nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒10‒17
29 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Workplace Segregation and the Labour Market Performance of Immigrants By Sébastien Willis
  2. Matching it up: non-standard work and job satisfaction By Katarzyna Bech; Magdalena Smyk; Lucas van der Velde; Joanna Tyrowicz
  3. Much Ado about Nothing? School Curriculum Reforms and Students' Educational Trajectories By Maurizio Strazzeri; Chantal Oggenfuss; Stefan C. Wolter
  4. Using Distribution Regression Difference-In-Differences to Evaluate the Effects of a Minimum Wage Introduction on the Distribution of Hourly Wages and Hours Worked By Biewen, Martin; Fitzenberger, Bernd; Rümmele, Marian
  5. Place-Based Policies and the location of economic activity: evidence from the Italian Strategy for Inner areas By Monturano, Gianluca; Resce, Giuliano; Ventura, Marco
  6. Mothers’ birth giving status and the division of parental leave. A comparison of adoptive and biological parents. By Moberg, Ylva; van der Vleuten , Maaike
  7. Collateral value and entrepreneurship: Evidence from a property tax reform By Miguel A. Ferreira; Joao Pereira dos Santos; Ines Venancio
  8. Parental Leave Benefits and Child Penalties By Sevrin Waights
  9. Too Healthy to Fall Sick? Longevity Expectations and Protective Health Behaviours during the First Wave of Covid-19 By Martina Celidoni; Joan Costa-i-Font; Luca Salmasi
  10. Tax incentives for high skilled migrants: evidence from a preferential tax scheme in the Netherlands By Lisa Marie Timm; Massimo Giuliodori; Paul Muller
  11. Does Money Change Who You Are? Quasi-Experimental Evidence on the Effects of Wage Increases on Personality By Adam Ayaita
  12. Carbon pricing reform and expectations Evidence from French manufacturing, 2005-2019 By Mélanie MARTEN
  13. The Impact of Firm-level Covid Rescue Policies on Productivity Growth and Reallocation By Jozef Konings; Glenn Magerman; Dieter Van Esbroeck
  14. Changing Gender Norms across Generations: Evidence from a Paternity Leave Reform By Lídia Farré; Cristina Felfe; Libertad González; Patrick Schneider
  15. Let's Switch to the Cloud: Cloud Adaption and Its Effect on IT Investment and Productivity By Tomaso Duso; Alexander Schiersch
  16. Conflict intensity in the region of birth increases religiosity among refugees By Frank van Tubergen1,2,; Yuliya Kosyakova; Agnieszka Kanas
  17. No Country for Young People? The Rise of Anti-Immigration Politics in Ageing Societies By Valerio Dotti
  18. Are Entrepreneurs More Upwardly Mobile? By Matthew J. Lindquist; Theodor Vladasel
  19. Do shared e-scooter services cause traffic accidents? Evidence from six European countries By Cannon Cloud; Simon He{\ss}; Johannes Kasinger
  20. Venture Capital for the development of smart cities: the Italian case By Anna Gervasoni; Cristina De Silva; Michele Lertora; Andrea Odille Bosio
  21. A Lasting Crisis Affects R&D Decisions of Smaller Firms: The Greek Experience By Ioannis Giotopoulos; Alexander S. Kritikos; Aggelos Tsakanikas
  22. Life-cycle labour supply with human capital: Evidence for Spain By Antonio Cutanda; Juan A. Sanchis Llopis
  23. Mortgage prepayments and tax-exempted intergenerational transfers: from rich parents to rich children? By Yue Li; Mauro Mastrogiacomo
  24. Teachers' Desired Mobility to Disadvantaged Schools: Do Financial Incentives Matter? By Julien Silhol; Lionel Wilner
  25. Mismatch in preferences for working from home - evidence from discrete choice experiments By Piotr Lewandowski; Katarzyna Lipowska; Mateusz Smoter
  26. Nonparametric Analysis of Heterogeneous Multidimensional Fairness By Bram De Rock; Domenico Moramarco
  27. Personality Growth after Relationship Losses: Changes of Perceived Control in the Years around Separation, Divorce, and the Death of a Partner By Eva Asselmann; Jule Specht
  28. The Reverse Revolving Door in the Supervision of European Banks By Stefano Colonnello; Michael Koetter; Alex Sclip; Konstantin Wagner
  29. School supply constraints in track choices: A French study using high school openings By Manon Garrouste; Meryam Zaiem

  1. By: Sébastien Willis
    Abstract: Immigrants are more likely to have conationals as colleagues, however the consequences of such workplace segregation is an open question. I study the effect of the conational share in an immigrant’s first job on subsequent labour market outcomes using register data from Germany. I instrument for the conational share using hiring trends in the local labour market and find that a ten-percentage-point increase in the initial conational share lowers employment rates by 3.1 percentage points six or more years after the start of the first job, an effect not observed for non-conational immigrants, with no effect on wages conditional on employment. The employment effect appears to be due to the effect of differences in the composition of social networks induced by differences in the initial workplace on subsequent job search behaviour, although differential Germany-specific human capital acquisition cannot be entirely ruled out.
