nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2018‒12‒24
24 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Decoupling the EU ETS from subsidized renewables and other demand side effects Lessons from the impact of the EU ETS on CO2 emissions in the German electricity sector By Sebastian Schaefer
  2. Institutional Reforms and an Incredible Rise in Old Age Employment By Regina T. Riphahn; Rebecca Schrader
  3. Assessing the regional socio-economic impact of the European R&I programme By Martin Christensen
  4. The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland By Andreas Beerli; Jan Ruffner; Michael Siegenthaler; Giovanni Peri
  5. Born to be an entrepreneur? How cultural origin affects entrepreneurship By Katharina Erhardt; Simon Haenni
  6. Who is NOT Voting for Brexit Anymore? By Eleonora Alabrese; Thiemo Fetzer
  7. Unbundling, regulation and pricing: Evidence from electricity distribution By Heim, Sven; Krieger, Bastian; Liebensteiner, Mario
  8. Occupational Recognition and Immigrant Labor Market Outcomes By Herbert Brücker; Albrecht Glitz; Adrian Lerche; Agnese Romiti
  9. The role of prepayment penalties in mortgage loans By Beltratti, Andrea; Benetton, Matteo; Gavazza, Alessandro
  10. Utilisation of personal care services in Scotland: the influence of unpaid carers By Elizabeth Lemmon
  11. The effect of immigrant peers in vocational schools By Frattini, Tommaso; Meschi, Elena
  12. Homeownership, Labour Market Transitions and Earnings By Thierry Kamionka; Guy Lacroix
  13. Subjective and objective quality reporting and choice of hospital: Evidence from maternal care services in Germany By Daniel Avdic; Tugba Büyükdurmus; Giuseppe Moscelli; Adam Pilny; Ieva Sriubaite
  14. Equal long-term care for equal needs with universal and comprehensive coverage? An assessment using Dutch administrative data By Marianne Tenand; Pieter Bakx; Eddy (E.K.A.) van Doorslaer
  15. Early Labor Market Prospects and Family Formation By Mattias Engdahl; Mathilde Godard; Oskar N. Skans
  16. Civicness Drain By Casari, Marco; Ichino, Andrea; Michaeli, Moti; De Paola, Maria; Marandola, Ginevra; Scoppa, Vincenzo
  17. Some unpleasant consequences of testing at length By Brunello, Giorgio; Crema, Angela; Rocco, Lorenzo
  18. From forward to spot prices: producers, retailers and loss averse consumers in electricity markets By Valeria Di Cosmo; Elisa Trujillo-Baute
  19. Integration of Migrants, Refugees and Asylum Seekers in Remote Areas with Declining Populations By Giulia Galera; Leila Giannetto; Andrea Membretti; Antonella Noya
  20. Strikes, Employee Workplace Representation, Unionism, and Industrial Relations Quality in European Establishments By John T. Addison; Paulino Teixeira
  21. The unequal opportunity for skills acquisition during the Great Recession in Europe By Sara Ayllón; Natalia Nollenberger
  22. Informing Employees in Small and Medium Sized Firms about Training: Results of a Randomized Field Experiment By van den Berg, Gerard J.; Dauth, Christine; Homrighausen, Pia; Stephan, Gesine
  23. Optimal Healthcare Contracts: Theory and Empirical Evidence from Italy By Berta, Paolo; De Fraja, Gianni; Verzillo, Stefano
  24. Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies By Pavel Ciaian; Andrey Ivanov; d’Artis Kancs

  1. By: Sebastian Schaefer (University of Siegen)
    Abstract: This paper analyzes the impact of the EU ETS on CO2 reduction in the German electricity sector. We find an ETS-induced emission abatement which is not exceeding 6 % of total emissions with a maximum already in 2010. Thereafter the ETS has not induced additional reductions. This outcome is sub-optimal. It corresponds to the recent debate about sub-optimal performance of the EU ETS caused by excessive allowances. Following up on this we develop a unilateral flexible cap to eliminate demand side effects which lead to excessive allowances. The unilateral flexible cap is based on emission intensities. Using the works of Newell and Pizer (2008); Sue Wing et al. (2009) we prove in a first step that an intensity-based emission cap is advantageous in the German electricity sector when compared to an absolute cap. An ex-post analysis shows that the amount of excessive allowances resulting from the economic crisis during the second trading period could have been significantly lowered with a unilateral flexible cap. This approach also decouples the EU ETS from a simultaneous promotion of renewable energy.
