nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2017‒12‒03
29 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. How Economic Growth, Renewable Electricity and Natural Resources Contribute to CO2 Emissions? By Balsalobre-Lorente, Daniel; Shahbaz, Muhammad; Roubaud, David; Farhani, Sahbi
  2. Use of Extra-School Time and Child Non-Cognitive Development. Evidence from the UK. By Elena Claudia Meroni; Daniela Piazzalunga; Chiara Pronzato
  3. Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care By Bruce Hollingsworth; Asako Ohinata; Matteo Picchio; Ian Walker
  4. Public Private Partnership management effects on road safety outcomes By Daniel Albalate; Paula Bel-Piñana
  5. How Immigration Grease Is Affected by Economic, Institutional and Policy Contexts: Evidence from EU Labor Markets By Martin Guzi
  6. Gender diversity, R&D teams and patents:An application to Spanish firms By Mercedes Teruel; Agustí Segarra-Blasco
  7. The Private Production of Safe Assets By Kacperczyk, Marcin; Perignon, Christophe; Vuillemey, Guillaume
  8. Sickness absence from work in Spain: are there gender differences? By López-Mourelo, Elva; Alba Ramírez, Alfonso
  9. Collective bargaining through the magnifying glass: A comparison between the Netherlands and Portugal By Alexander Hijzen; Pedro Martins; Jante Parlevliet
  10. Local and Non-Local Knowledge Typologies: Technological Complexity in the Irish Knowledge Space By Adam Whittle
  11. The Effects of Fluoride in the Drinking Water By Aggeborn, Linuz; Öhman, Mattias
  12. Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden By Saez, Emmanuel; Schoefer, Benjamin; Seim, David
  13. Fit for the labour market? An effort to reduce inactivity traps in the transition from benefit to work in the Belgian sickness and disability system By Tine Hufkens; Linde Buysse; Natascha; Gerlinde Verbist
  14. Highways, Market Access and Spatial Sorting By Stephan Fretz; Raphaël Parchet; Frédéric Robert-Nicoud
  15. Can firms see into the future? Survey evidence from Germany By Massenot, Baptiste; Pettinicchi, Yuri
  16. Self-employment effects of restrictive immigration policies: the case of transitional arrangements in the EU By Magdalena M. Ulceluse
  17. Ethnic diversity and political participation: the role of individual income By G. Bellettini; C. Berti Ceroni; C. Monfardini
  18. On self-interested preferences for burden sharing rules: An econometric analysis for the costs of energy policy measures By Elke D. Groh; Andreas Ziegler
  19. Firm Survival in New EU Member States By Baumöhl, Eduard; Iwasaki, Ichiro; Kočenda, Evžen
  20. How Costly Are Labor Gender Gaps? Estimates by Age Group for the Balkans and Turkey By David Cuberes; Marc Teignier
  21. Foreign Ownership and Intra-Firm Union Density in Germany By Uwe Jirjahn
  22. The Economic Consequences of the Brexit Vote By Benjamin Born; Gernot J. Müller; Moritz Schularick; Petr Sedlacek
  23. Wage differences between immigrants and natives in Austria: The role of literacy skills By Christl, Michael; Köppl-Turyna, Monika; Gnan, Phillipp
  24. Remigration Intentions and Migrants' Behavior By CHABÉ-FERRET Bastien; MACHADO Joël; WAHBA Jackline
  25. Examining the “Veggie” Personality: Results from a Representative German Sample By Tamara M. Pfeiler; Boris Egloff
  26. Integrating (former) asylum seekers into the Belgian labour market. What can we learn from the recent past? By Dries Lens; Ive Marx; SunÄ ica Vujić
  27. Less Alimony after Divorce – Spouses’ Behavioral Response to the 2008 Alimony Reform in Germany By Julia Bredtmann; Christina Vonnahme
  28. Regional patterns of employability in the Greek Labour market By Tsampra, Maria; Bouranta, Nancy; Gkerats, Reveka
  29. Ethnic Gaps in Educational Attainment and Labor-Market Outcomes: Evidence from France By Gabin Langevin; David Masclet; Fabien Moizeau; Emmanuel Peterle

  1. By: Balsalobre-Lorente, Daniel; Shahbaz, Muhammad; Roubaud, David; Farhani, Sahbi
    Abstract: This study explores the relationship between economic growth and CO2 emissions in the so-called European Union 5 (EU-5) countries (Germany, France, Italy, Spain, and the United Kingdom) for the 1985-2016 period. In doing so, we employ a carbon emission function to investigate the environmental Kuznets curve phenomenon, which describes a relationship between economic growth and environmental degradation. The empirical results confirm the existence of an N-shaped relationship between economic growth and CO2 emissions in the EU-5 countries. We incorporate additional variables such as renewable electricity consumption, trade openness, natural resource abundance, and energy innovation to augment the carbon emission function. Renewable electricity consumption, natural resources, and energy innovation improve environmental quality, while trade openness and the interaction between economic growth and renewable electricity consumption exert a positive impact on CO2 emissions. This study is novel in that it presents an interaction between economic growth and renewable electricity consumption. We also confirm the need for renewable energy regulations related to increasing renewable sources and promoting energy innovation to reduce the negative effects of energy and fossil energy resources on environmental degradation.
