nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒09‒26
24 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Economic Preferences and the Self-selection of Immigrants By Zhan, Crystal; Deole, Sumit
  2. Where do I stand in the EU? Income comparisons and perceptions By Bublitz, Elisabeth; Jäger, Julian; Wang, Hequn; Beblo, Miriam; Lohmann, Henning
  3. Homeownership and the Perception of Material Security in Old Age By Garten, Claudius; Myck, Michal; Oczkowska, Monika
  4. Much Ado about Nothing? School Curriculum Reforms and Students' Educational Trajectories By Strazzeri, Maurizio; Oggenfuss, Chantal; Wolter, Stefan C.
  5. Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment By Cockx, Bart; Declercq, Koen; Dejemeppe, Muriel
  6. Occupational sorting on genes By Thomas Buser; Rafael Ahlskog; Magnus Johannesson; Sven Oskarsson
  7. "The double-dividend of training" - Labour market effects of work-related continuous education in Switzerland By Stefan Denzler; Jens Ruhose; Stefan C. Wolter
  8. The power of the (red) pill in Europe: pharmaceutical innovation and female empowerment By Annarita Macchioni Giaquinto
  9. Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway. By Hall, Caroline; Hardoy, Inés; von Simson, Kristine
  10. The UK Gender Pay Gap: Does Firm Size Matter? By Jones, Melanie; Kaya, Ezgi
  11. Does robotization affect job quality? Evidence from European regional labour markets By Jos\'e-Ignacio Ant\'on; Rudolf Winter-Ebmer; Enrique Fern\'andez-Mac\'ias
  12. Credit constraints and open innovation strategies By Pierluigi Murro; Valentina Peruzzi
  13. Competitiveness and investments under emissions trading By Leon Bremer; Konstantin Sommer
  14. The impact of alternative childcare policies on mothers' employment for selected EU countries By NARAZANI Edlira; AGUNDEZ GARCIA Ana; CHRISTL Michael; FIGARI Francesco
  15. Too Healthy to Fall Sick? Longevity Expectations and Protective Health Behaviours during the First Wave of COVID-19 By Celidoni, Martina; Costa-Font, Joan; Salmasi, Luca
  16. International Assortative Matching in the European Labor Market By Thomas Peeters; Jan C. van Ours
  17. Localised Effects of Re-allocated Real Estate Mafia Assets By Filippo Boeri; Marco Di Cataldo; Elisabetta Pietrostefani
  18. Dynamics of First-Time Patenting Firms By Nilsen, Øivind A.; Raknerud, Arvid
  19. (In)visible sanctions: micro-level evidence on compulsory activation for young welfare recipients By Smedsvik, Bård; Iacono, Roberto
  20. Sleeping with the enemy. Partners’ political attitudes and risk of separation By Bruno Arpino; Alessandro Di Nallo
  21. Better Off by Risk Adjustment? Socioeconomic Disparities in Care Utilization in Sweden Following a Payment Reform By Anell, Anders; Dackehag, Margareta; Dietrichson, Jens; Ellegård, Lina Maria; Kjellsson, Gustav
  22. Is it all the same? Types of innovation and their relationship with direct control, technical control and algorithmic management across European firms By Marta Fana; Davide Villani
  23. Native Population Turnover & Emerging Segregation: The Role of Amenities, Crime and Housing By Korpi, Martin; Halvarsson, Daniel; Öner, Özge; A.V. Clark, William; Mihaescu, Oana; Östh, John; Bäckman, Olof
  24. The outsourcing wage penalty along the wage distribution by gender By FANA Marta; GIANGREGORIO Luca; VILLANI Davide

  1. By: Zhan, Crystal; Deole, Sumit
    Abstract: Classical theories hypothesize individual economic preferences, including preferences toward risk, time, and trust, as determinants for migration intention. In the paper, we combine data from the German Socio-Economic Panel, European Social Survey, and World Values Survey to investigate how immigrants to Germany are self-selected from the origin population based on their preferences. We find a higher migration propensity among individuals who are more altruistic, patient, and trusting, conditional on age, gender, education, and a series of origin country's economic and political factors. However, individuals are positively selected on risk appetite in low-risk countries but adversely selected in high-risk countries. The degree of selectivity regarding preferences is also heterogeneous across demographics and origin-country characteristics.
