nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒02‒28
24 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Parental well-being in times of Covid-19 in Germany By Huebener, Mathias; Waights, Sevrin; Spiess, C. Katharina; Siegel, Nico A.; Wagner, Gert G.
  2. Firm Productivity and Immigrant-Native Earnings Disparity By Aslund, Olof; Bratu, Cristina; Lombardi, Stefano; Thoresson, Anna
  3. The Old-Age Pension Household Replacement Rate in Belgium By Brown, Alessio J.G.; Fraikin, Anne-Lore
  4. The Effect of Increasing Retirement Age on Households’ Savings and Consumption Expenditures By Stefan Etgeton; Björn Fischer; Han Ye
  5. Residential mobility and unemployment in the UK By Langella, Monica; Manning, Alan
  6. Does Relative Age Affect Speed and Quality of Transition from School to Work? By Fumarco, Luca; Vandromme, Alessandro; Halewyck, Levi; Moens, Eline; Baert, Stijn
  7. The Intended and Unintended Effects of Promoting Labor Market Mobility By Caliendo, Marco; Künn, Steffen; Mahlstedt, Robert
  8. Firm Pay Dynamics By Engbom, Niklas; Moser, Christian; Sauermann, Jan
  9. Employment Effects of Restricting Fixed-Term Contracts: Theory and Evidence By Cahuc, Pierre; Carry, Pauline; Malherbet, Franck; Martins, Pedro S.
  10. Model-based recursive partitioning to estimate unfair health inequalities in the United Kingdom Household Longitudinal Study By Brunori, Paolo; Davillas, Apostolos; Jones, Andrew M.; Scarchilli, Giovanna
  11. Territorial disparities in youth labour market chances in Europe By Ruggero Cefalo; Rosario Scandurra
  12. The Unequal Cost of Job Loss across Countries By Bertheau, Antoine; Acabbi, Edoardo; Barcelo, Cristina; Gulyas, Andreas; Lombardi, Stefano; Saggio, Raffaele
  13. Agglomeration and Technological Specialization By Basheer Kalash
  14. Income Contingency and the Electorate's Support for Tuition By Lergetporer, Philipp; Woessmann, Ludger
  15. Hours Constraints and Wage Differentials across Firms By Labanca, Claudio; Pozzoli, Dario
  16. Earmarked Paternity Leave and Well-Being By Korsgren, Pontus; van Lent, Max
  17. The Age U-shape in Europe: The Protective Role of Partnership By Andrew E. Clark; Hippolyte d'Albis; Angela Greulich
  18. Inequality in Europe: Reality, Perceptions, and Hopes By Alessandra Faggian; Alessandra Michelangeli; Kateryna Tkach
  19. Do Changes in Employment and Hours Worked Contribute to a Decreasing in the Mental Health of Single Mothers during a Period of Welfare Reform in the UK? A Longitudinal Analysis (2009-2019) By Simpson, Julija; Bambra, Clare; Brown, Heather
  20. Can Schools Change Religious Attitudes? Evidence from German State Reforms of Compulsory Religious Education By Arold, W. Benjamin; Woessmann, Ludger; Zierow, Larissa
  21. Trade policy shocks in the UK textile and apparel value chain: firm perceptions of Brexit uncertainty By Casadei, Patrizia; Iammarino, Simona
  22. Education, Health and Health-Related Behaviors: Evidence from Higher Education Expansion By Bratti, Massimiliano; Cottini, Elena; Ghinetti, Paolo
  23. Robots and Firm Investment By Efraim Benmelech; Michal Zator
  24. Time and Money spent on Children: Effect of the (Grand)Parents’ Education and Substitution within Time Allocations By Guillaume Perilleux

