nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2018‒12‒10
thirty-one papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. The regional heterogeneity of wind power deployment: An empirical investigation of land-use policies in Germany and Sweden By Lauf, Thomas; Ek, Kristina; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik
  2. Does culture trump money? Employment and childcare use of migrant and non-migrant mothers of pre-school children in Germany By Boll, Christina; Lagemann, Andreas
  3. Institutional Reforms and an Incredible Rise in Old Age Employment By Riphahn, Regina T.; Schrader, Rebecca
  4. Ethnic Enclaves and Labor Market Outcomes – What Matters Most: Neighborhood, City or Region? By Öner, Özge; Klaesson, Johan
  5. Does Migration Motive Matter for Migrants' Employment Outcomes? The Case of Belgium By Lens, Dries; Marx, Ive; Vujic, Suncica
  6. Relative Age Effect on European Adolescents’ Social Network By Fumarco, Luca; Baert, Stijn
  7. Nepotism vs specific skills : the effect of professional liberalization on returns to parental back grounds of italian lawyers By Michele Rainato; Francesco Vona
  8. Immigration and Social Mobility By Hoen, Maria F.; Markussen, Simen; Røed, Knut
  9. Becoming a mompreneur: Parental leave policies and mothers' propensity for self-employment By Gerards, Ruud; Theunissen, Pomme
  10. Assessing the distributional effects of carbon taxes on food: inequalities and nutritional insights By France Caillavet; Adélaïde Fadhuile; Veronique Nichèle
  11. Varying Youth Cohort Effects on Regional Labour Market Outcomes in Germany By de Graaff, Thomas; Ozgen, Ceren; Roth, Duncan
  12. Cooperative banks and income inequality: Evidence from Italian provinces By Pierluigi Murro; Valentina Peruzzi
  13. Farm-level factors influencing farmers satisfaction with their work. By Herrera, B.; Gerster-Bentaya, M.; Knierim, A.
  14. Immigrants Move Where Their Skills Are Scarce: Evidence from English Proficiency By Aparicio Fenoll, Ainoa; Kuehn, Zoë
  15. Can Education Reduce Traditional Gender Role Attitudes? By Noelia Rivera Garrido
  16. The Great Recession and Mental Health: the Effect of Income Loss on the Psychological Health of Young Mothers By Fiona M. Kiernan
  17. An economic cost-benefit analysis of a general speed limit on German highways By Thiedig, Johannes
  18. Are Migrant Firms Actually Different From Native Firms? By A. Arrighetti; G. Foresti; S. Fumagalli; A. Lasagni
  19. Younger and Dissatisfied? Relative Age and Life-satisfaction in Adolescence By Fumarco, Luca; Baert, Stijn
  20. Long walk to knowledge : On the determinants of higher education mobility to Europe By Jonas Didisse; Thanh Tam Nguyen-Huu; Thi Anh-Dao Tran
  21. Macro and Micro Estimates of Household Wealth By Cussen, Mary; Lydon, Reamonn; O'Sullivan, Cormac
  22. Competition policy issues in mobile network sharing: a European perspective By Zoltan Papai; Gergely Csorba; Peter Nagy; Aliz McLean
  23. Back to Black? The Impact of Regularizing Migrant Workers By Edoardo Di Porto; Enrica Maria Martino; Paolo Naticchioni
  24. Immigrants' Wage Performance in a Routine Biased Technological Change Era: France 1994-2012 By Catherine Laffineur; Eva Moreno Galbis; Jeremy Tanguy; Ahmed Tritah
  25. What hides behind the German labor market miracle? Unemployment insurance reforms and labor market dynamics By Hartung, Benjamin; Jung, Philip; Kuhn, Moritz
  26. A banana republic? The effects of inconsistencies in the counting of votes on voting behavior By Niklas Potrafke; Felix Roesel
  27. Does It Matter When Your Smartest Peers Leave Your Class? Evidence from Hungary By Fritz Schiltz; Deni Mazrekaj; Daniel Horn; Kristof De Witte
  28. Social Security Programs and Employment at Older Ages in the Netherlands By Klaas de Vos; Arie Kapteyn; Adriaan Kalwij
  30. Academic Achievement and the Gender Composition of Preschool Staff By Gørtz, Mette; Johansen, Eva Rye; Simonsen, Marianne
  31. Shocking Germany – A spatial analysis of German regional labor markets By Oliver Krebs

  1. By: Lauf, Thomas; Ek, Kristina; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik
    Abstract: The purpose of this paper is to investigate the impacts of land-use policies on wind power deployment at the regional levels in Germany and Sweden, respectively. We use data on added wind capacity at the German district level and the Swedish municipality level over the time period 2008-2012. These data are analysed with a model specification permitting the probability of having any capacity addition (1/0) during this period to be independent of the level of the installed capacity (in MW). The results confirm that the regional variations in wind power deployment can to a significant extent be attributed to land-use policies, not least in the form of priority areas and the designation of restricted areas. The quantitative results display interesting differences across the two countries, not least concerning the role of priority areas, which is found to be much more profound in the German case. The assignment of protected areas appears instead to have constituted a more stringent policy tool in Sweden. Furthermore, cross-country differences in the relevance of various explanatory variables are also found to be related to geographical patterns, the overall extent of wind power deployment, as well as the design of the support schemes for wind power. Overall, the results highlight the need for better understanding of the critical role of land-use policies for future renewable energy development in various national and institutional contexts.
