nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2020‒11‒30
33 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Are firms withdrawing from basic research? An analysis of firm-level publication behaviour in Germany By Krieger, Bastian; Pellens, Maikel; Blind, Knut; Schubert, Torben
  2. Later Retirement and the Labor Market Re-Integration of Elderly Unemployed Workers? By Wolfgang Frimmel
  3. Intergenerational correlation of self-employment in European countries By Velilla, Jorge
  4. Retaking Control of Local Public Services A Step-by-Step Strategy. By Alexandre Mayol; Stéphane Saussier
  5. The glass ceiling revisited: empirical evidence from the German academic career ladder By Heinrichs, Katrin; Sonnabend, Hendrik
  6. Carbon Offshoring: Evidence from French Manufacturing Companies By Damien Dussaux; Francesco Vona; Antoine Dechezleprêtre
  7. A spatial perspective on the Nordic fertility decline: the role of economic and social uncertainty in fertility trends By Nicholas Campisi; Hill Kulu; Julia Mikolai; Sebastian Klüsener; Mikko Myrskylä
  8. The Cushioning Effect of Immigrant Mobility: Evidence from the Great Recession in Spain By Cem Özgüzel
  9. Evaluation of indirect effects of place-based science-industry transfer policies: Case of French Technological Research Institutes By Ruben Fotso
  10. The Pass-Through of Temporary VAT Rate Cuts Evidence from German Retail Prices By Clemens Fuest; Florian Neumeier; Daniel Stöhlker
  11. Guess who's there: employment protection legislation and the degree of substitutability between labour contracts By Daniela Sonedda
  12. Beyond political divides: analyzing public opinion on carbon taxation in Switzerland By Laurent Ott; Mehdi Farsi; Sylvain weber
  13. Free movement of inventors: open-border policy and innovation in Switzerland By Cristelli, Gabriele; Lissoni, Francesco
  14. Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence By Benjamin Lochner; Christian Merkl; Heiko Stüber; Nicole Guertzgen
  15. Towards a life after retail? The relationship between human capital and career outcomes in retail. By Nilsson, Helena; Backman, Mikaela; Öner, Özge
  16. Perceived Pollution and Residential Sorting in Germany: Income May Not Sort, But it Helps to Escape By Rüttenauer, Tobias; Best, Henning
  17. National or Local? The Demand for News in Italy during COVID-19 By Stefano Castriota; Marco Delmastro; Mirco Tonin
  18. The effect of design protection on price and price dispersion: Evidence from automotive spare parts By Herz, Benedikt; Mejer, Malwina
  19. Does Local Bargaining Lead to Larger Wage Increases? The Impact of Decentralization of Collective Bargaining on the Level And Dispersion of Wages By Kauhanen, Antti; Maczulskij, Terhi; Riukula, Krista
  20. The Geographical Determinants of Within-City Heterogeneity in Urban Density By Melanie Krause; André Seidel
  21. Macroeconomic Determinants of Involuntary Part-Time Employment in Germany By Theresa Markefke; Rebekka Rehm
  22. The gender pay gap in the UK: children and experience in work By Monica Costa Dias; Robert Joyce; Francesca Parodi
  23. Credit Constraints, Labor Productivity and the Role of Regional Institutions: Evidence from Manufacturing Firms in Europe By Andres Rodriguez-Pose; Roberto Ganau; Kristina Maslauskaite; Monica Brezzi;
  24. Institutions and the uneven geography of the first wave of the COVID-19 pandemic By Andres Rodriguez-Pose; Chiara Burlina; ; ;
  25. Where Does Multinational Profit Go with Territorial Taxation? Evidence from the UK By Langenmayr, Dominika; Liu, Li
  26. Turning Opposition into Support to Immigration: The Role of Narratives By Cristina Cattaneo; Daniela Grieco
  27. Anatomy of Green Specialization: Evidence from EU Production Data, 1995-2015 By Filippo Bontadini; Francesco Vona
  28. What Are the Labor and Product Market Effects of Automation?: New Evidence from France By Philippe Aghion; Céline Antonin; Simon Bunel; Xavier Jaravel
  29. It's a Woman's World? Occupational Structure and the Rise of Female Employment in Germany By Bachmann, Ronald; Stepanyan, Gayane
  30. The Mediating Role of Urbanization on the Composition of Happiness By Cristina Bernini; Alessandro Tampieri
  31. How Effective Are Social Distancing Policies? Evidence on the Fight Against COVID-19 By Ulrich Glogowsky; Emanuel Hansen; Simeon Schächtele
  32. How Parents' skills affect their time-use with children? Evidence from an RCT experiment in Italy By Daniela Del Boca; Chiara Daniela Pronzato; Lucia Schiavon
  33. Understanding the Determination of Severance Pay: Mandates, Bargaining, and Unions By Stéphane Auray; Samuel Danthine; Markus Poschke

  1. By: Krieger, Bastian (ZEW - Leibniz Centre for European Economic Research); Pellens, Maikel (Ghent University); Blind, Knut (Fraunhofer Institute for System and Innovation Research ISI); Schubert, Torben (CIRCLE - Centre for Innovation Research)
