nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2020‒03‒02
25 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Tax Housing or Land? Distributional Effects of Property Taxation in Germany By Rafael Barbosa; Simon Skipka
  2. Skating on thin ice: New evidence on financial fragility By Jasmira Wiersma; Rob Alessie; Adriaan Kalwij; Annamaria Lusardi; Maarten van Rooij
  3. Economic Effects of Transportation Infrastructure Quantity and Quality: A Study of German Counties By Dennis Gaus; Heike Link
  4. Corruption red flags in public procurement: new evidence from Italian calls for tenders By Francesco Decarolis; Cristina Giorgiantonio
  5. Pensions and household savings: cross-country heterogeneity in Europe By Roger, Muriel; Savignac, Frédérique; d’Addio, Anna
  6. Class Size Effects in Higher Education: Differences Across STEM and Non-STEM Fields By Elif Kara; Mirco Tonin; Michael Vlassopoulos
  7. Consumer propensity to adopt PSD2 services: trust for sale? By Michiel Bijlsma; Carin van der Cruijsen; Nicole Jonker
  8. Modeling Risk Contagion in the Italian Zonal Electricity Market By Daniel Felix Ahelegbey; Emmanuel Senyo Fianu; Luigi Grossi
  9. Financial knowledge and trust in financial institutions By Carin van der Cruijsen; Jakob de Haan; Ria Roerink
  10. European industrial eco-efficiency under different pollutants' scenarios and heterogeneity structures. Is there a definite direction? By Kounetas, Konstantinos; Stergiou, Eirini
  11. Priority to Unemployed Immigrants? A Causal Machine Learning Evaluation of Training in Belgium By Cockx, Bart; Lechner, Michael; Bollens, Joost
  12. Efficiency of European Universities: A Comparison of Peers By Lars Herberholz; Berthold U. Wigger
  13. Where Does Multinational Profit Go with Territorial Taxation? Evidence from the UK By Dominika Langenmayr; Li Liu
  14. Markups in a dual labour market: the case of the Netherlands By Harro van Heuvelen; Leon Bettendorf; Gerdien Meijerink
  15. Inequalities and the individualization of wealth By Nicolas Frémeaux; Marion Leturcq
  16. International Labor Market Competition and Spousal Labor Supply Responses By Schone, Pal; Strom, Marte
  17. The impact of TLTRO2 on the Italian credit market: some econometric evidence By Lucia Esposito; Davide Fantino; Yeji Sung
  18. Keeping up with the Novaks? Income distribution as a determinant of household debt in CESEE By Hake, Mariya; Poyntner, Philipp
  19. Consensus and Ideology in Courts: an Application to the Judicial Committee of the Privy Council By Sofia Amaral-Garcia; Lucia Dalla Pellegrina; Nuno Garoupa
  20. Export-platform FDI and Brexit Uncertainty By Nicolo' Tamberi
  21. The Hidden Heterogeneity of Inflation Expectations and its Implications By Dräger, Lena; Lamla, Michael J.; Pfajfar, Damjan
  22. Statutory, Effective and Optimal Net Tax Schedules in Lithuania By Nerijus Cerniauskas; Alain Jousten
  23. Caught between Cultures: Unintended Consequences of Improving Opportunity for Immigrant Girls By Gordon B. Dahl; Christina Felfe; Paul Frijters; Helmut Rainer
  24. How Broadband Internet Affects Labor Market Matching By Manudeep Bhuller; Andreas R. Kostol; Trond C. Vigtel
  25. Speed Limit Enforcement and Road Safety By Bauernschuster, Stefan; Rekers, Ramona

  1. By: Rafael Barbosa; Simon Skipka
    Abstract: Despite its theoretical merits, Land Value Taxation (LVT) is not a common policy instrument in most countries. One of the main reasons is uncertainty regarding its distributional impacts. This uncertainty has not been settled by the literature, due to a lack of appropriate data at the household level. We overcome this obstacle by the construction of a unique household level dataset for a sample of German homeowners in 2017. The data collected allows us to study the differences in distributions of land and property values and the resulting distributional effects of implementing a LVT compared to a standard property tax. Our results are as follows. First, we find revenue neutral LVT rates to be around 0.6% in our sample. Second, we find the share of land value in property value on average to be 33% with considerable household heterogeneity, both within and between regions. Third, we find a LVT to be equally progressive if implemented at the federal level, but less progressive if implemented at the regional level, since, although land values are more concentrated than property values, they are not as strongly correlated with income. Quantitatively a revenue-neutral reform from a standard property tax to a LVT at the regional level would increase the average tax burden of the lowest income quintile of homeowners by 25%.
