara Sabirianova (University of North Carolina, Chapel Hill)
    Abstract: This study finds evidence of wage divergence between immigrants and natives in Germany using a country-wide household panel from 1984 to 2014. We incorporate the possibility of wage divergence into a two-period model of economic assimilation by modeling the differences in the efficiency of human capital production and prices per unit of human capital between immigrants and natives. Individual rates of wage convergence are found to be higher for immigrants who fled warfare zones, belong to established ethnic networks, and acquired more years of pre-migration schooling. Using a doubly robust treatment effect estimator and the IV method, the study finds that the endogenous post-migration education in the host country contributes substantially to closing the wage gap with natives. The treatment effect is heterogeneous, favoring immigrants who are similar to natives. This paper also addresses the commonly ignored sample selection issue due to non-random survey attrition and employment participation. Empirical evidence favors the "efficiency" over the "discrimination" channels of wage divergence.
    Keywords: migration, assimilation, divergence, wage growth, skill prices, post-migration human capital, discrimination, doubly robust estimator, instrumental variables, panel, Germany
    JEL: J15 J24 J31 J61 F22 I26
    Date: 2017–07
  29. By: Suwina Cheng (Lingnan University)
    Abstract: The study examines top executive Remuneration in UK high-technology firms in an attempt to identify and understand any changes in the structure of the pay mechanism evident after the global technology market crisis at the end of the twentieth century. The results show that the relation between executive pay and market performance has weakened and that the fixed components in the pay package in those companies have increased post-crisis. These changes have likely served to compensate executives for the increased risk associated with equity-based compensation rather than to redress any perceived problems with executive incentives pre-crisis. Moreover, we also confirm a significant and negative association between executive pay and block shareholdings after the market adjustment. These findings suggest that shareholders strengthened their role of monitoring executive pay in the wake of this exogenous economic shock.
    Keywords: Corporate governance, CEO compensation, Financial crisis, High-technology firms
    JEL: G30 M12
    Date: 2017–07
  30. By: Jain, Apoorva (University of North Carolina, Chapel Hill); Peter, Klara Sabirianova (University of North Carolina, Chapel Hill)
    Abstract: This paper develops and estimates a joint hazard-longitudinal (JHL) model of the timing of migration and labor market assimilation – two processes that have been assumed to be independent in the existing literature. The JHL model accounts for the endogenous age of entry in estimating the returns to years since migration by allowing cross-equation correlations of random intercepts with individual rates of wage assimilation. Commonly ignored sample selection issues due to non-random survey attrition and missing wages are also addressed. Using German household panel surveys from 1984 to 2014 and home country-level data from 1961, we find large upward bias in the OLS-estimated average rate of wage assimilation. Our estimates suggest that immigrants with lower unobserved skills and with a higher unobserved propensity to migrate early have a faster assimilation rate.
    Keywords: migration, joint hazard-longitudinal model, mixed effects, random slope, individual-specific wage assimilation, unobserved skills, survival analysis, timing of migration, maximum likelihood, selection due to endogenous entry, Germany
    JEL: J24 J31 J61 N30 C41
    Date: 2017–07
  31. By: Orla Doyle (School of Economics and Geary Institute for Public Policy,University College Dublin)
    Abstract: Using a randomized experiment, this study investigates the impact of sustained investment in parenting, from pregnancy until age five, in the context of extensive welfare provision. Providing the Preparing for Life program, incorporating home visiting, group parenting, and baby massage, to disadvantaged Irish families raises children’s cognitive and socio-emotional/behavioral scores by two-thirds and one-quarter of a standard deviation respectively by school entry. There are few differential effects by gender and stronger gains for firstborns. The results also suggest that socioeconomic gaps in children’s skills are narrowed. Analyses account for small sample size, differential attrition, multiple testing, contamination, and performance bias.
    Keywords: Early childhood intervention; cognitive skills; socio-emotional and behavioral skills; randomized control trial; multiple hypothesis testing; permutation testing; inverse probability weighting.