    Keywords: employment, segregation, coworker networks, immigrant earnings dynamics
    JEL: J61 J64 J31
    Date: 2022
  2. By: Katarzyna Bech (Group for Research in Applied Economics (GRAPE); Warsaw School Economics); Magdalena Smyk (Group for Research in Applied Economics (GRAPE)); Lucas van der Velde (Group for Research in Applied Economics (GRAPE); Warsaw School Economics); Joanna Tyrowicz (Group for Research in Applied Economics (GRAPE); University of Warsaw; Institute of Labor Economics (IZA))
    Abstract: We leverage the flexibility enactment theory to study the link between working arrangements and job satisfaction. We propose that this link is moderated by individual inclination to non-standard working arrangements. Thus, we provide novel insights on the (mis)match between preferred and actual working arrangements. We apply this approach to data from the European Working Conditions Survey and empirically characterize the extent of mismatch in working arrangements across European countries. We shed new light on several phenomena. First, the extent of mismatch is substantial and reallocating workers between jobs could substantially boost overall job satisfaction in European countries. Second, the mismatch more frequently affects women and parents. Finally, we demonstrate that the extent of mismatch differs across European countries, which hints that one-size-fits-all policies, whether they deregulate or curb non-standard arrangements, are not likely to maximize the happiness of workers.
    Keywords: non-standard working arrangements, job satisfaction, gender
    JEL: J32 J71 J16
    Date: 2022
  3. By: Maurizio Strazzeri; Chantal Oggenfuss; Stefan C. Wolter
    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 instead 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
  4. By: Biewen, Martin (University of Tuebingen); Fitzenberger, Bernd (Institute for Employment Research (IAB), Nuremberg); Rümmele, Marian (University of Tübingen)
    Abstract: This paper evaluates the effects of the newly introduced German minimum wage on the distribution of hourly wages and hours worked. The study is based on the German Structure of Earnings Survey (GSES), the only large scale data set for Germany that includes information on hourly wages and hours worked. We provide a full distributional analysis based on counterfactual distributions that would have prevailed, had the minimum wage not been introduced. Our results suggest that its introduction almost eliminated wage rates below its threshold and, depending on the specification considered, led to spill-over effects up to 20 percent above it. We show that inequality in hourly wages fell between 2014 and 2018, but that the long-term trend of rising inequality would already have been stopped after 2014 without the minimum wage. We demonstrate that the existence of pre-trends leads to an upward bias for the estimation of the minimum wage effect. We do not find any significant shifts in the distribution of weekly working hours. As a methodological contribution, we provide a transparent treatment of distribution regression difference-in-differences (DR DiD) based on bite measures.
    Keywords: minimum wage, distribution regression, difference-in-differences, inequality
    JEL: D31 J31 J38
    Date: 2022–09
  5. By: Monturano, Gianluca; Resce, Giuliano; Ventura, Marco
    Abstract: This paper investigates the effects on the economic activities location of a specific governmental place-based policy, the Italian Strategy for Inner Areas (SNAI). Taking advantage of the most recent developments in the econometrics of policy evaluation, we apply a staggered difference-in-difference estimator to evaluate the impact of the public policy in terms of number of plants at municipal level. The analysis is made possible thanks to a detailed panel dataset containing information about Italian municipalities over the years 2014-2020. The results show that the policy has produced effects since its inception, generating a significant number of extra plants in the treated municipalities over the first two years. A further key issue is whether the policy has generated spillover effects on neighbours which may (in)validate the results obtained. To answer this question we propose an empirical strategy, joining the new estimator with spatial analysis, and we find no spillover effects.