    Keywords: land, housing, land value taxation, property taxation, distributional assessment
    JEL: H20 H71 R20
    Date: 2019
  2. By: Jasmira Wiersma; Rob Alessie; Adriaan Kalwij; Annamaria Lusardi; Maarten van Rooij
    Abstract: This paper analyzes the financial fragility of Dutch households by examining their ability to raise 2,000 euro within a month in case of a financial emergency. Using data from a survey module fielded in 2016 in the CentERpanel, we document that one in seven Dutch households is financially fragile. Moreover, some demographic groups, specifically females, single person households, renters, low-income households, the lower educated and the unemployed are more likely to be financially fragile. While a majority of households would use their savings to cope with a financial emergency, a noticeable fraction of households would resort to other methods, such as relying on family and friends or borrowing using credit cards. Financial literacy, confidence in financially literacy skills and probability numeracy are all associated with financial fragility as well as with the methods people use to cope with an emergency. These results support previous findings on the importance of financial knowledge and numerical ability for financial decision making.
    Keywords: financial fragility; financial literacy; probability numeracy; personal finance; financial behavior
    JEL: D14 D91
    Date: 2020–01
  3. By: Dennis Gaus; Heike Link
    Abstract: In this paper, we analyze the impact of transportation infrastructure quantity and quality on regional economic production. We exploit an extensive panel dataset on the German county level (N=401), expressing the capital value and condition of highways between 2007 and 2016, to estimate a spatially extended translog production function. The spatial specification uses SLX and SDEM models, with various linear and nonlinear variants estimated using FGLS and GMM estimators accounting for endogeneity. We find, in line with existing research, a positive impact of the quantity of transport infrastructure both locally and supra-regionally. We furthermore provide evidence for the claim that insufficient maintenance and low infrastructure conditions significantly slow economic growth through a negative correlation between GDP and the quality grade of highways. A more detailed analysis, distinguishing different types of highways and constructions, confirms these findings and underlines the importance of the Bundesstraßen network as compared to the Autobahn system. The estimated impact of the quality of bridges is rather ambiguous and requires further research to achieve a better understanding.
    Keywords: Transport; Infrastructure; Public Capital; Economic Growth; Regional Development
    JEL: O18 R12 R42
    Date: 2020
  4. By: Francesco Decarolis (Bocconi University); Cristina Giorgiantonio (Bank of Italy)
    Abstract: This paper contributes to the analysis of quantitative indicators (i.e., red flags or screens) to detect corruption in public procurement. Expanding the set of commonly discussed indicators in the literature to new ones derived from the operating practices of police forces and the judiciary, this paper verifies the presence of these red flags in a sample of Italian awarding procedures for roadwork contracts in the period 2009-2015. Then, it validates the efficacy of the indicators through measures of direct corruption risks (judiciary cases and police investigations for corruption-related crimes) and indirect corruption risks (delays and cost overruns). From a policy perspective, our analysis shows that the most effective red flags in detecting corruption risks are those related to discretionary mechanisms for selecting private contractors (such as the most economically advantageous offer or negotiated procedures), compliance with the minimum time limit for the submission of tenders and subcontracting. Moreover, our analysis suggests that greater standardization in the call for tender documents can contribute to reducing corruption risks. From a methodological point of view, the paper highlights the relevance of prediction approaches based on machine learning methods (especially the random forests algorithm) for validating a large set of indicators.