    Keywords: wind power,regional distribution,land-use policy,Germany,Sweden
    Date: 2018
  2. By: Boll, Christina; Lagemann, Andreas
    Abstract: This study investigates the employment and childcare use behaviour of migrant and non-migrant mothers in Germany. We use the waves 2007-2015 of the German Socio-Economic Panel study (SOEP), including the migrant samples M1 and M2, to identify significant associations between migration background and employment probability, working hours, and childcare usage probability under control of human capital, household, milieu, and macro factors. We correct for self-selection in employment and potential endogeneity of childcare use. We do not find an additional contribution of a migrant background to mothers' use of childcare. However, among self-immigrated mothers with a youngest child aged 3 to 5, roots in Southeastern Europe are associated with lower childcare use. Further, a direct (indirect) migrant background, compared with no migrant background, is associated with a 6.3 % (5.9 %) lower probability of employment for mothers of youngest children under 3 years of age with otherwise identical maternal characteristics. For mothers of youngest children aged 3-5, the figure is 8.0 % (6.7 %). Mothers of youngest children under 3 years (aged 3-5 years) with roots in Arab and other Muslim countries have a 7.1 % (21.1 %) lower probability of employment. In addition, the likelihood of gained employment increases with the length of stay in Germany. There are no significant associations of the migration background with the (conditional) weekly working hours of mothers. In summary, it can be seen that, in addition to economic motives, cultural factors and basic orientations and values also shape mothers' everyday practices, as expressed in their employment behaviour and the use of state-subsidized childcare for their children.
    Keywords: maternal employment,hours of work,childcare,migration background,milieu,IV techniques,2SLS,bivariate probit
    JEL: J22 J13 J61
    Date: 2018
  3. By: Riphahn, Regina T. (University of Erlangen-Nuremberg); Schrader, Rebecca (University of Erlangen-Nuremberg)
    Abstract: We investigate whether a cut in unemployment benefit payout periods affected older workers' labor market transitions. We apply rich administrative data and exploit a difference-in-differences approach. We compare the reference group of 40-44 year olds with constant benefit payout periods to older treatment groups with reduced payout durations. For the latter job exit rates declined, job finding rates increased, the propensity to remain employed increased, and the propensity to remain unemployed declined after the reform. These patterns suggest that the reform of unemployment benefits may be one of the reasons behind the recent incredible rise in old age employment in Germany.