    Keywords: Economic Growth, Renewable Electricity, Natural Resources, Environment
    JEL: A1
    Date: 2017–10–12
  2. By: Elena Claudia Meroni; Daniela Piazzalunga; Chiara Pronzato (University of Turin)
    Abstract: Increasingly, scientists from different disciplines have dedicated their efforts to understand how childhood conditions influence the development of an individual. School and family play a role in this process. More prepared and motivated children today lead to more successful adults tomorrow, in the labor market as well as in all other life dimensions (health, civic participation, parenthood responsibilities), with benefits for the whole society. Between the end of school-day and bedtime, time can be used for more or less structured activities, with other children and adults. Very little is known on how children from different families spend this time and which consequences it can have on their development and wellbeing; nothing is known on how participation in extra-curricular activities depends on offer and prices. Evidence from US shows that participation in extra-curricular activities is becoming, together with other traits (family stability, parenting stile, economic and cultural resources), a further distinctive of diverging destinies of “our kids”. Children from more advantaged families have access to better opportunities in their extra school time, potentially increasing inequality. Yet there is no study in Europe that addresses this issue. We contribute to the topic by studying the relationship between the use of extra-school time and child non-cognitive development, using UK longitudinal data. We find that different extra-school activities influence the behavioural dimension of the child. Time with parents, time spent in household chores, and sport have beneficial effects while time spent on TV and computer have detrimental effects. The dimension which appears more easily influenced is the prosocial behaviour of the child.
    Date: 2017–10
  3. By: Bruce Hollingsworth (Lancaster University, United Kingdom); Asako Ohinata (Department of Economics, University of Leicester, United Kingdom; CentER, Tilburg University, The Netherlands.); Matteo Picchio (Department of Economics and Social Sciences, Marche Polytechnic University, Ancona, Italy; Sherppa, Ghent University, Belgium; IZA, Germany.); Ian Walker (Management School, Lancaster University, United Kingdom; IZA, Germany.)
    Abstract: We investigate the impact of a policy reform, which introduced free formal personal care for all those aged 65 and above, on caregiving behaviour. Using a difference-indifferences estimator, we estimate that the free formal care reduced the probability of co-residential informal caregiving by 12.9%. Conditional on giving co-residential care, the mean reduction in the number of informal care hours is estimated to be 1:2 hours per week. The effect is particularly strong among older and less educated caregivers. In contrast to co-residential informal care, we find no change in extra-residential caregiving behaviour. We also observe that the average labour market participation and the number of hours worked increased in response to the policy introduction.
    Keywords: Long-term elderly care; ageing; financial support; informal caregiving; difference-in-differences
    JEL: C21 D14 I18 J14
    Date: 2017–11
  4. By: Daniel Albalate (GiM-IREA, Universitat de Barcelona); Paula Bel-Piñana (GiM-IREA, Universitat de Barcelona)
    Abstract: Public Private Partnerships (PPP) have become common in providing high-quality infrastructure in many countries worldwide. One of the main reasons for PPP agreements is to improve efficiency and quality in the delivery of public services, as well as to boost investments for expensive projects. Despite PPPs having been particularly widespread in the case of the construction and rehabilitation of high-capacity road infrastructure, their impact in terms of road safety outcomes is still unexplored. This paper studies the effects of PPPs on road safety outcomes by taking advantage of the variety of management models provided in the Spanish highway network. Results based on a panel-data fixed-effects method show that the most relevant aspect influencing road safety outcomes is the quality of design of the road. However, we find strong evidence suggesting that privately operated highways perform better in terms of road safety outcomes than publicly operated highways, for roads with a similar quality of design.
