nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2019‒09‒16
29 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Housing uncertainty and the transition to parenthood among Britain’s “Generation Rent†By Valentina Tocchioni; Ann Berrington; Daniele Vignoli; Agnese Vitali
  2. Public interest considerations in European merger control regimes By Budzinski, Oliver; Stöhr, Annika
  3. Impact of Early Childcare on Immigrant Children’s Educational Performance By Corazzini, Luca; Meschi, Elena; Pavese, Caterina
  4. Individual dismissals for personal and economic reasons in French firms: One or two models? By Camille Signoretto; Julie Valentin
  5. Local Government and Innovation: the case of Italian provinces By Fortuna Casoria; Marianna Marino; Pierpaolo Parrotta; Davide Sala
  6. The Baby Year Parental Leave Reform in the GDR and Its Impact on Children's Long-Term Life Satisfaction By Katharina Heisig; Larissa Zierow
  7. Restrictions of fixed term employment contracts: Evidence from a German reform By Brüll, Eduard
  8. More Giving or More Givers? The Effects of Tax Incentives on Charitable Donations in the UK By Miguel Almunia; Irem Guceri; Ben Lockwood; Kimberley Ann Scharf
  9. The gender wage gap among PhD holders: an empirical examination based on Italian data By Alfano, Vincenzo; Cicatiello, Lorenzo; Gaeta, Giuseppe Lucio; Pinto, Mauro
  11. Fathers' Multiple-Partner Fertility and Children’s Educational Outcomes By Donna K. Ginther; Astrid L. Grasdal; Robert A. Pollak
  12. Animate the cluster or subsidize collaborative R&D? A multiple overlapping treatments approach to assess the impact of the French cluster policy By Mar, M.; Massard, N.
  13. Rigid wages and contracts: Time- versus state-dependent wages in the Netherlands By Grajales-Olarte, Anderson; Uras, Burak R.; Vellekoop, Nathanael
  14. Corporate governance reporting: Compliance with upper limits for severance payments to members of executive boards in Germany By Dilger, Alexander; Schottmüller-Einwag, Ute
  15. Knowledge subsystem By Karbowski, Adam
  16. Measuring Economic Competence of Secondary School Students in Germany By Kaiser, Tim; Oberrauch, Luis; Seeber, Günther
  17. Mapping the potential of EU regions to contribute to Industry 4.0 By Pierre-Alexandre Balland; Ron Boschma
  18. French Attitudes over Climate Change and Climate Policies By Thomas Douenne; Adrien Fabre
  19. Consequences of parental job loss on the family environment and on human capital formation - Evidence from plant closures By Mörk, Eva; Sjögren, Anna; Svaleryd, Helena
  20. R&D and firm resilience during bad times By Maria Garcia-Vega; Oscar Vicente-Chirivella
  21. Child poverty amongst young carers in the UK: prevalence and trends in the wake of the financial crisis, economic downturn and onset of austerity By Vizard, Polly; Obolenskaya, Polina; Burchardt, Tania
  22. Why do people continue to live near polluted sites? Empirical evidence from Southwestern Europe By Philippe Levasseur; Katrin Erdlenbruch; Christelle Gramaglia
  23. Heterogeneity in marginal returns to language training of immigrants By Giesecke, Matthias; Schuß, Eric
  24. Fiscal transfers in the spatial economy By Henkel, Marcel; Seidel, Tobias; Südekum, Jens
  25. The Effects of Gender and Parental Occupation in the Apprenticeship Market: An Experimental Evaluation By Fernandes, Ana; Huber, Martin; Plaza, Camila
  26. Enhancing judicial efficiency to foster economic activity in Portugal By Yosuke Jin; Sofia Amaral-Garcia
  27. Populist Voting and Losers’ Discontent: Does Redistribution Matter? By Giuseppe Albanese; Guglielmo Barone; Guido de Blasio
  28. Gender Budgeting as PFM in OECD Countries: Empirical Evidence from Sweden. By Chakraborty, Lekha
  29. What does leadership look like in schools and does it matter for school performance? By Lucy Stokes; Alex Bryson; David Wilkinson

  1. By: Valentina Tocchioni (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Ann Berrington (Department of Social Statistics and Demography, University of Southampton); Daniele Vignoli (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Agnese Vitali (Dipartimento di Sociologia e Ricerca Sociale, Università di Trento)
    Abstract: The literature suggests a positive link between homeownership and transition to parenthood. However, couples’ preferences to become homeowners before having their first child have been undermined by rising housing uncertainty and housing unaffordability over recent decades. Britain is an archetype example: homeownership rates have fallen markedly among young adults as a result of low wages, precarious employment, reductions in the availability of mortgage credit, and rising house prices, generating a housing crisis. Using longitudinal data from the British Household Panel Survey (1991-2008) and the United Kingdom Household Longitudinal Study (2009-2016), and applying multilevel discrete-time event-history techniques on a sample of women aged 18-42, we investigate whether and how the link between housing tenure and first birth has changed over recent decades in Britain. We find that, in comparison to the 1990s, the likelihood of becoming a parent has declined among homeowners in recent years, whereas childbearing rates among private renters have remained stable. Thus owner occupiers and private renters have become more similar in terms of their likelihood of entering parenthood. Overall, our findings question the classical micro-level assumption of a positive link between homeownership and transition to parenthood, at least among Britain’s “Generation Rent†.
