nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2021‒01‒04
thirty-one papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Wage determination and the bite of collective contracts in Italy and Spain: evidence from the metal working industry By Effrosyni Adamopoulou; Ernesto Villanueva
  2. The Fall in Income Inequality during COVID-19 in Five European Countries By Andrew E. Clark; Conchita D'Ambrosio; Anthony Lepinteur
  3. Carbon Footprints of European Manufacturing Jobs: Stylized Facts and Implications for Climate Policy By U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
  4. The Effect of Climate Policy on Productivity and Cost Pass-Through in the German Manufacturing Sector By Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
  5. Organised Labour, Labour Market Imperfections, and Employer Wage Premia By Sabien Dobbelaere; Boris Hirsch; Steffen Müller; Georg Neuschaeffer
  6. Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas By Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
  7. Unequal effects of the economic cycle on human capital investment. Evidence from Italian panel data By Bonacini, Luca
  8. Does every Tom, Dick and Harry have a similar fuel price elasticity of car travel demand? Micro-level data reveals substantial heterogeneity By Ivan Tilov; Sylvain Weber
  9. SOS incomes: Simulated effects of COVID-19 and emergency benefits on individual and household income distribution in Italy By Giovanni Gallo; Michele Raitano
  10. Job satisfaction over the life course By David G. Blanchflower; Alex Bryson
  11. Robot Imports and Firm-Level Outcomes By Alessandra Bonfiglioli; Rosario Crinò; Harald Fadinger; Gino Gancia
  12. Zoomshock: The geography and local labour market consequences of working from home. By Gianni De Fraja; Jesse Matheson; James Rockey
  13. Working from home and the explosion of enduring divides: income, employment and safety risks By Armanda Cetrulo; Dario Guarascio; Maria Enrica Virgillito
  14. Perceptive risk clusters of European citizens and NPI compliance in face of the covid-19 pandemics By Jacques Bughin; Michele Cincera; Dorota Reykowska; Marcin Zyszkiewicz; Rafal Ohme
  15. Should we cheer together? Gender differences in instantaneous well-being during joint and solo activities: An application to COVID-19 lockdowns By Giménez-Nadal, José Ignacio; Molina, José Alberto; Velilla, Jorge
  16. In Business Groups We Trust By Anaïs HAMELIN; Vivien LEFEBVRE; Laurent WEILL
  17. Supply shocks in the market for apprenticeship training By Muehlemann, Samuel; Pfann, Gerard; Pfeifer, Harald; Dietrich, Hans
  18. To be or not to be a (good) mother: Life-long decisions of women in Italy By Debora Di Gioacchino, Emanuela Ghignoni and Alina Verashchagina; Emanuela Ghignoni; Alina Verashchagina
  19. Academic engagement with industry: the role of research quality and experience By Scandura, Alessandra; Iammarino, Simona
  20. Long-term unemployment subsidies and middle-age disadvantaged workers’ health By José Ignacio Garcia-Pérez; Manuel Serrano-Alarcón; Judit Vall Castelló
  21. Understanding the effects of granting work permits to undocumented immigrants By Joan Monràs; Javier Vázquez-Grenno; Ferran Elias
  22. Escaping the motherhood trap: Parental leave and childcare help young mothers to avoid NEET risks By van Vugt, Lynn; Nieuwenhuis, Rense; Levels, Mark
  23. Italian PhD students at the borders: The relationship between family background and international mobility By Valentina Tocchioni; Alessandra Petrucci
  24. Technology, Labour Market Institutions and Early Retirement: Evidence from Finland By Yashiro, Naomitsu; Kyyrä, Tomi; Hwang, Hyunjeong; Tuomala, Juha
  26. Gender, Age, and Attitude toward Competition By Nicolas EBER; Abel FRANCOIS; Laurent WEILL
  27. Mums Go Online: Is the Internet Changing the Demand for Healthcare? By Sofia Amaral-Garcia; Mattia Nardotto; Carol Propper; Tommaso M. Valletti
  28. Does robotization affect job quality? Evidence from European regional labour markets By José-Ignacio Antón; Enrique Fernández-Macías; Rudolf Winter-Ebmer
  29. "The mother of all political problems"? On asylum seekers and elections By Tomberg, Lukas; Smith Stegen, Karen; Vance, Colin
  30. Emergency Aid for Self-Employed in the COVID-19 Pandemic: A Flash in the Pan? By Joern Block; Alexander S. Kritikos; Maximilian Priem; Caroline Stiel
  31. Neighbourhood-level variation in the risk of private credit default: A driver of urban residential segregation? By Neumann, Uwe; Schaffner, Sandra

  1. By: Effrosyni Adamopoulou (University of Mannheim and Iza); Ernesto Villanueva (Banco de España)
    Abstract: In several OECD countries employer federations and unions fix skill-specific wage floors for all workers in an industry. One view of those “explicit” contracts argues that the prevailing wage structure reflects the labor market conditions back at the time when those contracts were bargained, with little space for renegotiation. An alternative view stresses that only workers close to the minima are affected by wage floors and that the wage structure reacts to current labor market conditions. We disentangle both models using a novel data set that combines more tan 1,000 signature dates and 15,000 wage floors set in the metal working industry with labor market histories of metal workers drawn from Social Security records in Italy and Spain. An increase in the contemporaneous local unemployment rate of 1 p.p. diminished contemporaneous mean wages by about 0.45 p.p. between 2005 and 2013 in both countries. Instead, a 1 p.p. higher unemployment rate back at the time of contract renewal reduced wages by 0.7 p.p., an impact driven by wages close to the negotiated wage floors. Even though the evidence for earlier periods is mixed in Italy, the results do not support the view that the wage structure reflects labor market conditions at the time of bargaining. The results support the hypothesis that (most) wages respond to local current unemployment rate, although the estimated elasticity falls short of the prediction of an off-the-shelf bargaining model.