    Keywords: Public Private Partnership, highway, road safety, management
    JEL: H23 I18 L33
    Date: 2017–11
  5. By: Martin Guzi
    Abstract: Theoretical arguments and previous country-level evidence indicate that immigrants are more fluid than natives in responding to changing labor shortages across countries, skill-groups or industries. The diversity across EU member states enables us to test this hypothesis across various institutional, economic and policy contexts. Drawing on the EU LFS and EU SILC datasets we study the relationship between residual wage premia as a measure of labor shortages in different skill-industry-country cells and the shares of migrants and natives working in these cells. We find that immigrants’ responsiveness to labor market shortages exceeds that of natives in the EU15, in particular in member states with higher unemployment rates, higher levels of (recent) immigration, and more open immigration and integration policies; but also those with barriers to citizenship acquisition or family reunification. Whereas higher welfare expenditures seem to exert a lock-in effect, a comparison across different types of welfare states indicates that institutional complementarities neutralize that effect.
    Keywords: labor supply, skill matching, migration, labor shortage, welfare state,institutions, policy
    JEL: J15 J24 J61 J68
    Date: 2017–10–11
  6. By: Mercedes Teruel (GRIT, Universitat Rovira i Virgili); Agustí Segarra-Blasco (GRIT, Universitat Rovira i Virgili)
    Abstract: Previous results show that gender diversity increases the probability firms’ innovation. This paper explores the relationship between gender diversity of R&D departments and their capacity to patent. Based on the Spanish Community Innovation Survey between 2004 and 2014, we have applied a two-step procedure control for endogeneity. Our results show that gender diversity affects a firm’s capacity to patent in different manners depending on the coverage of the patents. On the one hand, gender diversity affects OEPM patents negatively, while the impact becomes positive for patents with an international coverage (EPO, USPTO, or PCT). This analysis is relevant in order reveal the dual effect of gender diversity within R&D teams on their capacity to process and register patents.
    Keywords: gender diversity, patent generation
    JEL: O30 O31 J16
    Date: 2017–11
  7. By: Kacperczyk, Marcin; Perignon, Christophe; Vuillemey, Guillaume
    Abstract: Do claims on the private sector serve the role of safe assets? We answer this question using high-frequency panel data on prices and quantities of certificates of deposit (CD) and commercial paper (CP) issued in Europe. We show that only very short-term private securities benefit from a premium for safety. Using several identification strategies, we show that the issuance of short-term CDs, but not of CPs, strongly responds to measures of safety demand. The private production of safe assets is stronger for issuers with high credit worthiness, and breaks down during episodes of market stress. We conclude that even very short-term private assets are sensitive to changes in the information environment and should not be treated as equally safe at all times.
    Keywords: information sensitivity; safe assets; safety premium
    JEL: E41 E43 E44
    Date: 2017–10
  8. By: López-Mourelo, Elva; Alba Ramírez, Alfonso
    Abstract: We use a sample of social security records containing work histories and sick leave episodes to investigate gender differences in the incidence and duration of absence from work due to sickness in Spain. For sick leave incidence we apply a competing risk model to a panel of newly employed workers who can be followed for two years until an episode of sick leave occurs or the job ends. For the duration of sick leave spells, we estimate a Weibull model. We distinguish between sick leave due to occupational illness or injury and sick leave due to common disease or accident. This distinction is important because only for the latter women have higher incidence and longer duration than men. In this respect, the presence of children under 3 years of age in the household becomes a significant explanatory factor.