    Keywords: labor force participation, employment, unemployment insurance, retirement
    JEL: J14 J26
    Date: 2018–10
  4. By: Öner, Özge (Department of Land Economy); Klaesson, Johan (Centre for Entrepreneurship and Spatial Science, Jönköping International Business School, Jönköping)
    Abstract: The relevance of residential segregation and ethnic enclaves for labor market sorting of immigrants has been investigated by a large body of literature. Previous literature presents competing arguments and mixed results for the effects of segregation and ethnic concentration on various labor market outcomes. The geographical size of the area at which segregation and/or ethnic concentration is measured, however, is left to empirical work to determine. We argue that ethnic concentration and segregation should not be used interchangeably, and more importantly, the geographical area at which they are measured relates directly to different mechanisms. We use a probabilistic approach to identify the likelihood that an immigrant is employed or a self-employed entrepreneur in the year 2005 with respect to residential segregation and ethnic concentration at the level of the neighborhood, municipality and local labor market level jointly. We study three groups of immigrants that accentuate the differences between forced and pulled migrants: (i) the first 15 member states of European Union (referred to as EU 15) and the Nordic countries, (ii) the Balkan countries, and (iii) countries in the Middle East. We find that ethnic enclaves, proxied by ethnic concentration at varying levels indicate mixed results for the different immigrant groups we study, both for their employment and entrepreneurship probability. Whereas residential segregation has a more uniformly distributed result where its relationship to any of the two labor market outcomes is almost always negative or insignificant.
    Keywords: Immigrant entrepreneurship; Ethnic enclaves; Segregation; Push entrepreneurship; Local labor market
    JEL: F22 L26 O18 R23
    Date: 2018–11–22
  5. By: Lens, Dries (University of Antwerp); Marx, Ive (University of Antwerp); Vujic, Suncica (University of Antwerp)
    Abstract: Despite being one of the most prolific spenders on active labour market policies, and investing heavily in civic integration programmes, family policies and career and diversity plans, the native-migrant employment gap in Belgium is still one of the largest among EU and OECD countries. Past research has shown that even after controlling for human capital and other socio-demographic factors a large unexplained gap (often called ethnic gap or penalty) remains. This paper investigates how the motive for migrating to Belgium contributes to the native-migrant employment gap. Based on data from the 2014 Belgian LFS Ad Hoc Module on the labour market situation of migrants and their immediate descendants, we compare the employment outcomes of labour migrants (with and without a job prior to migration), family reunion migrants, student migrants and refugees with those of the native-born. In line with previous studies, we establish that refugees and family reunion migrants' employment likelihood is lower when compared to labour migrants and natives. Refugees who do work tend to do so in temporary jobs and in jobs that are below their skill levels. However, temporary employment is also prevalent among labour migrants without a job prior to migration and over qualification is a specific challenge for male student migrants.
    Keywords: immigration, reason for migration, employment outcomes
    JEL: F22 J15 J61
    Date: 2018–10
  6. By: Fumarco, Luca; Baert, Stijn
    Abstract: We contribute to the literature on relative age effects on pupils’ (non-cognitive) skills formation by studying students’ social network. We investigate data on European adolescents from the Health Behaviour in School Aged Children survey and use an instrumental variables approach to account for endogeneity of relative age while controlling for confounders, namely absolute age, season-of-birth, and family socio-economic status. We find robust evidence that suggests the existence of a substitution effect: the youngest students within a class e-communicate more frequently than relatively older classmates but have fewer friends and meet with them less frequently.
    Keywords: Relative age, adolescents, education, Europe, social network
    JEL: I21
    Date: 2018
  7. By: Michele Rainato (Sapienza Università di Roma); Francesco Vona (Observatoire français des conjonctures économiques)
    Abstract: We study the mechanisms of intergenerational inequality among Italian lawyers over the period 1994- 2014 using a longitudinal dataset that combines administrative and survey data. We first estimate a 17.5% earnings premium for a law family background within the group of lawyers, so conditional on entering the profession. We then exploit the 2003-2006 liberalization process, which asymmetrically affected the two main transmission mechanisms: skill transfer and nepotism. We find that liberalization squeezed the law background return by at least 3/5, thus revealing a high incidence of nepotism. The bulk of the reduction occurred for the youngest lawyers and the top earners. KEY
    Keywords: Intergenerational inequalitiy; Social mobility; Nepotism; Specific skills; Regulations; Regulation; Top occupations
    JEL: J24 J31 J44 I2
    Date: 2018–11
  8. By: Hoen, Maria F. (Ragnar Frisch Centre for Economic Research); Markussen, Simen (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research)
    Abstract: Using Norwegian administrative data, we examine how exposure to immigration over the past decades has affected natives' relative prime age labor market outcomes by social class background. Social class is established on the basis of parents' earnings rank. By exploiting variation in immigration patterns over time across commuting zones, we find that immigration from low‐income countries has reduced social mobility and thus steepened the social gradient in natives' labor market outcomes, whereas immigration from high‐income countries has leveled it. Given the large inflow of immigrants from low-income countries to Norway since the early 1990s, this can explain a considerable part of the relative decline in economic performance among natives with lower class background, and also rationalize the apparent polarization of sentiments toward immigration.
