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on Microeconomic European Issues |
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Issue of 2019‒07‒29
25 papers chosen by Giuseppe Marotta Università degli Studi di Modena e Reggio Emilia |
| By: | Genge, Ewa; Bartolucci, Francesco |
| Abstract: | We analyse the changing attitudes towards immigration in EU host countries in the last few years (2010-2016) on the basis of the European Social Survey data. These data are collected by the administration of a questionnaire made of items concerning different aspects related to the immigration phenomenon. For this analysis we rely on a class of item response theory models that allow for: (i) multidimensionality; (ii) discreteness of the latent trait distribution; (iii) time-constant and time-varying covariates; and (iv) sample weights. Through these models we find latent classes of Europeans with similar levels of immigration acceptance, we study the effect of different socio-economic covariates on the probability of belonging to these classes, and we assess the item characteristics. In this way we show which countries tend to be more or less positive towards immigration and the temporal dynamics of the phenomenon under study. |
| Keywords: | European Social Survey; Expectation-Maximisation algorithm; Item response theory; Discrete latent variables |
| JEL: | C33 F22 |
| Date: | 2019–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94672&r=all |
| By: | Jan Stede |
| Abstract: | In energy efficiency networks, groups of firms exchange experiences on energy conservation in regular meetings over several years. The companies implement energy efficiency measures in order to reach commonly agreed energy savings and CO2 reduction goals. Energy efficiency networks exist in several countries, such as Germany, Sweden and China. Existing evaluations of such voluntary regional networks in Germany claim that participants improved energy efficiency at twice the speed of the industry average. Based on comprehensive data from the German manufacturing census, this paper examines whether participation in energy efficiency networks has a causal impact on energy conservation and CO2 emissions. I employ both a difference-in-differences estimator, using companies that joined energy efficiency networks at a later point in time as a control group, as well as a semiparametric matching estimator. I demonstrate that for the average participant there is no evidence of a statistically significant effect on energy productivity or CO2 emissions due to the network activities. However, there is some indication that exporters may have benefitted from the networks by reducing their CO2 emissions. |
| Keywords: | Business networks, voluntary agreements, energy conservation, policy evaluation |
| JEL: | D22 Q40 Q51 C50 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1813&r=all |
| By: | Agar Brugiavini (Department of Economics, University Of Venice Cà Foscari); Raluca Elena Buia (Department of Economics, University Of Venice Cà Foscari); Matija Kovacic (Department of Economics, University Of Venice Cà Foscari); Cristina Elisa Orso (Department of Economics, University Of Verona) |
| Abstract: | In this paper, we investigate whether exposure to adverse experiences during childhood such as physical and emotional abuse affects a set of health and socio-economic outcomes across the lifespan using recent European data from SHARE (The Survey of Health, Ageing and Retirement in Europe). The novelty of our approach consists in exploiting the recently published data on adverse childhood experiences for 19 SHARE countries, which enables us to account for country-specific heterogeneity and investigate the long-run effects of exposure to early-life adverse circumstances on different adult outcomes. Our results highlight a negative long-term effect of exposure to adverse childhood experiences -ACEs on risky behaviour such as smoking, as well as on socio-economic outcomes like unemployment and family dissolution. |
| Keywords: | Adverse Childhood Experiences, Smoking Behaviour, Unemployment, Family Dissolution |
| JEL: | H4 I12 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2019:18&r=all |
| By: | Hinz, Tina; Lechmann, Daniel S. J. |
| Abstract: | This paper scrutinizes the effect of job satisfaction on labor turnover. We use German SOEP data to estimate a multinomial logit model with random effects for the probability of a worker-job separation. In line with the previous literature, we find a negative relationship between job satisfaction and separations. We show that this relationship is entirely driven by less satisfied individuals, as the separation probability of more satisfied workers does not vary with job satisfaction. We also find that even among the most dissatisfied individuals, most workers remain in their current jobs. Finally, we show that the effect of job satisfaction varies with both local labor market conditions and the kind of separation under consideration (job-to-job or job-to-non-employment). |
| Keywords: | Germany,job satisfaction,labor market tightness,labor turnover,SOEP |