    Keywords: Decoupling Overlapping Regulations, Promotion of Renewable Energy, Emissions Trading, Intensity Standard
    JEL: Q41 Q42 Q48 Q54
    Date: 2018
  2. By: Regina T. Riphahn; Rebecca Schrader
    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-indifferences 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
  3. By: Martin Christensen (European Commission - JRC)
    Abstract: Structural socio-economic differences across EU regions may result in heterogeneous regional responses to changes in public spending in support to R&I. In this paper we examine the socio-economic impact at the EU aggregate level and at the regional level of alternative policy designs of the future EU R&I support programme that will be put in place after 2020. For the analysis we use the RHOMOLO spatial CGE model covering 267 EU regions. Our results indicate that public spending in support to R&I can contribute to higher aggregate GDP and employment in the EU. However, the impact of public spending in support to R&I varies considerable across regions. The R&I intensive regions benefit the most in terms of GDP and employment while other regions may suffer from a shift in public spending towards R&I support programmes.
    Keywords: region, growth, Horizon Europe, Research and Innovation, impact assessment, RHOMOLO
    Date: 2018–12
  4. By: Andreas Beerli; Jan Ruffner; Michael Siegenthaler; Giovanni Peri
    Abstract: We study a reform that granted European cross-border workers free access to the Swiss labor market. Our Differences-in-Differences estimations leverage the fact that regions close to the border were affected more intensely and earlier. The greater availability of cross-border workers increased their employment but also wages and possibly employment of highly educated native workers although the new cross-border workers were also highly educated. The reason is a simultaneous increase in labor demand in skill-intensive firms: the reform increased the size, productivity, innovation performance of some incumbent firms, attracted new firms, and created opportunities for natives to pursue managerial jobs.
    JEL: F22 J22 J24 J61
    Date: 2018–11
  5. By: Katharina Erhardt; Simon Haenni
    Abstract: Persistent differences in entrepreneurial activity between regions and countries remain unexplained. This paper argues that cultural heritage is an important determinant. We exploit a quasi-experimental setting comparing entrepreneurial activities of individuals with different cultural ancestry from within Switzerland but who live in the same municipality today and are hence exposed to the same economic and institutional environment. We find that individuals with cultural origin on the German-speaking side of the Swiss language border found 20% more firms than their counterparts with cultural origin on the French-speaking side ─ no matter if they currently live in the German-speaking or French-speaking region. These newly founded firms are identical in terms of survival rate, industry composition, legal form, and firm size, independent of the cultural origin of firm founders. A model of entrepreneurial choice suggests that the empirical patterns of firm entry and performance are more likely driven by differences in risk aversion or preferences for entrepreneurship rather than by skill.
    Keywords: Culture, entrepreneurship, natural experiment
    JEL: D22 L26 Z10
    Date: 2018–12
  6. By: Eleonora Alabrese; Thiemo Fetzer
    Abstract: Using estimates of support for Leave across UK local authority areas constructed from a comprehensive 20,000 strong survey, we show that both the level and the geographic variation capturing differential degrees of support for Leave have changed significantly since the 2016 EU referendum. A lot of area characteristics, many of which were previously associated with higher levels of support for Leave, are now significant correlates capturing a swing towards Remain. They include, for example, the degree to which local authorities receive transfers from the EU or the extent to which their economies rely on trade with the EU, along with past electoral support for UKIP (and the BNP) and exposure to immigration from Eastern Europe. Lastly, exposure to austerity since 2010 is among the strongest individual correlates weakening the support for Leave. The evidence is consistent with the argument that the small margin of victory of Leave in 2016 was, to a significant extent, carried by protest voters, who used the EU referendum to voice their discontent with domestic social and economic developments, particularly, austerity. Lastly, we present some evidence suggesting that the UK public, even in Leave supporting areas, would be much more willing to make compromises on free movement and aspects of single market membership compared to what appears to be the UK governments negotiation objective.