    Keywords: Rural development, Policy evaluation, Place-based policy, Event study analysis, Spillover effects
    JEL: C21 O12 O18
    Date: 2022–09–26
  6. By: Moberg, Ylva (Swedish Institute for Social Research (SOFI), Stockholm University.); van der Vleuten , Maaike (Swedish Institute for Social Research (SOFI), Stockholm University.)
    Abstract: Mothers’ longer time on parental leave after having children has been proposed as one reason for remaining gender inequalities in the labor market. This paper investigates the determinants of the unequal division of parental leave, specifically the argument that mothers take more parental leave as a consequence of pregnancy and breastfeeding. We compare the division of parental leave of biological parents (where the mother gave birth) to adoptive parents (where she did not), to assess to what extend the unequal division of childcare responsibilities can be explained by the physiological aspects of biological motherhood. We analyze Swedish register data on couples who had their first biological or adopted child in 1994 – 2009, and families that had both adopted and biological children. We find that the mother’s share of parental leave is lower if the child is adopted. The difference is small, 80% versus 82%, although statistically significant. We thus conclude that going through a pregnancy increases the mothers initial parental leave, but the impact is minor. Instead, our results indicate that gender norms of mothers as caregivers and fathers as breadwinners is more likely to explain (at least part of) couples’ division of parental leave.
    Keywords: parental leave; gender norms; motherhood; division of labor;
    JEL: D13 J13 J16 J22
    Date: 2022–09–23
  7. By: Miguel A. Ferreira; Joao Pereira dos Santos; Ines Venancio
    Abstract: We study the role of property taxes on entrepreneurial activity using a quasi-natural experiment, which unexpectedly reduced the upper bound of the Portuguese property tax rate for urban properties in 2008. Using a diffrence-in-differences approach, we nd that treated municipalities (i.e., municipalities that had a property tax rate above the new upper bound) experienced higher entry rates in the manufacturing sector vis-a-vis control municipalities (i.e., municipalities that had a property tax rate at or below the new upper bound). Taking advantage of rm-level data, we show that start-ups created as a response to the decrease in property taxes in treated municipalities use more debt, invest more, and are more likely to survive.
    Keywords: Entrepreneurship, Property taxes, Savings, Portugal
    JEL: L26 H20 R30
    Date: 2022
  8. By: Sevrin Waights
    Abstract: I use the universe of tax returns in Germany and a regression kink design to estimate the impact of the benefit amount available to high-earning women after their first childbirth on subsequent within-couple earnings inequality. Lower benefit amounts result in a reduced earnings gap that persists beyond the benefit period for at least nine years after the birth. The longer-term impacts are driven by couples where the mother earned more than the father pre-birth. Simulations suggest it would take a 50% reduction in the benefit amount to completely eliminate long-run child penalties for sample couples. Lower benefits also reduce take-up of paid leave by mothers, lower the chances of having further children, and have no impact on marital stability.
    Keywords: Child penalties, gender inequality in earnings, social norms, parental leave policy, regression kink design
    JEL: D63 H31 J13 J16 K31 M52 Z13
    Date: 2022
  9. By: Martina Celidoni; Joan Costa-i-Font; Luca Salmasi
    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: longevity expectations, private information, health behaviours, forgone medical treatment, health capital, SHARE, Europe, instrumental variables
    JEL: I12 I18
    Date: 2022
  10. By: Lisa Marie Timm (University of Amsterdam); Massimo Giuliodori (University of Amsterdam); Paul Muller (Vrije Universiteit Amsterdam)
    Abstract: This paper examines to what extent an income tax exemption affects international mobility and wages of skilled immigrants. We study a preferential tax scheme for foreigners in the Netherlands, which introduced an income threshold for eligibility in 2012 and covers a large share of the migrant income distribution. By using detailed administrative data ina difference-in-differences setup, we find that the number of migrants in the income range closely above the threshold more than doubles, whereas there is little empirical support for a decrease of migration below the threshold. Our results indicate that these effects are driven mainly by additional migration, while wage bargaining responses are fairly limited. We conclude that the preferential tax scheme is highly effective in attracting more skilled migrants
    Keywords: international migration, income tax benefits, wage bargaining, bunching.