    Keywords: Proportional hazard model; Competing risks; Cumulative incidence; Gender differences; Sick leave
    JEL: J81 J28 J14
    Date: 2017–11–01
  9. By: Alexander Hijzen; Pedro Martins; Jante Parlevliet
    Abstract: Since the global financial crisis, sector-level bargaining has come under renewed scrutiny. While in Southern Europe, the crisis raised concerns about the role of collective bargaining as an obstacle to labour market adjustment, in Northern Europe it was perceived more favourably and, according to some, may even have helped to weather the fallout of the crisis more easily. This paper seeks to contribute to a deeper understanding of sector-level bargaining systems and their role for labour market performance. We compare two countries with seemingly similar collective bargaining systems, the Netherlands and Portugal, and document a number of features that may affect labour market outcomes, including: i) the scope for flexibility at the firm or worker level within sector-level agreements; ii) the emphasis on representativeness as a criterion for extensions; iii) the effectiveness of coordination across bargaining units; and iv) pro-active government policies to enhance trust and cooperation between the social partners.
    Keywords: industrial relations; social dialogue; employment
    JEL: J5 P52
    Date: 2017–11
  10. By: Adam Whittle
    Abstract: It is now commonplace to assume that the production of economically valuable knowledge is central to modern theories of growth and regional development. At the same time, it is also well known that not all knowledge is equal, and that the spatial and temporal distribution of knowledge is highly uneven. Combing insights from Evolutionary Economic Geography (EEG) and Economic Complexity (EC) the primary aim of this paper is to investigate whether more complex knowledge is generated by local of non-local (foreign) firms. From this perspective, a series of recent contributions have highlighted the role of foreign firms in enacting structural transformation, but such an investigation has yet to account for the complexity of the knowledge produced. Exploiting information contained within a recently developed Irish patent database our measure of complexity uses a modified bipartite network to link the technologies produced within regions, to their country of origin i.e. local or non-local. Results indicate that the most complex technologies tend to be produced in a few diverse regions. For Ireland, our results indicate that the most complex technologies tend to be produced in a few diverse regions. In addition, we find that the majority of this complex knowledge is generated in technology classes where the share of foreign activity is greater than local firms. Lastly, we generate an entry model to compute the process of complex regional diversification. Here the focus is on how regions develop a comparative advantage in a technological domains more complex than those already present in that region. As such, we focus our attention only on those technologies with the highest complexity values, as these technologies are said to underpin the European UnionÕs Smart Specialisation thesis.
    Keywords: Relatedness, Technological Complexity, Diversification, Knowledge Space, Smart Specialisation, Ireland
    Date: 2017–11
  11. By: Aggeborn, Linuz (Department of Government at Uppsala University, Uppsala Center for Fiscal Studies and Uppsala Center for Labor Studies); Öhman, Mattias (Institute for Housing and Urban Research (IBF) and Department of Women's and Children's Health at Uppsala University)
    Abstract: Fluoridation of the drinking water is a public policy whose aim is to improve dental health. Although the evidence is clear that fluoride is good for dental health, concerns have been raised regarding potential negative effects on cognitive development. We study the effects of fluoride exposure through the drinking water throughout life on cognitive and non-cognitive ability, math test scores and labor market outcomes in a large-scale setting. We use a rich Swedish register dataset for the cohorts born 1985–1992 in the main analysis, together with drinking water fluoride data. To estimate the effects, we exploit intra-municipality variation of fluoride, stemming from an exogenous variation in the bedrock. Taking all together, we investigate and confirm the long-established positive relationship between fluoride and dental health. Second, we find precisely estimated zero-effects on cognitive ability, non-cognitive ability and math test scores for fluoride levels in Swedish drinking water. Third, we find that fluoride improves later labor market outcomes, which indicates that good dental health is a positive factor on the labor market.