    Keywords: self-selection,economic preferences,refugees,reasons for migration,origin country
    JEL: F22 J15 J6 O15 Z1
    Date: 2022
  2. By: Bublitz, Elisabeth; Jäger, Julian; Wang, Hequn; Beblo, Miriam; Lohmann, Henning
    Abstract: With a survey experiment conducted in Germany, Italy, Poland, and Sweden, we investigate how EU citizens rank themselves within the EU. In all four countries, (mis-)perceptions of EU income positions result primarily from respondents' (incomplete) information about their national position and their perceived country ranking within the EU. Low-income respondents tend to place themselves higher and richer respondents lower in both the national and EU income distribution. Respondents who are informed about their income position estimate their EU ranking more accurately in a follow-up survey. Our findings show that concepts of inequality at the EU level are empirically meaningful and that EU citizens have a reference frame beyond their own country.
    Keywords: Perceptions,Inequality,European Union,Survey Experiment
    JEL: C91 D31 H24
    Date: 2022
  3. By: Garten, Claudius (TU Dortmund); Myck, Michal (Centre for Economic Analysis, CenEA); Oczkowska, Monika (Centre for Economic Analysis, CenEA)
    Abstract: Homeownership has been shown to be related to various aspects of well-being, although both the causal nature of this relationship and the possible channels behind it have been difficult to identify. We focus on one of the most often quoted mechanisms which could be responsible for the positive effects of homeownership, namely its role in providing material security in old age. Using data from 15 European countries collected in wave 2 of the Survey of Health, Ageing and Retirement in Europe (SHARE), we analyse the relationship between homeownership and material security, as measured through subjective expectations of being better or worse off in the future. We find that homeowners have a higher level of material security than renters, and this association is especially strong for those living in big cities. For this subsample, in comparison to renters, owning a property in the top quartile of the home value distribution is associated with an increase in the probability of expecting to be better off in the future by as much as 43%. With respect to our measure of material security we find no such correlations with education, income or financial assets. We interpret the results as support for the argument that homeownership offers a very particular form of material security, which may be behind its positivse implications for well-being.
    Keywords: homeownership, well-being, material security, old age, expectations
    JEL: I31 J14 D84
    Date: 2022–08
  4. By: Strazzeri, Maurizio (University of Bern); Oggenfuss, Chantal (Swiss Co-ordination Center for Research in Education); Wolter, Stefan C. (University of Bern)
    Abstract: We estimate the impact of a large curriculum reform in Switzerland that substantially increased the share of foreign language classes in compulsory school on students' subsequent educational choices in upper secondary school. Using administrative student register data and exploiting the staggered implementation of the curriculum reform, we find that exposure to more foreign language classes during compulsory school has only minor effects on educational choices of the overall student population. However, we find substantial effect heterogeneity: while the reform has no effect on the direct educational progression of either low-track female or high-track students, it impedes low-track male students' transition to upper secondary education. The effect of foreign language classes on the educational trajectory of low-track male students is particularly pronounced for students who do not speak at home the school's language of instruction. Finally, we find that female students who start vocational training immediately after compulsory school are more likely to select into training occupations that require higher foreign language skills in- stead of natural science skills.
    Keywords: policy evaluation, goodman-bacon decomposition, education reform, foreign language skills, compulsory school, educational choices, occupational choices
    JEL: I21 I24 I28
    Date: 2022–08
  5. By: Cockx, Bart; Declercq, Koen; Dejemeppe, Muriel
    Abstract: Providing income support to unemployed education-leavers reduces the returns to investments in education because it makes the consequences of unemployment less severe. We evaluate a two-part policy reform in Belgium to study whether conditioning the prospective entitlement to unemployment benefits for education-leavers on age or schooling attainment can affect educational achievements. The results show that the prospect of financial loss in case of unemployment can significantly raise degree completion and reduce dropout in higher education, but not in high school. We argue that the higher prevalence of behavioral biases among lower educated and younger students could explain these contrasting findings.