    Keywords: immigration, intergenerational mobilty
    JEL: J62 J15 J24
    Date: 2018–10
  9. By: Gerards, Ruud (ROA / Training and employment); Theunissen, Pomme (Finance)
    Abstract: Contractionary parental leave policy reforms decrease the time mothers can stay at home after giving birth. This might discourage them to become an entrepreneur. Exploiting a German parental leave policy reform, we apply a regression discontinuity approach to establish a causal relationship between parental leave policies and the probability for mothers to become entrepreneurs (i.e., “mompreneurs”). We find that a decrease in the generosity of parental leave lowers the odds of mothers to become self-employed by 17%. We show additional evidence that suggests that this is particularly due to the reduced period of paid parental leave.
    Keywords: female entrepreneurship, mompreneurs, parental leave, policy reform, female labor supply
    JEL: H31 J10 J20 L26
    Date: 2018
  10. By: France Caillavet (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, INRA - Institut National de la Recherche Agronomique); Adélaïde Fadhuile (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA - Université Grenoble Alpes); Veronique Nichèle (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, INRA - Institut National de la Recherche Agronomique)
    Abstract: A carbon tax on food could contribute to emissions mitigation and act as a strong signal to economic actors. However, tax regressivity is a major disadvantage. This article addresses equity issues by several means. First, this article includes reallocation proposals in a revenue-neutral approach of several emission-based carbon taxation scenarios at the consumption level on food. Second, this article develops these proposals' distributional incidence, and it evaluates the role of carbon pricing in policy impacts. With a carbon-based approach, the differing emission potentials of food groups highlight the relevance of using proteins as a tax base to redirect animal to plant sources in the diet. Thus, a scenario taxing foods rich in animal proteins and subsidizing plant proteins ones is built. Scanner data on French households in 2010 are analyzed. Several GHG emissions indicators and related nutritional impacts, such as diet quality scores and the shift from animal to plant proteins, are evaluated. Using individual changes in food expenditure, distributional effects based on continuous distribution and inequality indexes are measured, allowing the discussion of the policy options of a targeted vs nontargeted tax and a revenue-neutral approach in the food sector.
    Keywords: carbon fiscal policy,revenue neutral,food consumption,regressivity,inequalities
    Date: 2018–11
  11. By: de Graaff, Thomas (Vrije Universiteit Amsterdam); Ozgen, Ceren (University of Birmingham); Roth, Duncan (Institute for Employment Research (IAB), Nuremberg)
    Abstract: We assess how changes in youth cohort sizes effect employment rates in German labour market regions. Replicating the conventional approach, we estimate that a percentage increase in the youth share reduces regional employment rates by −0.2%. We challenge the assumption that cohort size effects are homogenous across space and find robust evidence that the negative effect of youth cohort size is more pronounced in the labour markets of metropolitan regions. These results suggest an upward pressure on urban regional employment rates as a result of the projected decrease in the size of the German youth share.
    Keywords: employment rate, youth share, Germany, regional heterogeneity
    JEL: J1 J2 R1 R2
    Date: 2018–10
  12. By: Pierluigi Murro (LUISS University); Valentina Peruzzi (University of Trento)
    Abstract: The aim of this paper is to investigate whether different credit institutions, and in particular cooperative banks, have a different impact on the reduction of income inequalities. By analyzing Italian local credit markets, i.e. Italian provinces, over the period 2001-2011, we find that cooperative banks’ diffusion significantly reduces income inequality. This finding is robust to different measures of income inequality, different proxies of local banking structure (cooperative banks branches, popular banks branches, commercial banks branches), and different estimation techniques. When we study the channel of influence, we find that the diffusion of cooperative banks is particularly relevant for income distribution where loans to families and firms are larger, bank-firm relationships are tighter and the number of new firms over incumbent is larger.
    Keywords: Cooperative banks, income inequality, financial development.
