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on Microeconomic European Issues |
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Issue of 2020‒01‒06
28 papers chosen by Giuseppe Marotta Università degli Studi di Modena e Reggio Emilia |
| By: | Bertacchini, Enrico; Venturini, Alessandra; Zotti, Roberto (University of Turin) |
| Abstract: | The paper aims to explore the drivers of immigrants’ participation to cultural and leisure activities in host countries. First, we discuss how the main analytical approaches on cultural participation can be extended to incorporate factors specific to migrants’ characteristics and behaviour, namely dimensions of proximity to the native population’s culture and the level of integration in the host society. Secondly, we investigate migrants’ propensity for consumption of cultural and leisure activities using data of a special national survey on Income and Living conditions (2011-2012) on foreign households in Italy. Italy represents an interesting case because it is a recent immigration country, making the analysis particularly suitable for studying the behaviour of first-generation immigrants. Our findings suggest that language proficiency, duration of stay and intention to remain in the host country significantly increase the probability to access various types of leisure and cultural activities. Interestingly, after controlling for standard individual predictors, several dimensions of an immigrant’s cultural background and proximity with the culture of the host society still significantly explain variation in cultural participation rates, confirming that cultural differences play a role in migrants’ cultural consumption choice. |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201925&r=all |
| By: | Amaral, Ernesto F. L. (Texas A&M University); Yen, Shih-Keng; Wang, Sharron Xuanren |
| Abstract: | Our aim is to provide an overview of associations between income inequality and intergenerational mobility in the United States, Canada, and eight European countries (Denmark, Finland, France, Germany, Italy, Norway, Sweden, and the United Kingdom). We analyze whether this correlation is observed across and within countries over time. Developed countries have been experiencing increases in inequality in recent decades, mostly due to a steep concentration of income at the top of the distribution. We investigate Great Gatsby curves and perform meta-regression analyses based upon several papers on this topic. Results suggest that countries with high levels of inequality tend to have lower levels of mobility. Intergenerational income elasticities have stronger associations with the Gini coefficient, compared to associations with the top one percent income share. Once models are controlled for methodological variables, country indicators, and paper indicators, correlations of mobility with the Gini coefficient lose significance, but not with the top one percent income share. This result is an indication that recent increases in inequality at the top of the distribution (captured by the top one percent income share) might be negatively affecting mobility on a greater magnitude, compared to variations across the income distribution (captured by the Gini coefficient). |
| Date: | 2019–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:8qmhw&r=all |
| By: | Francesco Andreoli; Javier Olivera Angulo |
| Abstract: | This paper provides evidence that attitudes towards redistribution are associated with the extent of generosity of the redistributive context experienced by the individual, as measured by the likelihood of receiving positive benefit transfers net of fiscal contribution. We estimate reduced form tax-benefit equations with the EU Statistics on Income and Living Conditions (EU-SILC), and match the implied parameters to the respondents of the European Social Survey (ESS) on the basis of their characteristics. The period of analysis is 2008-2016. For identification, we exploit exogenous cross-country and time variation in tax rules and market income to disentangle implications of exposure to tax-benefit rules on preferences for redistribution from the effects of changes in income inequality. We find that exposure to positive net benefits increases demand for redistribution by about 1.2%, the effect being robust across a variety of specifications. The signs of the effects are consistent with those predicted by a simple model where exposure to redistribution affects expectations for consumption, but risk averse individuals discount this effect by the nature of income shocks they are exposed to in the market. |
| Keywords: | Income Inequality, Preferences for redistribution, ESS, EU-SILC, tax-benefit system |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:642020&r=all |
| By: | Harka, Elona (University of Padova); Rocco, Lorenzo (University of Padova) |
| Abstract: | We use Italian municipality data on education and voter participation in national elections to estimate the effect of schooling on voter turnout. By adopting a fixed effect instrumental variable identification strategy, we find that education reduces voter turnout, more so in municipalities with higher income, lower social capital, which experienced political misconduct in the past and have low institutional quality. Analysis with individual data confirms these results. We discuss several mechanisms to rationalize our findings ranging from the opportunity cost of time to disaffection and civic protest. |