    Keywords: fluoride; cognitive development; labor market outcomes; dental health
    JEL: H42 I10 I18
    Date: 2017–10–24
  12. By: Saez, Emmanuel; Schoefer, Benjamin; Seim, David
    Abstract: This paper uses administrative data to analyze a large and long-lasting employer payroll tax rate cut from 31% down to 15% for young workers (aged 26 or less) in Sweden. We find a zero effect on net-of-tax wages of young treated workers relative to slightly older untreated workers, even in the medium run (after six years). Simple graphical cohort analysis shows compelling positive effects on the employment rate of the treated young workers, of about 2--3 percentage points, which arise primarily from fewer separations (rather than more hiring). These employment effects are larger in places with initially higher youth unemployment rates. We also analyze the firm-level effects of the tax cut. We sort firms by the size of the tax windfall and trace out graphically the time series of firm outcomes. We proxy a firm's windfall with its share of treated young workers just before the reform. First, heavily treated firms expand after the reform: employment, capital, sales, value added, and profits all increase. These effects appear stronger in credit-constrained firms, consistent with liquidity effects. Second, heavily treated firms increase the wages of all their workers -- young as well as old -- collectively, perhaps through rent sharing. Wages of low paid workers rise more in percentage terms. Rather than canonical market-level adjustment, we uncover a crucial role of firm-level mechanisms in the transmission of payroll tax cuts.
    Date: 2017–10
  13. By: Tine Hufkens; Linde Buysse; Natascha; Gerlinde Verbist
    Abstract: In the context of ‘social investment’, European welfare states underline increasingly the importance for the long-term development of human capital and labour market integration. The emphasis is put on individual empowerment and making work pay. In Belgium this evolution has been translated into several measures that aim to increase labour market participation and to tackle inactivity traps. In this article we study the financial added value of the transition from a full sickness benefit to (part time) work. Besides, we look at the adequacy of this new situation compared to the poverty threshold. In an effort to strengthen the financial work incentive, we construct an alternative re-integration system for sickness and disability beneficiaries and look at its impact on inactivity traps and poverty risks. We use a simulation model for hypothetical families that allows to calculate the impact of socio-economic transitions on the net disposable household income. We find that the financial returns of working are substantial when people start working at the same average income level as before the period of sickness, but not if people start working at a lower wage. For single-earners or single parents that start working at a minimum-wage we find strong inactivity traps.
    Keywords: Employment, in-work poverty, Long-term sickness, inactivity traps, reintegration, active labour market policy
    Date: 2017–11
  14. By: Stephan Fretz; Raphaël Parchet; Frédéric Robert-Nicoud
    Abstract: We design a spatial model featuring workers embodied with heterogeneous skills. In equilibrium, locations with improved market access become relatively more attractive to the high-skilled, high-income earners. We then empirically analyze the effects of the construction of the Swiss highway network between 1960 and 2010 on the distribution of income at the local level, as well as on employment and commuting by education level. We find that the advent of a new highway access within 10km led to a long-term 19%-increase of the share of high-income taxpayers and a 6%-decrease of the share of low-income taxpayers. Results are similar for employment data decomposed by education level, as well as for in- and out-commuters. Highways also contributed to job and residential urban sprawl.
    Keywords: transportation, highway, market access, income sorting
    JEL: D31 O18 H54 R11 R23
    Date: 2017–11
  15. By: Massenot, Baptiste; Pettinicchi, Yuri
    Abstract: This paper presents new evidence on the expectation formation process of firms from a survey of the German manufacturing sector. It focuses on the expectation about their future business conditions, which enters the widely followed economic sentiment index and which is an important determinant of their employment and investment decisions. We find that firms extrapolate their experience too much and make predictable forecasting errors. Moreover, firms do not seem to anticipate the upcoming reversals of business cycle peaks and troughs which causes suboptimal adjustment of investment and employment and affects their inventories and profits. However, the impact on expectation errors decreases with the size and the age of the firm as firms learn to reduce their extrapolation bias over time.
    Keywords: Expectation Formation,Expectation Error,Learning,Extrapolation,Experience
    JEL: D90
    Date: 2017
  16. By: Magdalena M. Ulceluse
    Abstract: The paper contributes to existing debates concerning the effectiveness of immigration policies, by investigating the particular case of transitional arrangements implemented during the European Union enlargement rounds of 2004 and 2007. A number of authors have argued that instead of deterring immigration, the arrangements have changed the channels EU8 and EU2 migrants have chosen to enter the country of destination, by becoming self-employed. Self- employed individuals were not subjected to restrictions. Our results suggest that EU2 migrants have indeed turned to self-employment as a way to circumvent the restrictions, and point to a substitution effect in the case of EU8 migrants. The results have broader research and policy implications, revealing the importance of considering the effect immigration policies have in shaping the volume and skill composition of migrants, as well as their labour market trajectories and subsequent economic activities.