  1. By: Huebener, Mathias; Waights, Sevrin; Spiess, C. Katharina; Siegel, Nico A.; Wagner, Gert G.
    Abstract: We examine the effects of Covid-19 and related restrictions on individuals with dependent children in Germany. We specifically focus on the role of day care center and school closures, which may be regarded as a “disruptive exogenous shock” to family life. We make use of a novel representative survey of parental well-being collected in May and June 2020 in Germany, when schools and day care centers were closed but while other measures had been relaxed and new infections were low. In our descriptive analysis, we compare well-being during this period with a pre-crisis period for different groups. In a difference-in-differences design, we compare the change for individuals with children to the change for individuals without children, accounting for unrelated trends as well as potential survey mode and context effects. We find that the crisis lowered the relative well-being of individuals with children, especially for individuals with young children, for women, and for persons with lower secondary schooling qualifications. Our results suggest that public policy measures taken to contain Covid-19 can have large effects on family well-being, with implications for child development and parental labor market outcomes.
    Keywords: children; COMPASS; coronavirus; Covid-19; day care closures; well-being; family; school closures; SOEP
    JEL: D10 H75 I20
    Date: 2022–03–01
  2. By: Aslund, Olof (Uppsala University); Bratu, Cristina (Aalto University); Lombardi, Stefano (VATT, Helsinki); Thoresson, Anna (IFAU)
    Abstract: We study the role of firm productivity in explaining earnings disparities between immigrants and natives using population-wide matched employer-employee data from Sweden. We find substantial earnings returns to working in firms with higher persistent productivity, with greater gains for immigrants from non-Western countries. Moreover, the pass-through of within-firm productivity variation to earnings is stronger for immigrants in low-productive, immigrant-dense firms. But immigrant workers are underrepresented in high-productive firms and less likely to move up the productivity distribution. Thus, sorting into less productive firms decreases earnings in poor-performing immigrant groups that would gain the most from working in high-productive firms.
    Keywords: firm productivity, immigrant-native earnings gaps, wage inequality
    JEL: J15 J31 J62
    Date: 2021–12
  3. By: Brown, Alessio J.G.; Fraikin, Anne-Lore
    Abstract: The objective of the paper is to examine the retirement behaviour of Belgian workers in one-earner households who are automatically granted a more generous old-age pension benefits replacement rate, called the household replacement rate. Following a recommendation of the Belgian Pension Reform Committee, this policy is to be suppressed for new pensioners, except for those receiving the minimum pension. We provide an ex-ante impact evaluation of such reform on both pension sustainability and adequacy measures. Specifically, we test whether the household replacement rate entails a work (dis)incentive mechanism promoting (harming) pension sustainability and furthermore, we analyse the role of the household replacement rate in old-age poverty and inequality measures. To do so, we use the survey dataset SHARE and a discrete time logistic duration model to study the link between retirement and financial retirement incentives created by the social security system. We find that the household replacement rate generates slightly higher retirement incentives through an income effect and we find that the household replacement rate plays an important role in decreasing the elderly poverty rate. Since households with asymmetrical working arrangements are often at the lowest part of the equivalized income distribution, the substantial effect of the household replacement rate on poverty measures is a motive to use such mechanism as a poverty alleviation tool. Nevertheless, we advocate that income redistribution measures should not be tied to a specific household composition and policies such as pensionable earning minima, minimum pension benefits and the inclusion of replacement income periods in the pension benefits calculation effectively serve the income redistribution goal without favouring a certain type of household over another. Overall, despite the positive poverty and distributional aspects of this policy, our analysis supports the reform proposal of removing the household replacement rate.
    Keywords: retirement,pension policy,Belgium,impact assessment
    JEL: J22 H31 H55 J26
    Date: 2022
  4. By: Stefan Etgeton; Björn Fischer; Han Ye
    Abstract: This paper examines how households adjust their savings and consumption expenditure in response to an anticipated increase in the early retirement age (ERA). We examine the 1999 pension reform in Germany, which increased the ERA for women born after 1951 by at least three years. Using the German Income and Consumption Survey, we find a negative impact on private savings of 0.6 percentage points, which is driven by married households. We show that households consisting of highly educated women and homeowners are more likely to reduce their savings rates. Furthermore, we find that the treated households increase their leisure spending while maintaining an unchanged level of disposable income. Our findings suggest that the treated households absorb the pension wealth shock without increasing their savings.