    Keywords: housing tenure, transition to motherhood, Britain, event-history analysis, panel data, multilevel models
    JEL: C23 J13 R20
    Date: 2019–09
  2. By: Budzinski, Oliver; Stöhr, Annika
    Abstract: Nowadays, merger control predominantly relies upon a strict analysis of the effects from merger and acquisitions on effective competition. However, there is scope for so-called public interest considerations in several European merger control regimes and recently a number of European politicians have called for more elbowroom for non-competition-oriented interventions into merger control. For instance, they did so in the context of the prohibition of the Siemens-Alstommerger and the upcoming industrial policy discussion about European Champions. Since the social welfare effects of competitive markets present an important public interest in itself, additional public interest considerations justifying an intervention need to be non-market in the sense that these goals stand in conflict with competition. However, a trade-off between effective competition and public interest, i.e. public interests that are better served through market power then through effective competition, is a rare phenomenon. This paper gives an overview of public interest considerations in the merger policy of European Union member states and analyzes four jurisdictions in more detail. We find that the institutional designs how public interests considerations are included in the merger control regimes lack focus on non-market public interest considerations across the analyzed jurisdictions. Furthermore, there are relevant shortcomings regarding transparency and legal certainty. Moreover, our ex-pots analysis shows that the empirical record of past public interest-motivated interventions is questionable with only few interventions yielding the desired effects. Therefore, we suggest revising the public interest regulations in the respective merger control regulations by narrowing their focus to real non-market public interests and by levying decision power on less politically-influenced bodies.
    Keywords: competition policy,antitrust,merger control,industrial economics,public interest,governance,competition law,law & economics,institutional economics,German competition policy,UK competition policy,French competition policy,Austrian competition policy
    JEL: K21 K23 D43 L51 F52 F55
    Date: 2019
  3. By: Corazzini, Luca; Meschi, Elena; Pavese, Caterina
    Abstract: This paper investigates the impact of attending early childcare on second generation immigrant children's cognitive outcomes. Our analysis draws on administrative data on the entire population of students in fifth grade collected by the Italian Institute for the Evaluation of the Educational System (INVALSI) for school years 2014/2015 to 2016/2017 matched to unique administrative records on the early childcare public available slots at the municipal level. Our identification strategy exploits cross-sectional and time series variation in the provision of early childcare service across Italian municipalities as an instrument for individual early childcare attendance. Our results point out that the effect of early childcare attendance differs between native and immigrant children. Although we find no effects for Italian children, our estimates show a positive and significant effect on literacy test scores for immigrant children of low educated mothers, which suggests that early childcare may be particularly relevant for immigrant children from a disadvantaged background.
    Keywords: Childcare,Cognitive skills,Immigrant children,IV
    JEL: J13 J15 H75 I20 I28
    Date: 2019
  4. By: Camille Signoretto (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Julie Valentin (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Most OECD countries divide dismissals into different types, depending on their grounds, as either disciplinary or economic. Restricted to individual dismissals, this article seeks to better understand how the differences between these two grounds with regard to statutory provisions result in the dismissal behavior of employers. Do employers choose this designation to minimize termination costs (severance payment and damages)? Using an original database of French establishments from 1999 to 2009, this article aims to analyze the factors influencing employers' use of economic and personal dismissals, providing insights into the enforcement capability of legal dismissal rules and the part played by strategic behavior. In our view, strategic behaviors should be reflected in the factors influencing both types of dismissal decisions identically, whereas compliance with legal provisions induces contrasting influences. Thus, the hypothesis tested-called the uniqueness of the model of dismissal-is the absence of specificity of the determinants, especially regarding the economic conditions of the firm and related human resource management characteristics, between the two types of dismissal. The results highlight the existence of two quite different models of dismissal even though the personal dismissal determinants are not orthogonal to the economic conditions of the firm. Economic dismissals are essentially explained by the economic conditions of firms, whereas personal dismissals are linked to the propensity of human resource management to retain employees.