    JEL: G21 G38 O15
    Date: 2018–11
  13. By: Herrera, B.; Gerster-Bentaya, M.; Knierim, A.
    Abstract: Well-being of farm workers is necessary in order to foster farming sustainability. We contribute with the research on well-being, exploring on what extent farm-level features influence farmers satisfaction with their work and with their quality of life, using a data sample of 1099 farms in nine European countries. Results suggest that satisfaction with the farm work has a significant and large influence on the satisfaction with the quality of life. Farm-level aspects such as working time, age of assets, financial situation of the farm and social engagement significantly influence farmers satisfaction with farming but their joint effect explains less than a quarter of it. Acknowledgement : We acknowledge FLINT project. This work was funded by the EU Seventh Framework Programme grant number 613800. The opinions expressed in this paper are not necessarily those of the EU. This article is based on the deliverable D.5.
    Keywords: Labor and Human Capital
    Date: 2018–07
  14. By: Aparicio Fenoll, Ainoa (Collegio Carlo Alberto); Kuehn, Zoë (Universidad Autónoma de Madrid)
    Abstract: This paper studies whether individuals tend to migrate to countries where their skills are scarce or abundant. Focusing on English language skills, we test whether immigrants who are proficient in English choose to move to countries where many or few individuals speak English. We use the introduction of English classes into compulsory school curricula as an exogenous determinant for English proficiency of migrants of different ages, and we consider cohort data on migration among 29 European countries, where English is not the official language and where labor mobility is essentially free. Our estimation strategy consists of refined comparisons of cohorts, and we control for all variables traditionally included in international migration models. We find that immigrants who are proficient in English move to countries where fewer individuals speak English, and where hence their skills are scarce. We also show that similar results hold for general skills.
    Keywords: migration, English language skills, choice of destination country
    JEL: F22 I20 J24 J61
    Date: 2018–10
  15. By: Noelia Rivera Garrido (Dpto. Fundamentos del Análisis Económico)
    Abstract: The purpose of this paper is to identify if there is a causal relationship between education and traditional gender-role attitudes. In particular, if women have to leave the labor market to take care of the family, and if men have more rights to a job than women when jobs are scarce. In addition, I explore plausible mechanisms through which education affects these attitudes. I use data from the European Social Survey for 14 European countries. My identification strategy exploits educational reforms changing the number of years of compulsory education to obtain a source of exogenous variation that can be used as an instrument for education. The first stage results show that education reforms certainly increase years of schooling, but only for individuals from a low-educated family, in particular women. Results indicate that for this group, one additional year of education significantly reduces the probability of agreeing with women’s traditional gender role in more than 11 percentage points.
    Keywords: Education, Compulsory schooling reforms, Gender-role attitudes, Gender inequality, Europe.
    JEL: A13 I21 I24 J16 J24
    Date: 2018–11
  16. By: Fiona M. Kiernan
    Abstract: There is little consensus as to the effect of recessions on health, which may be due to the heterogenous nature of recessions, the choice of health outcome or the description of the independent variable involved. In contrast to previous work, which has predominantly studied labour market loss, I examine the relationship of income loss and health, and in particular focus on psychological rather than physical health. I study disposable income loss because disposable income is related to consumption expenditure, and therefore satisfaction. Psychological, rather than physical, health is important because younger populations are unlikely to manifest clinical evidence of recession-related disease in the short term. The Irish recession provides me with an opportunity to study the effect of changes in income, since households who remained in employment also experienced changes in disposable income. Using panel data from three waves of the Growing Up in Ireland study, I find that income loss is associated with an increase in depression, but not in parental stress. This effect of income loss is seen for those who are home owners, and subjective reports of being in mortgage or rent arrears is also associated with an increase in depression score.
    Keywords: Income; Psychological health; Recession; Fixed effects
    JEL: I15 I31 I39
    Date: 2018–10
  17. By: Thiedig, Johannes
    Abstract: Uniquely amongst industrialized countries worldwide, Germany does not impose a general speed limit on highways. This is different in the Netherlands, where a limit of 130km/h is implemented. The direct border between the two countries provides an opportunity to construct a natural experiment and analyze the social impact of a general speed limit of 130 km/h for passenger cars on German highways. I quantify the social welfare impacts from travel time, accident victims, fuel consumption and emissions for two highway sections in the federal state of North Rhine-Westphalia, Germany. The results are obtained by a descriptive comparison of micro data on travel speeds and accidents, collected on the two designated cross-border highways. In the central case, I conclude that on both highways a speed limit would be beneficial from the social and private perspective. The impacts found on the two highways differ in magnitude, but the qualitative decisions are identical and sufficiently robust to their core assumptions.