    Keywords: unemployment insurance,conditionality,degree completion,school dropout,behavioral biases
    JEL: H52 I21 I26 I28 J08 J18 J24 J65 J68
    Date: 2022
  6. By: Thomas Buser (University of Amsterdam); Rafael Ahlskog (Uppsala University); Magnus Johannesson (tockholm School of Economics); Sven Oskarsson (Uppsala University)
    Abstract: We use a novel approach to explore how people sort into different careers based on their personality skills. We link genetic data from individuals in the Swedish Twin Registry to government register data, making use of new polygenic indices that capture the genetic predispositions of individuals towards a range of relevant cognitive skills, personality traits, and economic preferences. We first present a detailed mapping of these genetic tendencies by occupation and study major. We show that – conditional on their socio-economic background – people who sort into different study majors and occupations differ significantly in their genetic predispositions. We then take advantage of random genetic variation between siblings to show that this sorting is at least partially due to a causal effect of genetic tendencies on career choices. Our results shed new light on the determinants of some of the most impactful decisions people must make in their lives.
    Keywords: personality traits, cognitive skills, behavioral genetics, labor markets, education
    JEL: D91 J24
    Date: 2022–09–07
  7. By: Stefan Denzler; Jens Ruhose; Stefan C. Wolter
    Abstract: This paper presents the first longitudinal estimates of the effect of work-related training on labour market outcomes in Switzerland. Using a novel dataset that links official census data on adult education to longitudinal register data on labour market outcomes, we apply a regression-adjusted matched difference-in-differences approach with entropy balancing to account for selection bias and sorting on gains. We find that training participation increases yearly earnings and reduces the risk of unemployment already two years after the treatment. However, the effects are heterogeneous as to gender, age, education, and regional labour market context. Gains are highest for middle aged men with formal vocational education working in either depressed or booming labour markets.
    Keywords: Continuous education, wages, unemployment, entropy balancing, Switzerland
    JEL: I21 I26 J24 M53
    Date: 2022–09
  8. By: Annarita Macchioni Giaquinto (Department of Economics, University Of Venice CÃ Foscari; Food and Agriculture Organization of the United Nations)
    Abstract: Birth control is fundamental for gender equality and women’s empowerment. Historically, oral contraceptives, most notably the pill, transferred from men to women the control on contraception, shifting out the frontier of women’s available choices in terms of educational and career planning. This paper uses a quasi-experimental design exploiting the staggered and uncoordinated introduction of the contraceptive pill on-demand to young, adult, unmarried women in 14 European countries between the 60s and 80s to explore the causal link between the pharmaceutical innovation of oral contraceptives and further female achievements. Using SHARE data, results show that the pill induced a significant and sizable increase in women’s educational attainments and labour market outcomes due to higher human capital investments.
    Keywords: pharmaceutical innovation, contraception, education, labour market, women’s empowerment, gender equality
    JEL: J13 J16 J18
    Date: 2022
  9. By: Hall, Caroline (IFAU - Institute for Evaluation of Labour Market and Education Policy); Hardoy, Inés (Institutt for Samfunnsforskning,); von Simson, Kristine (Institutt for Samfunnsforskning,)
    Abstract: The rising numbers of young people with disability pension concerns many advanced economies. We present results from a comparative analysis of Sweden and Norway, two countries which are very similar in many respects, but differ regarding the policy mix to enhance the employability of the work disabled. Using rich longitudinal data, we follow unemployed young adults (aged 25-29 years old) with reduced work capacity to investigate the effect of different types of labour market policies. We follow these individuals up to four years after the start of unemployment. Our results indicate that, in spite of radical differences in programme composition and strategies, there are surprisingly small country differences in impacts. Having participated in workplace related programmes about doubles the likelihood of entering regular employment or education. Participating in qualifying training courses also increases this likelihood, but effect sizes are smaller.
    Keywords: Unemployment; labour market programmes; reduced work capacity; young adult;
    JEL: J08 J64 J68
    Date: 2022–09–07
  10. By: Jones, Melanie; Kaya, Ezgi
    Abstract: Motivated by the introduction of the UK Gender Pay Gap Reporting legislation to large firms, defined as over 250 employees, we use linked employee-employer panel data from the Annual Survey of Hours and Earnings to explore pre-legislation variation in the gender pay gap by firm size. In doing so, we integrate two prominent but distinct empirical regularities in the labour economics literature, namely the gender pay gap and firm-size wage premium. We find evidence of both a larger raw and unexplained gender pay gap among large relative to smaller firms in the UK private sector even after controlling for unobserved worker heterogeneity, consistent with the legislation being effectively targeted. However, this conclusion changes after accounting for unobserved firm level heterogeneity and focusing on within-firm gender pay gaps. Large firms have smaller within-firm raw gender pay gaps and similar unexplained gender pay gaps when compared to smaller firms. We find that this conclusion is not specific to the current firm size threshold of 250 employees but holds more generally, including at proposed extensions of the legislation to smaller firms.