    Date: 2019–10
  5. By: Fortuna Casoria (Univ Lyon, CNRS, GATE UMR 5824, F-69130 Ecully, France); Marianna Marino (SKEMA Business School - Université Côte d'Azur, Avenue Willy Brandt, 59777 Euralille, France); Pierpaolo Parrotta (IESEG School of Management, 3 rue de la Digue, 59000 Lille, France; LEM-CNRS 9221; IZA; ROA; NoCeT); Davide Sala (University of Passau, 94030 Passau, Germany)
    Abstract: This paper evaluates the effect of decentralization on innovation at the provincial level in Italy. We exploit quasi-natural experiments associated with three waves of reforms occurred in 1992, 2001 and 2004, to establish 8, 4, and 3 new provinces, respectively. Using a difference-in-difference estimation approach, we find evidence of a significant detrimental effect of (further) decentralization on innovation for Northern and Central Italian provinces. We suggest a potential mechanism that may explain the reduction in innovation associated with the aforementioned reforms. We argue that this finding can be rationalized with the costs imposed by the \mafia transplantation" phenomenon, as we find that the new provinces that were more exposed to \mafiosi in confino" reduced their innovation output more extensively. We perform a number of robustness checks that corroborate our main findings.
    Keywords: local government, decentralization, innovation, mafia transplantation, difference-in-difference
    JEL: D72 H72 K42 O31
    Date: 2019
  6. By: Katharina Heisig; Larissa Zierow
    Abstract: This article investigates the effects of an increase in paid parental leave — twelve months instead of six months — on children’s long-term life satisfaction. The historical setting under study, namely the former German Democratic Republic (GDR), allows us to circumvent problems of selection of women into the labor market and an insufficient or heterogeneous non-parental child care supply, which are issues many other studies on parental leave reforms face. Using data from the German Socio-Economic Panel (SOEP) we analyze the birth cohorts from 1980 to 1989 at adult age, and apply a difference-in-difference design making use of the very specific timing of the GDR’s parental leave reforms in 1976 and 1986. We find significant and robust positive parental leave effects on life satisfaction. We also analyze whether the increase in life satisfaction is driven by a positive development of personality, health factors, schooling or labor market outcomes. Our results suggest that the increase in life satisfaction might be partially explained by personality development for individuals from low socioeconomic backgrounds and boys. For individuals from high socioeconomic backgrounds, it might be driven by a better health.
    Keywords: parental leave, child care, child development, well-being, happiness, socio-emotional development
    JEL: J13 J22 I31
    Date: 2019
  7. By: Brüll, Eduard
    Abstract: This paper examines the impact of legal restrictions on fixed-term contracts on employment, wages and the careers of labour market entrants. Specifically, I analyse a 2001 German reform that made it more difficult for establishments that are not subject to employment protection to hire workers on fixed-term contracts. Using a Difference-in-Differences approach, which compares establishments subject to employment protection with those that are not both before and after the reform, I find that the reform has reduced the use of fixed-term contracts, but has not markedly changed net employment. However, the reform has had positive effects on the career stability of post-reform labour market entrants.
    Keywords: Fixed-Term Contracts,Employment Protection,Labour Market Segmentation,Germany
    JEL: J21 J41 J68
    Date: 2019
  8. By: Miguel Almunia; Irem Guceri; Ben Lockwood; Kimberley Ann Scharf
    Abstract: This paper estimates the effects of tax incentives on charitable contributions in the UK, using the universe of self-assessment income tax returns between 2005 and 2013. We exploit variation from a large reform in 2010 to estimate intensive and extensive-margin tax-price elasticities of giving. Using a predicted-tax-rate instrument for the price of giving relative to consumption, we find an intensive-margin elasticity of about -0.2 and an extensive-margin elasticity of -0.1, yielding a total elasticity of about -0.3. To further explore the extensive-margin response, we propose a model with a fixed cost of declaring donations and obtain a structural estimate of that cost of around £47. We also study the welfare effects of tax incentives, extending the theoretical literature to allow for extensive-margin giving and for a fixed cost of declaring donations. Taking into account these factors, there is a case for increasing the subsidy on charitable giving in the UK.