    Keywords: minimum wages, collective contracts, Social Security data, spot market, explicit contracts, wage cyclicality
    JEL: J31 J38 J52
    Date: 2020–12
  2. By: Andrew E. Clark (Paris School of Economics - CNRS); Conchita D'Ambrosio (University of Luxembourg); Anthony Lepinteur (University of Luxembourg)
    Abstract: We here use panel data from the COME-HERE survey to track income inequality during COVID-19 in France, Germany, Italy, Spain and Sweden. Relative inequality in equivalent household disposable income among individuals changed in a hump-shaped way over 2020. An initial rise from January to May was more than reversed by September. Absolute inequality also fell over this period. As such, policy responses may have been of more benefit for the poorer than the richer.
    Keywords: COME-HERE, COVID-19, Income Inequality
    JEL: D63 I32 I38
    Date: 2020–12
  3. By: U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
    Abstract: This paper presents first results from a new European-wide research network for evidence-based climate policy. Using administrative data on industrial firms in Denmark, Finland, France, Germany, Lithuania, Norway, and Sweden, we construct harmonized measures of carbon dioxide emissions per job. We characterize the distribution of this measure and explore how it varies across countries, two-digit industries, and over time. We relate those changes to participation in the EU Emissions Trading System - Europe's flagship climate policy instrument since 2005.
    Keywords: carbon dioxide emissions, manufacturing, climate policy, employment
    JEL: Q54 H23
    Date: 2020–12
  4. By: Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
    Abstract: We investigate productivity and cost pass-through of German manufacturing firms using administrative data from 2001 to 2014. Our framework allows for the estimation of quantity-based production functions for multi-product firms while controlling for unobserved productivity shocks and unobserved input quality. Using our parameter estimates, we can compute total factor productivity, markups and marginal costs. We find no effect of the EU ETS on firm productivity or profits for the whole sector, and a positive effect for some industries. Firms pass on shocks to materials costs completely, or even more than completely, whereas pass-through of energy costs is around 35-60%. Although pass-through of energy costs is incomplete, it nevertheless allowed firms to recover more than their total carbon costs due to generous free allocation of allowances. Our results add to the recent literature concerning the causal effects of climate policy on firms and are relevant for policy makers when defining the level of free allowance allocation to industry.
    Keywords: productivity, production function, cost pass-through, EU ETS, climate policy
    JEL: D24 H23 Q52 Q54
    Date: 2020–12
  5. By: Sabien Dobbelaere; Boris Hirsch; Steffen Müller; Georg Neuschaeffer
    Abstract: This paper examines how collective bargaining through unions and workplace co-determination through works councils shape labour market imperfections and how labour market imperfections matter for employer wage premia. Based on representative German plant data for the years 1999-2016, we document that labour market imperfections are the norm rather than the exception. Wage mark-downs, that is wages below the marginal revenue product of labour rooted in employers’ monopsony power, are the most prevalent outcome. We further find that both types of organised labour are accompanied by a smaller prevalence and intensity of wage mark-downs whereas the opposite holds for wage mark-ups, that is wages above the marginal revenue product of labour rooted in workers’ monopoly power. Finally, we document a close link between our production-based labour market imperfection measures and employer wage premia. The prevalence and intensity of wage mark-downs are associated with a smaller level and larger dispersion of premia whereas wage mark-ups are only accompanied by a higher premium level.