    Keywords: Brexit, protest voting, globalization, European Union
    JEL: D72 F50 H30 H50
    Date: 2018
  7. By: Heim, Sven; Krieger, Bastian; Liebensteiner, Mario
    Abstract: Unbundling of vertically integrated utilities has become an integral element in the regulation of network industries and has been implemented in many jurisdictions. The idea of separating the network, as the natural monopoly, from downstream retailing, which may be exposed to competition, is still subject to contentious debate. This is because there is much empirical evidence that unbundling eliminates economies of vertical integration while empirical evidence on price reducing effects is still lacking. In this paper we study the effect of legal unbundling on grid charges in the German electricity distribution industry. Using panel data on German distribution system operators (DSOs) we exploit the variation in the timing of the implementation of legal unbundling and the fact that not all DSOs had to implement unbundling measures. We are also able to identify heterogeneous effects of legal unbundling for different types of price regulation, because we observe a switch in the price regulation regime from rate-of-return regulation to incentive regulation during our observation period. Our findings suggest that legal unbundling of the network stage significantly decreases grid charges in the range of 5% to 9%, depending on the type of price regulation in place.
    Keywords: Vertical Integration,Electricity Distribution,Unbundling,Regulation
    JEL: D22 L11 L22 L51 L94 Q48
    Date: 2018
  8. By: Herbert Brücker (IAB); Albrecht Glitz (Universitat Pompeu Fabra); Adrian Lerche (Universitat Pompeu Fabra); Agnese Romiti (University of Strathclyde)
    Abstract: In this paper, we analyze how the formal recognition of immigrants’ foreign occupational qualifications affects their subsequent labor market outcomes. The empirical analysis is based on a novel German data set that links respondents’ survey information to their administrative records, allowing us to observe immigrants at monthly intervals before, during and after their application for occupational recognition. Our findings show substantial employment and wage gains from occupational recognition. After three years, the full recognition of immigrants’ foreign qualifications increases their employment rates by 24.5 percentage points and raises their hourly wages by 19.8 percent relative to immigrants without recognition. We show that the increase in employment is largely driven by a higher propensity to work in regulated occupations. Relating our findings to the economic assimilation of immigrants in Germany, we further document that occupational recognition leads to substantially faster convergence of immigrants’ earnings to those of their native counterparts.
    Keywords: Occupational Recognition, Immigrants, Labor Markets
    JEL: J15 J24 J44 J61
    Date: 2018–12
  9. By: Beltratti, Andrea; Benetton, Matteo; Gavazza, Alessandro
    Abstract: We study the effect of mortgage prepayment penalties on borrowers’ prepayments and delinquencies by exploiting a 2007 reform in Italy that reduced penalties on outstanding mortgages and banned penalties on newly-issued mortgages. Using a unique dataset of mortgages issued by a large Italian lender, we provide evidence that: 1) before the reform, mortgages issued to riskier borrowers included larger penalties; 2) higher prepayment penalties decreased borrowers’ prepayments; and 3) higher prepayment penalties did not affect borrowers’ delinquencies. Moreover, we find suggestive evidence that prepayment penalties affected mortgage pricing, as well as prepayments and delinquencies through borrowers’ mortgage selection at origination, most notably for riskier borrowers.