    JEL: F22 J61 H24 H31
    Date: 2022–09–27
  11. By: Adam Ayaita
    Abstract: Using the 2015 introduction of a statutory minimum wage in Germany as a quasi-experiment, I investigate the effects of wage increases on personality. The degree to which each worker’s wage is intended to be affected by the reform is used as an instrument for the relative increase in the worker’s hourly wage in a two-stage least squares estimation based on nationally representative panel data (N = 1,955 individuals). The results show no significant effects of relative wage increases on personality traits. As the confidence intervals indicate, any substantial effects of wage increases on personality are largely rejected by the results.
    Keywords: Income, minimum wage, money, personality, quasi-experiment, wage
    JEL: A12 D31 D63 J31 J38
    Date: 2022
  12. By: Mélanie MARTEN (Université de Cergy-Pontoise, THEMA)
    Abstract: This paper investigates the effects of the 2014 French carbon tax reform on plant manufacturing energy use patterns and employment outcomes using a linear panel event study specification spanning fifteen years. The analysis exploits low-carbon electricity use to construct a proxy for exposure and expected exposure to increasingly higher carbon pricing, as the rate is set to reach e100 per tCO2 by 2030. A 10 percentage point (pp) increase in exposure is significantly associated with a 1.9 pp increase in the electricity share of fuel use, along with a 4.39% decrease in total energy use. Exposure is not associated with a change in electricity use levels, but is weakly associated with a drop in fossil fuel use: the electricity to fossil fuel use ratio increases by around 4.86 percent. Exposure is also weakly associated with job losses.
    Keywords: Carbon tax, Policy Evaluation, Manufacturing, France, Expectations.
    JEL: Q48 Q52 L6 D84
    Date: 2022
  13. By: Jozef Konings (Nazarbayev University, Graduate School of Business, KU Leuven and CEPR); Glenn Magerman (ECARES, ULB and CEPR); Dieter Van Esbroeck (KU Leuven)
    Abstract: We analyze the impact of Covid-19 rescue policies on both firm-level and aggregate productivity growth and reallocation. Using administrative data on the universe of firms' subsidies in Flanders, we estimate the causal impact of these subsidies on firm-level outcomes. Firms that received subsidies saw a 7% increase in productivity, compared to firms that applied for, but did not obtain subsidies. Furthermore, the propensity to exit the market was 43% lower for treated firms. Aggregate productivity growth, a share-weighted sum of firms' productivity evolutions, amounted to 6% in 2020. While within-firm productivity growth was similar for both subsidized and non-subsidized firms, there is a reallocation of market shares from subsidized firms to non-subsidized firms. These results suggest that Covid rescue policies helped firms to sustain and preserve productivity, while not obstructing allocative efficiency gains to non-subsidized firms.
    Keywords: Productivity, productivity growth, aggregate productivity, allocative efficiency
    JEL: D22 D24 O4
    Date: 2022–06
  14. By: Lídia Farré; Cristina Felfe; Libertad González; Patrick Schneider
    Abstract: Direct exposure to counter-stereotypical behaviors early in life has been put forward as a promising way to change gender norms across generations. We ask to which extent public policy designed to promote counter-stereotypical behavior among parents influences gender norms for their children. Specifically, we combine the national-level introduction of paternity leave in Spain with a unique, large-scale lab-in-the-field experiment conducted with children born around the policy change. We provide causal evidence that, at age 12, children whose fathers were eligible for paternity leave exhibit more egalitarian attitudes towards gender roles and are more supportive of mothers and fathers being equally engaged in the labor market and in the home. They also engage more in counter-stereotypical day-to-day behaviors and expect to deviate from the male-breadwinner model in the future.
    Keywords: gender role attitudes, paternity leave, Social Norms
    JEL: J08 J13 J16 J18
    Date: 2022–01
  15. By: Tomaso Duso; Alexander Schiersch
    Abstract: The advent of cloud computing promises to improve the way firms utilize IT solutions. Firms are expected to replace large and inflexible fixed-cost investments in IT with more targeted variable spending in cloud solutions. In addition, cloud usage is expected to increase the productivity of firms, as it allows them to quickly customize the IT they require to their specific needs. We assess these assertions using data on a representative sample of firms provided by the German statistical offices for the years 2014 and 2016, which allows to observe who are the cloud users. Our analysis explicitly accounts for the self-selection into cloud adoption within an endogenous treatment regression framework. Broadband availability at the municipality level is used as an exogenous shifter for cloud usage. We show that, while cloud adoption does not impact IT investment in any sectors, it does significantly improve labor productivity for firms in manufacturing and in information and communication services.