    Keywords: gender pay gap,firm-size wage premium,linked employee-employer panel data,pay transparency
    JEL: J31 J71 J78
    Date: 2022
  11. By: Jos\'e-Ignacio Ant\'on (University of Salamanca); Rudolf Winter-Ebmer (Johannes Kepler University Linz); Enrique Fern\'andez-Mac\'ias (Joint Research Centre)
    Abstract: Whereas there are recent papers on the effect of robot adoption on employment and wages, there is no evidence on how robots affect non-monetary working conditions. We explore the impact of robot adoption on several domains of non-monetary working conditions in Europe over the period 1995-2005 combining information from the World Robotics Survey and the European Working Conditions Survey. In order to deal with the possible endogeneity of robot deployment, we employ an instrumental variables strategy, using the robot exposure by sector in other developed countries as an instrument. 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.
    Date: 2022–08
  12. By: Pierluigi Murro (LUISS University); Valentina Peruzzi (Sapienza University of Rome)
    Abstract: We investigate whether credit constraints affect firms' reliance on open innovation strategies. Using data on 7,000 Italian small and medium-sized enterprises, we find that credit restricted firms are 26\% more likely to collaborate for innovation than firms not suffering from credit constraints. This result is confirmed both for product and process innovators. However, when accounting for the intensity of the product innovation, we find a negative impact of credit rationing on open innovation for firms introducing completely new products in the market. This confirms the relevance of opportunity costs in the choice between internal and open innovation in presence of credit restrictions. We also look at the role played by innovation partners. In particular, we show that the existence of credit constraints positively affects the probability of firms innovating with their suppliers. Finally, we provide evidence that the impact of credit frictions on innovation collaborations varies with the innovation environment and with the socio-economic conditions of the province where firms are located.
    Keywords: credit constraints; open innovation; product innovation; process innovation
    JEL: O36 G32 D22
    Date: 2022–09
  13. By: Leon Bremer (Vrije Universiteit Amsterdam); Konstantin Sommer (University of Amsterdam)
    Abstract: We study the effects of the EU Emissions Trading System (ETS) on employment and profits as well as on the investment decisions of Dutch manufacturing firms. Motivated both by sizable differences between firms that are regulated in different phases and by the gradual increase in regulatory stringency, we pay close attention to treatment effect heterogeneity between firms and over time. We use microdata from Statistics Netherlands to apply two difference-in-differences (DiD) estimators: (1) a matched twoway fixed effects regression and (2) a recently developed, more flexible DiD method, designed for staggered treatment and treatment effect heterogeneity. We find that firms that were first regulated in phase 1 and 2 experience temporary employment losses of between 7 to 9% early in the regulation, but we do not find conclusive evidence for changes in profits. Firms that were regulated the earliest reduced their investments throughout all phases.
    Keywords: Emissions trading, Environmental regulation, Staggered Difference-in-Differences, Treatment heterogeneity, Manufacturing
    JEL: H23 L51 Q52
    Date: 2022–09–07
  14. By: NARAZANI Edlira (European Commission - JRC); AGUNDEZ GARCIA Ana (European Commission - JRC); CHRISTL Michael; FIGARI Francesco
    Abstract: The Barcelona targets on childcare help increase women’s labour-market participation and close the gender employment gap by enhancing the provision of early childhood education and care. To contribute to the debate on the revision of the targets, this paper estimates the impact on labour participation of mothers of alternative scenarios of formal childcare policies for a number of countries. The selected countries (IT, EE, IE, AT, HU, FI, PT, PL) represent different female participation in the labour market and childcare systems. The analysis makes use of the EUROLAB and EUROMOD models, based on EU-SILC data, to estimate female labour supply reactions to childcare reforms. Furthermore, EUROLAB allows us to also account for the labour demand side. The first reforms analyzed consist in providing formal childcare to 40%, 50%, 60% and 65% of children under 3. Our results show that the achievement of these levels of childcare (through increases in childcare availability and usage) would lead to significant increases in the labour supply of mothers (at the extensive and intensive margins), especially in countries where the current labour participation of women and the share of formal childcare is low. Accounting for labour demand, we show that the expected final employment effects in the new labour market equilibrium will be less pronounced, but still positive.