    Keywords: public procurement, corruption, red flags
    JEL: D44 D47 H57 R42
    Date: 2020–02
  5. By: Roger, Muriel; Savignac, Frédérique; d’Addio, Anna
    Abstract: We address the question of whether the heterogeneity in savings is partly due to differences in pension wealth across individuals and across countries, using a European harmonised wealth survey (HFCS) combined with estimates of pension wealth (OECD). First, we find significant displacement effects of mandatory pension wealth on non-pension financial wealth at the mean, and a statistically significant crowd-out estimate on the probability of owning real estate property. Second, there is heterogeneity in the mean savings offset depending on age, risk attitudes and country. Third, the offset follows different patterns along the non-pension wealth distribution across countries. JEL Classification: D31, D91, H55
    Keywords: life cycle, pensions, social security, wealth
    Date: 2020–02
  6. By: Elif Kara (Bursa Uludag University); Mirco Tonin (Free University of Bolzano‐Bozen; CESifo; Dondena Centre for Research on Social Dynamics and Public Policy, Bocconi University;); Michael Vlassopoulos (University of Southampton; IZA)
    Abstract: In recent years, many countries have experienced a significant expansion of higher education enrolment. There is a particular interest among policy makers for further growth in STEM subjects, which could lead to larger classes in these fields. This study estimates the effect of class size on academic performance of university students, distinguishing between STEM and non-STEM fields. Using administrative data from a large UK higher education institution, we consider a sample of 25,000 students and a total of more than 190,000 observations, spanning six cohorts of first-year undergraduate students across all disciplines. Our identification of the class size effects rests on within student-across course variation. Overall, we find that larger classes are associated with significantly lower grades (effect size of -0.04) and the effect varies across academic fields, with no effect in non-STEM fields, and a large effect in STEM fields (-0.08). We further explore the heterogeneity of the effect along the dimensions of students' socio-economic status, ability, and gender, finding that in STEM disciplines smaller classes appear to be particularly beneficial for students from a low socio-economic background, with higher attainment in A-levels and to male students.
    Keywords: class size, higher education, student academic performance, STEM
    JEL: I21 I23 I28
    Date: 2020–02
  7. By: Michiel Bijlsma; Carin van der Cruijsen; Nicole Jonker
    Abstract: We study consumers' attitudes towards sharing payments data with incumbent and new providers of payment and account information services, and using their services. This is important, in order to understand the possible impact of the revised Payment Services Directive (PSD2) on the functioning of the retail payments market. We do so using a representative panel of Dutch consumers. We obtain a number of results. First, consumers' propensity to give consent for payments data usage is highest if the data user is their own bank. Only a minority would give consent to the usage of payments data to make a financial overview with personalised offers. Second, an explicit financial reward can tempt more people to use this service and to demand the service from a BigTech instead of one's own bank. Third, support for the usage of payments data by other banks and BigTechs to decide on loans is also positively related to financial incentives. Finally, the propensity to use the two new PSD2 services is driven by consumers' trust in the providers of these services. Consumers have more trust in their own bank than in BigTechs.
    Keywords: consumers; discrete choice models; PSD2; retail payments; trust; pricing
    JEL: C25 D12 E42 G21 G24 G28
    Date: 2020–02
  8. By: Daniel Felix Ahelegbey (Università di Pavia); Emmanuel Senyo Fianu (University Lüneburg); Luigi Grossi (Università di Verona)
    Abstract: Ensuring the security of stable, e?cient, and reliable energy supplies has intensi?ed the interconnections among energy markets. Imbalances between supply and demand due to operational failures, congestions and other sources of risk faced by these connections can lead to a system that is vulnerable to the spread of risk and its spill-over. The main contribution of this paper lies in the adoption of recently proposed network models in an innovative way, which enhances the proper analysis of these market connections. The case of the Italian energy market is studied because it is a clear example of a zonal market where risk can spread across connected zones. We estimate within-day and across-day zonal market interconnections with a multivariate time series of hourly prices, forecast demand and wind generation over the period 2010 – 2016 and evaluate the dynamics and persistence of zonal market connections examining the central market and the spread of risk in the zones of the Italian electricity market. Our ?ndings show that models based purely on prices give a better and more accurate explanation of risk contagion than models with exogenous regressors, revealing that the Central North and Central South zones are the most in?uential in terms of hub centrality for intraday and inter-day risk transmission, respectively, in the Italian energy market.
    Keywords: Bayesian inference, complex networks, energy prices, market e?ciency, systemic risk, volatility, zonal power market
    JEL: C11 C15 C32 C52 G01 Q41
    Date: 2020–02
  9. By: Carin van der Cruijsen; Jakob de Haan; Ria Roerink
    Abstract: Using fourteen years of data on Dutch consumers' trust in financial institutions, we find that financially literate consumers are more likely to trust banks, insurance companies and pension funds, and the competence and integrity of the managers of these institutions. This holds both for broad-scope and narrow-scope trust. Although trust in respondents' own financial institutions is significantly higher than general trust in financial institutions, both forms of trust are positively related. Financially knowledgeable people are more likely to trust the prudential supervisor. Finally, our results indicate that trust in the supervisor is positively related to trust in the financial sector.