    Abstract: Previous research has expressed concerns about firms engaging less in basic research. We contribute to this debate by studying trends in the scientific publishing activities of firms located in Germany. Our results do not confirm a declining trend in raw numbers with numbers indicating that firms’ aggregate volume of scientific publications stayed constant between 2008 and 2016. However, the number of publishing firms declined, in particular in high-tech and knowledge-intensive industries. Beyond that, we observe positive trends in publishing in basic research journals compared to journals focused on applied research, and publishing in collaboration with academic partners compared to publishing alone. Thus, our results paint an ambiguous picture. While they do not confirm a decrease in firms’ basic research engagement in the aggregate, the figures document a concentration of publishing activities on fewer firms. We argue that this concentration of basic research activities in firms may pose a threat to the longer term innovativeness of the German economy.
    Keywords: Corporate publishing; Basic research; R&D strategy
    JEL: O32 O33 O34 O36
    Date: 2020–11–19
  2. By: Wolfgang Frimmel
    Abstract: This paper studies the impact of raising the eligibility age of early retirement on the re-integration into the labor market of elderly unemployed workers. I exploit two Austrian pension reforms increasing the early retirement age step-wise for different quarter-of-birth cohorts. Empirical results based on Austrian administrative data reveal a substantial gender di erence in how unemployed workers are a ected by the policy change. While unemployed women only benefit little with shorter unemployment duration, modest higher re-employment probability as well as labor income after unemployment, unemployed men benefit in several aspects: although unemployment duration remains una ected, re-employment chances, labor income and participation in active labor market policies significantly increase. Elderly unemployed workers closer to their early retirement age are systematically assigned to programs increasing their job application and job search skills, while workers more than five years away from their early retirement age are more likely to participate in programs increasing their skills. The gender di erence may be explained by the nature of the pension reforms. From a policy perspective, these results suggest that increasing the early retirement age is not only a feasible way to improve the financial sustainability of public pension systems but also improves the re-integration of elderly unemployed male workers.
    Keywords: pension reform, early retirement, active labor market policies, unemployment
    JEL: J14 J26 J68
    Date: 2020–11
  3. By: Velilla, Jorge
    Abstract: We analyze the existence of a long-run intergenerational correlation of self-employment in Europe, providing cross-country comparative evidence. Using the 2011 special module on Intergenerational Transmission of the European Union Statistics on Income and Living Conditions (EU-SILC), we analyze the correlations between the current self-employment status of respondents, and that of their parents when respondents were 14 years old, in nine European countries. After controlling for both individual and macroeconomic observable factors, our estimates show that the intergenerational correlation of self-employment is strong between men and their fathers, while it is not robust for females. Furthermore, working in the same occupation as parents appears to be a strong channel of intergenerational correlation of self-employment.
    Keywords: Intergenerational transmission; self-employment; EU-SILC data
    JEL: J62
    Date: 2020
  4. By: Alexandre Mayol; Stéphane Saussier
    Abstract: In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to the firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. We show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests a step-by-step strategy, with local authorities first increasing their responsibilities in providing water services (i.e., increasing their price shares) before switching to direct public management.
    Keywords: Public-private partnerships; contract renewals; private management; water prices.
    JEL: H11 L33 L95
    Date: 2020
  5. By: Heinrichs, Katrin; Sonnabend, Hendrik
    Abstract: Women are underrepresented in leadership positions - academia is no exception. Using data on careers of doctoral graduates in Germany, we study gender differences in the decision to stay at university as a postdoctoral researcher and in the intention to become a professor. We find that gender gaps related to aiming for a professorship can be fully explained by observable characteristics other than gender. On the contrary, even after adding controls for an array of characteristics relevant to academic careers, we find female graduates to be 5.9 percentage points less likely to hold a postdoctoral position which allows them to qualify for professorship.