    Keywords: Pension Reform; Early Retirement Age; Savings; Pension Wealth; Consumption Expenditur
    JEL: D14 J14 J26
    Date: 2021–01
  5. By: Langella, Monica; Manning, Alan
    Abstract: The UK has suffered from persistent spatial differences in unemployment rates for many decades. A low responsiveness of internal migration to unemployment is often argued to be an important cause of this problem. This paper uses UK census data to investigate how unemployment affects residential mobility using small areas as potential destinations and origins and four decades of data. It finds that both in- and out-migration are affected by local unemployment - but also that there is a very high ‘cost of distance’, so most moves are very local. We complement the study with individual longitudinal data to analyse individual heterogeneities in mobility. We show that elasticities to local unemployment are different across people with different characteristics. For instance, people who are better educated are more sensitive, the same applies to homeowners. Ethnic minorities are on average less sensitive to local unemployment rates and tend to end up in higher unemployment areas when moving.
    Keywords: residential mobility; regional inequality; unemployment; ES/N012259/1
    JEL: J60 R23 Z10
    Date: 2022–04–01
  6. By: Fumarco, Luca (Masaryk University); Vandromme, Alessandro (Ghent University); Halewyck, Levi (Ghent University); Moens, Eline (Ghent University); Baert, Stijn (Ghent University)
    Abstract: We are the first to estimate the impact of relative age (i.e., the difference in classmates' ages) on both speed and quality of individuals' transition from education to the labour market. Moreover, we are the first to explore whether and how this impact passes through characteristics of students' educational career. We use rich data pertaining to schooling and to labour market outcomes one year after graduation to conduct instrumental variables analyses. We find that a one-year increase in relative age increases the likelihood of (i) being employed then by 3.5 percentage points, (ii) having a permanent contract by 5.1 percentage points, and (iii) having full-time employment by 6.5 percentage points. These relative age effects are partly mediated by intermediate outcomes such as having had a schooling delay at the age of sixteen or taking on student jobs. The final mediator is particularly notable as no earlier studies examined relative age effects on student employment.
    Keywords: school starting age, labour market transition, relative age
    JEL: I21 J23 J24 J6
    Date: 2021–12
  7. By: Caliendo, Marco (University of Potsdam); Künn, Steffen (Maastricht University); Mahlstedt, Robert (University of Copenhagen)
    Abstract: Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility - as intended - causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers.
    Keywords: job search, active labor market policy, labor market mobility, unintended consequence, search frictions
    JEL: J61 J68 D04 C21
    Date: 2022–01
  8. By: Engbom, Niklas (New York University); Moser, Christian (Columbia University); Sauermann, Jan (IFAU)
    Abstract: We study the nature of firm pay dynamics. To this end, we propose a statistical model that extends the seminal framework by Abowd, Kramarz and Margolis (1999) to allow for idiosyncratically time-varying firm pay policies. We estimate the model using linked employer-employee data for Sweden from 1985 to 2016. By drawing on detailed firm financials data, we show that firms that become more productive and accumulate capital raise pay, whereas firms lower pay as they add workers. A secular increase in firm-year pay dispersion in Sweden since 1985 is accounted for by greater persistence of firm pay among incumbent firms as well as greater dispersion in firm pay among entrant firms, as opposed to more volatile firm pay.