| Keywords: | voter turnout, education, Italy, protest |
| JEL: | I20 I26 D72 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12816&r=all |
| By: | David De La Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Frédéric Docquier (LISER, Esch-sur-Alzette, Luxembourg); Alice Fabre (AMSE, Université Aix-Marseille, France); Robert Stelter (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Medieval universities are one of the most original creations of Western civilization. Students were educated by a plurality of masters, and scholars came from all parts of Europe. In this paper, we build an original database of thousands of scholars from university sources, and map the academic market in the medieval and early modern periods. Using a random utility model, we show that scholars tend to agglomerate in the best universities, and that this phenomenon is more pronounced within the upper tail of the talent distribution (positive sorting). The quality of scholars is measured by their publications. Agglomeration and sorting patterns testify to a functioning academic market, made possible by political fragmentation and the use of a common language (Latin). Using counterfactual simulations, we show that market forces shaped the geographic distribution of upper-tail human capital across Europe, and contributed to bolstering European universities at the dawn of the Humanistic and Scientific Revolutions. |
| Keywords: | Upper-Tail Human Capital, Universities, Discrete choice model, Scholars, Publications, Agglomeration. |
| JEL: | N33 O15 I25 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2019019&r=all |
| By: | Laura Álvarez Román (Banco de España); Miguel García-Posada Gómez (Banco de España) |
| Abstract: | We estimate the long-run relationship between real housing prices of new dwellings and their fundamentals in a panel of the 50 Spanish provinces between 1985 and 2018. We find a cointegrating relationship between real house prices and per capita real income, unemployment rate and demographic density. According to our estimates, house prices were above their long-run equilibrium values in most provinces in 2007, during the peak of the previous boom, but there was substantial heterogeneity in the size of this gap. At the end of 2018 house prices were slightly below their estimated long-run equilibrium values in most provinces, but a few of them exhibited moderate positive deviations from those levels. Our results highlight the importance of modelling house prices at the regional level, as aggregate results may hide important heterogeneous developments. |
| Keywords: | house prices, fundamentals, cointegration, regional analysis |
| JEL: | R30 R31 R32 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1941&r=all |
| By: | Daunfeldt, Sven-Olov (HUI Research); Engberg, Erik (Growth Analysis); Halvarsson, Daniel (The Ratio Institute); Kokko, Ari (Copenhagen Business School); Tingvall, Patrik (Growth Analysis) |
| Abstract: | This paper examines the role of wholesale firms as facilitators of exports for small and medium-sized Swedish businesses. Our findings suggest that wholesale firms do facilitate access to difficult markets located outside Europe. For exports of a particular good to a given market, we observe a positive correlation between the export volumes of wholesale and manufacturing firms. Finally, we present evidence that supports a prediction from recent trade models with differentiated firms, namely that wholesale firms can facilitate exports for firms that are not themselves capable of direct exports. |
| Keywords: | Trade; Wholesale; Intermediation; Productivity; Manufacturing; Institutions |
| JEL: | D22 F14 F18 |
| Date: | 2019–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0328&r=all |
| By: | Vita, Gibran; Ivanova, Diana; Dumitru, Adina; Mira, Ricardo García; Carrus, Giuseppe; Stadler, Konstantin; Krause, Karen; Wood, Richard; Hertwich, Edgar (Norwegian University of Science and Technology) |
| Abstract: | Scientists and policymakers recognize the need to address consumption and lifestyles in order to reconcile environmental and development agendas. Sustainability-oriented grassroots initiatives emerge bottom-up to create opportunities for sustainable lifestyles; yet no prior assessment has ascertained the efficacy of their members to reduce carbon footprints (CF) and enhance well-being. We compare the CF of non-members and members of grassroots initiatives in the domains of food, clothing, housing and transport. We further compare the groups by testing the influence of socio-economic variables that are typically associated with both footprint and well-being. Here we show that grassroots initiative members have 16% lower total carbon footprint, and 43% and 86% lower carbon footprints for food and clothing respectively, compared to their “non-member” regional sociodemographic counterparts. We find a higher adoption of some energy-saving behaviors for initiative members such as greater active travel distance and lower indoor temperatures in the winter, yet no significant differences in the CF of housing and transport. Interestingly, increases in income are not associated with increases in the total CF of members, while the influence of income is confirmed for the CF of the total sample. Instead, factors such as age, household size, and gender better explain the variation in the domain-specific CFs of initiative members. Finally, members show higher life satisfaction compared to non-members and are 11–13% more likely to evaluate their life positively. Our results suggest that initiative members uncover lifestyle features that not only enable lower emissions, but also reconcile emissions with income and well-being. |