    Keywords: wage mark-downs, wage mark-ups, collective wage agreements, works councils, employer wage premia
    JEL: J42 J50 J31 D22
    Date: 2020
  6. By: Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
    Abstract: Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations.
    Keywords: renewables, biogas, externalities, social acceptance, wellbeing, spatial analysis, economic geography
    JEL: C23 Q42 Q51 R20
    Date: 2020–12
  7. By: Bonacini, Luca
    Abstract: Human Capital Theory considers individuals' education as an investment in terms of money, time, effort, and the renouncement of income opportunities that they expect will be compensated during their working life. While these benefits are mainly in the long run, direct and indirect costs are conditioned by the present circumstances, and in particular, by the macroeconomic conditions. The literature investigating the influence of the business cycle on enrolment decisions often suggests a counter-cyclical relationship without considering that economic fluctuations can produce heterogeneous effects among households facing different economic situations. Through a fixed effects regression based on panel data from the Italian component of the EU-SILC survey, I find the existence of a counter-cyclical propensity to enrol that is symmetric to the stages of the economic cycle. However, after disaggregating the analysis by household income quartiles, results show that a 1% increase in GDP reduces the probability of the poorest individuals being enrolled in non-compulsory education by 1.2%, while the wealthier portion of the population shows an a-cyclical relationship. The policy implications of these results are particularly important as they suggest that measures directed towards youths from poorer households to promote their enrolment in non-compulsory education should be strengthened when economic conditions improve.
    Keywords: Economic cycle,Educational economics,Human capital,Rate of return
    JEL: A22 E32 I23 I24
    Date: 2020
  8. By: Ivan Tilov; Sylvain Weber
    Abstract: This article uses a rich panel dataset of 1,741 Swiss households in order to examine the effect of fuel prices on household car travel demand. Elasticities are estimated for different segments of households, based on their socio-economic and psychological characteristics, on the features of their vehicles, as well as on their driving intensity. Our results, which draw on inter-individual comparisons, yield larger medium- to long-run price elasticity of demand for mileage than previous estimations using aggregate data for Switzerland, and show that there is important heterogeneity in price sensitivity across segments of households. Lower-income households, households living in urban areas, drivers in retirement age and drivers with more efficient vehicles are significantly more price-reactive compared to their respective counterparts. Quantile regression models show that within segments defined on the basis of income, location, age and motor efficiency there is further evidence for price heterogeneity. These results reveal that in addition to a gasoline tax, non-price measures could be tailored to several household segments in order to provide supplementary incentives to reduce mileage and/or avoid penalizing some specific groups.
    Keywords: car travel demand, fuel prices, elasticities, households' behavior, heterogeneity, panel data, Switzerland.
    JEL: Q40 Q41 D12 R41 C21
    Date: 2020–12
  9. By: Giovanni Gallo (Sapienza University of Rome); Michele Raitano (Sapienza University of Rome)
    Abstract: Using a static microsimulation model based on a link between survey and administrative data, the article investigates the effects of the pandemic on income distribution in Italy. The analysis focuses both on individuals and on households, by simulating changes in labour incomes and in equivalised incomes, respectively. For both units of observations, changes before and after the emergency income benefits introduced by the Government to deal with the effects of the COVID-19 emergency are compared. The effects of the pandemic are simulated for the whole 2020 under three different scenarios capturing an increasing length of the pandemic. We find that the pandemic has led to a relatively greater drop in labour incomes for those lying in the poorest quantiles, but they were the same having benefited more from the emergency benefits. As a result, compared with the ‘No-COVID scenario’, income poverty and inequality indexes significantly grow in all scenarios when emergency benefits are not considered, whereas the poverty increase greatly narrows and inequality levels slightly decrease once benefits are considered. This evidence signals the crucial role played by cash social transfers to contrast the most serious economic consequences of the pandemic.
    Keywords: income distribution, inequality, poverty, emergency benefits, microsimulations, Italy, Covid-19
    JEL: D31 D63 E27 I32 J31
    Date: 2020–12
  10. By: David G. Blanchflower (Dartmouth College. University of Glasgow. GLO. Bloomberg. NBER); Alex Bryson (UCL Social Research Institute. NIESR. IZA)
    Abstract: We examine the relationship between union membership and job satisfaction over the life-course using data from the National Child Development Study (NCDS) tracking all those born in Great Britain in a single week in March in 1958 through to age 55 (2013). Data from immigrants as well as non-respondents to the original 1958 Perinatal Mortality Study (PMS) are added in later years. Conditioning on one’s social class at birth, together with one’s education and employment status, we find there is a significant negative correlation between union membership and job satisfaction that is apparent across the life-course. Lagged union membership status going back many years is negatively correlated with current job satisfaction, though its effects become statistically non-significant when conditioning on current union membership status. These results provide a different perspective to longitudinal studies showing short-term positive responses to switches in membership status. They are consistent with earlier work showing that this cohort of workers, and others before them, have persistently lower job satisfaction as union members compared to their non-union counterparts.