    Keywords: female labour supply,gender gap,higher education,glass ceiling
    JEL: I26 J16 J24
    Date: 2020
  6. By: Damien Dussaux; Francesco Vona (Observatoire français des conjonctures économiques); Antoine Dechezleprêtre
    Abstract: Concerns about carbon offshoring, namely the relocation of dirty tasks abroad, undermine the efficiency of domestic carbon mitigation policies and might prevent governments from adopting more ambitious climate policies. This paper is the first to analyse the extent and determinants of carbon offshoring at the firm level. We combine information on carbon emissions, imports, imported emissions and environmental policy stringency based on a unique dataset of 5,000 French manufacturing firms observed from 1997 to 2014. We estimate the impact of imported emissions on firm’s domestic emissions and emission intensity using a shift-share instrumental variable strategy. We do not find compelling evidence of an impact of carbon offshoring on total emissions, but show that emission efficiency improves in companies offshoring emissions abroad, suggesting that offshored emissions are compensated by an increase in production scale. The effect is economically meaningful with a 10% increase in carbon offshoring causing a 4% decline in emission intensity. However, this effect is twice as small as that of domestic energy prices and, importantly, does not appear to be driven by a pollution haven motive.
    Keywords: Carbon offshoring; CO2 emissions; Emissions intensity; Import competition; Energy prices
    JEL: F18 F14 Q56
    Date: 2020
  7. By: Nicholas Campisi (Max Planck Institute for Demographic Research, Rostock, Germany); Hill Kulu (Max Planck Institute for Demographic Research, Rostock, Germany); Julia Mikolai (Max Planck Institute for Demographic Research, Rostock, Germany); Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: -Since 2010, some of the Nordic countries have experienced fertility declines down to unprecedented levels. Fertility decline in the Nordic countries was unexpected for most experts, considering that these countries were not heavily affected by the 2008 economic recession which was related to fertility declines in other European countries. Researchers have sought to understand why fertility is declining in these countries but have so far paid little attention to the spatial dimension of this process, despite evidence of large spatial variation of fertility. This paper contributes new understanding to the role of space in Nordic fertility changa and how the uncertainty perspective is related to spatial patterns of fertility. We apply advanced spatial panel models to data covering 1,099 municipalities in Denmark, Finland, Norway, and Sweden to separate out spatial variation and temporal variation. Our models use both economic (employment, income) and social (partnership dissolution, voting) measures of uncertainty to explore how uncertainty is related to fertility. Results show that fertility levels and trends by age vary substantially by level of urbanization. Differences in uncertainty by age appear essential to spatial variation – while social contexts are related to variation at all ages, economic measures are more related to fertility under age thirty than over age thirty. In addition, stability in fertility over age thirty seems to be an important buffer for the overall rate of total fertility decline, especially in rural municipalities.
    Keywords: Denmark, Finland, Norway, Sweden
    JEL: J1 Z0
    Date: 2020
  8. By: Cem Özgüzel (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper provides the first direct evidence on how the geographical mobility of immigrants cushions natives during a labor demand shock. Spain was one of the hardest-hit economies during the Great Recession. Faced with a drop in the local labor demand, immigrant workers moved within Spain or left the country, generating significant decreases in local labor supply. Focusing on this episode, I use microdata from municipal registers and longitudinal Spanish administrative data to study the effects of outflow of the immigrant population from provinces on the wages and employment of the natives. I build a shift-share instrument based on the past settlements of the immigrant population across Spain to instrument outflows and argue for a causal relationship. I find that outflow of immigrants slowed down the decline in employment and wage of natives, especially of those with higher substitutability with immigrants. Moreover, I find that increased transitions from unemployment and inactivity to employment drive the positive employment effects, while wage effects are limited to those who were already employed. These findings reveal that the higher geographical mobility of immigrants cushions the natives during a demand shock.
    Date: 2020–11
  9. By: Ruben Fotso (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824, F-42023 Saint-Etienne, France)
    Abstract: When it comes to evaluating the causal effect of public policies on corporate performance, most studies tend toexclusively focus on targeted (treated) firms as if they have no relationship to the rest of the economy. Yet, public policies are highly likely to indirectly influence non-targeted firms due to the relationships they have with the targeted firms. This paper aims to fill this gap by evaluating the indirect causal effect of a new French science-industry transfer policy on the financial and employment variables of non-targeted companies. To do so, it focuses on French Technological Research Institutes (TRIs) which are science-industry collaborations based on technological platforms that bring together SMEs, large companies, universities and public research bodies with the goal of accelerating the transfer of knowledge towards firms and generating spillovers inside and outside the scheme. Based on geographical economics literature, it can be assumed that indirect effects tend to be spatially concentrated. By comparing a local untreated company to a non-local untreated company, therefore, using a difference-in-differences method applied to panel data (2008-2016) and combined with a double matching at the department level (NUTS 3) and at the firm level, it can be seen that non-beneficiary companies, located in the treated French department significantly improve their financial performance (turnover, financial autonomy) compared to control companies located in the control departments. The dynamics of employment variables are a little more complex. A negative significant effect is observed on the proportion of managers at the beginning of treatment and a positive significant effect is noticed later at the end of the period of observation. Analysis of the dynamics of the effects indicates that performance does not improve immediately after the treatment but later in time.