| Date: | 2019–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3at5z&r=all |
| By: | Marisa Hidalgo-Hidalgo (Universidad Pablo de Olavide); Pedro Albarrán (Universidad de Alicante); Iñigo Iturbe-Ormaetxe (Universidad de Alicante) |
| Abstract: | Many studies find a strong positive correlation between education and adult health. A subtler question is whether this correlation can be interpreted as a causal relationship. We combine multi-country data from two cross-sections of EU-SILC (European Union Statistics on Income and Living Conditions) and use exogenous variation in compulsory years of schooling across countries and cohorts induced by compulsory school laws. We find no causal effect of education on any of our several health measures. This finding is extremely robust to different changes in our main specification and holds using other databases. We discuss different explanations. |
| Keywords: | health; education; instrumental variables |
| JEL: | I12 I21 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:19.11&r=all |
| By: | Francisco González-Gómez (Department of Applied Economics. University of Granada; and Water Research Institute, Spain); Andrés J. Picazo-Tadeo (Department of Applied Economics II. University of Valencia; and Joint Research Group INTECO, Spain); Marta Suárez-Varela (Department of Economic Structure and Development Economics. Autonomous University of Madrid, Spain) |
| Abstract: | One of the forms of intervention in public services that lie beyond market forces is price control. While such regulation is justified by the need to achieve social goals, empirical evidence has shown that it is often used by politicians for electoral gain. This paper looks for evidence of opportunistic political behaviour in urban water pricing. Using data for 119 large Spanish cities covering the period 1998-2015, we find strong empirical evidence of the influence of the electoral cycle on water pricing insofar as price increases are significantly lower in the years preceding municipal elections than in non-pre-election years. Furthermore, outsourcing water service provision does not mitigate the relationship between the electoral cycle and water pricing. This result could be explained by incomplete transfer of control rights when the urban water service is outsourced, which allows politicians to use their right to supervise water tariffs to their advantage. |
| Keywords: | Electoral cycle; privatization; political opportunism; quantitative analysis; Spain; urban water pricing |
| JEL: | C23 D72 L33 L95 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1917&r=all |
| By: | Cândida Ferreira |
| Abstract: | This paper seeks to contribute to the analysis of the bank efficiency in the European Union in the aftermath of the recent crisis, using Data Envelopment Analysis (DEA) and considering a sample of 485 banks from all current EU member-states between 2011 and 2017. The results obtained confirm the existence of bank inefficiency,and that this inefficiency is mostly due to inefficient managerial performance and bad combinations of the considered bank inputs and outputs. The results also provide enough evidence of appropriate scale production and dynamic technological changes during the considered interval. Moreover, the results obtained using panel estimates to explain the bank total factor productivity changes allow us to conclude that the choices of the banks in terms of the fixed assets,the profit before tax to the average assets, as well as the ratio of the off-balance sheet items to total assets contribute positively to the productivity changes. On the other side, the ratio of the impaired loans to equity, and the bank interest margins are not in line with the total factor productivity changes of the EU banking sector. |
| Keywords: | EU banking sector; bank efficiency; Data Envelopment Analysis; Malmquist Index |
| JEL: | C33 D24 F36 G21 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp01092019&r=all |