    Keywords: Cloud computing, investment, productivity, IT, substitution, firm performance
    JEL: D24 D25 L60 L80 O14 O33
    Date: 2022
  16. By: Frank van Tubergen1,2, (Utrecht University,); Yuliya Kosyakova (University of Groningen); Agnieszka Kanas (University of Bamberg)
    Abstract: Do violent conflicts increase religiosity? This study draws on evidence from a large-scale survey on refugees in Germany linked with data on time-varying conflict intensity in refugees’ birth regions prior to the survey interview. The results show that the greater the number of conflict-induced fatalities in the period before the interview, the more often refugees pray. The relationship between conflict and praying holds equally across demographic subgroups. Evidence suggests that both short- and long-term cumulative fatalities in refugees’ birth regions affect how often they pray. Additionally, the link between conflict and praying is stronger for refugees who have family and relatives still living in their country of origin. Finally, we show that the conflicts that matter are those occurring within the refugees’ specific region of birth rather than in other regions in the country. Implications for existential insecurity theory and cultural evolutionary theory are discussed.
    Keywords: Religiosity, existential insecurity, refugees, praying, war
    Date: 2022–10
  17. By: Valerio Dotti (Department of Economics, University Of Venice CÃ Foscari)
    Abstract: We investigate the effects of (1) population ageing and (2) rising income inequality on immigration policies using a citizen-candidate model of elections. In each period, young people work and pay taxes while old people receive social security payments. Immigrants are all young, meaning they contribute significantly to financing the cost of public services and social security. Among natives, the elderly and the poor benefit the most from public spending. However, because these two types of voters do not internalise the positive fiscal effects of immigration, they have a common interest in supporting candidates who seek to curb immigration and increase the tax burden on high-income individuals. Population ageing and rising income inequality increase the size and, in turn, the political power of such sociodemographic groups, resulting in more restrictive immigration policies, a larger public sector, higher tax rates, and lower societal well-being. Calibrating the model to UK data suggests that the magnitude of these effects is large. The implications of this model are shown to be consistent with patterns observed in UK attitudinal data.
    Keywords: Immigration, Ageing, Policy, Voting
    JEL: D72 J61 J14 H55
    Date: 2022
  18. By: Matthew J. Lindquist; Theodor Vladasel
    Abstract: Entrepreneurship is often hailed as a path to upward intergenerational mobility, but few studies have explicitly tested this belief. We study intergenerational income rank mobility among entrepreneurs and employees in Sweden using high-quality measures of lifetime income for 215,000 father-son pairs. Incorporated entrepreneurs are more upwardly mobile than wage earners; this result is driven by selection and not by the causal impact of entrepreneurship on upward intergenerational mobility. By contrast, unincorporated entrepreneurs are more downwardly mobile, a result explained by selection, income underreporting, and lower returns to skills and education.
    Keywords: entrepreneurship, incorporation, intergenerational mobility, lifetime income, upward mobility
    JEL: L26 J24 J62
    Date: 2022–06
  19. By: Cannon Cloud; Simon He{\ss}; Johannes Kasinger
    Abstract: We estimate the causal effect of shared e-scooter services on traffic accidents by exploiting variation in availability of e-scooter services, induced by the staggered rollout across 93 cities in six countries. Police-reported accidents in the average month increased by around 8.2% after shared e-scooters were introduced. For cities with limited cycling infrastructure and where mobility relies heavily on cars, estimated effects are largest. In contrast, no effects are detectable in cities with high bike-lane density. This heterogeneity suggests that public policy can play a crucial role in mitigating accidents related to e-scooters and, more generally, to changes in urban mobility.
    Date: 2022–09
  20. By: Anna Gervasoni; Cristina De Silva; Michele Lertora; Andrea Odille Bosio
    Abstract: Urban transformation represents an increasingly urgent goal in accelerating the transition towards innovative, sustainable and digital cities to make them more efficient and smarter. An extraordinary availability of public funding is currently mobilized to this effect; however, it is not sufficient to pursue sustainability goals. Since the acceleration of smart city growth requires a huge amount of investment, venture capital could play a key role in launching the smart city of the future. In our research we analyse the role of venture capital as a promoter and accelerator of industrial sectors through the financing of innovative start-ups and funding disruptive technologies, which impact the smart city. Descriptive analysis was conducted based on data collected through venture capital deals carried out in Italy during the period 2015 to 2021, as monitored by 〖VeM〗^TM, selecting specific industries which impact the smart city: digitalization, ecological transition, financial services, healthcare and mobility. The results suggest that there is an overall growth of interest from venture capitalists in investing in the smart city, which makes the market more dynamic and ready to accelerate urban transformation. This represents an impressive trend that may be good groundwork for further growth in the years ahead.