    Keywords: Indirect effect, impact evaluation, difference-in-differences approach, SMEs, spillovers
    JEL: C21 C53 D04 H23
    Date: 2020
  10. By: Clemens Fuest; Florian Neumeier; Daniel Stöhlker
    Abstract: On 1 July 2020, value added tax (VAT) rates were reduced in Germany to fight the economic consequences of the Corona pandemic. The VAT rate reduction is temporary as rates will return to their previous level on 1 January 2021. We study the effects of the temporary VAT rate cut on German supermarket retail prices using an extensive webscrapped data set covering the daily prices of roughly 190,000 products. To identify the causal price effects, we compare the development of prices in Germany to those in Austria. Our findings indicate a nearly full pass-through of the VAT rate reduction on prices. On average, prices in German supermarket retail decreased by 2% after the implementation of the VAT rate reduction. We also provide evidence that prices in more competitive product markets decreased to a larger extent.
    Keywords: Value added tax, tax incidence, price effects, decoy, political alignment, competition
    JEL: E31 H22 H25
    Date: 2020
  11. By: Daniela Sonedda (University of Piemonte Orientale)
    Abstract: Employment protection legislation may affect the degree of substitutability among different types of labour contracts by changing the individuals sorting into jobs and firms screening in and out jobs. Using administrative data, we document this substitutability in the context of a labour market reform that changed the informative content of individual dismissals and provided incentives to training contracts in Italy in 2012. We present and simulate a model that shows that individual's and firm's behaviour have important implications for the impact of policies that lower firing costs. A more flexible employment protection legislation regime combined with incentives to training contracts reduces inefficiencies of job sorting and screening due to asymmetric information.
    Keywords: Human Capital, Employment Protection Legislation, Asymmetric-information
    JEL: J24 J63 J68
    Date: 2020–07
  12. By: Laurent Ott; Mehdi Farsi; Sylvain weber
    Abstract: This paper investigates public opinion on the Swiss CO2 levy and its 2020 revision by using a discrete choice experiment answered by a sample of 586 respondents living in Switzerland. The experiment is designed to elicit citizen preferences among various taxation attributes and is followed by a referendum voting experiment on various CO2 levy proposals. Based on latent class modeling approaches, we find that the population is composed by two distinct but relatively preference profiles: Environmentalists and Neutrals. Respondents belonging to the first group tend to favor higher carbon tax rates and a redistribution of proceeds benefiting low-income individuals, whereas those in the second group prefer lower rates and a uniform redistribution of proceeds across all taxpayers. Findings from the voting experiment point to a general support among the Environmentalists, but an uncertain approval from the Neutral group.
    Keywords: Carbon tax, preference heterogeneity, public opinion, latent class, discrete choice experiment.
    JEL: C25 D72 D78 H23 Q48 Q54
    Date: 2020–11
  13. By: Cristelli, Gabriele; Lissoni, Francesco
    Abstract: We study the innovation effects of the Agreement on the Free Movement of Persons (AFMP), signed by Switzerland and the EU in 1999. Using geocoded patent data, complemented by matched inventor-immigrant-census records, we identify a large number of cross-border inventors (CBIs), commuters from neighbouring countries working in Swiss R&D labs. We show that, during the AFMP implementation phase, the influx of CBIs increased differentially across regions at different driving distances from the border. That caused a 24% increase in patents, mostly due to large and medium patent holders (as opposed to very large ones) and to inventor teams mixing CBIs and natives. The latter were not displaced and increased their productivity, thanks to complementarity between their knowledge assets and those of CBIs.