    Keywords: charitable giving, tax incentives, welfare
    JEL: H24 H31 D64
    Date: 2019
  9. By: Alfano, Vincenzo; Cicatiello, Lorenzo; Gaeta, Giuseppe Lucio; Pinto, Mauro
    Abstract: A growing number of academic studies are devoting their attention to the study of the gender wage gap. This paper contributes to the literature by analyzing the existence of this gap specifically among those who hold the highest possible educational qualification, i.e. a PhD. The analysis relies on Italian crosssectional data collected through a highly representative survey of the employment conditions of PhD holders. The econometric analysis is carried out by means of OLS regression, Oaxaca-Blinder decomposition analysis and quantile decomposition. Findings suggest that a gender gap in hourly wages exists among PhD holders, that it lies approximately between 5% and 8%, with sizeable differences by sector of employment and field of specialization, and that such a gap is largely unexplained.
    Keywords: gender wage gap,return on education,Oaxaca-Blinder decomposition,quantile decomposition
    JEL: J31 J71
    Date: 2019
  10. By: Inga Ivanova (National Research University Higher School of Economics); Oivind Strand (National Research University Higher School of Economics); Loet Leydesdorff (National Research University Higher School of Economics)
    Abstract: The innovation capacity of Norwegian innovation system, according Triple Helix model of innovations approach, is analyzed in terms of mutual information among geographical, sectorial, and size distributions of firms as dimensions of probabilistic entropy. Negative entropies can be considered as a consequence of synergy among these dimensions. Three different techniques for evaluation of temporal synergy evolution are used: R/S analysis, DFT, and geographical synergy decomposition. The calculations are based on data for all Norwegian firms registered between 2002 and 2014. The results suggest that the synergy at the level of both the country and its seven regions show non-chaotic oscillatory behavior and resonate in a set of natural frequencies.
    Keywords: knowledge base, innovations, triple helix, cyclic processes
    JEL: O10 O30 R11
    Date: 2019
  11. By: Donna K. Ginther; Astrid L. Grasdal; Robert A. Pollak
    Abstract: We find substantial and statistically significant detrimental effects of fathers' multiple-partner fertility (MPF) on children's educational outcomes. We focus on children in fathers’ “second families” when the second families are nuclear families – households consisting of a man, a woman, their joint children, and no other children. We analyze outcomes for almost 75,000 Norwegian children, all of whom, until they were at least age 18, lived in nuclear families. Controlling for a rich set of socio-economic variables, we find that children who spent their entire childhoods in nuclear families but whose fathers had children from a previous relationship living elsewhere were 4 percentage points more likely to drop out of secondary school and 5 percentage points less likely to obtain a bachelor's degree than children in nuclear families without fathers’ MPF. Resource competition due to economic and caregiving responsibilities for children living elsewhere does not explain the differences in educational outcomes. We do find that children in nuclear families whose fathers had previous childless marriages have educational outcomes that are similar to those of fathers with MPF. Our analysis suggests that the effects of fathers' MPF are primarily due to selection.
    JEL: I21 J12 J13
    Date: 2019–09
  12. By: Mar, M.; Massard, N.
    Abstract: This paper examines the effectiveness of the French competitiveness cluster policy on participating SMEs in terms of innovation and economic performance. Using an original dataset, we construct different measures of treatment with crossover designs. The findings indicate substantial additionality effects on R&D and employment and weak or insignificant effects on other types of economic performance. While only adhering to clusters induces much stronger positive impacts on SMEs than only participating in R&D collaborative projects, the policy is most effective when the two treatments are simultaneously used. To achieve its impact on SMEs, the cluster policy should not overlook low-cost instruments such as animation actions and common services.
    JEL: C14 C21 O32 O38
    Date: 2019
  13. By: Grajales-Olarte, Anderson; Uras, Burak R.; Vellekoop, Nathanael
    Abstract: We study nominal wage rigidity in the Netherlands using administrative data, which has three key features: (1) high-frequency (monthly), (2) high-quality (administrative records), and (3) high coverage (the universe of workers and the universe of firms). We find wage rigidity patterns in the data that are similar to wage behavior documented for other European countries. In particular we find that the hazard function has two spikes, one at 12 months and another one at 24 months and wage changes have time and state dependency components. As a novel and important piece of evidence we also uncover substantial heterogeneity in the frequency of wage changes due to explicit terms of the labor contract. In particular, contracts featuring flexible hours, such as on-call contracts, exhibit a higher probability of a change in the contract wage compared to fixed hour contracts. Once we split the sample based on contract characteristics, we also find that the response of wage changes to the time and state component is heterogeneous across different type of contracts - with relatively more downward adjustments in flexible-hour contract wages in response to aggregate unemployment.