    Keywords: Speed Limit,Highway,Germany,Cost-Benefit Analysis,Transport Economics
    Date: 2018
  18. By: A. Arrighetti; G. Foresti; S. Fumagalli; A. Lasagni
    Abstract: A matched-pair analysis was performed to verify the existence or not of significant differences between native and migrant companies regarding firm-specific variables and the governance structure. Controlling for firm size, industry and geographical location, we found that proxy values for efficiency, capital intensity of production and services and profitability are not significantly different (or not lower) than those of native-owned small business. Evidence shows that previous studies concerning the diversity of immigrant-owned businesses are likely marked biased by methodological choices that did not take account of the concentration of these companies in “disadvantaged” firm size categories, industries or geographical locations.
    Keywords: ethnic firms, native firms, immigrant enterpreneurship, matched-pair analysis
    JEL: J15 L25 L26
    Date: 2018
  19. By: Fumarco, Luca; Baert, Stijn
    Abstract: This is the first study to investigate whether age gaps between classmates (that is, relative age) affect life-satisfaction gaps in adolescence. To this end, we analyse data from the multi-country Health Behaviour in School-Aged Children (HBSC) survey. We find evidence that relative age negatively impacts adolescents’ life-satisfaction. A twelve-month age gap decreases life-satisfaction, rated on a 0-10 scale, by 0.3 points. This negative effect is consistent across countries. Finally, this negative effect does not decrease with the increase in absolute age.
    Keywords: Relative age, adolescents, education, Europe, life-satisfaction
    JEL: C26 I21 I31 Z13
    Date: 2018
  20. By: Jonas Didisse (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université); Thanh Tam Nguyen-Huu (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université); Thi Anh-Dao Tran (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)
    Abstract: This paper investigates the determinants of demand for higher education mobility from students in low-and middle-income countries to European countries over the period 2004-2013. We identify the dyadic factors associated to the relationships between home and host countries as well as monodic variables associated to "push" and "pull" factors. Used together with various linguistic relations, we emphasize the relevance of informal and formal networks in explaining resistance to migration of students. All put together, our results show that factors that are origin and destination specific like socio-demographic characteristics, individual beliefs and institutional profiles, out of the usual economic considerations, have a significant impact on student mobility.
    Keywords: Institutional quality,Language skills,Higher education mobility,Network eects
    Date: 2018–10–28
  21. By: Cussen, Mary (Central Bank of Ireland); Lydon, Reamonn (Central Bank of Ireland); O'Sullivan, Cormac (Central Bank of Ireland)
    Abstract: This paper compares estimates of the financial wealth of Irish households from the Irish Household Finance and Consumption Survey (HFCS) with estimates from statistical and administrative data sources. This cross-checking exercise yields three key results. First, like most wealth surveys in other countries, the Irish HFCS significantly under-records the total value of deposits held by Irish households: we estimate the HFCS captures around one-third of the aggregate figure. Second, this level of under-recording is broadly similar across the distribution of deposits. Thus, the HFCS appears to provide an accurate picture of the distribution of household deposits. Third, the degree of under-recording does not appear to be heavily concentrated in any one population group, i.e. by region or age group. With regard to the reason for the under-recording, we find no one single factor behind the underrecording. Issues identified in the survey design literature around sample design (sampling the wealthy), item and unit non-response all appear to play some role.
    Keywords: Assets, deposits, balance sheet, households, wealth.
    JEL: D12 E21
    Date: 2018–10
  22. By: Zoltan Papai (Infrapont Economic Consulting, Hungary); Gergely Csorba (Center of Economics and Regional Sciences – Institute of Economics Hungarian Academy of Sciences and Infrapont Economic Consulting); Peter Nagy (Infrapont Economic Consulting); Aliz McLean (Infrapont Economic Consulting)
    Abstract: Network sharing agreements have become increasingly widespread in mobile telecommunications markets. They carry undeniable advantages to operators and consumers alike, but also the potential for consumer harm. We emphasize that not all NSAs are created equal: the assessment of harms and counterweighing benefits to customers due to an NSA is a complex endeavour. In this paper, we present a framework for the competitive assessment of NSAs, detailing the possible concerns that may arise, the main factors that influence their seriousness, ways to mitigate the concerns and the principles of assessing efficiency benefits.