    Keywords: Immigration, Innovation, Patents, Inventors, Free Movement of Persons
    JEL: F22 J61 O31 O33
    Date: 2020–11
  14. By: Benjamin Lochner; Christian Merkl; Heiko Stüber; Nicole Guertzgen
    Abstract: Using the German IAB Job Vacancy Survey, we look into the black box of recruiting intensity and hiring practices from the employers’ perspective. Our paper evaluates three important channels for hiring —namely vacancy posting, the selectivity of hiring (labor selection), and the number of search channels— through the lens of an undirected search model. Vacancy posting and labor selection show a U-shape over the employment growth distribution. The number of search channels is also upward sloping for growing establishments, but relatively flat for shrinking establishments. We argue that growing establishments react to positive establishment-specific productivity shocks by using all three channels more actively. Furthermore, we connect the fact that shrinking establishments post more vacancies and are less selective than those with a constant workforce to churn triggered by employment-to-employment transitions. In line with our theoretical framework, all three hiring margins are procyclical over the business cycle.
    Keywords: recruiting intensity, vacancies, labor selection, administrative data, survey data
    JEL: E24 J63
    Date: 2020
  15. By: Nilsson, Helena (Center of Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Jönköping, Sweden.); Backman, Mikaela (Center of Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Jönköping, Sweden.); Öner, Özge (Cambridge University, Cambridge, U.K.)
    Abstract: The retail sector accounts for a large share of employment in many economies, and many young individuals regard the retail sector as a steppingstone in the labor market. As the retail sector comprises various types of employment and diverse tasks, those employed in the retail sector are able to transition across different roles. Retail firms, however, often experience high labor turnover, which is costly to firms. This paper addresses how the human capital of full-time retail employees relates to labor turnover. We study individuals working in the retail sector between 1990 and 2018 and analyze how their human capital is associated with their likelihood of remaining in the same establishment and/or in the retail sector at large. Results indicate that firm-specific human capital decreases the probability of quitting, while formal education has the opposite effect. Industry experience and specific retail education, however, decreases the probability of leaving an establishment.
    Keywords: retail; human capital; experience; education; career outcomes; Sweden
    JEL: J24 J62 L81
    Date: 2020–11–17
  16. By: Rüttenauer, Tobias; Best, Henning
    Abstract: The disproportionate exposure of minorities and socio-economically disadvantaged households to environmental pollution is often explained by selective migration or sorting mechanisms. Yet, previous empirical findings remain inconclusive. In this study, we offer an explanation for mixed findings by focusing on the selective out-migration process triggered by environmental pollution. We use household-level panel data of the German SOEP from 1986 to 2016 and within-household estimates of correlated random effects probit models. More precisely, we test if the subjective impairment through air pollution selectively affects the probability of out-migration according to income and minority status. We find that perceived air pollution has a stronger effect on the likelihood of moving for households experiencing an income increase. Surprisingly, we find only small and imprecise differences between native German and first generation immigrant households, and a relatively large proportion of this difference can be explained by income. This indicates that selective out-migration processes substantially differ from selective in-migration processes, and environmental inequality research should more carefully distinguish the single steps of neighbourhood sorting.
    Date: 2020–11–09
  17. By: Stefano Castriota (Department of Political Sciences, University of Pisa); Marco Delmastro (Autorità per le Garanzie nelle Comunicazioni (Agcom)); Mirco Tonin (Faculty of Economics and Management, Free University of Bolzano‐Bozen)
    Abstract: Looking at TV news viewership in Italy during the COVID-19 pandemic using actual consumption data, we investigate whether demand for national and local news depends on national or local epidemiological developments, as measured by the number of new positives or the number of currently positives in any given day. Exploiting the fact that the seriousness of the pandemic displays a great deal of variation among the different regions, we find that at the regional level demand for both national news and, more surprisingly, local news responds to the national epidemiological developments rather than to the local ones. This has implications for the incentives faced by local politicians to take preventive action.
    Keywords: News; Local news; TV; COVID-19
    JEL: D12 L82
    Date: 2020–11
  18. By: Herz, Benedikt; Mejer, Malwina
    Abstract: The design right is a widely used but poorly understood intellectual property right that allows the protection of products’ aesthetics and outer appearances. We study the influence of design right protection on price by exploiting cross-country differences in the scope of protection in the European automotive spare parts market: In some countries, repair parts are exempted from design protection, while in others they are not. Based on detailed price data, our difference-in-differences estimates imply that design protection increases prices by about 5–8%, with large differences between carmakers. We then link our findings to the literature on deviations from the law of one price. We document large cross-country price deviations for identical spare parts and provide evidence that a part of these price deviations can be explained by the lack of harmonization of design right protection in combination with carmakers’ pricing-to-market strategies.