| By: | Maarten van 't Riet (CPB Netherlands Bureau for Economic Policy Analysis); Arjan Lejour (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | This article analyses the recent rulings from the European Court of Justice in two Danish cases and examines their possible impact on international tax avoidance. These rulings regard limitations of tax benefits related to cross-border dividends and interest payments resulting from the interposition of holding companies in the EU. We conclude that from a legal perspective, the rulings demonstrate the alignment of international tax policies to combat tax avoidance between the EU and the OECD. This article analyses the recent rulings from the European Court of Justice in two Danish cases and examines their possible impact on international tax avoidance. These rulings regard limitations of tax benefits related to cross-border dividends and interest payments resulting from the interposition of holding companies in the EU. We conclude that from a legal perspective, the rulings demonstrate the alignment of international tax policies to combat tax avoidance between the EU and the OECD. |
| JEL: | H25 H26 H32 F23 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:406&r=all |
| By: | Egbert Jongen (CPB Netherlands Bureau for Economic Policy Analysis); Simon Rabaté (CPB Netherlands Bureau for Economic Policy Analysis); Tilbe Atav (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | The increase in the statutory retirement age reduced the number of pensioners. About one third of this drop results in additional employment. Net savings for the government are about 80% of direct savings on retirement (AOW) benefits. These are the main findings of the discussion paper ‘The effects of the increase in the retirement age in the Netherlands’. In this paper CPB studies the effects of the recent increases in the statutory retirement age. In the empirical analysis we use differences-in-differences, looking at the labour market outcomes of different birth cohorts that face different statutory retirement ages, and administrative data. The findings of this research have been used in the background document (in Dutch) ` Arbeidsparticipatie en gewerkte uren tot en met 2060 ’. |
| JEL: | J14 J26 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:408&r=all |
| By: | Long, Vicky (The Ratio Institute) |
| Abstract: | This study contributes to a meso (industry)-level understanding of the changing complexity of the general appropriability conditions in the digital era on the one hand, and the role of IPRs in that (appropriability) on the other hand, through a study of an industry sector – the Swedish video (computer) games industry – where digital distribution prevails and IPRs are important (copyrights in derivative works; trademarks in game titles).Combining analyses on EPO patent data, EUIPO trademark data, firm-level interviews and survey data, this study firstly identifies a paradoxical development: on the one hand, there is a clear digital take-off of IPRs’ propensity, namely firms tend to be more active in registering trademarks and valuing their copyrights (firm size and technological platform matter though). On the other hand, the digital traits – digitally induced high levels of interactivities (between supply and demand) and the digital division of a product (in provisions) – provide strong protections (to the innovation) from a technical standpoint, which offsets the importance of IPRs. Then what are IPRs for, in a technologically tight appropriability regime? This study further identifies that the increase of the importance of IPRs is not derived from IPRs’ protection function, but from their signalling function. In the digital era, new products easily disappear in the digital crowd, and IPRs can act as an important remedy by signalling the origin and quality of products as well as new innovations. This study provides a snapshot of the digital complexity pertinent to the issue of appropriability. |
| Keywords: | Intellectual Property Rights (IPRs); Appropriability; Video Games; Digitalization; Innovation |
| JEL: | L17 L24 O32 O34 |
| Date: | 2019–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0329&r=all |
| By: | Jack Britton (Institute for Fiscal Studies); Neil Shephard (Institute for Fiscal Studies and Harvard University); Laura van der Erve (Institute for Fiscal Studies and Institute for Fiscal Studies) |
| Abstract: | Income contingent loans are an increasingly popular tool for funding higher education. These loans have desirable features, but also potentially high overall government write-offs in the long run. This latter fact has been well documented, but little is known about how those write-offs vary by subgroups of borrowers. It is important to quantify this and also to understand how it is affected by the design of the higher education system. Estimation is challenging because it requires the projection of earnings of graduates many years into the future. In this paper, we use English Student Loan Company records with information on borrowing, course, and institution linked to offcial tax records that give earnings for up to 11 years after graduation. Our innovative econometric methods fuse administrative tax records of graduates since they left university with graduate survey data to allow us to extrapolate through the life cycle for the remainder of the loan contract. Our methodology is potentially applicable in a wide range of settings that uses incomplete administrative data. We estimate government subsidies through unpaid loans in England at the subject and institution level for the fi rst time, fi nding considerable heterogeneity in both. England is an interesting case study due to the signi cant reforms to higher education over the past twenty years. We show that these reforms have had strong implications for the distribution of government spending on higher education. |