    Keywords: Union membership; job satisfaction; life-course; birth cohort; National Child Development Survey (NCDS).
    JEL: J28 J50 J51
    Date: 2020–12–01
  11. By: Alessandra Bonfiglioli; Rosario Crinò; Harald Fadinger; Gino Gancia
    Abstract: We use French data over the 1994-2013 period to study how imports of industrial robots affect firm-level outcomes. Compared to other firms operating in the same 5-digit sector, robot importers are larger, more productive, and employ a higher share of managers and engineers. Over time, robot import occurs after periods of expansion in firm size, and is followed by improvements in efficiency and a fall in demand for labor. Guided by a simple model, we develop various empirical strategies to identify the causal effects of robot adoption. Our results suggest that, while demand shocks generate a positive correlation between robot imports and employment, exogenous changes in automation lead to job losses. We also find that robot imports increase productivity and the employment share of high-skill professions, but have a weak effect on total sales. The latter result suggests that productivity gains from automation may not be entirely passed on to consumers in the form of lower prices.
    Keywords: automation, displacement, firms, robots
    JEL: J23 J24 O33 D22
    Date: 2020
  12. By: Gianni De Fraja (University of Nottingham); Jesse Matheson (University of Sheffield); James Rockey (University of Birmingham)
    Abstract: The increase in the extent of working-from-home determined by the Covid-19 health crisis has led to a substantial shift of economic activity across geographical areas; which we refer to as a Zoomshock. When a person works from home rather than at the office, their work-related consumption of goods and services provided by the locally consumed service industries will take place where they live, not where they work. Much of the client`ele of restaurants, coffee bars, pubs, hair stylists, health clubs, taxi providers and the like located near workplaces is transferred to establishment located near where people live. In this paper we measure the Zoomshock at a very granular level by estimating the change in the number of people working in UK neighbourhoods due to home-working.
    Keywords: Covid-19, lockdown, work-from-home, local labour markets
    JEL: R12 J01 H12
    Date: 2020–12
  13. By: Armanda Cetrulo; Dario Guarascio; Maria Enrica Virgillito
    Abstract: Why are there so many non-teleworkable occupations? Is teleworking only a matter of ICT usage or does it also reflect the division of labour and the underlying hierarchical layers inside organizations? What does it happen to those workers not able to telework in terms of socio-economic risks, and how does the gender dimension interact with risk stratification? Hereby, we intend to shed light on these questions using a detailed integrated dataset at individual and occupational level (Indagine Campionaria delle Professioni, Indagine delle Forze di Lavoro and Inail archive) which provides information on different nature of risks (income, employment and safety). Our results entail that, first, class attributes strongly influence the chance of working from home, second, those individuals who are not able to perform their work remotely are more exposed to transition to unemployment, to earn low wages, and to safety and health risks, third, being woman and employed with a temporary contract significantly amplify risk stratification.
    Keywords: Occupational structure; teleworking; COVID-19; social divides.
    Date: 2020–12–16
  14. By: Jacques Bughin; Michele Cincera; Dorota Reykowska; Marcin Zyszkiewicz; Rafal Ohme
    Abstract: Despite promising announcements on an effective vaccine, the control of the covid-19 pandemic is critically dependent on the maximal compliance of citizens to a set of non-pharmaceutical interventions (NPI for short). We use statistical clustering to partition European citizens with regards to their perceptive risks and social attitudes during the first wave of the covid-19 pandemic and find ten segments to predict, both the extent and mix of protective behaviors adopted. Those segments demonstrate a clear divide in the population, with on one extreme, a segment (standing for 8% of the population) that is self-centered and exhibits low self-risk perception as well as low NPI compliance. The other extreme is composed of a segment (11% of the population) that is more socially oriented, and quite responsive to all protective measures.As data are survey-based, we adjust responses based on information gap (by reaction time, RT, measurement) of both worry expression and NPI compliance, to confirm the robustness of our results. Further, we extend the notion of worries to be not only health-related but to include financial risk (like losing a job) as well as psychological worries (e.g. feeling alone, or being unable to meet with family and friends), as they prove to drive different NPI behaviors among the population.