    Keywords: mobile markets, network sharing, competition, competition assessment
    JEL: K21 L13 L41
    Date: 2018–10
  23. By: Edoardo Di Porto (Università di Napoli Federico II, CSEF and INPS); Enrica Maria Martino (INED and CHILD (Collegio Carlo Alberto)); Paolo Naticchioni (Università di Roma Tre, AIEL, IZA, and INPS)
    Abstract: This paper provides a firm and individual level analysis of the impact on labor market outcomes of regularizing undocumented migrant workers. Using unique administrative data released by the Italian Social Security Institute, we evaluate Italy's largest ever regularization process. We employ an unexpected quasi-random auditing program to deal with firms' self-selection into treatment. Our results show that regularization has only a short-run positive impact on firm employment and no effect on firm-level wages. Nonetheless, 73.5% of regularized migrants remains within the formal Italian labor market, and we find also that legalized migrant coworkers were not affected (negatively) by the reform. Our findings highlight that high mobility of migrants to other firms, provinces and industries is an important driver of our results.
    Keywords: Migration, Legalization, Shadow Economy, Tax Compliance, Policy Evaluation
    JEL: J6 H26 O17
    Date: 2018–12–04
  24. By: Catherine Laffineur (University of Nice Sophia Antipolis, GREDEG); Eva Moreno Galbis (Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE); Jeremy Tanguy (University Savoie Mont Blanc, IREGE); Ahmed Tritah (Le Mans University, GAINS-TEPP)
    Abstract: Over the period 1994-2012, immigrants’ wage growth in France has outperformed that of natives on average by more than 14 percentage points. This striking wage growth performance occurs despite similar changes in employment shares along the occupational wage ladder. In this paper we investigate the sources of immigrants’ relative wage performance focusing on the role of occupational tasks. We first show that immigrants’ higher wage growth is not driven by more favorable changes in general skills (measured by age, education and residence duration), and then investigate to what extent changes in task-specific returns to skills have contributed to the differential wage dynamics through two different channels: different changes in the valuation of skills (“price effect†) and different occupational sorting (“quantity effect†). We find that the wage growth premium of immigrants is not explained by different changes in returns to skills across occupational tasks but rather by the progressive reallocation of immigrants towards tasks whose returns have increased over time. Immigrants seem to have taken advantage of ongoing labor demand restructuring driven by globalization and technological change. In addition im- migrants’ wages have been relatively more affected by minimum wage increases, due to their higher concentration in this part of the wage distribution.
    Keywords: wage dynamics, tasks, immigrants, skills
    JEL: J15 J24 J31 J61 O33
    Date: 2018–11
  25. By: Hartung, Benjamin; Jung, Philip; Kuhn, Moritz
    Abstract: A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor market dynamics. We revisit this old question studying the German Hartz reforms. On average, lower separation rates explain 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates. The reduction in separation rates is heterogeneous, with long-term employed, high-wage workers being most affected. We causally link our empirical findings to the reduction in long-term unemployment benefits using a heterogeneous-agent labor market search model. Absent the reform, unemployment rates would be 50% higher today.
    Keywords: endogenous separations; labor market flows; Unemployment insurance
    JEL: E24 J63 J64
    Date: 2018–11
  26. By: Niklas Potrafke; Felix Roesel
    Abstract: We examine whether local inconsistencies in the counting of votes influence voting behavior. We exploit the case of the second ballot of the 2016 presidential election in Austria. The ballot needed to be repeated because postal votes were counted carelessly in individual electoral districts (“scandal districts”). We use a difference-indifferences approach comparing election outcomes from the regular and the repeated round. The results do not show that voter turnout and postal voting declined significantly in scandal districts. Quite the contrary, voter turnout and postal voting increased slightly by about 1 percentage point in scandal districts compared to nonscandal districts. Postal votes in scandal districts also were counted with some greater care in the repeated ballot. We employ micro-level survey data indicating that voters in scandal districts blamed the federal constitutional court for ordering a second election, but did not seem to blame local authorities.