    Keywords: trust; financial institutions; financial literacy; consumer survey
    JEL: D12 D83 E58 G21 G22
    Date: 2019–12
  10. By: Kounetas, Konstantinos; Stergiou, Eirini
    Abstract: Eco-efficiency has intensified the attention of policymakers in the last decades as the ability to create more goods and services with less impact on the environment consists an instrument towards sustainability. In this paper we utilize data of 14 industries from 27 European countries from 1995 to 2011 to estimate distinct objectives of economic and ecological performance by utilizing directional distance functions under a metafrontier framework. Our results reveal that the existence of a unified technology set causes large differences in the industrial eco-efficiency levels while energy intensive industries can be characterized as the most eco-inefficient .Although the speed of eco-efficiency convergence increases throughout the years, the case of CO2 emissions presents an erratic behavior compared to the other pollutants. Thus, a decomposition of industrial CO2 emissions can be considered as a further subject of research in our study in order to identify the drivers of this change through time.
    Keywords: Eco-efficiency, Metafrontier, Spillovers, Catch-up, Kaya Identity, European Industries.
    JEL: D24 Q5 Q53 Q57
    Date: 2020–02–04
  11. By: Cockx, Bart (Ghent University); Lechner, Michael (University of St. Gallen); Bollens, Joost (VDAB, Belgium)
    Abstract: We investigate heterogenous employment effects of Flemish training programmes. Based on administrative individual data, we analyse programme effects at various aggregation levels using Modified Causal Forests (MCF), a causal machine learning estimator for multiple programmes. While all programmes have positive effects after the lock-in period, we find substantial heterogeneity across programmes and types of unemployed. Simulations show that assigning unemployed to programmes that maximise individual gains as identified in our estimation can considerably improve effectiveness. Simplified rules, such as one giving priority to unemployed with low employability, mostly recent migrants, lead to about half of the gains obtained by more sophisticated rules.
    Keywords: policy evaluation, active labour market policy, causal machine learning, modified causal forest, conditional average treatment effects
    JEL: J68
    Date: 2019–12
  12. By: Lars Herberholz; Berthold U. Wigger
    Abstract: The European higher education landscape has become increasingly integrated causing competition among universities that is no longer bound to national borders. In view of this development, the present paper investigates the relative efficiency of 450 European universities between 2011 and 2014. The novelty of our approach lies in its extended coverage of university outputs and in the thorough peer-group selection process that accounts for high diversity in subject profiles. More specifically, assignment to peer-groups builds on proximity in subject space to ensure valid comparisons between universities. Exploring potential efficiency drivers, we uncover considerable effect heterogeneity between subject clusters, which is indicative of distinct technologies and calls for carefully designed policy measures. Yet institutional size and the ability to seek external funding are largely identified to be primary efficiency drivers.
    Keywords: university efficiency, peer selection, data envelopment analysis, clustering
    JEL: H52 I23 I28
    Date: 2020
  13. By: Dominika Langenmayr; Li Liu
    Abstract: In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that profits of UK subsidiaries in low-tax countries increased after the reform compared to subsidiaries of non-UK multinationals in the same countries, by an average of 2.1 percentage points. The increase in profit shifting also leads to increases in measured productivity of the foreign affiliates of UK multinationals of between 5 and 9 percent.
    Keywords: profit shifting, territorial tax system, multinational firms
    JEL: H25 H87 F23
    Date: 2020
  14. By: Harro van Heuvelen (CPB Netherlands Bureau for Economic Policy Analysis); Leon Bettendorf (CPB Netherlands Bureau for Economic Policy Analysis); Gerdien Meijerink (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: We follow the production function approach to assess markups, which requires the estimation of the output elasticity of a free input. In the basic setup we estimate a structural value added production function, using temporary contract hours as free input. We find rather stable markups in the Netherlands in the period 2006-2016. We show that extending the free variable incorrectly with fixed contract hours results in an increasing markup. Findings are robust to an alternative setup, in which a gross output function is specified and materials are used as free input. Implications for applied work and policy are discussed.
    JEL: J30 J31 J41 J62
    Date: 2020–02
  15. By: Nicolas Frémeaux; Marion Leturcq
    Abstract: We document the individualization of wealth in France between 1998 and 2015, using precise survey data on the property titles of assets. It is characterized by an increase in the share of wealth which is individualized by spouses (vs. jointly owned) and by an increase in the share of wealth held by singles. We show that the usual measures of wealth inequality, which allocate the same share of household wealth to each spouse or partner, overestimate the share of wealth held by women. This results in an underestimation of both the level and the growth of a) wealth inequality between individuals and b) the gender wealth gap. We argue for better consideration of the ownership status and intra-household distribution of wealth in the measurement of wealth inequality.