    Keywords: mortgages; prepayment penalties; refinancing; default
    JEL: F3 G3
    Date: 2017–09–01
  10. By: Elizabeth Lemmon (University of Stirling)
    Abstract: Unpaid carers may have an influence on the formal care utilisation of the cared for. Whether this influence is positive or negative will have important implications for the costs of formal care provision. The relationship between unpaid and formal care is of particular importance in Scotland, where personal care is provided for free by Local Authorities, to individuals aged 65+. The existing evidence on the impact of unpaid care on formal care utilisation is extremely mixed, and there is currently no evidence for Scotland. This paper is the first to investigate how the presence of an unpaid carer influences personal care use by those aged 65+ in Scotland, using a unique administrative dataset not previously used in research. Specifically, it uses the Scottish Social Care Survey (SCS) from 2015 and 2016 and compares Ordinary Least Squares (OLS), Generalised Linear Models (GLM), and Two-Part Models (2PM). The results suggest that unpaid care complements personal care services and this finding is robust to a number of sensitivity analyses. This finding may imply that incentivising unpaid care could increase formal care costs, and at the same time it points to the potential for unmet need of those who do not have an unpaid carer. Due to the limitations of the data, future research is necessary.
    Keywords: unpaid, care, informal, formal, substitution, complementary, elderly
    JEL: I11 I12 J14
  11. By: Frattini, Tommaso; Meschi, Elena
    Abstract: This paper provides new evidence on how the presence of immigrant peers in the classroom affects native student achievement. The analysis is based on longitudinal administrative data on two cohorts of vocational training students in Italy's largest region. Vocational training institutions provide the ideal setting for studying these effects because they attract not only disproportionately high shares of immigrants but also the lowest ability native students. We adopt a value added model, and exploit within-school variation both within and across cohorts for identification. Our results show small negative average effects on maths test scores that are larger for low ability native students, strongly non-linear and only observable in classes with a high (top 20%) immigrant concentration. These outcomes are driven by classes with a high average linguistic distance between immigrants and natives, with no apparent additional role played by ethnic diversity.
    Keywords: education; ethnic diversity; Immigration; linguistic distance; peer effects
    JEL: I20 J15
    Date: 2018–11
  12. By: Thierry Kamionka; Guy Lacroix
    Abstract: The paper investigates the links between homeownership, employment and earnings for which no consensus exists in the literature. Our analysis is cast within a dynamic setting and the endogeneity of each outcome is assessed through the estimation of a flexible panel multivariate model with random effects. The data we use are drawn from the French sample of the EU Survey on Income and Living Conditions for the years 2004Ð2013. The error terms are both correlated across equations and autocorrelated. Individual random effects are also correlated across equations. The model is estimated using a simulated maximum likelihood estimator and particular care is given to the initial conditions problem. Our results show that while homeowners have longer employment and unemployment spells, they must contend with lower earnings than tenants upon reemployment. They also stress the importance of unobserved heterogeneity in explaining the transitions on the labour and housing markets, and the relationship between earnings and the latter two. Failure to properly account for this is likely to yield biased parameter estimates.
    Keywords: Homeownership,Unemployment,Earnings,Heterogeneity,Simulation based estimation,panel data
    JEL: J64 J21 J31 C33 C35
    Date: 2018
  13. By: Daniel Avdic (CINCH - Health Economics Research Center and University of Duisburg-Essen); Tugba Büyükdurmus (CINCH - Health Economics Research Center); Giuseppe Moscelli (School of Economics, University of Surrey, Guildford, UK); Adam Pilny (RWI – Leibniz-Institut für Wirtschaftsforschung); Ieva Sriubaite (CINCH - Health Economics Research Center and RWI – Leibniz-Institut für Wirtschaftsforschung)
    Abstract: We study patient choice of healthcare provider based on both objective and subjective quality measures in the context of maternal care hospital services in Germany. Objective measures are obtained from publicly reported clinical indicators, while subjective measures are based on satisfaction scores from a large and nationwide patient survey. We merge both quality metrics to detailed hospital discharge records and quantify the additional distance expectant mothers are willing to travel to give birth in maternity clinics with higher reported quality. Our results reveal that patients are on average willing to travel between 0.7-4.2 additional kilometers for a one standard deviation increase in reported quality. Furthermore, patients respond independently to both objective and subjective quality measures, suggesting that satisfaction scores may constitute important complements to clinical indicators when choosing healthcare provider.