    Keywords: earnings inequality, worker and firm heterogeneity, firm dynamics, linked employer-employee data, two-way fixed effects model, akm
    JEL: J31 D22 D31 E24 M13
    Date: 2022–01
  9. By: Cahuc, Pierre (Sciences Po, Paris); Carry, Pauline (CREST (ENSAE)); Malherbet, Franck (CREST (ENSAE)); Martins, Pedro S. (Nova School of Business and Economics)
    Abstract: This paper examines a labor law reform implemented in Portugal in 2009 which restricted the use of fixed-term contracts to reduce labor market segmentation. The reform targeted establishments created by large firms above a specific size threshold, covering about 15% of total employment. Drawing on linked employer-employee longitudinal data and regression discontinuity methods, we find that, while the reform was successful in reducing the number of fixed-term jobs, it did not increase the number of permanent contracts and decreased employment in large firms. However, we find evidence of positive spillovers to small firms that may bias reduced form estimates. To evaluate general equilibrium effects, we build and estimate a directed search and matching model with endogenous number of establishments and jobs. We find spillover effects that induce small biases on reduced form estimates but that significantly change the evaluation of the overall impact of the reform because they diffuse to the whole economy. We estimate that the reform slightly reduced aggregate employment and had negative effects on the welfare of employees and unemployed workers.
    Keywords: directed search and matching, labor market segmentation, regression discontinuity
    JEL: J23 J41 J63
    Date: 2022–01
  10. By: Brunori, Paolo; Davillas, Apostolos; Jones, Andrew M.; Scarchilli, Giovanna
    Abstract: We measure unfair health inequality in the UK using a novel data- driven empirical approach. We explain health variability as the result of circumstances beyond individual control and health-related behaviours. We do this using model-based recursive partitioning, a supervised machine learning algorithm. Unlike usual tree-based algorithms, model-based recursive partitioning does identify social groups with different expected levels of health but also unveils the heterogeneity of the relationship linking behaviors and health outcomes across groups. The empirical application is conducted using the UK Household Longitudinal Study. We show that unfair inequality is a substantial fraction of the total explained health variability. This finding holds no matter which exact definition of fairness is adopted: using both the fairness gap and direct unfairness measures, each evaluated at different reference values for circumstances or effort.
    Keywords: inequality of opportunity; health equity; machine learning; unhealthy lifestyle behaviours
    JEL: D63
    Date: 2022–01
  11. By: Ruggero Cefalo (Universität Wien); Rosario Scandurra (UAB - Universitat Autònoma de Barcelona)
    Abstract: Comparative research on youth employment has mostly focused on differences between countries or regimes of youth transitions. The territorial differentiation below country level has been less explored, notwithstanding the potential impact on youth-life chances and the territorial cohesion of the European Union. This paper aims at deepening into the investigation of regional variations in patterns of youth labour market chances. To do this, we build on a composite indicator measuring regional youth labour market integration (YLMI) as a comprehensive measure of contextual fragilities (or strengths) of regional youth labour markets. We provide both comparative and longitudinal views over 15 years (2004–18). Furthermore, we explore the impact of contextual factors related to economic conditions, labour market and demographic trends on the regional patterns of youth integration in the labour market.
    Keywords: abour market transitions,European Union regions,regional divide,migration,employment,Cohesion Policy
    Date: 2021
  12. By: Bertheau, Antoine (University of Copenhagen); Acabbi, Edoardo (Universidad Carlos III de Madrid); Barcelo, Cristina (Bank of Spain); Gulyas, Andreas (University of Mannheim); Lombardi, Stefano (VATT, Helsinki); Saggio, Raffaele (University of British Columbia)
    Abstract: We document the consequences of losing a job across countries using a harmonized research design. Workers in Denmark and Sweden experience the lowest earnings declines following job displacement, while workers in Italy, Spain, and Portugal experience losses three times as high. French and Austrian workers face earnings losses somewhere in-between. Key to these differences is that Southern European workers are less likely to find employment following displacement. Loss of employer-specific wage premiums accounts for 40% to 95% of within-country wage declines. The use of active labor market policies predicts a significant portion of the cross-country heterogeneity in earnings losses.