| JEL: | J28 J63 R23 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:faulre:109&r=all |
| By: | Emilio Colombo; Valentina Rotondi; Luca Stanca |
| Abstract: | We study the non-monetary costs of the terrorist attacks occurred in France, Belgium and Germany between 2010 and 2017. Using four waves of the European Social Survey, we find that individuals' well-being is significantly reduced in the aftermath of a terrorist attack. We explore possible mechanisms for this effect, finding that terrorist attacks determine a reduction in generalized trust, institutional trust, satisfaction with democracy and satisfaction with the government. Terrorist attacks are also found to increase negative attitudes towards migrants and perceived discrimination. However, contrary to expectations, the negative impact of terrorism on well-being is less strong for Muslim immigrants. We posit that this occurs because immigrants benefit more than natives from the institutional reaction following the attacks. |
| JEL: | H56 I31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:dis:wpaper:dis1902&r=all |
| By: | Daniela Del Boca; Enrica Maria Martino; Elena Claudia Meroni; Daniela Piazzalunga |
| Abstract: | A rich strand of the economic literature has studied the impact of different forms of early childcare on children cognitive and non-cognitive development in the short and medium run, and on a number of educational, labor market, and life outcomes in the long run. These studies agree in assessing the importance of the first years of life on future outcomes, and identify early childhood interventions as a powerful policy instrument to boost child development. Furthermore, most research agrees in identifying stronger beneficial effects among children from disadvantaged backgrounds, making a case for the role of childcare policies in reducing inequality. Instead, heterogeneity of results across gender is less clear-cut. Yet, it is important to understand how childcare arrangements differently affect boys and girls, to figure out how to boost cognitive and non-cognitive development of young children and how to reduce gender gaps later in life. Our paper offers a comprehensive review of the literature on early childcare impacts, shedding light on the heterogeneous effects across genders, considering the role of institutional background, type of the intervention, and age of the child. We also present some empirical results on the Italian case which indicates that gender differences in the outcomes is lower among children who attended an impact toddler center, while it is higher and more often statistically significant for those who received informal care. This result confirms the positive and equalizing role of early public childcare. |
| Keywords: | Childcare, Child development, Cognitive skills, Non-cognitive skills, Gender differences |
| JEL: | J13 J16 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:fbk:wpaper:2019-04&r=all |
| By: | Avram, Silvia; Brewer, Mike; Fisher, Paul; Fumagalli, Laura |
| Abstract: | We study the volatility of individual- and household-level income in the UK between 2009 and 2017 using data from a large longitudinal household panel survey. The volatility of earnings for the working-age has fallen in this period, largely due to a fall in the prevalence of large negative earnings shocks. For older aged individuals, we also find a large fall in the volatility of private income, mainly as a result of a fall in large positive income shocks. The tax and benefit system significantly reduces volatility, especially for household containing older individuals. We find evidence that the tax and benefit system has become less well equipped to counteract swings in labour income, but the most important reason why disposable income volatility has fallen over this period is changes to the volatility of employment.  |
| Date: | 2019–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:ese:ukhlsp:2019-07&r=all |
| By: | Lochner, Ben; Merkl, Christian; Stüber, Heiko; Gürtzgen, Nicole |
| Abstract: | Using the IAB Job Vacancy Survey for Germany, we look into the black box of recruiting intensity and hiring practices. Our paper shows three important channels for hiring, namely vacancy posting, the selectivity of hiring (labor selection), and the number of search channels. While vacancy posting and labor selection show a U-shape over the employment growth distribution, the number of search channels tends to be upward sloping in terms of employment growth. We argue that shrinking plants post more vacancies and are less selective than plants with a constant workforce because they react to churn triggered by employment-to-employment transitions to other plants. Furthermore, in line with economic theory, vacancy posting, labor selection, and the number of search channels are procyclical over the business cycle. Our paper is the first to link the the Job Vacancy Survey and the Administrative Wage and Labor Market Flow Panel to document the interaction between hiring practices and employment-to-employment transitions to other plants. |
| Keywords: | recruiting intensity,vacancies,labor selection,administrative data,survey data |