    Keywords: Elections, trust, political scandals, administrative malpractice, counting of votes, voter turnout, populism, natural experiment
    JEL: D72 D02 Z18 P16
    Date: 2018
  27. By: Fritz Schiltz (Faculty of Economics and Business, KU Leuven, Belgium); Deni Mazrekaj (Faculty of Economics and Business, KU Leuven, Belgium); Daniel Horn (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences); Kristof De Witte (Faculty of Economics and Business, KU Leuven, Belgium and Top Institute for Evidence Based Education Research, Maastricht, the Netherlands)
    Abstract: Elite schools in Hungary cherry pick high achieving students from general primary schools. The geographical coverage of elite schools has remained unchanged since 1999, when the establishment of new elite schools stopped. We exploit this geographical variation in the immobile Hungarian society and estimate the impact of high achieving peers leaving the class on student achievement, behaviour, and aspirations for higher education. Our estimates indicate moderate but heterogeneous effects on those left behind in general primary schools.
    Keywords: peer-effects, early-selection, IV estimates, FE estimates
    JEL: I21 I24 P36
    Date: 2018–11
  28. By: Klaas de Vos; Arie Kapteyn; Adriaan Kalwij
    Abstract: There have been a vast number of social security reforms aimed at increasing employment at older ages over the last two decades in the Netherlands. These reforms mainly lead to more stringent eligibility criteria for, and reduced generosity of, social security programs. Our empirical evidence suggests that these reforms are likely to have contributed to individuals working longer, but it is difficult to pinpoint which reforms have been most effective. Furthermore, we show that the recent increase in the state pension eligibility age is likely to further increase employment at older ages.
    JEL: H55 J08 J26
    Date: 2018–11
  29. By: Bruno Merlevede; Angelos Theodorakopoulos (-)
    Abstract: This paper analyses whether indirect effects of internationalisation occur through the domestic supply chain. We investigate productivity effects for a given firm resulting from the import or export of intermediate inputs by domestic upstream and downstream industries. Using a rich sample of manufacturing firms in 19 EU countries, we find evidence that domestic access to intermediate inputs that are also destined to foreign countries is associated with higher levels of revenue productivity. Further, our results highlight two common, but important, misspecification biases: ignoring the dynamic nature of productivity and estimating a value-added instead of a gross-output production function.
    Keywords: Offshoring, Inshoring, Supply Chain, Total Factor Productivity, Trade, Learning
    JEL: D22 D24 D57 D83 F14 L25
    Date: 2018–09
  30. By: Gørtz, Mette (University of Copenhagen); Johansen, Eva Rye (Aarhus University); Simonsen, Marianne (Aarhus University)
    Abstract: This paper uses register based data covering the entire population of Danish children enrolled in preschool in 2006-2007 to investigate whether the gender composition of preschool staff members affects the timing of school start and subsequent academic performance. To estimate effects of the share of male staff member in preschools, we exploit within-preschool differences in teacher gender composition across time. We find that the share of male staff improves child outcomes and that gains are larger for boys who did not have access to male teachers previously and among children with less readily access to male role models.
    Keywords: preschool, teacher gender, redshirting, child development
    JEL: J13
    Date: 2018–10
  31. By: Oliver Krebs
    Abstract: This paper quantifies the surprisingly large heterogeneity of real income and employment effects across German counties in response to local productivity shocks. Using a quantitative model with imperfect mobility and sector-specific labor market frictions together with an outstanding data set of county level goods shipments, I identify the sources of the heterogeneity in Germany’s complex interregional linkages. I find that population mobility reduces the magnitude of local employment rate responses by a striking 70 percent on average. In all but a few counties, changes in the sectoral composition of production have a much milder effect on employment elasticities. National employment rates are less dependent on mobility with worker in- and outflows in individual counties partially cancelling out effects. For productivity shocks affecting individual sectors across all regions the composition effect is substantially magnified, the mobility effect reduced. In line with recent real world observations I find that real income and employment effects, while correlated, do not need to be of the same sign. Finally, the spatial propagation of real income effects closely follows trade linkages whereas employment effects are more complex to predict.
    Keywords: Quantitative spatial analysis, unemployment, migration, search and matching, labor market frictions
    JEL: F16 F17 R13 R23
    Date: 2018–11

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