    Keywords: job loss costs, wage dynamics, labor turnover, layoffs, labor market institutions, cross-country matched employer–employee dataset
    JEL: J30 J63 J64
    Date: 2022–01
  13. By: Basheer Kalash (Université Côte d'Azur; GREDEG CNRS; Sciences Po, OFCE, France)
    Abstract: Notable attention has been given to the relationship between agglomeration and innovation. However, there is a lack of evidence of how agglomeration affects the type of innovation produced. This study aims to causally assess the impact of a change in agglomeration economies, via transportation improvements, on regional technological specialization. It investigates this relationship using the inauguration of the Öresund Bridge between Sweden and Denmark in 2000 as a quasi-experiment for a difference-in-difference approach. It considers the Öresund area, which consists of Copenhagen and the Swedish Skåne, as the treated regions and the other regions in Denmark and Sweden as a control group. The International Patent Classification (IPC) codes of European Patent Office (EPO) applications are employed to define technology classes for 30 NUTS-3 regions in Sweden and Denmark from 1988 to 2011. The results show that the opening of the Öresund bridge led to an increase in Skåne's highly cited patent technology classes, but no significant change in the specialization of Copenhagen. The results suggest that changes in regions' specializations are not only dependent on the quality of patent technology classes but are also region-specific.
    Keywords: Agglomeration, technological specialization, Öresund, transportation infrastructure, innovation
    JEL: O31 O33 R11
    Date: 2022–01
  14. By: Lergetporer, Philipp (Ifo Institute for Economic Research); Woessmann, Ludger (University of Munich)
    Abstract: We show that the electorate's preferences for using tuition to finance higher education strongly depend on the design of the payment scheme. In representative surveys of the German electorate (N>18,000), experimentally replacing regular upfront by deferred income-contingent payments increases public support for tuition by 18 percentage points. The treatment turns a plurality opposed to tuition into a strong majority of 62 percent in favor. Additional experiments reveal that the treatment effect similarly shows when framed as loan repayments, when answers carry political consequences, and in a survey of adolescents. Reduced fairness concerns and improved student situations act as strong mediators.
    Keywords: tuition, higher education finance, income-contingent loans, voting
    JEL: H52 I22 D72
    Date: 2022–01
  15. By: Labanca, Claudio (Monash University); Pozzoli, Dario (Copenhagen Business School)
    Abstract: Although constraints on hours worked at the firm-level are viewed as an important determinant of firm wages, little direct evidence exists to support this view. In this paper, we use linked employer-employee data on hours worked in Denmark to measure hours constraints and to investigate how these constraints relate to firm wages. We show that firms with stricter constraints pay higher firm-specific wages and that these premiums are concentrated in more productive firms. Starting from these findings we discuss a framework in which hours constraints are motivated by the productivity gains derived from having a more cooperative production process, leading more productive firms to constrain hours and to pay compensating wage differentials.
    Keywords: wage differentials, hours constraints, cooperation
    JEL: J31 J33
    Date: 2022–01
  16. By: Korsgren, Pontus (Leiden University); van Lent, Max (Leiden University)
    Abstract: Earmarked paternity leave has been introduced in an attempt to increase fathers’ involvement in child rearing and to achieve gender equality in the labor market and at home. So far well-being effects of such policies are unexplored. This paper takes a first step in that direction by studying the impact of earmarked paternity leave quota on life satisfaction, job satisfaction, and work-life balance using several policy changes in Europe over the period 1993-2007. We find that earmarked paternity leave increases life satisfaction by 0.18 on a 10 point scale which is equivalent to a 10.8 percentage point increase even decades later. Both fathers and mothers benefit, though the increase in life satisfaction for mothers is nearly 30% higher than that of fathers. Perhaps surprisingly, the impact on job satisfaction and work-life balance is close to zero. Hence even when the impact of paternity leave quota on the labor market are small, the increases in life satisfaction may still justify the existence of such policies.