| JEL: | E24 J63 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:042019&r=all |
| By: | Bauer, Anja; Lochner, Benjamin |
| Abstract: | Using administrative employer-employee data from Germany, we investigate the relationship between wages and past and present labor market conditions. Furthermore, we revisit recent findings of greater wage cyclicality of new hires. Overall, we find strong evidence for history dependent wages, manifested in both hiring and retention premiums - which is consistent with a variety of contract models. Taking into account composition effects as well as cyclical variation in unobserved match quality, we find that wages of new hires from unemployment are no more cyclical, but those of job changers are more cyclical than those of existing workers. We argue that much of the excess wage cyclicality of new hires discussed by the literature can be explained by cyclical job ladder movements in match quality of new hires from employment. In a novel empirical approach, where we further take into account occupational selection, we show that if job ladder movements accompany a simultaneous change of employers and occupations, the resulting wages are particularly cyclical sensitive. |
| Keywords: | Business Cycle,Wage,Wage Rigidity,Implicit Contracts,Match Quality |
| JEL: | E24 E32 J31 J41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:052019&r=all |
| By: | Laetitia Dillenseger; Martijn Burger; Francis Munier |
| Abstract: | There is extensive literature on ambiguous effects of having children on life satisfaction. Although parenthood can provide a meaning of life, parenting may increase the amount of obligations and decrease leisure time, which in turn reduce life satisfaction. In the Netherlands, parental leave is a part-time work arrangement which allows parents with young children to reconcile better work and family commitments. Using data from the Dutch Longitudinal Internet Studies for the Social Sciences (LISS), we analyzed the impact of taking parental leave on the life satisfaction of parents with young children. We found that the legal framework of Dutch parental leave offering job protected leave and fiscal benefits is crucial to enhance parents’ life satisfaction. Further, we estimated that short parental leave schemes are more conducive to life satisfaction than long parental leave schemes. |
| Keywords: | Parental Leave scheme, Children, Happiness, Satisfaction, Work-life balance, the Netherlands. |
| JEL: | C10 H53 I31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2019-26&r=all |
| By: | Woroniuk, D.; Karam, A.; Jamasb, T. |
| Abstract: | We apply network theory to analyse the interactions of trading hub prices, and to assess the harmonisation of the European gas market. We construct dynamic networks, where the nodes correspond to the twelve EU trading hubs, and where the edges weight the causality between the variations of the respective gas prices. Network density dynamically calculates the aggregate quantity of causal interactions recorded within the system, which provides information pertaining to the integration of the European gas network. We document a number of spikes in network density, suggesting short periods of improved connectivity of European gas markets. We argue that these results appear to be driven by exogenous factors, such as unseasonal weather patterns, seismic activity and pipeline capacity reductions or outages. The findings elucidate the time varying nature of European gas market dynamics, and the importance of continual monitoring of market evolution. |
| Keywords: | Market Integration, Information Transmissions, Natural Gas, Network Theory |
| JEL: | C32 F18 Q43 Q47 Q48 |
| Date: | 2019–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1964&r=all |
| By: | Becker, Sascha O. (university of warwick; warwick); Fernandes, Ana (bern university); Weichselbaumer, Doris (university of linz) |
| Abstract: | Due to conventional gender norms, women are more likely to be in charge of childcare than men. From an employer’s perspective, in their fertile age they are also at “risk” of pregnancy. Both factors potentially affect hiring practices of firms. We conduct a large-scale correspondence test in Germany, Switzerland, and Austria, sending out approx. 9,000 job applications, varying job candidate’s personal characteristics such as marital status and age of children. We find evidence that, for part-time jobs, married women with older kids, who likely finished their childbearing cycle and have more projectable childcare chores than women with very young kids, are at a significant advantage vis-à-vis other groups of women. At the same time, married, but childless applicants, who have a higher likelihood to become pregnant, are at a disadvantage compared to single, but childless applicants to part-time jobs. Such effects are not present for full-time jobs, presumably, because by applying to these in contrast to part-time jobs, women signal that they have arranged for external childcare. |
| Keywords: | fertility, discrimination, experimental economics |
| JEL: | C93 J16 J71 |
| Date: | 2019–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2019015&r=all |