    Keywords: transitional arrangements, immigration policy, immigrant self-employment, EU enlargement, EU mobility
    JEL: J15 J18 J61 J68
    Date: 2017–11–13
  17. By: G. Bellettini; C. Berti Ceroni; C. Monfardini
    Abstract: We exploit a unique dataset merging data on individual socio-economic characteristics and political participation in an Italian municipality to investigate the relationship between ethnic diversity in residential neighborhoods and individuals' propensity to vote. We document a sizable negative impact of diversity on overall electoral turnout which reects differential effects at the individual level, depending on household equivalent income. Speciffically, we show that ethnic heterogeneity in the neighborhood reduces the political participation of the poor, while it fosters that of the more affluent. These results highlight a potential democratic deficit stemming from reduced and unequal electoral turnout in increasingly ethnically heterogeneous neighborhoods.
    JEL: D72
    Date: 2017–11
  18. By: Elke D. Groh (University of Kassel); Andreas Ziegler (University of Kassel)
    Abstract: This paper examines the acceptance of burden sharing rules that refer to the costs of the German energy transition, which is one of the most challenging and disputed national climate and energy policy measures. Based on data from a comprehensive survey of more than 2,200 citizens, the empirical analysis reveals that the polluter-pays rule has by far the highest support compared with the ability-to-pay rule and especially compared with the equal-pay rule, which is widely refused in the sample. Since the distribution of the costs of the German energy transition is largely in line with the polluter-pays rule, its strong support seems to contribute to the high acceptance of the energy transition at all. The main result of our econometric analysis with multivariate binary and ordered probit models is that not only some attitudinal factors like environmental values and political identification, but especially economic self-interest is relevant since (equivalent) energy expenditures have a significantly negative effect on the support of the polluter-pays rule and especially (equivalent) income has a significantly negative effect on the preference for the ability-to-pay rule. These results suggest that the use of distributional arguments for the criticism of energy policy measures is not necessarily value-driven on the basis of real perceptions of distributive justice, but can also be strategically motivated to prevent and combat economically unfavorable measures. Together with the strong general support of the polluter-pays rule, these results suggest that a sharp reorientation of the German energy transition due to distributional arguments is not very useful.
    Keywords: Climate change; climate and energy policy measures; burden sharing rules; eco-nomic self-interest; attitudinal factors; multivariate binary and ordered probit models
    JEL: Q54 Q48 Q42
    Date: 2017
  19. By: Baumöhl, Eduard; Iwasaki, Ichiro; Kočenda, Evžen
    Abstract: We analyze firm survival determinants in four new European Union member states (Czech Republic, Hungary, Poland, and Slovakia). We employ the Cox proportional hazards model on firm-level data over the period of 2006–2015. We show that less concentrated control of large shareholders, higher solvency, and more board directors are linked with increased probability of firm survival in all four countries. However, an excessive number of board directors shows a detrimental effect. Firms with foreign owners and higher returns on their assets exhibit better survival chances. On the other hand, larger firms and those hiring international auditors show lower probabilities of survival. A number of determinants specifically influence firm survival in different ways across countries. This fact emphasizes that differences in business conditions are important when studying firm survival.
    Keywords: firm survival, new EU member states, survival and exit determinants, hazards model, panel data
    JEL: D22 G01 G33 G34 P34
    Date: 2017–10
  20. By: David Cuberes (Clark University); Marc Teignier (Universitat de Barcelona)
    Abstract: In this paper, survey data are used to document the presence of gender gaps in selfemployment, employership, and labor force participation in seven Balkan countries and Turkey. The paper examines the quantitative effects of the gender gaps on aggregate productivity and income per capita in these countries. In the model used to carry out this calculation, agents choose between being workers, self-employed, or employers, and women face several restrictions in the labor market. The data display very large gaps in labor force participation and in the percentage of employers and self-employed in the labor force. In almost all cases, these gaps reveal a clear underrepresentation of women. The calculations show that, on average, the loss associated with these gaps is about 17 percent of income per capita. One-third of this loss is due to distortions in the choice of occupations between men andwomen. The remaining two-thirds corresponds to the costs associated with gaps in labor force participation. The dimensions of these gender gaps and their associated costs vary considerably across ages groups, with the age bracket 36–50 years being responsible for most of the losses.