    Keywords: Covid-19 pandemics; Europe; Clustering; Non-pharmaceutical interventions
    JEL: I12 J22 J23 J33
    Date: 2020–12
  15. By: Giménez-Nadal, José Ignacio; Molina, José Alberto; Velilla, Jorge
    Abstract: The COVID-19 pandemic has confined millions in their homes, representing an unprecedented case for spending more time together with family members. This is a challenge for households, given that more time with the partner or children may not necessarily translate into increased well-being. This paper explores subjective well-being in the uses of time for US and UK workers, differentiating between solo activities and activities done with family members, at home and outside the home. Using American and British time use surveys, we compute the instant utility associated with paid work, unpaid work, leisure, and childcare activities. The results show that workers prefer joint leisure to solo leisure, and that significant differences exist between female and male workers for solo and joint market work and housework. Furthermore, we simulate a lockdown situation, which suggests diverging effects of a lockdown in the US and the UK, and on women and men. The conclusions of this paper may help to assess the psychological consequences of COVID-19 lockdowns, beyond the negative economic and labour market consequences.
    Keywords: subjective well-being,togetherness,gender difference
    JEL: D10 J16 J22
    Date: 2020
  16. By: Anaïs HAMELIN (LaRGE Research Center, Université de Strasbourg); Vivien LEFEBVRE (LaRGE Research Center, Université de Strasbourg); Laurent WEILL (LaRGE Research Center, Université de Strasbourg)
    Abstract: We investigate the impact of trust on the prevalence of business groups. Using firm-level information on group affiliation, we perform estimations on a large sample of 258,984 companies from twenty-five European countries. We find that higher trust is associated with a lower probability to be affiliated to a business group. Our findings accord with the hypothesis that higher trust diminishes the incentives for a firm to internalize transactions through the emergence of a business group. We also find limited evidence that the negative effect of trust on group affiliation is stronger for firms with higher information asymmetries. We furthermore conclude that trust is a substitute for the quality of formal institutions. Our work contributes to a better understanding of the reasons why business groups exist. It completes the institutional voids perspective by showing that informal institutions must be taken into account to understand the prevalence of business groups.
    Keywords: business groups, trust.
    JEL: G21 O16
    Date: 2020
  17. By: Muehlemann, Samuel; Pfann, Gerard (RS: GSBE Theme Learning and Work, RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Creativity, Innovation & Entrepreneurship , Organisation,Strategy & Entrepreneurship); Pfeifer, Harald; Dietrich, Hans
    Abstract: We present a model with heterogeneous inputs and constant elasticity of substitution to examine the possible effects of a supply shock in the market for apprenticeship training. The model’s predictions are tested using data from a German high school reform that led to a one-time increase in the supply of highly educated apprentices. A difference-in-differences estimation strategy exploits regional variation in the timing of implementation, and an instrumental variable approach identifies the supply shock effects. We find that apprenticeship contracts among individuals with a high school degree increased by 7.8%, while apprentice wages were unaffected by the supply shock. Moreover, we find no evidence of substitution effects, as the number of training contracts among individuals with a lower-level school degree remained unchanged. Our model predicts that such effects may occur when wages are sticky for apprentices with a high level of education relative to their productivity, which signals inefficiencies in the market for apprenticeship training.
    JEL: I21 J20
    Date: 2020–12–21
  18. By: Debora Di Gioacchino, Emanuela Ghignoni and Alina Verashchagina; Emanuela Ghignoni; Alina Verashchagina
    Abstract: More time spent in childcare can be seen as investment in higher quality children, but there may be other reasons why women following childbirth stay out longer or leave the labour market. We aim to understand which are factors that affect this decision. The theoretical model proposed describes trade-offs about career, fertility and time dedicated to children. Model predictions are tested empirically using data from Isfol Plus 2014 survey for Italy. We show that women with higher earnings potential are as prone to have kids as their low-earning counterparts, but the duration of career break due to maternity for them is shorter. Both the probability to become a mother and the duration of career break are positively affected by the “taste for children†, defined using the number of actual and desired children. Other factors influencing women’s decisions on the matter are existing social norms, availability of childcare, and presence of a collaborative partner.