| By: | Hartung, Andreas (university of tubingen); Wessling, Katarina (ROA / Education and occupational career); Hillmert, Steffen (institute for housing and environment, darmstadt) |
| Abstract: | The transition from general schooling to vocational training or to the labour market marks a crucial threshold in the life course of young adults. It has been well documented that successful school-to-work transitions are influenced by (regional) labour-market conditions. However, what has been rather neglected is that before actual transitions take place, adolescents need to make plans and evaluate their wishes and choices against the background of existing constraints. (Regional) labour-market conditions are a part of such constraints. This paper complements previous research by focusing on the impact of the regional labour market on students’ educational and occupational aspirations before school-to-work transitions take place. Regionalised administrative data on unemployment is linked with survey data from the Starting Cohort 4 of the German National Educational Panel Study (NEPS-SC4). Results indicate that a relatively higher level of regional unemployment is associated with aspirations for higher-status occupations. Their status aspiration push students towards continuing general school to obtain higher general qualifications. The effects vary with the attended secondary school track and with parents’ educational aspirations for their children. |
| Keywords: | educational and occupational aspirations/expectations, regional labour-market conditions, school-to-work transitions |
| JEL: | I24 R23 R12 D84 |
| Date: | 2019–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2019019&r=all |
| By: | Raphaël Boroumand (PSB - Paris School of Business); Stéphane Goutte (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis); Thomas Porcher (ESG Research Lab - ESG Management School) |
| Abstract: | Our article provides a better understanding of risk management strategies for all energy market stakeholders. A good knowledge of optimal risk hedging strategies is not only important for energy companies but also for regulators and policy makers in a context of climate emergency. Indeed, the electricity sector is key to achieve energy and ecological transition. Electricity companies should be on frontline of climate change struggle. Taking the perspective of electricity retailers, we analyze a range of portfolios made of forward contracts and/or power plants for specific hourly clusters based on electricity market data from the integrated German-Austrian spot market. We prove that intra-day hedging with forward contracts is sub-optimal compared to financial options and physical assets. By demonstrating the contribution of intra-day hedging with options and physical assets, we highlight the specificities of electricity markets as hourly markets with strong volatility during peak hours. By simulating optimal hedging strategies, our article proposes a range of new portfolios for electricity retailers to manage their risks and reduce their sourcing costs. A lower hedging cost enables to allocate more resources to digitalization and energy efficiency services to take into account customers' expectations for more climate-friendly retailers. This is a virtuous circle. Retailers provide high value-added energy efficiency services so that consumers consume less. The latter contributes to reach electricity reduction targets to fight climate warming. |
| Keywords: | Diversification,Climate,Electricity,Risk,Intra-day,Hedging |
| Date: | 2019–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02175358&r=all |
| By: | Miguel Almunia (CUNEF); David López-Rodríguez (Banco de España) |
| Abstract: | We study how taxable income responds to changes in marginal tax rates, using as a main source of identifying variation three large reforms to the Spanish personal income tax implemented in the period 1999-2014. The most reliable estimates of the elasticity of taxable income (ETI) with respect to the net-of-tax rate for this period are between 0.45 and 0.64. The ETI is about three times larger for selfemployed taxpayers than for employees, and larger for business income than for labor and capital income. The elasticity of broad income (EBI) is smaller, between 0.10 and 0.24, while the elasticity of some tax deductions such as the one for private pension contributions exceeds one. Our estimates are similar across a variety of estimation methods and sample restrictions, and also robust to potential biases created by mean reversion and heterogeneous income trends. |
| Keywords: | elasticity of taxable income, ETI, personal income tax, mean reversion, tax deductions, Spain |
| JEL: | H24 H31 D63 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1924&r=all |
| By: | Daniel Dejuán (Banco de España) |