| Date: | 2019–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:19/04&r=all |
| By: | Mari José Aranguren (Orkestra-Deusto and Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain)); Sergi Juan de Lucio (Universidad Antonio de Nebrija and Universidad de Alcalá. Pza. San Diego, s/n, 28801, Alcalá de Henares (Spain)); Raúl Mínguez (Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain)); Asier Minondo (Corresponding author. Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain)); Francisco Requena (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain)) |
| Abstract: | Using a large sample of export transactions in Spain over the period 2010-2017, we explore whether firms treat export markets as substitutes, complements, or independent. We find that an exogenous change in revenue in a firm's top export destination does not change its revenue in other destinations. A firm does not have either a larger probability to increase the number of export destinations when it experiences an exogenous drop in revenue in its top export destination. These results suggest that a shock in firms' top export market does not affect their decisions in other export markets. |
| Keywords: | exports, Spain, manufacturing |
| JEL: | F10 F14 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1918&r=all |
| By: | Lott, Yvonne; Abendroth, Anja |
| Abstract: | The present study analyzes workers' reasons for not working from home in German workplaces. We ask to what degree cultural barriers, besides technical barriers, are reasons for not working from home. The analyses are based on the second wave (2014-15) of the German Linked Personnel Panel (LPP). Factor analyses confirm the importance of technical and cultural barriers to working from home. Linear regression analyses show that because men work more often than women in areas where working from home is technically unfeasible, they are more likely to perceive job unsuitability of working from home. Women - independent of their status positions - are more likely not to work from home due to perceived cultural barriers. In workplaces with a pronounced ideal worker culture, employees are more likely to perceive cultural barriers to working from home. Finally, company-level work-life balance support diminishes perceived cultural barriers. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wsidps:211&r=all |
| By: | Paul Schumann; Lars Kuchinke |
| Abstract: | This paper examines the impact of fixed-term employment on the affective and cognitive well-being of employees operationalized by the subjective frequency of the basic emotions of happiness, sadness, fear and anger as well as life satisfaction. Longitudinal effects were analysed across 10 waves of sampling from the Socio-Economic Panel (SOEP), an annual representative survey in Germany. Random effects within between model (REWB) analyses were applied to examine differences between fixed-term and permanent workers as well as within effects of a change of contract type. In addition, the impact of the direction of contract type change was evaluated by examining subsamples with changes from fixed-term to permanent and vice versa. The results suggest that fixed-term employees’ affective well-being is lower, while cognitive well-being (or happiness) is hardly affected. A change from permanent to fixed-term contracts is associated with higher frequencies of self-reported fear and sadness experiences, while a change in the opposite direction results in lower frequencies. In addition, life satisfaction was only found to increase with the change from fixed-term to permanent employment. While the effect on fear is masked by job security, acting as a mediating factor, the effect on sadness remains significant when the model is controlled for job security. Thus, by treating cognitive and affective well-being as separate constructs this study provides new insights into the psychological costs of fixed-term contracts and reveals the strong impact of fixed-term employment on self-reported experiences of sadness. |
| Keywords: | fixed-term employment, affective well-being, job security, job change, cognitive well-being, life satisfaction, hybrid models |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1065&r=all |
| By: | Marzinotto, Benedicta; Wintr, Ladislav |
| Abstract: | This paper finds that employment protection legislation (EPL) had a significant impact on employment adjustment in Europe over 2001-2013, once we account for firm-size related exemptions to EPL. We construct a novel coverage-adjusted EPL indicator and find that EPL hinders employment growth at the firm level and increases the share of firms that remain in the same size class. This suggests that stricter EPL restrains job creation because firms fear the costs of shedding jobs during downturns. We do not find evidence that EPL has positive effects on employment by limiting job losses after adverse shocks. In addition to standard controls for the share of credit-constrained firms and the position in the business cycle, we also control for sizerelated corporate tax exemptions and find that these also significantly constrain job creation among incumbent firms. |