    Keywords: hospital competition, hospital choice, maternal care, quality reporting
    JEL: C25 D82 H51 I11 I18
  14. By: Marianne Tenand (Erasmus University Rotterdam); Pieter Bakx (Erasmus University Rotterdam); Eddy (E.K.A.) van Doorslaer (Erasmus University Rotterdam)
    Abstract: The Netherlands is one of the few countries that offer generous universal coverage of long-term care (LTC). Does this ensure that the Dutch elderly with similar care needs receive similar LTC, irrespective of their income? In contrast with previous studies of inequity in care use that relied on a statistically derived variable of needs, our paper exploits a readily available, administrative measure of LTC needs, stemming from the eligibility assessment organized by the Dutch LTC assessment agency. Using exhaustive administrative register data on 616,934 individuals aged 60 and older eligible for public LTC, we find a substantial pro-poor concentration of LTC use that is only partially explained by poorer individuals’ greater needs. Among those eligible for institutional care, higher-income individuals are more likely to use – less costly – home care. This pattern may be explained by differences in preferences, but also by their higher copayments for nursing homes and by greater feasibility of home-based LTC arrangements for richer elderly. At face value, our findings suggest that the Dutch LTC insurance ‘overshoots’ its target to ensure that LTC is accessible to poorer elderly. Yet, the implications depend on the origins of the difference and one’s normative stance.
    Keywords: Long-term care; Equity in care use; Horizontal equity; Socio-economic inequality
    JEL: J14 I14 D63
    Date: 2018–12–13
  15. By: Mattias Engdahl (Institute for evaluation of labor market and education policy (IFAU) and Uppsala Center for Labor Studies (UCLS), Box 513, S-751 20 Uppsala, Sweden); Mathilde Godard (University of Lyon, CNRS, GATE UMR 5824, F-69130 Ecully, France.); Oskar N. Skans (Uppsala University, UCLS, IZA and IFAU. Correspondance to: Department of Economics, Uppsala University Box 513 SE-751 20 Uppsala, Sweden)
    Abstract: We use quasi-random variation in graduation years during the onset of a very deep national recession to study the relationship between early labor market conditions and young females’ family formation outcomes. A policy-pilot affecting the length of upper-secondary vocational tracks allows us to compare females who graduated into the onset of the Swedish financial crisis of the 1990s to those graduating during the final phase of the preceding economic boom while netting out the main effect of the policy. We find pronounced, but short-lived, negative labor market effects from early exposure to the recession for low-grade students in particular. In contrast, we document very long-lasting effects on family formation outcomes, again concentrated among low-grade students. Young women who graduated into the recession because of the policy-pilot formed their first stable partnerships earlier and had their first children earlier. Their partners had lower grades, which we show to be a strong predictor of divorce, and worse labor market performance. Divorces were more prevalent and the ensuing increase in single motherhood was long-lasting. These negative effects on marital stability generated persistent increases in the use of welfare benefits despite the short-lived impact on labor market outcomes. The results suggest that young women respond to early labor market prospects by changing the quality threshold for entering into family formation, a process which affects the frequency of welfare-dependent single mothers during more than a decade thereafter.
    Keywords: Family formation, female labor supply, cost of recessions
    JEL: E32 J12 J13 J22 J31
    Date: 2018
  16. By: Casari, Marco (University of Bologna); Ichino, Andrea (European University Institute); Michaeli, Moti (University of Haifa); De Paola, Maria (University of Calabria); Marandola, Ginevra (University of Bologna); Scoppa, Vincenzo (University of Calabria)
    Abstract: Migration may cause not only a brain drain but also a civicness drain, leading to an uncivicness trap. We study this possibility using college choices of southern-Italian students classified as Civic if not cheating in a die-roll experiment. Local civicness is the fraction of Civic in their high-school class. A civicness drain is observed at high and low local civicness. We explain this finding in a model in which Civic and Uncivic types balance hope vs. fear of migration outcomes, taking into account economic gains, risk preferences, and their beliefs about being considered Civic in the place of destination.