    Keywords: wage rigidity,flexible-hour contracts,microdata,state dependency,time dependency
    JEL: E24 J31
    Date: 2019
  14. By: Dilger, Alexander; Schottmüller-Einwag, Ute
    Abstract: This paper examines how corporate governance reporting corresponds to actual conduct regarding severance payment caps for prematurely departing members of companies' executive boards in Germany. For this purpose, we first evaluate the declarations of conformity for all companies listed in the CDAX between 2010 and 2014, which we use to determine conformity and deviation rates, and analyse reasons for deviation. In a further full survey, we assess the compensation amounts of all severance payments made and published by DAX companies to their executive board members who were prematurely terminated, which allows us to compare the respective severance ratio with the cap recommended by the German Corporate Governance Codex (GCGC). We find that more than 20% of companies listed in the CDAX declared deviation in the declaration of conformity, and one-third of all deviations were justified by a rejection of the normative decision of the recommendation. Moreover, in 57% of actual severance cases where DAX companies had previously declared their compliance, the cap was exceeded; yet, none of the companies that had exceeded the cap in a severance case disclosed this in the following declaration of conformity. In the years under review, for the majority of severance cases in companies listed in the DAX, the GCGC's cap did not have any factual binding effect. Finally, in most cases the corporate reports deviated from reality and therefore could not serve as a suitable basis for decisions by the capital market.
    JEL: D86 G34 G38 J33 J63 J65 K12 K31 M12 M52 M55
    Date: 2019
  15. By: Karbowski, Adam
    Abstract: The aim of this chapter is to conduct the empirical study of the institutional setup of the knowledge subsystem in Central Eastern and Western Europe. Based on the data provided by OECD, Eurostat, ECB and World Bank, the list of innovation, R&D and education indicators has been prepared and used for the purpose of empirical analysis. Based on the subspace clustering method (the ORCLUS algorithm) and the selected set of institutional indicators, the following clusters have been identified. Cluster 1 or “stuck in the middle” comprises two countries, i.e. Slovenia and Italy. Cluster 2, dubbed “aspiring”, encompasses thirteen EU economies including all but one CEE countries as well as Greece, Portugal and Spain. Cluster 3 is made up of ‘developed patent oriented’ economies (Germany, Austria, Denmark, the Netherlands, Sweden and Finland). Cluster 4 – ‘developed innovation oriented’ economies – was found to include four countries, i.e. United Kingdom, Ireland, France and Belgium. We identified two basic types of knowledge subsystems. The first is a developed knowledge subsystem with two variants (oriented at patenting and traineeships, represented e.g. in Germany, or oriented at industry and services’ innovation and tertiary education, to be found e.g. in the UK). The second type is a developing knowledge subsystem with two variants (average in terms of patenting with a relatively strong traineeship program, such as e.g. in Slovenia, or relatively weak in all measures, seen e.g. in Bulgaria).
    Keywords: Knowledge,Central and Eastern Europe
    JEL: O3 P1
    Date: 2019
  16. By: Kaiser, Tim; Oberrauch, Luis; Seeber, Günther
    Abstract: We introduce a test of economic competence for German-speaking secondary school students and provide evidence from a large-scale assessment with 6,230 students from grades seven to ten. The article presents the development and psychometric properties of the scale, as well as an investigation of predictors of economic competence. We find evidence of a gender gap favoring male students, lower scores for students with a migration background, and parents’ socioeconomic background being a predictor of test performance. Additionally, we document sizeable differences between tracks, as well as gains in economic competence across grades in the order of magnitude of 0.06 to 0.2 standard deviations per year. The article concludes with perspectives on an impact evaluation of a curriculum reform introducing mandatory economic education in secondary school.
    Keywords: economic competence,economic literacy,item response theory,school economics
    JEL: A21
    Date: 2019
  17. By: Pierre-Alexandre Balland; Ron Boschma
    Abstract: This paper aims to identify the future Industry 4.0 centers of knowledge production in Europe. We expect Industry 4.0 Technologies (I4Ts) to thrive in regions where they can draw on local resources from related technologies. We use OECD-REGPAT data to identify I4T-related technologies, and find that I4Ts are located at the periphery of the knowledge space. Regions with a high potential in terms of I4T-related technologies were more likely to diversify successfully in new I4Ts in the period 2002-2016. We find big differences across EU regions: some show high but most regions show weak I4T potential.