    Keywords: design right, design patent, repair clause, law of one price, price dispersion, European car market, automotive aftermarket, spare parts
    JEL: F15 K21 L11 L62 O34
    Date: 2020–06–01
  19. By: Kauhanen, Antti; Maczulskij, Terhi; Riukula, Krista
    Abstract: Abstract There has been a strong tendency towards decentralization of collective bargaining in European countries. This means that wage negotiations have moved closer to the individual enterprise. Centralized collective bargaining systems have traditionally been seen to reduce wage inequality, which has attracted the attention to the effects of decentralization on both the level of wages and wage dispersion. European studies show the decentralization leads to higher wage increases. This is an unambiguous finding in the literature. However, the results on wage dispersion are much more varied and no clear results emerge. In Finland, the decentralization of collective bargaining has taken place through so-called local pots. These are wage increases that can be allocated locally. The results of a new Finnish study show that wage increases have been higher when the contract has included local pots. The local pots have increased the dispersion of wage increases for white-collar employees and reduced it for blue-collars. This difference in the outcomes is likely due to different preferences concerning wage dispersion and local bargaining between these two employee groups.
    Keywords: Decentralization, Collective agreements, Wage bargaining, Wage increase, Wage dispersion
    JEL: J31 J51 J52
    Date: 2020–11–11
  20. By: Melanie Krause; André Seidel
    Abstract: This paper studies the impact of building land limitations on within-city variation in urban density and its components crowding, residential coverage, and building height. We utilise geographical obstacles like steep inclines or water bodies as exogenous source of building land limitations within parts of cities. We combine novel high resolution (10m x 10m) geo-spatial data on geography, building height and footprints with Norwegian register data. Our unit of observation are neighborhoods with an average size of 0.3 sqkm. The data indicates a high heterogeneity among the components of urban density for similar total density levels. Our main finding is that local building land limitations increase local urban density and all of its components, with the effect being particularly strong for building heights. Hence, we find support for policies that use building land restrictions to alter urban density within parts of cities. Moreover, we show that geography is another important source of inner-city heterogeneity in urban density, in addition to distance to the city center.
    Keywords: urban density, building heights, geography, neighborhoods, inner-city differences
    JEL: R23 R31 R21 C80
    Date: 2020
  21. By: Theresa Markefke; Rebekka Rehm
    Abstract: In times of economic crisis, employers in the US and UK reduce their employees' working hours, which results in a higher incidence of involuntary part-time work (IVPT). German labor market regulations make hours adjustments more difficult as employers need employees' consent. Against the background of this institutional difference, we use a panel regression frame- work that exploits federal state level variation to investigate the influence of cyclical, structural and institutional factors on the incidence of IVPT in Germany. In most sectors, unemployment is a key driver of IVPT. Since unilateral downward hours adjustments are hampered by regulation, we investigate the relevance of different channels that potentially explain the positive influence of unemployment on IVPT. It mainly stems from shifts in bargaining positions over the business cycle and from added labor supply on the intensive margin, that is, extended supply of already employed workers.
    Date: 2020–11–16
  22. By: Monica Costa Dias; Robert Joyce; Francesca Parodi
    Abstract: Despite some convergence, the gender pay gap remains large. In this study, we use BHPS-USoc data to document the evolution of the gender pay gap in the UK over the past 25 years and its association with fertility. We also investigate the potential role of various differences in career patterns between men and women and how they change with the arrival of the first child. We show that differences in accumulated years of experience and in working hours play an important role. We develop an empirical wage model to estimate the causal effect of working experience in the wages of women. Estimates from this model are then used to simulate counterfactual scenarios where women always work full-time if at all and where women work as much as men do. We find that differences in working experience can explain up to two thirds of the existing gender pay gap of college graduates 20 years after the first childbirth, and that the gap is largely driven by differences in working hours. The role of working experience is more moderate for individuals with no college education, but it can still account for about one third of the overall gender wage gap 20 years after childbirth.
    Keywords: Labour Supply, Wages, Gender Pay Gap, Human Capital
    JEL: D10 J16 J18 J24
    Date: 2019
  23. By: Andres Rodriguez-Pose; Roberto Ganau; Kristina Maslauskaite; Monica Brezzi;
    Abstract: This paper examines the relationship between credit constraints − proxied by the investment-to-cash flow sensitivity – and firm-level economic performance − defined in terms of labor productivity – during the period 2009-2016, using a sample of 22,380 manufacturing firms from 11 European countries. It also assesses how regional institutional quality affects productivity at the level of the firm both directly and indirectly. The empirical results highlight that credit rationing is rife and represents a serious barrier for improvements in firm-level productivity and that this effect is far greater for micro and small than for larger firms. Moreover, high-quality regional institutions foster productivity and help mitigate the negative credit constraints-labor productivity relationship that limits the economic performance of European firms. Dealing with the European productivity conundrum thus requires greater attention to existing credit constraints for micro and small firms, although in many areas of Europe access to credit will become more effective if institutional quality is improved.