    Keywords: gender inequality, entrepreneurship talent, factor allocation, aggregate productivity, span of control, Balkans, Turkey
    JEL: E2 J21 J24 O40
    Date: 2017–11
  21. By: Uwe Jirjahn
    Abstract: From a theoretical viewpoint the relationship between foreign ownership and unionization is ambiguous. On the one hand, foreign owners have better opportunities to undermine workers' unionization. On the other hand, workers of foreign-owned firms have an increased demand for the protection provided by unions. Which of the two opposing influences dominates can vary according to moderating circumstances. This study shows that firm size and industry-level bargaining play a moderating role. The relationship between foreign ownership and unionization is negative in larger firms whereas it is positive in smaller firms. Coverage by industry-level collective bargaining makes a positive relationship both stronger and more likely.
    Keywords: Corporate Globalization, Foreign Direct Investment, Union Membership, Firm Size, Centralized Collective Bargaining
    JEL: F23 J51 J52
    Date: 2017
  22. By: Benjamin Born (Centre For Economic Policy Research; University of Bonn); Gernot J. Müller (Centre For Economic Policy Research; University of Tübingen); Moritz Schularick (Centre For Economic Policy Research; University of Bonn); Petr Sedlacek (Centre For Economic Policy Research; Centre for Macroeconomics (CFM); University of Oxford)
    Abstract: This paper introduces a data-driven, transparent and unbiased method to calculate the economic costs of the Brexit vote in June 2016. We let a matching algorithm determine a combination of comparison economies that best resembles the growth path of the UK economy before the Brexit referendum. The economic cost of the Brexit vote is the difference in output between the UK economy and and its synthetic doppelganger. We show that, contrary to public perception, by the third quarter of 2017 the economic costs of the Brexit vote are already 1.3% of GDP. The cumulative costs amount to almost 20 billion pounds and are expected to grow to more than 60 billion pounds by end-2018. We provide evidence that heightened policy uncertainty has already taken a toll on investment and consumption.
    Keywords: Brexit, European Union, Policy uncertanity, Synthetic control method
    JEL: E65 F13 F42
    Date: 2017–11
  23. By: Christl, Michael; Köppl-Turyna, Monika; Gnan, Phillipp
    Abstract: This paper analyzes wage differences between natives and immigrants in Austria. First, we show that for both groups, literacy skills are an important determinant of the hourly wage. In the second step, we show that differences in proficiency with respect to literacy can explain more than three log points of the total wage gap of 9.7 log points between natives and immigrants. When adding literacy skills to the wage decomposition, the discriminatory part vanishes completely, suggesting that the wage difference between immigrants and natives in Austria can be to a large extent explained. Furthermore, we account for a possible sample selection bias. After controlling for literacy skills, the unexplained part of the gap becomes statistically insignificant. The importance of literacy skills in explaining wage differences between natives and immigrants is robust across several sensitivity tests.
    Keywords: wage,decomposition,gap,immigrants,natives,Austria
    JEL: J71 J15
    Date: 2017
  24. By: CHABÉ-FERRET Bastien; MACHADO Joël; WAHBA Jackline
    Abstract: Using a unique French dataset, we analyze the relationship between remigration intentions and several immigrants' behaviors in the host and origin countries addressing the potential endogeneity of remigration intentions. We also investigate the potential trade-off and complementarities between various immigrants' investment behaviors. We _find that temporary migrants are more likely to invest in the country of origin but less likely to invest in the host country. Moreover, our results suggest a trade-off between immigrants' investment in the home and in the host country.