| Keywords: | employment protection,firm growth,job reallocation |
| JEL: | D22 J08 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhcom:52019&r=all |
| By: | D. Sonedda |
| Abstract: | A fundamental observation of the 21st century is the substantial drop in permanent employment occupations. In this paper, I seek to understand the geographic variation in apprenticeship and the consequent permanent employment rates. I exploit a unique setting in Italy to verify whether regional disparities in general education and production systems play a key role in determining vocational apprenticeship rates and in determining how this labor contract creates job matches that persist over time. I find that when the quality of the regional education system is good, the medium-run gains in terms of permanent employment can be moderate. However, a small number of active firms in a region limits the quantity of job entries as apprentices. |
| Keywords: | human capital;local labour market;education system;production system |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201916&r=all |
| By: | William Connell; Emmanuel Dhyne; Hylke Vandenbussche |
| Abstract: | This paper uses Business to Business (B2B) transaction level data. It shows that manufacturing firms that initially export via a wholesaler are much more likely to become direct exporters to the same destination in subsequent periods. Theoretically, we rationalize this finding by demonstrating how a connection to a wholesaler reduces uncertainty about the foreign demand. In the data we isolate the channel for demand learning from productivity spillovers. Non-exporting manufacturing firms, previously serving a foreign destination through an exporting wholesaler, have a much higher probability of becoming direct exporters to the same export market in subsequent periods. A connection to an exporting wholesaler results in a probability of exporting to the same destination that is six times higher than a comparable firm without any exposure to the foreign destination. |
| Date: | 2019–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:643224&r=all |
| By: | José Pedro Pontes; Ana Paula Buhse |
| Abstract: | This paper tries to explain differences in high education growth across European countries by using a coordinantion game (Stag Hunt) played by n candidates to college education. The payoff of enrolling in the university is positive only if there is "unanimity" i.e. if all candidates engage in higher education, being zero otherwise. This coordination requirement follows from the specialized nature of skills acquired through higher education, which can only be made profitable if each graduate is matched with graduate complementary specialists. This game has two strict Nash equilibria, where either all youngsters enter the university or none does. We show that the assessment of the factors that explain the differential growth of universities across countries is related with alternative ways of selecting a Nash equilibrium in the coordination game. By using empirical data, we can conclude that demographic trends and a cumulative causation factor play a major role in tertiary education growth, while the "wage premium" associated with college attendance also matters but is relatively secondary. "Tuition fees" and other direct financial costs do not appear to be a significant cause or hindrance of university development. |
| Keywords: | Higher Education; Regional Development; Coordination Games; Risk Dominance. |
| JEL: | C72 I20 O12 R11 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp01052019&r=all |
| By: | Mohrenweiser, Jens (Bournemouth University); Pfeifer, Christian (Leuphana University Lüneburg) |
| Abstract: | The paper uses novel data for Germany linking worker and establishment surveys with administrative social security data for all workers in the surveyed establishments. From these data, four variables are generated that describe a firm's wage structure and the positions of workers within it: (a) workers' own absolute wages, (b) workers' conditional internal reference wages within firms, (c) the conditional wage dispersion in firms, and (d) workers' conditional external reference wages across firms. Three empirical contributions are made: (1) the impact of firms' wage structures on workers' perceived wage fairness as an important organizational justice variable, (2) the impact of firms' wage structures on workers' job satisfaction and turnover intentions, and (3) the contribution of the fairness considerations on the overall effects of the wage structure variables on workers' job satisfaction and turnover intentions. The findings suggest that equity and social status considerations as well as altruistic preferences towards co-workers and inequality aversion are important, whereas the evidence for signal considerations is limited. |
| Keywords: | income comparison, inequality, fairness, job satisfaction, turnover |
| JEL: | D63 I31 J28 J31 J63 M52 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12821&r=all |
| By: | Bhuller, Manudeep (Dept. of Economics, University of Oslo); Kostøl, Andreas (W.P. Carey School of Business); Vigtel, Trond Christian (Frisch Centre) |