    Keywords: Industry 4.0, relatedness, patents, knowledge space, regional diversification, EU regions
    JEL: B52 O33 R11
    Date: 2019–09
  18. By: Thomas Douenne (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne); Adrien Fabre (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne)
    Abstract: This paper aims to assess the prospects for French climate policies after the Yellow Vests crisis halted the planned increase in the carbon tax. From a large representative survey, we elicit knowledge, perceptions and values over climate change, we examine opinions relative to carbon taxation, and we assess support for other climate policies. Specific attention is given to the link between perceptions of climate change and attitudes towards policies. The paper also studies in details the determinants of attitudes in terms of political and socio-demographic variables. Among many results, we find limited knowledge but high concern for climate change. We also document a large rejection of the carbon tax but majority support for stricter norms and green investments, and reveal the rationales behind these preferences. Our study entails policy recommendations, such as an information campaign on climate change. Indeed, we find that climate awareness increases support for climate policies but no evidence for the formation of opinions through partisan cues as in the US, suggesting that better access to science could foster support for the ecology.
    Keywords: Climate Policy, Carbon tax, Preferences, Acceptability, France
    JEL: D78 H23 Q54 Q58
    Date: 2019–09
  19. By: Mörk, Eva (Department of Economics); Sjögren, Anna (Department of Economics); Svaleryd, Helena (Department of Economics)
    Abstract: We study the consequences of mothers’ and fathers’ job loss for parents, families, and children. Rich Swedish register data allow us to identify plant closures and account for non-random selection of workers to closing plants by using propensity score matching and controlling for pre-displacement outcomes. Our overall conclusion is positive: childhood health, educational and early adult outcomes are not adversely affected by parental job loss. Parents and families are however negatively affected in terms of parental health, labor market outcomes and separations. Limited effects on family disposable income suggest that generous unemployment insurance and a dual-earner norm shield families from financial distress, which together with universal health care and free education is likely to be protective for children.
    Keywords: Parental unemployment; workplace closure; family environment; child health; human capital formation
    JEL: I12 J01
    Date: 2019–08–19
  20. By: Maria Garcia-Vega; Oscar Vicente-Chirivella
    Abstract: In this paper, we empirically investigate how technology transfers from universities to private firms influence firm innovativeness. Using data on R&D acquisitions from universities of more than 10,000 Spanish firms for the period 2005-2013 and applying propensity score matching techniques and DiD estimations, we find that technology transfers from universities strongly increase firm innovativeness. We next explore heterogeneous effects in order to analyse whether these gains are mediated by firm size and the business cycle. Our results suggest that the contribution of universities to firm innovation is particularly important for small firms, during the whole business cycle and it goes beyond its direct effect on innovation: We find that technology transfers from universities generate positive spillovers and enhance firms’ internal R&D capabilities. Our results suggest that the knowledge generated by universities makes an important contribution to economic growth through technology transfers, which makes firms more innovative. Hence, knowledge creation by universities provides an important public good.
    Keywords: Universities, Technology Transfers, Innovation, Firms
    Date: 2019
  21. By: Vizard, Polly; Obolenskaya, Polina; Burchardt, Tania
    Abstract: The article provides the first estimates of prevalence and trends in child poverty amongst young carers aged 5–19 in the UK using specialized income data from the Family Resources Survey / theHouseholds BelowAverage Income Survey. Looking across four key indicators, we find that child poverty rates were higher amongst young carers than other children based on 3 years pooled data for 2013/14–2015/16. The differences in the prevalence of child poverty amongst young carers and other children are statistically significant in relation to two indicators (anchored low income before housing costs, and a combined measure of low income and material deprivation). Young carers also appear to have fared worse than other children in terms of trends in child poverty outcomes over the period that coincided with the financial crisis, economic downturn and onset of austerity. Amongst young carers, there was a statistically significant increase in relative low income after housing costs of nine percentage points (from 24 to 33%) between 2005/07 and 2013/15. This compares with a two percentage point decline amongst other children. Multivariate findings confirm that trends in child poverty outcomes amongst young carers were highly differentiated from those of other children and that the association between child poverty and young caring status strengthened over the period under observation. Multivariate analysis further suggests that the increases in child poverty rates amongst young carers were not driven by purely “compositional” factors relating to demographic characteristics of the households in which young carers live and that labour market factors are particularly important in explaining the trends that are observed. Overall, the findings from the study raise concerns that young carers were disproportionately impacted by the patterns of stagnating real income and declining income from employment that characterized the period following the financial crisis, economic downturn and onset of austerity, whilst underlining the importance of housing costs as a factor in child poverty amongst young carers, and raising important questions regarding the ongoing effectiveness of social protection for this group.