    Keywords: family leave policies, paternity leave, quota, well-being, life satisfaction
    JEL: J12 J13 J16 J18 I31 I38
    Date: 2022–01
  17. By: Andrew E. Clark (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 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); Hippolyte d'Albis (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 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); Angela Greulich (Sciences Po - Sciences Po)
    Abstract: In this study, we ask whether the U-shaped relationship between life satisfactionand age is flatter for individuals who are partnered. An analysis of cross-sectionalEU-SILC data indicates that the decline in life satisfaction from the teens to thefifties is almost four times larger for non-partnered than for partnered individuals,whose life satisfaction essentially follows a slight downward trajectory with age.However, the same analysis applied to three panel datasets (BHPS, SOEP andHILDA) reveals a U-shape for both groups, albeit somewhat flatter for the partneredthan for the non-partnered individuals. We suggest that the difference between thecross-sectional and the panel results reflects compositional effects: i.e., there isa significant shift of the relatively dissatisfied out of marriage in mid-life. Thesecompositional effects tend to flatten the U-shape in age for the partnered individualsin the cross-sectional data.
    Keywords: Life satisfaction,Life cycle,Partnership,Marriage
    Date: 2021
  18. By: Alessandra Faggian; Alessandra Michelangeli; Kateryna Tkach
    Abstract: Is actual inequality accurately translated into people’s perceptions, and what are the genuine hopes of citizens? Our contribution offers insights into how the reality and two subjective dimensions of inequality, namely perceptions, and desires, interact. Using data from the Eurobarometer, we study the main patterns of different “types” of inequality in the European NUTS2 regions. Considering the role of attitudes and beliefs, the residents of the same region are typically found to hold a similar perception of how unequal their society is. Moreover, and somewhat surprisingly, the reality is contrary to people’s perception since low (high) actual inequality in the region is often reflected in its overestimated (underestimated) perception. We also show that perceived, and desired inequality are distinct metrics as commonly applied determinants of perceptions are rather weakly associated with desired inequality, probably due to the normative nature of the latter. The evidence presented here implies that objective measures of inequality should be used in conjunction with subjective ones to gain a complete picture of the phenomenon. Our findings may assist policy-makers and other interested stakeholders in designing dedicated policies to counteract inequality in all its forms.
    Keywords: income inequality, inequality perceptions, desired inequality, Europe.
    JEL: D31 D63 D83 I31
    Date: 2022–02
  19. By: Simpson, Julija (Newcastle University); Bambra, Clare (Newcastle University); Brown, Heather (Finnish Institute for Health and Welfare)
    Abstract: We investigate the role of employment in explaining changes in the mental health of single mothers compared to partnered mothers and single childless women during the period of welfare reform in the UK. We employ a time allocation framework to explore if reductions in benefit income led to a sub-optimal consumption bundle, resulting in lower in mental health, higher employment, and longer working hours. We estimate a Heckman selection model for employment and hours worked. A difference-in-difference model is used to explore if reform periods were associated with increased inequalities. Results show that employment was associated with better mental health for all women. Higher job hours were associated with lower mental health for all women but the association was not statistically significant for single mothers. Mental health inequalities potentially have increased post reforms.
    Keywords: welfare reform, employment, low-income, single mothers, mental health
    JEL: D13 I14 I38 J22
    Date: 2021–12
  20. By: Arold, W. Benjamin (LMU Munich); Woessmann, Ludger (University of Munich); Zierow, Larissa (Ifo Institute for Economic Research)
    Abstract: We study whether compulsory religious education in schools affects students' religiosity as adults. We exploit the staggered termination of compulsory religious education across German states in models with state and cohort fixed effects. Using three different datasets, we find that abolishing compulsory religious education significantly reduced religiosity of affected students in adulthood. It also reduced the religious actions of personal prayer, church-going, and church membership. Beyond religious attitudes, the reform led to more equalized gender roles, fewer marriages and children, and higher labor-market participation and earnings. The reform did not affect ethical and political values or non-religious school outcomes.