    Date: 2022–09
  21. By: Ioannis Giotopoulos; Alexander S. Kritikos; Aggelos Tsakanikas
    Abstract: We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis.
    Keywords: Small firms, large firms, R&D, innovation, productivity, long-term crisis
    JEL: L25 L60 O31 O33
    Date: 2022
  22. By: Antonio Cutanda (Universidad de Valencia, Valencia, Spain ORCID number: 0000-0003-2066-4632); Juan A. Sanchis Llopis (Universidad de Valencia and ERICES, Valencia, Spain ORCID number: 0000-0001-9664-4668)
    Abstract: In this paper we provide the first estimate of the intertemporal substitution for leisure in Spain, accounting for the impact of human capital accumulation. This would allow uncovering whether the intertemporal labour supply of Spanish workers is affected by human capital. Our empirical strategy consists of estimating the equation for the intertemporal substitution of leisure with and without accounting for human capital, what allows to detect hypothetical estimation biases associated to omitting the impact of human capital. To that end, we build a pseudo-panel data set combining the Spanish Family Expenditure Survey and the Labour Survey over the period 1987-1997. While the model that ignores human capital accumulation provides an estimate of the intertemporal elasticity of substitution for leisure about 0.25, comparable to previously available estimates for Spain and other economies, the model with human capital provides an estimate about 0.5, what confirms the existence of a bias in the former estimates. Finally, this bias is larger for the younger cohorts than for the older ones.
    Keywords: Euler equation, Instrumental variables, Intertemporal Substitution for leisure, Panel data
    JEL: C33 C36 E24 J22
    Date: 2022–09
  23. By: Yue Li; Mauro Mastrogiacomo
    Abstract: The Dutch government modified twice the taxation of intergenerational transfers aimed at mortgage down-payments and prepayments. We identify the causal effects of the tax exemption on prepayments and inter vivos transfers separately by exploiting changes in the policy design. Subsequent policy changes resulted in two expansions of the tax-free transfers that caused a significant increase in the probability of receiving such transfers — a relatively rare event — which translated then in a more modest increase in the probability to make prepayments, that are far more common. Initially the amounts prepaid increased by a similar magnitude, while the second expansion only increased the amounts being transferred but not the prepayments. The macroprudential policy goal of the reform was to reduce the number of underwater mortgages, at the time constituting more than onethird of all mortgages. We find that the prepayments triggered by the policy change increased mostly for borrowers with low original loan to value (LTV) ratios. This implies that most transfers were made from wealthy parents to housing-rich children. This because the policy was too generic, so it did not help to reduce the share of underwater mortgages.
    Keywords: mortgage repayments; intergenerational transfers; household indebtedness;
    JEL: G5 H2
    Date: 2022–09
  24. By: Julien Silhol; Lionel Wilner
    Abstract: This paper exploits a 2018 reform of teachers’ financial incentives to work in some French disadvantaged schools. Based on this quasi-natural experiment, it evaluates the impact of those incentives on teachers’ stated preferences to move to such schools. Using data from the internal human resource management of some educational authority, we find that most responsive teachers have less experience and work already in those areas. Counterfactual simulations suggest that the policy has not hurt other disadvantaged schools, but rather induced some teachers not to remain in their current school or to opt less for regular schools.