    Keywords: child poverty; young carers; financial crisis; recession; austerity; KID/42136
    JEL: N0
    Date: 2019–01–14
  22. By: Philippe Levasseur (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - IRD - Institut de Recherche pour le Développement - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - AgroParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Katrin Erdlenbruch (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - IRD - Institut de Recherche pour le Développement - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - AgroParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Christelle Gramaglia (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - IRD - Institut de Recherche pour le Développement - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - AgroParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)
    Abstract: Poverty is a major determinant for pollution exposure, according to the US location choice literature. In this paper, we assess the impact of poverty on location choices in the European context. Our analysis is based on an original dataset of 1194 households living in polluted and non-polluted areas in three European countries: Spain, Portugal and France. We use instrumental variable strategies to identify the socioeconomic causes of location choices. We show that low education, wealth and income are main reasons for living in polluted areas. However, we also highlight several reasons why intermediate social groups (especially young couples) prefer living in polluted areas, such as greater housing surfaces or non-environmental amenities. Similarly, we show that middle-income households have lower move-out intentions than other income groups, next to households with strong community attachment or long lengths of residence in the area.
    Keywords: soil pollution exposure,residential choice,socioeconomic status,environmental inequalities,instrumental variables strategy.
    Date: 2019
  23. By: Giesecke, Matthias; Schuß, Eric (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "We estimate the effect of language training on subsequent employment and wages of immigrants under essential heterogeneity. The identifying variation is based on regional differences in language training availability that we use to instrument endogenous participation. Estimating marginal treatment effects along the distribution of observables and unobservables that drive individual participation decisions, we find that immigrants with higher gains are more likely to select into language training than immigrants with lower gains. We document up to 15 percent higher employment rates and 13 percent wage gains for immigrants with a high desire to participate but the positive returns vanish with increasing resistance to treatment. This pattern of selection on gains correlates with unobserved ability and motivation, promoting investments in education and job-specific skills that yield higher returns when complemented by language capital in the host country." (Autorenreferat, IAB-Doku)
    Keywords: Sprachunterricht, Einwanderer, Beschäftigungseffekte, Lohnhöhe, Sprachkenntnisse
    JEL: F22 J24 J61 J68 O15
  24. By: Henkel, Marcel; Seidel, Tobias; Südekum, Jens
    Abstract: Many countries shift substantial public resources across jurisdictions to mitigate spatial economic disparities. We use a general equilibrium model with multiple asymmetric regions, labor mobility, and costly trade to carve out the aggregate implications of fiscal transfers. Calibrating the model for Germany, we find that transfers indeed deliver smaller disparities across regions. This comes at the cost of lower national output, however, because activity is diverted away from core cities and towards remote areas with low productivity. But despite this output loss, national welfare may still increase, because the transfer scheme countervails over-congestion in large cities.
    Keywords: fiscal equalization,regional transfers,migration,spatial economics
    JEL: F15 R12 R13 R23
    Date: 2019
  25. By: Fernandes, Ana (University of Applied Sciences); Huber, Martin; Plaza, Camila (University of Basel)
    Abstract: The apprenticeship market is the earliest possible entry into the workforce in developed economies. Since early labor market shocks are likely magnified throughout professional life, avoiding mismatches between talent and occupations e.g. due to gender- or status-based discrimination appears crucial. This experimental study investigates the effects of applicant gender and its interaction with parental occupation on callback rates in the Swiss apprenticeship market, i.e. invitations to an interview, assessment center, or trial apprenticeship. Our correspondence test consists of sending out fictitious job applications with randomized gender and parental occupation to apprenticeship vacancies in four Swiss regions. We by and large find no robust evidence of differential treatment by employers, as gender and parental occupation do not affect callback rates in a statistically significant way in most cases.