    Keywords: Wealth, Individualization, Wealth inequality, Gender wealth gap, Matrimonial property regime, France, PARITE HOMME - FEMME / GENDER PARITY, PATRIMOINE / WEALTH, MARIAGE / MARRIAGE, COUPLE / COUPLE, FRANCE / FRANCE
    Date: 2020–04–01
  16. By: Schone, Pal (Institute for Social Research, Oslo); Strom, Marte (Institute for Social Research, Oslo)
    Abstract: We study how the 2004 EU enlargement to Eastern European countries has affected employment, earnings and the sharing of home production among workers employed in the Building and Construction industry, and their wives. We use license requirements to divide workers into two groups who are more and less exposed to labor market competition. We find that non-licensed workers experience a fall in labor earnings relative to licensed workers after the EU enlargement. Increased wife's labor supply and earnings compensate almost 40 percent of the loss. We do not find a similar change in the division of labor in home production.
    Keywords: immigration, female employment, division of labor, parental leave
    JEL: J21 J22 J61
    Date: 2019–12
  17. By: Lucia Esposito (Bank of Italy); Davide Fantino (Bank of Italy); Yeji Sung (Columbia University)
    Abstract: This paper evaluates the impact of the second series of Targeted Longer-Term Refinancing Operations (TLTRO2) on the amount of credit granted to non-financial private corporations and on the interest rates applied to loans in Italy, using data on credit transactions, bank and firm characteristics and a difference-in-differences approach. We find that TLTRO2 had a positive impact on the Italian credit market, encouraging medium-term lending to firms and reducing credit interest rates. While firms overall benefited from TLTRO2 irrespective of their risk category and size, we document heterogeneous treatment effects. Regarding firms’ risk category, the effects on credit quantities are larger for low-risk firms while those on credit interest rate are larger for high-risk firms. Regarding firms’ size, smaller firms benefited the most both in terms of amounts borrowed and interest rates. Furthermore, our evidence suggests that monetary policy transmission of TLTRO2 is stronger for banks with a low bad debt ratio in their balance sheets.
    Keywords: Unconventional Monetary Policy, Pass-through, Policy Evaluation
    JEL: E51 E52
    Date: 2020–02
  18. By: Hake, Mariya; Poyntner, Philipp
    Abstract: This paper constitutes an initial attempt to shed light on the role of income distribution in household debt and financial market access in Central, Eastern and Southeastern Europe (CESEE). Using household-level data from the OeNB’s Euro Survey for the period 2009-2018, we address the question whether interpersonal comparisons (“keeping up with the CESEE Joneses" i.e. "the Novaks”) affect the probability of having and planning a loan. Applying multilevel probit modeling to take into account the hierarchical structure of the data, our results support the notion that higher income inequality is negatively correlated with the probability of having a loan at the bottom of the distribution, and positively at the top. We show this impact for almost all components of household debt, but evidence is strongest for mortgage, car and foreign currency loans. Interpersonal comparisons turn out to drive loan intentions, however, mainly on the very top of the income distribution.
    JEL: G0 D1 D3
    Date: 2020–02–11
  19. By: Sofia Amaral-Garcia; Lucia Dalla Pellegrina; Nuno Garoupa
    Abstract: This article argues that judges suppress dissent when it is costly to do so, and that the cost of dissent depends on the political dimension of the issue broached. It contends that judges who disagree may nevertheless try to safeguard integrity and legitimacy in political disputes by presenting a public impression of unity. We muster evidence from the United Kingdom, specifically, votes from the Judicial Committee of the Privy Council (JCPC) between 1998 and 2011. We demonstrate through statistical analysis that judges are likelier to suppress dissent in devolution cases, which are more political in character, than in Commonwealth appeals, which are more mundane in nature. We find that while consensus on domestic issues reflects the absence of conflict between judicial ideologies, judges have stronger conflicting positions on issues concerning devolution, but tend to suppress their propensity to dissent. This finding confirms that the Court wants to appear cohesive to give an image of greater authority on decisions of predominantly political content.
    Date: 2020–02
  20. By: Nicolo' Tamberi (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: This paper analyses the effect of Brexit uncertainty on export-platform FDI in the United Kingdom. First, I develop a partial equilibrium framework with heterogeneous firms that involves the trade policy uncertainty about access to the EU. Second, I derive a difference in differences equation that I test empirically using data on manufacturing FDI up to 2018. Results show that trade policy uncertainty negatively impacted on firms' decision to invest in export-platform activities in the UK, and there is some evidence that firms preferred to locate in the continent. I estimate the effect of trade policy uncertainty as a reduction of around 13.5% export-platform FDI projects.