    Keywords: teacher mobility, financial incentives, stated preferences, rank-ordered choices, disadvantaged schools
    JEL: I21 I22 J45
    Date: 2022
  25. By: Piotr Lewandowski; Katarzyna Lipowska; Mateusz Smoter
    Abstract: Working from home became widespread during the COVID-19 pandemic, but workers’ and employers’ preferences towards it may diverge when the world of work “returns to normal†. We study workers’ and employers’ willingness to pay for working from home using discrete choice experiments with more than 10,000 workers and more than 1,500 employers in Poland. We randomised wage differences between otherwise identical home- and office-based jobs and between otherwise identical job candidates. We found that demand for working from home was substantially higher among workers than among employers. Most workers would prefer to work from home if offered the same wage for a home-based job as for an office-based job, while most employers would prefer to hire an office-based worker. On average, workers would sacrifice 5.1% of their earnings for the option to work from home, especially for 2-3 days a week (7.3%) rather than five days a week (2.8%). On average, employers expect a wage cut of 40.7% from candidates who want to work from home. This gap in the valuations of WfH reflects mainly the additional effort required from managers, followed by their assessments of productivity loss resulting from WfH, and the discrepancy between employers’ and workers’ valuations of benefits that WfH offers workers. Only among the minority of employers who find that working from home brings productivity gains, managers’ valuation of working from home aligns with workers' willingness to pay for it.
    Keywords: working from home, willingness to pay, discrete choice experiment
    JEL: J21 J44
    Date: 2022–09
  26. By: Bram De Rock; Domenico Moramarco
    Abstract: The paper proposes a framework of assess fairness in multidimensional distributions while respecting individuial preferences. We characterize a simple measure - Equivalent Advantage - that captures the distance from the current outcome to the potentially individual specific norm outcome. We introduce a non parametric approach to partially identify our measure via set identification of individual indifference curves. Our methodology is illustrated by analyzing multidimensional fairness in Belgium using the MEqIn database. Despite the set identification, we show that our analysis of the Equivalent Advantage distribution allows for interesting insights on multidimensional inequality, poverty and opportunity distribution.
    Keywords: fairness, multidimensional inequality, poverty, equal- ity of opportunity, Equivalent Advantage, individual preferences, nonparametric analysis
    Date: 2022–09
  27. By: Eva Asselmann; Jule Specht
    Abstract: Background: Previous research suggests that romantic relationships play a crucial role for perceived control. However, we know surprisingly little about changes in perceived control before and after the end of romantic relationships. Methods: Based on data from the Socio-Economic Panel Study (SOEP), a nationally representative household panel study from Germany, we examined changes of perceived control in the years around separation from a partner (N = 1,235), divorce (N = 423), and the death of a partner (N = 437). Results: Multilevel analyses revealed that external control beliefs were higher in but not beyond the first year after separation from a partner. Internal and total control beliefs increased gradually in the years after separation. Moreover, internal control beliefs were higher in and especially beyond the first year after the death of a partner compared to the years before. No evidence was found that perceived control already changed in the years before relationship losses or in the years around a divorce. Conclusion: Taken together, these findings point toward stress-related growth of perceived control after some relationship losses-especially separation and the death of a partner.
    Date: 2022
  28. By: Stefano Colonnello (Department of Economics, University Of Venice CÃ Foscari; Halle Institute For Economic Research (IWH), Italy); Michael Koetter (Halle Institute for Economic Research (IWH); Otto-von-Guericke University Magdeburg; Deutsche Bundesbank, Germany); Alex Sclip (University of Verona, Italy); Konstantin Wagner (Halle Institute for Economic Research (IWH))
    Abstract: We show that the presence of executive directors with prior experience in the finance industry is pervasive on the boards of European national banking supervisors. Up to one executive out of three has previously held positions in the industry she supervises (or in closely connected ones). Appointments of such executives impact more favorably bank valuations than those of executives without a finance background. The proximity to supervised banks rather than superior financial expertise or intrinsic skills appears to drive the positive differential effect of finance-related executives. Finally, the presence of former finance professionals in the board of banking authorities associates with lower regulatory capital and faster growth of banks,pointing to a more lenient supervisory style.
    Keywords: Revolving Doors, Banking Supervision, Conflicts of Interest
    JEL: G14 G21 G28
    Date: 2022
  29. By: Manon Garrouste (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Meryam Zaiem
    Abstract: We study the effect of opening a new high school on individual schooling decisions at the end of lower secondary education. The working sample covers all ninth graders between 2007–2008 and 2012–2013 in France. The two-way fixed-effect estimation strategy uses variation in time and space to estimate the causal effect of an increase in school supply. Opening a new high school significantly increases the probability of pupils from neighboring middle schools continuing in higher secondary education. The effect is exclusively due to new high schools proposing a vocational track. Furthermore, the effect is mainly driven by low-achieving students.
    Keywords: Education,Track choice,School openings,Difference-in-differences,Two-way fixed effects
    Date: 2020–10

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