| Abstract: | How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi-experimental variation in internet use. This paper helps fill this gap using plausibly exogenous roll-out of broadband infrastructure in Norway, and comprehensive data on recruiters, vacancies and job seekers. We document that broadband expansions increased online vacancy-postings and lowered the average duration of a vacancy and the share of establishments with unfilled vacancies. These changes led to higher job-finding rates and starting wages and more stable employment relationships after an unemployment-spell. Consequently, our calculations suggest that the steady-state unemployment rate fell by as much as one-fifth. |
| Keywords: | Unemployment; Information; Job Search; Matching |
| JEL: | D83 J63 J64 L86 |
| Date: | 2019–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2019_010&r=all |
| By: | Arnaud Chevalier (Royal Holloway University of London); Olivier Marie (Erasmus University Rotterdam) |
| Abstract: | We study the link between parental selection and child criminality. Following the collapse of the communist regime in 1989, the number of births halved in East Germany. These cohorts became markedly more likely to be arrested as they grew up in reunified Germany. This is observed for both genders and all offence types. We highlight risk attitude as an important reason why certain women did not alter their fertility decisions during this time of economic uncertainty. We also show that this preference for risk was then strongly transmitted to their children which may in turn explain their high criminal propensity. |
| Keywords: | Fertility, crime, parental selection, economic uncertainty, risk attitude |
| JEL: | K42 J13 |
| Date: | 2019–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20190087&r=all |
| By: | Richard Blundell (Institute for Fiscal Studies and Institute for Fiscal Studies and University College London); Monica Costa Dias (Institute for Fiscal Studies and Institute for Fiscal Studies); David Goll (Institute for Fiscal Studies); Costas Meghir (Institute for Fiscal Studies and Yale University) |
| Abstract: | We investigate the role of training in reducing the gender wage gap using the UK-BHPS which contains detailed records of training. Using policy changes over an 18 year period we identify the impact of training and work experience on wages, earnings and employment. Based on a lifecycle model and using reforms as a source of exogenous variation we evaluate the role of formal training and experience in de ning the evolution of wages and employment careers, conditional on education. Training is potentially important in compensating for the effects of children, especially for women who left education after completing high school. |
| Keywords: | inequality; |
| Date: | 2019–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:19/08&r=all |
| By: | Sophie Pommet (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - Centre National de la Recherche Scientifique - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur); Jean-François Sattin (Prism - PRISM - Pôle de recherche interdisciplinaire en sciences du management - UP1 - Université Panthéon-Sorbonne, Université Paris 1 Panthéon-Sorbonne - [-]) |
| Abstract: | The duration of the VC incubation period is an important parameter for the profitability of venture capital (VC) firms. This paper uses a new database of VC-backed initial public offerings (IPOs) that are listed on French financial markets in order to highlight the importance of chief executive officer (CEO) human capital on the duration of the VC incubation period prior to the IPO. By using a duration model (Weibull model) we find that while CEOs' previous academic, technical and managerial experiences seem not to affect the timing of an IPO, the CEOs' entrepreneurial background is strongly negatively correlated to the duration of VC investment (it increases the hazard ratio by more than 100%) and thus fosters IPO exit. We thank the two anonymous referees for helpful comments on this work. Responsibility for any errors lies solely with the authors. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02374003&r=all |
| By: | James Banks (Institute for Fiscal Studies and Institute for Fiscal Studies and University of Manchester); Jonathan Cribb (Institute for Fiscal Studies and Institute for Fiscal Studies); Carl Emmerson (Institute for Fiscal Studies and Institute for Fiscal Studies); David Sturrock (Institute for Fiscal Studies and Institute for Fiscal Studies) |
| Abstract: | Delaying retirement has significant positive effects on the average cognition and physical mobility of women in England, at least in the short run. Exploiting the increase in employment of 60-63 year old women resulting from the increase in the female State Pension Age, we show that working substantially boosts performance on two cognitive tests, particularly for singles. We also find large improvements in measures of physical disability as a result of working: substantial increases in walking speed, and lower reports of mobility problems. However, for women in sedentary occupations, work reduces walking speed, due to lower levels of exercise. |
| Date: | 2019–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:19/13&r=all |