    Keywords: religious education, religiosity, school reforms
    JEL: Z12 I28 H75
    Date: 2022–01
  21. By: Casadei, Patrizia; Iammarino, Simona
    Abstract: Since the 2008 economic and financial crisis, the rise of populism and nationalism has been associated with increased protectionism and policy uncertainty in the world trade system, with profound side effects for international business (IB) activities and global value chains (GVCs). The aim of this paper is to investigate the way trade policy uncertainty linked to Brexit has affected firms’ behaviors along the GVC of the UK textile and apparel (T&A) industry. We draw upon data from an original survey carried out between June 2019 and January 2020 with 688 firms amongst UK T&A manufacturers, designers, and retailers to grasp their perception of Brexit uncertainty. We show that the uncertainty over trade policy between the UK and the EU – started in the wake of the 2016 referendum – has affected a significant number of firms operating upstream and downstream of the UK T&A value chain, which shows clear signs of ongoing restructuring. Our findings also provide some preliminary evidence of the way the (perceived) effects of trade policy uncertainty may vary depending on firms’ position, production phase, and degree of integration in the GVC. Policy directions for supporting the UK T&A value chain post-Brexit and implications for future IB research are discussed.
    Keywords: trade policy; global value chains; survey method; Brexit; uncertainty; textile and apparel industry
    JEL: R14 J01 L81
    Date: 2021–06–01
  22. By: Bratti, Massimiliano (University of Milan); Cottini, Elena (Catholic University Milan); Ghinetti, Paolo (University of Piemonte Orientale)
    Abstract: This study throws light on the potential non-linear effects of education on individual health and health-related behaviors, finding a strong role for higher education. Using an instrumental variables (IVs) strategy, which leverages changes in within-province between-municipality college proximity across birth cohorts, we demonstrate that higher education affects individual health-related behavior. By contrast, IVs estimates based on a compulsory schooling age reform show mostly non-significant effects. Our results point to a complex link between education and health. On the one hand, higher education channels individuals into some healthy behaviors and better health outcomes namely healthy eating, more physical activity and a lower risk of obesity. On the other hand, it also appears to increase the prevalence of certain unhealthy behaviors, such as greater smoking and drinking prevalence and higher cigarettes consumption. Albeit effects are generally similar across genders, except in few cases (e.g. smoking behavior), our analysis highlights heterogeneous effects by age and helps explain potential differences in results reported in past quasi-experimental studies in which the cohorts affected by the educational reforms used for identification are observed at given ages and not over an individual's entire life-cycle.
    Keywords: education, health, higher education expansion, health-related behavior
    JEL: I12 I24
    Date: 2022–01
  23. By: Efraim Benmelech; Michal Zator
    Abstract: Automation technologies, and robots in particular, are thought to be massively displacing workers and transforming the future of work. We study firm investment in automation using cross-country data on robotization as well as administrative data from Germany with information on firm-level automation decisions. Our findings suggest that the impact of robots on firms has been limited. First, investment in robots is small and highly concentrated in a few industries, accounting for less than 0.30% of aggregate expenditures on equipment. Second, recent increases in robotization do not resemble the explosive growth observed for IT technologies in the past, and are driven mostly by catching-up of developing countries. Third, robot adoption by firms endogenously responds to labor scarcity, alleviating potential displacement of existing workers. Fourth, firms that invest in robots increase employment, while total employment effect in exposed industries and regions is negative, but modest in magnitude. We contrast robots with other digital technologies that are more widespread. Their importance in firms’ investment is significantly higher, and their link with labor markets, while sharing some similarities with robots, appears markedly different.
    JEL: E22 E24 E25 G31 J23 J24 J3
    Date: 2022–01
  24. By: Guillaume Perilleux
    Abstract: This paper looks at the link between education of both partners and the time and money they spend on their children. Taking advantage of detailed microdata, it goes one step further than most previous studies as we control for the time constraint faced by the individuals, as well as interdependencies in the time spent in various activities by partners. This is done by performing Seemingly Unrelated Regressions. We see that, while the division of time between men and women is still gendered, it gets more egalitarian when the individuals have a high level of education. Concerning the investments in children, we find that children with parents with a low level of education suffer from less investments from their parents both in terms of time and money. Overall, our results seem to back up the gender ideology theory with education driving the transition from conservative to more egalitarian gender ideology and to be transmitted across generations with grandparents serving as gendered role models for the parents.
    Keywords: Childcare, Education, Gender Norms, Transmission, Time use
    Date: 2022–02

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