    Keywords: Fertility; Career break; Female labour force participation; Italy
    JEL: D10 J13 J22
    Date: 2020–10
  19. By: Scandura, Alessandra; Iammarino, Simona (University of Turin)
    Abstract: This work explores the role of university department characteristics on academic engagement with industry. In particular, we investigate the role played by research quality and previous experience across different scientific disciplines. We test our hypotheses on a dataset of publicly funded university-industry partnerships in the UK, combined with data from the UK Research Assessment Exercises 2001 and 2008. Our data reveal a negative link between academic quality and the level of engagement with industry for departments in the basic sciences, and a positive relationship for departments in the applied sciences. Our results further show that the role of research quality for academic engagement tightly depends on the level of department previous experience in university-industry partnerships, notably in the basic sciences, where experience acts as a moderating factor. The findings of this work are highly relevant for policy makers and university managers, and contribute to the innovation literature focused on the investigation of the determinants of valuable knowledge transfer practices in academia.
    Date: 2020–10
  20. By: José Ignacio Garcia-Pérez; Manuel Serrano-Alarcón; Judit Vall Castelló
    Abstract: We estimate the labour market and health effects of a long-term unemployment (LTU) subsidy targeted to middle aged disadvantaged workers. In order to do so, we exploit a Spanish reform introduced in July 2012 that increased the age eligibility threshold to receive the subsidy from 52 to 55. Using a within-cohort identification strategy, we show that men ineligible for the subsidy were more likely to leave the labour force. In terms of health outcomes, although we do not report impacts on hospitalizations when considering the whole sample, we do find significant results when we separate the analysis by main diagnosis and gender. More specifically, we show a reduction by 12.9% in hospitalizations due to injuries as well as a drop by 2 percentage points in the probability of a mental health diagnosis for men who were eligible for the LTU subsidy. Our results highlight the role of long-term unemployment benefits as a protecting device for the health (both physical and mental) of middle aged, low educated men who are in a disadvantaged position in the labour market.
    Date: 2020–12
  21. By: Joan Monràs; Javier Vázquez-Grenno; Ferran Elias
    Abstract: This paper studies the legalization of 600,000 non-EU immigrants by the unexpectedly elected Spanish government following the terrorist attacks of 2004. By comparing non-EU to EU immigrants we first estimate that the policy did not lead to magnet effects. We then show that the policy change increased labor market opportunities for immigrants by allowing them to enter sectors of the economy with fewer informal employment. We rely on cross-province comparisons to document that payroll-tax revenues increased by around 4,000 euros per legalized immigrant, and the heterogeneous effect of the policy on various groups of workers. We provide a theoretical framework based on monopsonistic competition to guide our empirical work and interpret our findings.
    Keywords: Immigration, undocumented immigrants, public policy evaluation
    JEL: F22 J31 J42 J J61 R11
    Date: 2020–12
  22. By: van Vugt, Lynn (RS: GSBE Theme Learning and Work, ROA / Education and occupational career); Nieuwenhuis, Rense; Levels, Mark (RS: GSBE other - not theme-related research, ROA / Education and occupational career, RS: SBE - MACIMIDE)
    Abstract: This paper explores to what extent and how the risk that young mothers become NEET (Not in Employment, Education or Training) later in life is related to family policy provisions (i.e. parental leave and Early Childhood Education and Care). We examine a three-staged process: the relation between (a) characteristics of family policies and the use of it, (b) the use of family policy provisions and NEET risks, and (c) the effectiveness of family policy provisions on the characteristics of these family policies. Combining data from the EU-LFS with macro-level indicators of family policies, we analyse NEET risks of 13,613 young mothers (20-29) in 27 EU-countries. We find that young mothers are more likely to take parental leave if it is paid for a longer period of time, and are more likely to use ECEC when childcare placement is guaranteed. Both parental leave and ECEC services are associated with lower NEET risks, as long as they are not used for overly short or long periods. However, this depends largely on the way parental leave is organised. In addition, in countries where ECEC is more affordable, young mothers who use ECEC are better protected against NEET risks later in life.
    Date: 2020–12–14
  23. By: Valentina Tocchioni (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Alessandra Petrucci (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze)
    Abstract: Previous literature has suggested that PhD students’ mobility has become a fundamental step during doctoral studies, both for training purposes and for creating transnational research networks. In recent years, there has been a significant increase in migration of highly educated and highly skilled Italians. Most studies concentrate on employment-related characteristics of researchers’ and scientists’ mobility, largely neglecting other topics, such as family background characteristics of those who decide to study and go abroad. Using the Istat Survey on occupational conditions of PhD holders conducted in 2014 and 2018 in Italy, along with modelling using multinomial logistic regression analyses, we aim to investigate the relationship between family background characteristics and mobility during PhD studies according to different types of international stay. Our results show that both parental education and mother’s economic activity are related to the propensity for studying abroad among PhD candidates, whereas father’s social class seems to have a lower impact on this decision. The gap in doctoral mobility among PhD students with respect to socio-economic status seems also to vary according to the different types of stay abroad. Overall, our findings intend to shed light on potential disparities related to studying abroad among PhD students and their links to family background, which may have future repercussions on students’ occupational prospects.