    Keywords: Labour market equilibrium, labour supply, labour demand, behavioural models, discrete choice, childcare
    Date: 2022–09
  15. By: Celidoni, Martina (University of Padova); Costa-Font, Joan (London School of Economics); Salmasi, Luca (Catholic University - Rome)
    Abstract: Longevity expectations (LE) are subjective assessments of future health status that can influence a number of individual health protective decisions. This is especially true during a pandemic such as COVID-19, as the risk of ill health depends more than ever on such protective decisions. This paper exploits differences in LE to examine the causal effect of LE on protective health behaviours and a number of decisions around access to health care, using data from the Survey of Health Ageing and Retirement in Europe. We draw on an instrumental variable strategy exploiting individual level information on parental age at death. Consistent with the too healthy to be sick hypothesis, we find that individuals with higher expected longevity are more likely to engage in protective behaviours, and are less likely to forgo medical treatment. We estimate that a one standard deviation increase in expected longevity increases the probability to comply always with social distancing by 0.6%, to meet people less often by 0.4% and decreases the probability to forgo any medical treatment by 0.6%. Our estimates vary depending on the availability of health care, as well as individuals' gender and pre-existing health conditions.
    Keywords: health capital, forgone medical treatment, health behaviours, private information, longevity expectations, SHARE, Europe, instrumental variables, COVID-19
    JEL: I12 I18
    Date: 2022–08
  16. By: Thomas Peeters (Erasmus University Rotterdam); Jan C. van Ours (Erasmus University Rotterdam)
    Abstract: We investigate whether national borders within Europe hinder the assortative matching of workers to firms in a high skilled labor market. We characterize worker productivity as the ability to contribute to physical output and define firm productivity as the capacity to transform physical output into revenues. We rank workers and firms according to their individual productivity estimates and study the ensuing rank correlation to gauge the degree of assortative matching within and across countries. We find strong evidence for positive assortative matching at the national level, and even more so at the international level. This suggests national borders do not prevent workers and firm from pursuing profitable complementarities in production.
    Keywords: Assortative matching, international worker mobility, football managers
    JEL: M51 J63 J24 Z22
    Date: 2022–09–01
  17. By: Filippo Boeri (Centre for Economic Performance, London School of Economics; Department of Economics, ESSEC Business School); Marco Di Cataldo (Department of Economics, University Of Venice CÃ Foscari; Department of Geography and Environment, London School of Economics); Elisabetta Pietrostefani (Department of Geography and Environment, London School of Economics; Bartlett Faculty of the Built Environment, University College London)
    Abstract: In an effort to tackle organised crime, the Italian State implements a policy stipulating that properties confiscated to individuals convicted of mafia-related crimes are reallocated to a new use. The policy is meant to act as both an anti-mafia measure and a way to compensate local communities by converting real-estate assets into public amenities. We assess whether this scheme has an effect on the regeneration of local areas by assessing its impact on the value of properties in the vicinity of re-allocated assets and crime activity. The results unveil a positive effect of re-allocated real estate assets on house prices, driven by mafia strongholds, more deprived neighbourhoods, and areas with more inelastic housing supply. The findings suggest declining effects with distance from the re-allocation site, indicating that the policy impact is highly localised. Part of this effect appears due to a decrease in organised crime activity in the streets where re-allocations have taken place. These findings have implications for the effectiveness of policies aiming to improve the quality of neighbourhoods where mafia presence is more pronounced.