    Keywords: Credit Constraints; Labor Productivity; Manufacturing Firms; Regional Institutions; Cross-Country Analysis; Europe
    JEL: C23 D24 G32 H41 R12
    Date: 2020–11
  24. By: Andres Rodriguez-Pose; Chiara Burlina; ; ;
    Abstract: This paper examines the uneven geography of COVID-19-related excess mortality during the first wave of the pandemic in Europe, before assessing the factors behind the geographical differences in impact. The analysis of 206 regions across 23 European countries reveals a distinct COVID-19 geography. Excess deaths were concentrated in a limited number of regions —expected deaths exceeded 20% in just 16 regions— with more than 40% of the regions considered experiencing no excess mortality during the first six months of 2020. Highly connected regions, in colder and dryer climates, with high air pollution levels, and relatively poorly endowed health systems witnessed the highest incidence of excess mortality. Institutional factors also played an important role. The first wave hit regions with a combination of weak and declining formal institutional quality and fragile informal institutions hardest. Low and declining national government effectiveness, together with a limited capacity to reach out across societal divides, and a frequent tendency to meet with friends and family were powerful drivers of regional excess mortality.
    Keywords: COVID-19, pandemic, institutions, regions, Europe
    JEL: H75 O43 R58
    Date: 2020–11
  25. By: Langenmayr, Dominika; Liu, Li
    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
  26. By: Cristina Cattaneo (RFF-CMCC); Daniela Grieco (University of Milan)
    Abstract: The way we collectively discuss migration shapes citizens’ perceptions of migrants and their influence on our society. This paper investigates whether a narrative about the positive impact of immigrants on the hosting economy affects natives’ behaviour towards migrants. To shed light on the underlying mechanism, we present a simple theoretical framework that models the relationship between beliefs, attitude and behaviour and identifies the sequential channels through which a narrative might be useful in changing attitude and behaviour. We test its predictions through an online survey experiment, where we deliver UK natives a favourable narrative about migrants. Treated subjects revise their beliefs about migrants and exhibit significantly more positive self-reported attitudes and more pro-migrant behaviour. Moreover, they update beliefs in a way that gives support to the existence of confirmation bias.
    Keywords: Immigration, Survey experiment, Narrative, Attitudes, Beliefs
    JEL: C90 D83 F22 J15
    Date: 2020–11
  27. By: Filippo Bontadini; Francesco Vona (Observatoire français des conjonctures économiques)
    Abstract: We study green specialization across EU countries and detailed 4-digit industrial sectors over the period of 1995-2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usages. Our exploratory analysis reveals important structural properties of green specialization. First, green production is highly concentrated, with 13 out of 119 4-digit industries accounting for 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries tend to specialize in either green or brown sectors. This suggests that the distributional effect of European environmental policies can be large. Third, green specialization is highlypath dependent, but it is also reinforced by the presence of non-green capabilities within the same sector. This helps explain why economies with better engineering and technical capabilities have built a comparative advantage in green production.
    Keywords: Green goods; Green specialization; Revealed comparative advantage; Complementarity; Path dependency
    JEL: Q55 L60
    Date: 2020
  28. By: Philippe Aghion (Harvard University); Céline Antonin (Observatoire français des conjonctures économiques); Simon Bunel; Xavier Jaravel
    Abstract: We use comprehensive micro data in the French manufacturing sector between 1994 and 2015 to document the effects of automation technologies on employment, wages, prices and profits. Causal effects are estimated with event studies and a shift-share IV design leveraging pre-determined supply linkages and productivity shocks across foreign suppliers of industrial equipment. At all levels of analysis —plant, firm, and industry —the estimated impact of automation on employment is positive, even for unskilled industrial workers. We also find that automation leads to higher profits, lower consumer prices, and higher sales. The estimated elasticity of employment to automation is 0.28, compared with elasticities of 0.78 for profits, -0.05 for prices, and 0.37 for sales. Consistent with the importance of business-stealing across countries, the industry-level employment response to automation is positive and significant only in industries that face international competition. These estimates can be accounted for in a simple monopolistic competition model: firms that automate more increase their profits but pass through some of the productivity gains to consumers, inducing higher scale and higher employment. The results indicate that automation can increase labor demand and can generate productivity gains that are broadly shared across workers, consumers and firm owners. In a globalized world, attempts to curb domestic automation in order to protect domestic employment may be self-defeating due to foreign competition.