    Keywords: migration, Italy, honesty game, experiments, social capital
    JEL: H J6
    Date: 2018–11
  17. By: Brunello, Giorgio; Crema, Angela; Rocco, Lorenzo
    Abstract: Using Italian data on standardized test scores, we show that the performance decline associated with question position is heterogeneous across students. This fact implies that the rank of individuals and classes depends on the length of the test. Longer tests may also exhibit larger gaps between the variance of test scores and the variance of underlying ability. The performance decline is correlated with both cognitive and non-cognitive abilities and there is also evidence that those with better parental background experience a smaller decline than those with poorer background. Therefore, the gap between the two groups widens in longer tests.
    Keywords: low stake tests,position of questions,cognitive and non-cognitive skills,Italy
    JEL: I21
    Date: 2018
  18. By: Valeria Di Cosmo (Economic and Social Research Institute, Dublin & Fondazione Enrico Mattei, Milan); Elisa Trujillo-Baute (Chair of Energy Sustainability, Universitat de Barcelona & Institut d’Economia de Barcelona (IEB))
    Abstract: The benefits of smoothing demand peaks in the electricity market has been widely recognised. European countries such as Spain and some of the Scandinavian countries have recently given to the consumers the possibility to face the spot prices instead of having a fixed tariffs determined by retailers. This paper develops a theoretical model to study the relations between risk averse consumers, retailers and producers, both in the spot and in the forward markets when consumers are able to choose between fixed tariffs and the wholesale prices. The model is calibrated on a real market case - Spain - where since 2014 spot tariffs were introduced beside the flat tariffs for household consumers. Finally, simulations of agents behavior and markets performance, depending on consumers risk aversion and the number of producers, are used to analyse the implications from the model. Our results show that the quantities the retailers and the producers trade in the forward market are positively related with the loss aversion of consumers. The quantities bought by the retailers in the forward market are negatively related with the skewness of the spot prices. On the contrary, quantity sold forward by producers are positively related with the skewness of the spot prices (high probability of getting high prices increase the forward sale) and with the total market demand. In the spot market, the degree of loss aversion of consumers determine the quantity the retailers buy in the spot market but does not have a direct effect on the spot prices.
    Keywords: Electricity Spot Market, Electricity Forward Market, Risk Aversion
    JEL: D40 L11 Q41
    Date: 2018
  19. By: Giulia Galera (EURICSE); Leila Giannetto (EURICSE); Andrea Membretti; Antonella Noya (OECD)
    Abstract: This paper examines whether immigration can operate as a counter-process of depopulation and economic recession. Based on the comparative analysis of four case studies in Belluno (Italy), Klagenfurt-Villach (Austria), Dalarna (Sweden), and Haßberge (Germany), it analyses the key socio-economic factors explaining the successful integration of migrants, refugees, status holders and asylum seekers and examines under which conditions the arrival of newcomers can turn into a local development opportunity for these territories. The case studies feature four remote territories with the following common characteristics: they have undergone significant socio-economic transformations over the past decade, they face a population decline with an alarming outmigration of youth combined with an increasing ageing population, and central governments have channelled recent immigration and asylum seekers to peripheral areas to counterbalance negative demographic trends. Results show that integration paths undertaken by recipients differ significantly across the four territories. However, all case studies suggest that stable jobs and accommodations render remote and mountain localities attractive for refugees and status holders, who are usually more inclined to move to urban centres. Lastly, results from the case studies highlight the importance of designing individualised integration paths backed by social inclusion initiatives that can incite spontaneous collaborations and work relations with local inhabitants.
    Keywords: ageing, asylum-seekers, immigration, integration, migrants, refugees, social innovation
    JEL: H75 J08 J61 J68 L31
    Date: 2018–12–19
  20. By: John T. Addison; Paulino Teixeira
    Abstract: Using cross-country data, this paper investigates the relationship between workplace representation and strikes. Works councils are associated with reduced strike activity. However, where union members make up a majority of works councillors, such union-dominated councils experience greater strike activity than do their counterparts with minority union membership, and also more strikes than establishments with union workplace representation where union members are in a minority. Dissonance between the parties as to the state of industrial relations is associated with elevated strike activity. Finally, union density at the workplace, if not the presence of collective bargaining, is directly associated with strike incidence.