    Keywords: PhD students, international mobility, family background, higher education, multinomial logistic regression, Italy
    JEL: I24 I23 C25
    Date: 2020–12
  24. By: Yashiro, Naomitsu; Kyyrä, Tomi; Hwang, Hyunjeong; Tuomala, Juha
    Abstract: There are two major barriers to increasing employment of older workers. First, older workers engaged in codifiable, routine tasks are particularly prone to the risk of being displaced by computers and robots. Second, several countries have in place various labour market institutions that encourage early retirement, such as exceptional entitlements or looser criteria for unemployment and disability benefits applied to older individuals. We present evidence that these two factors reinforce each other to push older workers out of employment. We find that older workers who are more exposed to digital technologies are more likely to leave employment, and that this effect is significantly magnified when they are eligible to an extension of unemployment benefits until the earliest age for drawing old age pension. Furthermore, our findings imply that a policy reform that tightens the eligibility for the benefit extension would increase mostly the employment of older workers that are more exposed to digital technologies.
    Keywords: technological change, disability benefits, unemployment benefits, early retirement, Social security, taxation and inequality, Labour markets and education, H55, J26, J65, O33,
    Date: 2020
  25. By: Jaan Masso; Priit Vahter
    Abstract: Although much research has investigated how innovation affects wages and wage inequality in general, less is still known on how innovation in firms affects the gender wage gap. We show, using matched employer-employee data from Estonia, that technological (product and process) and non-technological (organizational and marketing) innovation, as well as the firm’s own R&D and innovation-related collaboration with external partners are, on average, associated with a larger gender wage gap in the firm. The positive effect of innovation on wages is about 3–5 percentage points smaller for women compared to men. The relationship between innovation and gender wage gap is stronger in the case of managers and plant and machine operators; therefore, both at the higher and lower end of the wage distribution, potentially indicating the importance of routine-biased technological change. We further show based on propensity score matching that men gain more from taking up a job at an innovative firm than women. The effect of innovation on men’s wages and on the gender wage gap is significantly larger among newly hired employees compared to incumbent employees. Among the newly hired employees at innovative firms, taking up a job at a more ‘open’ innovator appears to be associated with especially strong gains for newly hired women. However, even in this case the gains fall short of the gains for men.
    Keywords: innovation, gender wage gap, wage inequality
    Date: 2020
  26. By: Nicolas EBER (LaRGE Research Center, Université de Strasbourg); Abel FRANCOIS (LEM, Université de Lille); Laurent WEILL (LaRGE Research Center, Université de Strasbourg)
    Abstract: A large body of literature has shown the existence of a gender gap in competitiveness and a handful of experimental works investigating the impact of age on this gap lead to inconclusive results. We propose an empirical investigation on that, which is based on survey data and complementary to experimentation. Using individual data from very large survey (European Value Study on 48 countries from 1990 to 2008), we examine how age influences the gender gap in attitude toward competition. After confirming the existence of a strongly significant gender gap, we find evidence of a gendered effect of age on attitude toward competition. Attitude toward competition has a U-shaped relation with age for men with a least-negative view around 53 years but becomes more and more positive over age for women. We therefore observe a U-shaped pattern of the gender gap with age with a minimum around 60 years. Finally, we show that the gender gap and its evolution with age are sensitive to both individual and national gender stereotypes, suggesting influences of cultural factors.
    Keywords: gender; competitiveness; attitude toward competition; age; gender gap.
    JEL: J16
    Date: 2020
  27. By: Sofia Amaral-Garcia; Mattia Nardotto; Carol Propper; Tommaso M. Valletti
    Abstract: We study the effect of internet diffusion on childbirth procedures performed in England between 2000 and 2011. We exploit an identification strategy based on geographical discontinuities in internet access generated by technological factors. We show that broadband internet access increased Cesarean-sections: mothers living in areas with better internet access are 2.5 percent more likely to have a C-section than mothers living in areas with worse internet access. The effect is driven by first-time mothers who are 6 percent more likely to obtain an elective C-section. The increased C-section rate is not accompanied by changes in health care outcomes of mothers and newborns. Health care costs increased with no corresponding medical benefits for patients. Heterogeneity analysis shows that mothers with low income and low education are those more affected: thanks to the internet, they progressively close the C-section gap with mothers with higher income and education. We show evidence documenting the growing importance of the internet as a source of health related information, and we argue that patient’s access to online information is changing the relationship between health care providers and patients.