    Keywords: Automation; Employment; Plant-level; Firm-level; Labor market; Product market; Manufacturing
    JEL: J23 J24 L11 O3
    Date: 2020
  29. By: Bachmann, Ronald; Stepanyan, Gayane
    Abstract: We analyse whether the rise in female labour force participation in Germany over the last decades can be explained by technological progress increasing the demand for non-routine social and cognitive skills, traditionally attributed to women. We do so by examining which task groups and occupations drive the increase in the female share and how this is related to wages at the individual level. Our findings show that the share of women indeed rises most strongly in non-routine occupations requiring strong social and cognitive skills. While the female share in high-paid occupations increases over time, the share of women in the upper parts of the overall wage distribution rises significantly less.
    Keywords: female labour market participation,occupations,tasks,technological progress
    JEL: J21
    Date: 2020
  30. By: Cristina Bernini; Alessandro Tampieri
    Abstract: This paper investigates whether urbanization plays a role in determining the importance of each happiness domain on overall happiness. The analysis focuses on Italy. We exploit a multilevel model to consider regional heterogeneity in happiness’s determinants. We first verify whether a direct effect of urbanization exists on each specific components of happiness, as well as on overall happiness. Consistent with the findings in the literature, happiness decreases with urbanization. In the analysis of mediating role, we find that the importance of satisfaction with economic conditions and family explains more overall happiness in urban areas. On the contrary, satisfaction with health, friendships and environment gain more weight in rural areas.
    Keywords: subjective well-being, happiness function, urbanization, regions, multilevel models
    JEL: I31 R10
    Date: 2020
  31. By: Ulrich Glogowsky; Emanuel Hansen (Universtität Köln); Simeon Schächtele (Inter-American Development Bank)
    Abstract: To fight the spread of COVID-19, many countries implemented social distancing policies. This is the first paper that examines the effects of the German social distancing policies on behavior and the epidemic’s spread. Exploiting the staggered timing of COVID-19 outbreaks in extended event-study models, we find that the policies heavily reduced mobility and contagion. In comparison to a no-social-distancing benchmark, within three weeks, the policies avoided 84% of the potential COVID-19 cases (point estimate: 499.3K) and 66% of the potential fatalities (5.4K). The policies’ relative effects were smaller for individuals above 60 and in rural areas.
    Keywords: COVID-19, Coronavirus, social distancing policies, policy evaluation, mobility, fatalities
    JEL: I18 H12 I12
    Date: 2020–11
  32. By: Daniela Del Boca; Chiara Daniela Pronzato; Lucia Schiavon
    Abstract: This paper investigates the impact of parenting courses on fragile families’ time use with their children. Courses aimed at raising parental awareness of the importance of educational activities are offered in four Italian cities (Naples, Reggio Emilia, Teramo and Palermo) within the framework of the social program “FA.C.E. Farsi Comunità Educanti†and with the cooperation of the program “Con i Bambini†2. To conduct the impact evaluation3, we designed a randomized controlled trial involving random assignment of the families (mostly mothers). At the end of the intervention, we administered an assessment questionnaire both to the treatment group, which took the course, and to the control group, which did not. Comparing the outcomes, we find attending the course increased families' awareness of the importance of educational activities for children, the frequency with which they read to the child, and their desire to spend more time with the child.
    Keywords: parenting, use of time, randomized controlled trial
    JEL: J13 D1 I26
    Date: 2020
  33. By: Stéphane Auray (LIEPP); Samuel Danthine; Markus Poschke
    Abstract: Asubstantial share of severance payments derives from private contracts or collective agreements. In this paper, we study the determination of these payments. We analyze joint bargaining over wages and severance payments in a search-and-matching model with risk-averse workers. Individual bargaining results in levels of severance pay that provide full insurance, but also depend on unemployment benefits and job-finding rates. Unions also choose full insurance. Because their higher wage demands reduce job creation, this requires higher severance pay. Severance pay observed in eight European countries, to which we calibrate the model, lies between predictions from the bargaining and union scenarios.
    Keywords: Bargaining; Severance pay; Unemployment insurance; Unions
    JEL: E24 J32 J33 J64 J65
    Date: 2020

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