    Keywords: works councils, employee representation, union density, level of collective bargaining, industrial relations quality/dissonance, strike incidence, strike duration, strike frequency, strike intensity
    JEL: J51 J52 J53 J83
    Date: 2018
  21. By: Sara Ayllón (Universitat de Girona); Natalia Nollenberger (IE Business School - IE University)
    Abstract: This paper is the first to investigate the extent to which the high levels of jobless-ness resulting from the Great Recession across Europe have translated into higher school attendance among youth. Using cross-sectional and longitudinal data from the EU-SILC for 28 countries, we establish a robust counter-cyclical relationship between rising unemployment rates and school enrolment. The same is true of transitions back to education. Our analysis by subgroups reveals a worrying trend, with youths who have the most disadvantaged backgrounds (measured by low household income) less likely to enrol in tertiary studies when unemployment rises.
    Keywords: Unemployment, School Enrolment, Transitions Back to Education, Youth, Great Recession, EU-SILC
    JEL: I23 I24 J64 E32
    Date: 2018
  22. By: van den Berg, Gerard J. (University of Bristol); Dauth, Christine (Institute for Employment Research (IAB), Nuremberg); Homrighausen, Pia; Stephan, Gesine (Institute for Employment Research (IAB), Nuremberg)
    Abstract: We analyze a German labor market program that subsidizes skill-upgrading occupational training for workers employed in small and medium sized enterprises. This WeGebAU program reimburses training costs but take-up has been low. In an experimental setup, we mailed 10,000 brochures to potentially eligible workers, informing them about the importance of skill-upgrading occupational training in general and about WeGebAU in particular. Using combined survey and register data, we analyze the impact of receiving the brochure on workers' awareness of the program, on take-up of WeGebAU and other training, and on job characteristics. The survey data reveal that the brochure more than doubled workers' awareness of the program. We do not find effects on WeGebAU program take-up or short-run labor market outcomes in the register data. However, the information treatment positively affected participation in other (unsubsidized) training among employees under 45 years.
    Keywords: information treatment, wages, skills, employment, randomized controlled trial
    JEL: J24 J65
    Date: 2018–11
  23. By: Berta, Paolo; De Fraja, Gianni; Verzillo, Stefano
    Abstract: In this paper we investigate the nature of the contracts between a large health-care purchaser and health service providers in a prospective payment system. We model theoretically the interaction between patients choice and cream-skimming by hospitals. We test the model using a very large and detailed administrative dataset for the largest region in Italy. In line with our theoretical results, we show that the state funded purchaser offers providers a system of incentives such that the most efficient providers both treat more patients and also treat more difficult patients, thus receiving a higher average payment per treatment.
    Keywords: Cream skimming; Hospitals; Lombardy; Optimal healthcare contracts; Patients choice
    JEL: D82 H42 I11 I18
    Date: 2018–12
  24. By: Pavel Ciaian; Andrey Ivanov; d’Artis Kancs
    Abstract: Although, the need for an efficient Roma integration policy is growing in Europe, surprisingly little robust scientific evidence regarding potential policy costs and expected benefits of alternative policy options has supported the policy design and implementation so far. The present study attempts to narrow this evidence gap and aims to shed light on long-run economic, budgetary and fiscal effects of selected education and employment policies for the inclusion of the marginalised Roma in the EU. We employ a general equilibrium approach that allows us to assess not only the direct impact of alternative Roma integration policies but also to capture all induced feedback effects. Our simulation results suggest that, although Roma integration policies would be costly for the public budget, in the medium- to long-run, economic, budgetary and fiscal benefits may significantly outweigh short- to medium-run Roma integration costs. Depending on the integration policy scenario and the analysed country, the full repayment of the integration policy investment (positive net present value) may be achieved after 7 to 9 years. In terms of the GDP, employment and earnings, the universal basic income scenario may have the highest potential, particularly in the medium- to long-run.
    Keywords: Roma, social marginalisation, education, labour market, integration policy, universal basic income.
    JEL: J6 J11 J24 O17 O43 I32
    Date: 2018–12–12

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