    Keywords: ICT, broadband internet, health care, Cesarean-section
    JEL: D80 I12 L82 L86
    Date: 2020
  28. By: José-Ignacio Antón; Enrique Fernández-Macías; Rudolf Winter-Ebmer
    Abstract: Whereas there are recent papers on the eect of robot adoption on employ- ment and wages, there is no evidence on how robots aect non-monetary working conditions. We explore the impact of robot adoption on several domains of non-monetary working conditions in Europe over the period 19952005 combining information from the World Robotics Survey and the European Working Conditions Survey. Aiming to deal with the possible en- dogeneity of robot deployment, we employ an instrumental variables strategy, using the robot exposure by sector in other developed countries as an instru- ment. Our results indicate that robotization has a negative impact on the quality of work in the dimension of work intensity and no relevant impact on the domains of physical environment or skills and discretion.
    Keywords: robotization, working conditions, job quality, Europe, regional labour markets
    JEL: J24 J81 O33
    Date: 2020–12
  29. By: Tomberg, Lukas; Smith Stegen, Karen; Vance, Colin
    Abstract: As immigration to Europe has increased, so has support for extremist parties. While many studies have examined the effect of immigration on election outcomes, few have probed the effect of asylum seekers - those fleeing strife and persecution - on voting, nor has there been much research on the mediating role of local economic conditions. Drawing on county level panel data from Germany, our study fills both gaps. We find that economic circumstances, as measured by the unemployment rate and the level of disposable income, condition voters' responses to the presence of asylum seekers, but the effects for parties on the far right and left diverge markedly. Under economic prosperity, immigration increases support on both sides of the political spectrum. As economic conditions worsen, however, the effect of asylum seekers on the vote share for the far right remains stable, but weakens for the left, eventually becoming negative. This divergence - which has not yet been reported in the literature - suggests that an influx of asylum seekers, particularly when coupled with an economic downturn, could tilt a political system rightwards. From a policy perspective, these results suggest that heterogeneity arising from local economic conditions has important implications for the regional allocation of asylum seekers.
    Keywords: asylum seekers,immigration,voting outcomes,fractional response
    JEL: D72 J15 K37 P16
    Date: 2020
  30. By: Joern Block; Alexander S. Kritikos; Maximilian Priem; Caroline Stiel
    Abstract: The self-employed are among those facing the highest probability of strong income losses during the COVID-19 pandemic. Governments in many countries introduced support programs to support the self-employed, including the German federal government, which approved a €50bn emergency aid program at the end of March 2020 offering one-off lump-sum payments of up to €15,000 to those facing substantial revenue declines. In this contribution, we investigate the impact of this program using a real-time online-survey data with a total of more than 20,000 observations. We employ propensity score matching, making use of a rich set of variables that influence selection into the treatment and the outcome variable, the subjective survival probability. We observe that the emergency aid program had significant effects, with the subjective survival probability of self-employment being moderately increased. We further reveal important effect heterogeneities with respect to education, risk tolerance, and industries. We also observe positive effects only among those whose application was processed within a few days. Lastly, the positive effect on the survival probability is fading out already two weeks after the emergency aid was granted. Our findings have important policy implications for the design of such support programs in the course of this crisis.
    Keywords: Self-employment, emergency aid, treatment effects, COVID-19, entrepreneurship
    JEL: C14 H43 L25 L26 J68
    Date: 2020
  31. By: Neumann, Uwe; Schaffner, Sandra
    Abstract: Credit default is a dramatic consequence of disadvantageous private financial decisions. Using regression methods which eliminate spatial autocorrelation at the level of 1 km2 grids and further identification problems, we observe considerable and reinforcing residential segregation between households facing payment difficulty and more solvent households. Two findings give reasons for concern. First, data from North Rhine-Westphalia reveals that a high local risk of credit default coincides with a lower share of children taking the highest German secondary school track (Gymnasium). Since birth rates are currently high in these (inner city) areas, the outlook on educational attainment for many pupils is bleak. Second, hedonic price estimations using microdata on housing offers find that local agglomeration of households facing credit default provokes significant (detrimental) neighbourhood effects on housing markets. Segregation is thus unlikely to diminish, which implies increased efforts should be made to overcome unfavourable neighbourhood effects in various fields of policy, especially education.
    Keywords: segregation,credit default,financial literacy,spatial autocorrelation,hedonic price analysis
    JEL: R23 R21 G51
    Date: 2020

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