    Keywords: Organised crime, confiscation, hedonic analysis, urban regeneration policy, Italy
    JEL: K42 R32 H23
    Date: 2022
  18. By: Nilsen, Øivind A. (Dept. of Economics, Norwegian School of Economics and Business Administration); Raknerud, Arvid (SSB)
    Abstract: This paper investigates firm dynamics in the period before, during, and after an event consisting of a first published patent application. The analysis is based on patent data from the Norwegian Industrial Property Office merged with data from several business registers covering a period of almost 20 years. We apply an event study design and use matching to control for confounding factors. The first patent application by a young firm is associated with significant growth in employment, output, assets and public research funding. Moreover, our results indicate that economic activity starts to increase at least three years ahead of the first patent application. However, we find no evidence of additional firm growth after patent approval for successful applicants. Our findings indicate that the existence of a properly functioning patenting system supports innovation activities, especially early in the life cycle of firms.
    Keywords: Patenting; Firm performance; Panel data; Event study design
    JEL: C33 D22 O34
    Date: 2022–08–30
  19. By: Smedsvik, Bård; Iacono, Roberto
    Abstract: Since the early years of activation and workfare in the 1990s, the use of welfare conditionality and benefit sanctions has been proposed among the necessary solutions to ensure the efficiency of welfare policy by reinforcing individual economic incentives. Using rich administrative registers from Norway, we produce micro-level quantitative evidence on compulsory activation for young recipients of social assistance. The empirical challenge is that activation through the threat of benefit sanctions is not a feature that unambiguously emerges from observational data, except for when sanctions indeed take place and benefits are reduced. To overcome this barrier, we introduce a novel methodology to identify individual- level effects of activation on young welfare recipients, exploiting municipal variation in the introduction of compulsory activation. More precisely, we study whether individuals who are residents in municipalities that have introduced compulsory activation display a stronger relationship between their labor market status (activation) and their benefit size (because of the threat of sanctions being in place) compared to individuals residing in municipalities where activation has not been made compulsory. Our results show that there is no different relationship between social assistance benefits and passive labor market status for individuals living in municipalities that practice activation compared with individuals residing in municipalities in which activation is not yet mandatory. In other words, there is no visible effect of (the threat of) sanctions for passive recipients.
    Keywords: benefit sanctions, social assistance, compulsory activation
    Date: 2022–09
  20. By: Bruno Arpino (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Alessandro Di Nallo (Dondena Centre, Università Bocconi)
    Abstract: Does politics conflict with love? We aim at answering this question by examining the effect on union dissolution of partners' (mis)match on political preferences, defined as self-reported closeness, intention to vote, or vote for a specific party. Previous studies argued that partners' heterogamy may increase risk of union dissolution because of differences among partners in lifestyles, attitudes, and beliefs, and/or because of disapproval from family and community members. We posit that similar arguments can apply to political heterogamy and test the effect of this new heterogamy dimension using UK data from the British Household Panel Study (BHPS) and the UK Household Longitudinal Study (UKHLS). The data offer a unique opportunity to disentangle the role of heterogamy by political preferences from the effects of heterogamies in other domains (e.g., ethnicity and religiosity) and from that of other partners' characteristics, while also covering a long period of time (from 1991 to 2021). The data also allow to implement a more specific analysis about the referendum on UK's permanence in the European Union (known as the Brexit referendum). We find a positive effect of political preferences heterogamy on union dissolution. In addition, diverging opinions on the Brexit referendum is associated to higher chances of partnership break-up.
    Keywords: union dissolution; divorce; separation; heterogamy; homogamy; political preferences; United Kingdom.
    Date: 2022–09
  21. By: Anell, Anders (Department of Business Administration, Lund University); Dackehag, Margareta (School of Economics and Management, Lund University); Dietrichson, Jens (VIVE - The Danish Center for Social Science Research); Ellegård, Lina Maria (Department of Economics, Lund University); Kjellsson, Gustav (Department of Economics, Gothenburg University)
    Abstract: Reducing socioeconomic health inequalities is a key goal of most health systems. When care providers are paid prospectively, e.g., by a fixed sum per patient, existing inequalities may be sustained by the incentives to undertreat relatively unhealthy patients. To counter these incentives, prospective payments are often risk-adjusted based on observable patient characteristics. Despite that risk adjustment (RA) is widely used, empirical evidence is lacking on how it affects the behavior of care providers. This paper provides such evidence using detailed administrative data from a Swedish region. We examine how a novel RA model applied to the prospective payment for primary care providers – capitation – affected socioeconomic differences in care utilization among individuals with a chronic condition. On average, the new RA model implied substantial increases of the capitation for patients with low socioeconomic status (SES). Yet, we do not find any robust evidence of greater access to primary care for individuals with low SES relative to individuals with high SES after the model was introduced. We find a small increase in hospital emergency department visits (a substitute to primary care), but no effects on hospitalizations. These results do not suggest that the new RA model reduced socioeconomic health inequalities. Our findings highlight that a risk-adjusted prospective payment may not by itself guide treatment decisions. We discuss other governance and management policies that may address undesired health inequalities.