    JEL: C93 D13 I26 J13
    Date: 2017–07–11
  32. By: Bagues, Manuel F. (Aalto University); Campa, Pamela (University of Calgary)
    Abstract: We provide a comprehensive analysis of the short- and medium-term effects of gender quotas in candidate lists using evidence from Spain, where quotas were introduced in 2007 in municipalities with more than 5,000 inhabitants, and were extended in 2011 to municipalities with more than 3,000 inhabitants. Using a Regression Discontinuity Design, we find that quotas raise the share of women among council members but they do not affect the quality of politicians, as measured by their education attainment and by the number of votes obtained. Moreover, within three rounds of elections, women fail to reach powerful positions such as party leader or mayor, and we do not observe any statistically or economically significant changes in the size and composition of public finances.
    Keywords: gender quotas in candidate lists, regression discontinuity design
    JEL: D72 H72 J16
    Date: 2017–07
  33. By: Fitzenberger, Bernd; Licklederer, Stefanie
    Abstract: Based on local policy variation, this paper estimates the causal effect of additional career assistance on educational outcomes for students in Lower Track Secondary Schools in Germany. We find mostly insignificant effects of the treatment on average outcomes, which mask quite heterogeneous effects. For those students, who are taking extra cursework to continue education, the grade point average is unaffected and the likelihood of completing a Middle Track Secondary School degree falls. In contrast, educational outcomes improve for students who do not take extra coursework. Hence, the treatment causes a reversal of educational plans after graduation.
    Keywords: lower track secondary schools,career guidance,educational upgrading
    JEL: I20 J24
    Date: 2017
  34. By: Eschelbach, Martina
    Abstract: This research note empirically investigates whether cash can prevent consumers from making needless purchases in unexpected shopping situations. Cash can have a disciplinary effect on short-term consumption because it imposes a strong temporary budget constraint and also reinforces the pain of paying. I use a sample of unexpected shopping situations that were recorded by participants of the Bundesbank’s study on payment behaviour. I find that the probability of a transaction subsequently being declared unnecessary is significantly lower when the consumer had paid the transaction in cash. The results are similar across different socioeconomic groups based on age, gender, education and income. I conclude that restricting the use of cash for transaction purposes can entail a reduction in consumer welfare.
    Keywords: payment behaviour,consumer choice,overspending
    JEL: D12 D14 D18
    Date: 2017
  35. By: Eder, Andreas
    Abstract: This paper investigates the existence and the degree of economies of diversification for small-scaled, renewable-fuelled cogeneration systems using 2014 cross-sectional data from 67 Austrian biogas plants. In addition, cost efficiency of those biogas plants is estimated with a non-parametric linear programming technique, known as Data Envelopment Analysis. This is the first study applying the methodology proposed by Chavas and Kim (2010). Economies of diversification are decomposed into three additive parts: a part measuring complementarity among outputs; a part reflecting economies of scale; a part reflecting convexity. Furthermore, this paper extends the decomposition introduced by Chavas and Kim (2010) in such a way that the contribution of each input to economies of diversification and its components can be investigated. The results indicate substantial cost savings from diversification. For very-small scaled plants ( 250 kWel) positive complementarity and convexity effects are the main source of economies of diversification and outweigh the negative effect from scale diseconomies. In addition to substantial fuel/feedstock cost reductions, significant costs saving effects from the jointness in labour and other inputs positively contribute to the complementarity effect. While on average capital and labour costs positively contribute to economies of scale, feedstock costs work in the direction of diseconomies of scale.
    Keywords: Data Envelopment Analysis, Economies Scale, Economies of Scope, Renewable Energy Sources, Energy Efficiency
    JEL: C61 D22 D24 Q16 Q42
    Date: 2017–07
  36. By: Jana Votapkova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic); Pavlina Zilova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic)
    Abstract: The paper aims to find out whether health status determines the level of liquid savings among a pre-retirement (50-60 years old) segment of the Czech population as retrieved from the SHARE (Survey of Health, Aging and Retirement in Europe) database, Wave 5 using a 2SLS methodology. Other demographic, health and economic characteristics are considered. We find a significant positive relationship between health and savings. It suggests that careful design of preventive health programs could ease the public pension system because if healthy, individuals could secure themselves for retirement.
    Keywords: Health status, savings, Czech Republic, 2SLS, SHARE Dataset
    JEL: D14 I15
    Date: 2017–05

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