| Abstract: | Investment decisions are generally irreversible and could be affected by holdup problems and opportunism. Thus, investment may need sound enforcement institutions. This paper analyzes firm level data to identify the impact of judicial system efficacy, as representative of the institutional quality, in business investment decisions. More specifically, this research measures the effects of congestion in the Spanish civil (private) jurisdiction at the local level, both when solving ordinary trials and executions (when a judge forces the debtor to pay or to fulfill an obligation) and finds a negative and significant relationship between judicial inefficacy and the gross investment ratio. The effect holds after running several robustness checks. This paper also analyzes the efficacy of the administrative jurisdiction, inspired by the hypothesis of Acemoglu and Johnson (2005), but it does not have a significant impact on investment in our sample. |
| Keywords: | investment decisions, justice, enforcement |
| JEL: | E22 K41 K12 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1927&r=all |
| By: | Rita Maghularia; Silke Uebelmesser |
| Abstract: | The paper analyses the empirical relationship between immigrants and crime using panel data for 391 German administrative districts between 2003 and 2016. Employing different standard panel estimation methods, we show that there is no positive association between the immigrant rate and the crime rate. We assess the robustness of this result by considering the heterogeneity of immigrant groups with respect to gender, age, country of origin and – if applicable – refugee status, and study naturalized immigrants. We also take into account possible spillover effects of immigrants on criminal activities by Germans, omitted variables and spatial correlation. Furthermore, taking advantage of the panel-structure of the data set we employ an instrumental variable approach that deals with the possibly endogenous allocation of immigrants and allows for causal interpretation of the estimates. There is no evidence that immigrants increase crime. |
| Keywords: | immigrants, crime, Germany, panel data, IV approach |
| JEL: | F22 J15 K42 R10 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7696&r=all |
| By: | Svend E. Hougaard Jensen; Thorsteinn Sigurdur Sveinsson; Gylfi Zoega |
| Abstract: | We find that segments of society who have shorter life expectancy can expect a lower retirement income and lifetime utility due to the longevity of other groups participating in the same pension scheme. Linking retirement age to average life expectancy magnifies the negative effect on the lifetime utility of those who suffer low longevity. Furthermore, when the income of those with greater longevity increases, those with shorter life expectancy become even worse off. Conversely, when the income of those with shorter life expectancy increases, they end up paying more into the pension scheme, which benefits those who live longer. The relative sizes of the low and high longevity groups in the population determine the magnitude of these effects. We calibrate the model based on data on differences in life expectancy of men and women and find that males suffer from a 10 percent drop in the amount of pension benefits from being forced to pay into the same scheme as females. |
| Keywords: | longevity, pension age, retirement, inequality |
| JEL: | E21 E24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7704&r=all |
| By: | Alfano, Maria Rosaria; Cantabene, Claudia; Silipo, Damiano Bruno |
| Abstract: | We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms. |
| Keywords: | Organized crime,Mafia firm,Mafia and development |
| JEL: | D02 K14 L11 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:200255&r=all |
| By: | González-Chapela, Jorge; Ortega-Lapiedra, Raquel |
| Abstract: | This paper examines whether, and to what extent, the internal mobility of the unemployed in Spain was affected by a reform of the personal income tax that introduced a mobility incentive targeted at this group. The reform introduced a distinct change in the incentives to move for work for unemployed workers living in certain regions of Spain. The reform’s effectiveness is assessed by means of a difference-in-differences econometric approach, combined with nationally representative administrative data. Results suggest that the reform led, at most, to relatively few new migration flows, and account for the existence of differential migration trends between the regions that adopted the reform and those that did not. |
| Keywords: | Personal income tax, mobility, unemployed, Spain |
| JEL: | H24 J61 R23 |
| Date: | 2019–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95308&r=all |
| By: | Kamalow, Raffael (University of Hamburg); Siedler, Thomas (University of Hamburg) |
| Abstract: | This study investigates the short-term mortality effects of two age-based restrictions on legal access to alcohol in Germany. We exploit sharp differences in legal access to alcohol at 16 and 18 years by implementing a regression discontinuity design. We find discontinuous increases in deaths at both age cutoffs, which are mainly driven by a "novice driver effect", whereas legal access to alcohol plays a marginal role at most. Overall, our results indicate that a stepwise introduction to alcohol has, at most, a minor impact on drunk driving and mortality at age 16 and 18 years. This study thus provides fresh impetus to the ongoing debate on the "optimal" MLDA legislation. |