    Keywords: Field Experiment; Correspondence Test; Discrimination; Gender; Parental Occupation
    JEL: C93 J16 J71
    Date: 2019–09–09
  26. By: Yosuke Jin; Sofia Amaral-Garcia
    Abstract: A well-functioning justice system is indispensable to business activity and to a society as a whole. Judicial efficiency measured by trial length, one of the essential factors in the effectiveness of the justice system, ensures contract enforcement, which is the basis of market transactions. Judicial efficiency is closely associated with accessibility to judicial services and the certainty of judicial decisions, raising people’s confidence. Portugal has undertaken numerous judicial reforms in the past, to the extent that it is difficult to disentangle and evaluate fully the effects of each reform. Overall, judicial efficiency remains weak, as reflected in the average trial length and bottlenecks in a number of courts. The data collection system, significantly developed as part of the reforms, can be more fully utilised for allocating court resources. The autonomy of the judicial council and court presidents can also be strengthened so that they can effectively manage resources. Individual judges can be better incentivised through performance-oriented evaluation. Competition in the legal profession sector can be enhanced while increasing the transparency of legal services. Also, alternative dispute resolution mechanisms can be developed further, meeting different needs for judicial services, in particular those on insolvency, while alleviating court congestion. Finally, building on past and ongoing reform efforts, the judicial system should continue to improve the capacity to undertake forensic investigations of economic and financial crimes.This Working Paper relates to the 2018 OECD Economic Survey of Portugal( tugal-economic-snapshot/)
    Keywords: allocation of court resources, alternative dispute resolution mechanisms, governance in the court system, Judicial efficiency, regulation in the legal service sector, trial length, workload assessment
    JEL: D02 K23 K40 K42
    Date: 2019–09–11
  27. By: Giuseppe Albanese (Bank of Italy); Guglielmo Barone (University of Padua); Guido de Blasio (Bank of Italy)
    Abstract: Economic roots of populism in Western countries are quite well understood but much less is known about policy implications. We study a large redistribution program that conveyed, within the EU cohesion framework, a relevant amount of money to some Italian municipalities. Our identification strategy is based on a spatial regression discontinuity design, which exploits the allocation rule of funds. We focus on the 2013 general elections and show that municipalities favored by redistribution exhibit a drop in populism of about 5% of the mean of the dependent variable.
    Keywords: populism, voting, redistribution
    JEL: D72 R58
    Date: 2019–09
  28. By: Chakraborty, Lekha (National Institute of Public Finance and Policy)
    Abstract: One of the most significant changes in the labour markets of OECD countries especially Sweden - over the past decades has been the reduction in the gender gaps in tertiary education and earnings, and the increasing female labour force participation rates. This paper analyses how Sweden has endeavored to reduce the gender gaps in labour markets and other socio-economic gender disparities using gender budgeting as a tool of accountability. The analysis revealed that despite progress made by Sweden in improving gender equality, there is still gender gap in a few areas. The empirical evidence suggests that Sweden follows a "dual approach" in gender budgeting within the Public Financial Management (PFM) practices. While "gender mainstreaming" within PFM is an essential tool for the ex-post budget analysis through a "gender lens", Sweden has realized that it must be combined with :ex-ante gender assessments" to frame specifically targeted budgetary allocations for tackling gender equality. This Swedish dual approach of gender budgeting within the PFM is a comprehensive model for gender budgeting within the OECD countries. A systematic evolution of :gender neutral" parental leave policy has also been a significant policy ingredient in Sweden towards increasing the work force participation of women.
    Keywords: Public Financial Management ; Gender Budgeting ; OECD
    JEL: E62 J16 H30
    Date: 2019–08
  29. By: Lucy Stokes (National Institute of Social and Economic Research); Alex Bryson (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor); David Wilkinson (University College London and National Institute of Social and Economic Research)
    Abstract: We consider the role played by school leaders in improving pupil attainment, going beyond previous studies by exploring the leadership roles of deputy and assistant heads and classroom-based teachers with additional leadership responsibilities. Using panel data for state-funded secondary schools in England for the period 2010/11-2015/16 we find academy schools typically employ more staff in leadership roles than community schools. Increases in the number of staff in leadership roles below headship level are associated, at least to some extent, with improved school performance in Single Academy Trusts, but this is not the case for schools that are part of Multi Academy Trusts. Our findings suggest that the potential benefits of distributing leadership within schools may only be realised when leaders have sufficient autonomy.
    Keywords: school performance; distributed leadership; leadership; school autonomy
    JEL: I21
    Date: 2019–09–01

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