    Keywords: Socioeconomic health inequalities; Risk adjustment; Primary care; Health care utilization; Prospective payment; Incentives
    JEL: I11 I14 I18 L33 R50
    Date: 2022–08–26
  22. By: Marta Fana (European Commission - JRC); Davide Villani (European Commission - JRC)
    Abstract: Using firm-level data from 28 European countries, this paper explores the relationship between two types of innovation (process and digital) and different forms of control (direct and indirect) at the workplace. We find that (1) digital innovation is more common than process innovation; (2) more innovative firms record higher levels of indirect control (especially related to algorithmic management) and lower level of direct control (3) the relationship between innovation and control is not uniform across European countries. These findings nurture the debate on the future of work as the process of digitalisation may promote a shift towards indirect forms of control and contribute to reduce the degree of direct control. Moreover, these changes may also affect the bargaining process and lead to a redefinition of managerial roles, though it should be acknowledged that social and institutional factors play an important role in shaping this process.
    Keywords: Process innovation; Digital innovation; Algorithmic management; Control, European firms.
    Date: 2022–09
  23. By: Korpi, Martin (The Ratio Institute); Halvarsson, Daniel (The Ratio Institute); Öner, Özge (Institutet för näringslivsforskning); A.V. Clark, William (California Center for Population Research); Mihaescu, Oana (Institute of retail economics (HUI)); Östh, John (Uppsala University); Bäckman, Olof (Stockholm university)
    Abstract: Using geo-coded full-population grid-level data for the three largest metropolitan areas in Sweden, 1993-2016, this paper i) estimates the level and pace of ethnic segregation, ii) examines possible tipping points in this development, and iii) gauges the importance of several mitigating or exacerbating factors (such as the mix of housing area tenure type, different types of amenities, and crime). We use OLS and 2SLS to estimate outcomes at two different geographic levels; 250 x 250 square meter grids and SAMS areas (roughly equivalent to US census tracts), respectively. On average, we find that for every 1 percentage point increase in immigration, native growth is reduced by around -0.3 percentage points. Crime levels exacerbate developments and factors such as housing area tenure-type mix and access to various amenities slows it down, but only marginally so. Using repeated and single random sampling for cross-validation, and the twin common methodological approaches as suggested in the literature, we estimate possible tipping points in these segregation developments. In contrast to most other studies in the literature, none of our potential tipping points are however statistically significant when probing their relevance in explaining factual population developments, suggesting a rather more continuous – albeit steeply so – segregation process rather than a structural brake. In terms of tipping point methodology, our main findings are that fixed-point estimation is less robust than R-square maximization for small geographical units, and that the former consistently selects for lower tipping-point candidates than the latter.
    Keywords: Tipping point; ethnic enclaves; segregation; urban amenities; geo-coded data; micro-data
    JEL: C26 J15 R23
    Date: 2022–06–12
  24. By: FANA Marta (European Commission - JRC); GIANGREGORIO Luca; VILLANI Davide (European Commission - JRC)
    Abstract: This paper studies if and to what extent the outsourced status entails a wage penalty for workers during the period 2005–2019 in France and how these differences vary between genders. Our findings show that workers in outsourced jobs suffer a wage penalty which is higher for female workers compared to male ones. The outsourcing penalty does not depend on part-time arrangements, the repetitive nature of the job nor sector of employment. The effect of these covariates adds to the direct effect, but only for female workers. The longitudinal analysis reinforces cross-sectional results: the outsourcing wage penalty is not due to changes in individual characteristics of the workers, but to differences in the job status and time-invariant characteristics between them. Overall, being an outsourced worker implies a worsening in the wage treatment and the gender gaps which, considering the expansion of this practice, lead to important policy issues.
    Keywords: subcontracting, gender gap, wages, labour market, tasks
    Date: 2022–08

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