| Keywords: | mortality, motor vehicle fatalities, minimum legal drinking age, regression discontinuity design |
| JEL: | I10 I18 C26 C31 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12456&r=all |
| By: | Clément Magouyres (Ecole d'Économie de Paris - Paris School of Economics (PSE)); Thierry Mayer (Département d'économie); Clément Mazet (Département d'économie) |
| Abstract: | In this paper, we document the presence of “technology-induced” trade in France between 1997 and 2007 and assess its impact on consumer welfare. We use the staggered roll-out of broadband internet to estimate its causal effect on the importing behavior of affected firms. Using an event-study design, we find that broadband expansion increases firm-level imports by around 25%. We further find that the “sub-extensive” margin (number of products and sourcing countries per firm) is the main channel of adjustment and that the effect is larger for capital goods. Finally, we develop a model where firms optimize over their import strategy and which yields a sufficient statistics formula for the quantification of the effects of broadband on consumer welfare. Interpreted within this model, our reduced-form estimates imply that broadband internet reduced the consumer price index by 1.7% and that the import-channel, i.e. the enhanced access to foreign goods that is allowed by broadband, accounts for a quarter of that effect. |
| Keywords: | Internet; Trade; Imports; Consumer welfare |
| JEL: | F14 F15 L23 O33 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4b7tooefh48jlq7oktt0tbn8om&r=all |
| By: | Martin W. Adler; Federica Liberini; Antonio Russo; Jos N. van Ommeren |
| Abstract: | We estimate the effect of public transport supply on travel times of motor-vehicle and bus users in Rome, Italy. We apply a quasi-experimental methodology exploiting hourly information on public transport service reductions during strikes. We find that a 10 percent reduction in public transit supply increases the travel time of motor-vehicles by about 1.6 percent in the morning peak. The effect on bus travel time is similar. The congestion-relief benefit of public transport is thus sizeable and bus travel time gains account for an important share of it. We also examine the welfare effects of providing bus lanes. All else given, a bus lane reduces bus travel time by at least 29 percent. We find that bus lanes are undersupplied in Rome, despite the potential costs due to reducing capacity available to cars. |
| Keywords: | congestion relief benefit, bus lanes, public transit, strikes |
| JEL: | H23 H42 R41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7698&r=all |
| By: | Lee, Neil; Clarke, Stephen |
| Abstract: | Do low-skilled workers benefit from the growth of high-technology industries in their local economy? Policymakers invest considerable resources in attracting and developing innovative, high-tech industries, but there is relatively little evidence on the distribution of the benefits. This paper investigates the labour market impact of high-tech growth on low and mid-skilled workers, using data on UK local labour markets from 2009-2015. It shows that high-tech industries – either STEM-intensive ‘high-tech’ or digital economy – have a positive jobs multiplier, with each 10 new high-tech jobs creating around 7 local non-tradeable service jobs, around 6 of which go to low-skilled workers. Employment rates for mid-skilled workers do not increase, but they benefit from higher wages. Yet while low-skilled workers gain from higher employment rates, the jobs are often poorly paid service work, so average wages fall, particularly when increased housing costs are considered. |
| Keywords: | wages; labour markets; multipliers; high-technology; cities; Inequality; ES/M007111/1 |
| JEL: | E24 J21 J31 L86 O18 R11 R31 |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:100926&r=all |
| By: | Clark, Andrew E. (Paris School of Economics); Lepinteur, Anthony (University of Luxembourg) |
| Abstract: | We here use the employment-history data from the British Cohort Study to calculate an individual's total experience of unemployment from the time they left school up to age 30. We show that this experience is negatively correlated with the life satisfaction that the individual reports at age 30, so that past unemployment scars. We also identify the childhood circumstances and family background that predict this adult unemployment experience. Educational achievement and good behaviour at age 16 both reduce adult unemployment experience, and emotional health at age 16 is a particularly strong predictor of unemployment experience for women. Both boys and girls reproduce on average their parents' unemployment, so that adult unemployment experience is transmitted between generations. We uncover evidence of a social-norm effect: children from less-advantaged backgrounds both experience more adult unemployment but are less affected by it in well-being. |
| Keywords: | unemployment, life satisfaction, habituation |
| JEL: | J21 J63 I31 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12430&r=all |