    Keywords: Temporary migration; intention to leave; return intention; remittances; investment; house ownership; language
    JEL: F22
    Date: 2017–11
  25. By: Tamara M. Pfeiler; Boris Egloff
    Abstract: An increasing proportion of people choose to follow a vegetarian diet. To date, however, little is known about if and how individual differences in personality relate to following a vegetarian diet. In the two studies presented here, we aimed to (1) estimate the prevalence of self-defined vegetarians in two waves of a German representative sample (N = 4,496 and 5,125, respectively), (2) analyze the effect of socio-demographic variables on dietary behavior, and (3) examine individual differences between vegetarians and meat eaters in personality traits, political attitudes, and health-related variables. In Study 1, a strict definition of vegetarians was used, while in Study 2 the definition was laxer, to include also individuals who only predominantly followed a vegetarian diet. The prevalence of self-defined vegetarians was 2.74% in Study 1, and 5.97% in Study 2. Participants who were female, younger, and more educated were more likely to report following a vegetarian diet in both studies, and vegetarians had higher income as compared to meat eaters in Study 2. We also found differences between vegetarians and meat eaters with regard to personality traits, political attitudes, and health-related variables. Stepwise logistic regression analyses showed a unique effect beyond socio-demographic variables for openness (Studies 1 and 2), conscientiousness (Study 1), trust (Study 2), conservatism (Studies 1 and 2), and level of interest in politics (Study 1) on diet: Individuals with higher scores in openness and political interest had a higher probability of being vegetarian, whereas people with higher scores in conscientiousness and conservatism had a smaller likelihood of being vegetarian. We conclude that there are individual differences between vegetarians and meat eaters in socio-demographics, personality traits, and political attitudes.
    Keywords: Vegetarian diet, personality traits, Big Five, prevalence, meat eating, political attitudes
    Date: 2017
  26. By: Dries Lens; Ive Marx; SunÄ ica Vujić
    Abstract: This paper looks at how immigrants who arrived between 2002 and 2010 have fared in the Belgian labour market, differentiating by reason for migration. We use longitudinal data on immigrants’ employment trajectories, considering also their potential reliance on social assistance and unemployment benefits. The analysis shows that it takes (former) asylum seekers significantly longer to find work as compared to other immigrant categories. After a transition phase of low labour market participation and relatively high social assistance dependence, asylum seekers catch up to some extent, reaching levels of employment of about 50% after ten years of residence. However, asylum seekers still show higher rates of unemployment insurance and social assistance dependence as compared to other immigrant categories. In addition, asylum seekers who do work tend to do so in certain occupations and in jobs that are below their skill levels. They are also more often to be found in temporary contracts. These findings indicate the importance of heightened efforts to ensure the socio-economic integration of asylum seekers. The same holds true for family immigrants who account for the bulk of migration to Belgium and who have similar results as asylum seekers in the long run.
    Keywords: migration, labor market policy
    Date: 2017–06
  27. By: Julia Bredtmann; Christina Vonnahme
    Abstract: The 2008 alimony reform in Germany considerably reduced post-marital and caregiver alimony. We analyze how individuals adapted to these changed rulings in terms of labor supply, the intra-household allocation of leisure, and marital stability. We use the German Socio-Economic Panel (SOEP) and conduct a difference-in-difference analysis to investigate couples’ behavioral responses to the reform. The results do not confirm theoretical expectations from labor supply and household bargaining models. In particular, we do not find evidence that women increase their labor supply as a result of the negative expected income effect. Neither do our results reveal that leisure is shifted from women to men as a response to the changed bargaining positions. In contrast, we find evidence that the reform has led to an increase in the probability to separate for married as opposed to non-married cohabiting couples.
    Keywords: Alimony, marital instability, female labor supply, intra-household bargaining
    JEL: J12 J13 J22
    Date: 2017
  28. By: Tsampra, Maria; Bouranta, Nancy; Gkerats, Reveka
    Abstract: Massive unemployment and underemployment has been the major implication of 2008-crisis in Europe and particularly in the most vulnerable economies, as Greece. The shock resulted to decreased job-vacancy rates and increased job-seeker rates all over Europe. In a most recent study we focus on un/underemployment to particularly explore the post-crisis demand and supply discrepancy of the Greek labour market. Seeking to provide a coherent analysis of employability patterns across regional labour markets in Greece, we analyze regional-level data (employment flows, industrial specialization and labour market specificities) and individual-level data (demographic factors, qualifications and personal attitudes). We argue that regional un/underemployment is largely attributed to the mismatch between low-skill job vacancies and job-seekers’ high qualifications.
    Keywords: Employability, labour market mismatch, regional diversity
    JEL: J21 J24 R12
    Date: 2017–07–05
  29. By: Gabin Langevin; David Masclet; Fabien Moizeau; Emmanuel Peterle
    Date: 2017

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