    Date: 2020–01
  21. By: Dräger, Lena; Lamla, Michael J.; Pfajfar, Damjan
    Abstract: Using a new consumer survey dataset, we document a new dimension of heterogeneity in inflation expectations that has implications for consumption and saving decisions as well as monetary policy transmission. We show that German households with the same inflation expectations differently assess whether the level of expected inflation and of nominal interest rates is appropriate or too high/too low. The `hidden heterogeneity' in expectations stemming from these opinions is related to demographic characteristics and affects current and planned spending in addition to the Euler equation effect of the perceived real interest rate. Furthermore, these differences in opinions affect German households differently depending on whether they are renters or homeowners.
    Keywords: Macroeconomic expectations, monetary policy perceptions, survey microdata
    JEL: E31 E52 E58 D84
    Date: 2020–02
  22. By: Nerijus Cerniauskas (Bank of Lithuania, Vilnius University); Alain Jousten (University of Liège, IZA and NETSPAR)
    Abstract: We estimate effective and optimal net income tax schedules and compare them to estimated statutory rates for the case of Lithuania in the period 2014-2015. Values of effective net tax rates are estimated from the survey of EU Statistics on Income and Living Conditions, the statutory net tax rates are estimated with the European tax-benefit simulator Euromod, while optimal net taxes are calculated via Saez (2002) methodology. We find that the three net tax schedules are similar for employees in the middle of the income distribution. At the bottom of the income distribution, optimal net tax schedules suggest higher in-work benefits. The net tax schedules diverge substantially for the self-employed. At the top of the income distribution, where the majority of self-employed are concentrated, the self-employed are required to pay 15 cents less net taxes per euro than employees - and they effectively pay 29 cents less.
    Keywords: Optimal tax schedule, effective tax schedule, statutory tax schedule, taxes, transfers, employees, self-employed, Lithuania
    JEL: H2 H21
    Date: 2020–02–07
  23. By: Gordon B. Dahl; Christina Felfe; Paul Frijters; Helmut Rainer
    Abstract: What happens when immigrant girls are given increased opportunities to integrate into the workplace and society, but their parents value more traditional cultural outcomes? Building on Akerlof and Kranton's identity framework (2000), we construct a simple theoretical model which shows how expanding opportunities for immigrant girls can have the unintended consequence of reducing their well-being, since identity-concerned parents will constrain their daughter's choices. The model can explain the otherwise puzzling findings from a reform which granted automatic birthright citizenship to eligible immigrant children born in Germany after January 1, 2000. Using survey data we collected in 57 German schools and comparing those born in the months before versus after the reform, we find that birthright citizenship lowers measures of life satisfaction and self-esteem for immigrant girls. This is especially true for Muslims, where traditional cultural identity is particularly salient. Birthright citizenship results in disillusionment where immigrant Muslim girls believe their chances of achieving their educational goals are lower and the perceived odds of having to forgo a career for family rise. Consistent with the model, immigrant Muslim parents invest less in their daughters' schooling and have a lower probability of speaking German with their daughters if they are born after the reform. We further find that immigrant Muslim girls granted birthright citizenship are less likely to self-identify as German and are more socially isolated. In contrast, immigrant boys experience, if anything, an improvement in well-being and other outcomes we examine. Taken together, the findings point towards immigrant girls being pushed by parents to conform to a role within traditional culture, whereas boys are allowed to take advantage of the opportunities that come with citizenship. Alternative models can explain some of the findings in isolation, but are not consistent more generally.
    Keywords: identity, citizenship, immigration, integration
    JEL: Z10 J15 J16
    Date: 2020
  24. By: Manudeep Bhuller; Andreas R. Kostol; Trond C. Vigtel
    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
  25. By: Bauernschuster, Stefan (University of Passau); Rekers, Ramona (University of Passau)
    Abstract: We study the impact on road safety of one-day massive speed limit monitoring operations (SLMO) accompanied by media campaigns that announce the SLMO and provide information on the dangers of speeding. Using register data on the universe of police reported accidents in a generalized difference-in-differences approach, we find that SLMO reduce traffic accidents and casualties by eight percent. Yet, immediately after the SLMO day, all effects vanish. Further evidence suggests that people drive more slowly and responsibly on SLMO days to avoid fines; providing information on the dangers of speeding does not alter driving behavior in a more sustainable way.
    Keywords: traffic, law enforcement, safety, accidents
    JEL: H76 K42 R41
    Date: 2019–12

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