nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒10‒24
twenty-two papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Sleep quality and the evolution of the COVID-19 pandemic in five European countries By Jabakhanji, Samira; Lepinteur, Anthony; Menta, Giorgia; Piper, Alan T.; Vögele, Claus
  2. Profit Taxation, R&D Spending, and Innovation By Andreas Lichter; Max Löffler; Ingo E. Isphording; Thu-Van Nguyen; Felix Poege; Sebastian Siegloch
  3. Exploring effects of competitive tender for users in the regional railway market: evidence from Europe By Florent Laroche; Ayana Lamatkhanova
  4. Does gender equality bargaining reduce child penalty? Evidence from France By Pierre-Jean Messe; Jeremy Tanguy
  5. Dynamics of First-Time Patenting Firms By Øivind Anti Nilsen; Arvid Raknerud
  6. Let's Switch to the Cloud: Cloud Adoption and Its Effect on IT Investment and Productivity By Tomaso Duso; Alexander Schiersch
  7. Local employment dynamics and communtig costs By Julien Pascal
  8. Abstention and Populist Voting: Evidence from the Italian 2018 Election By Lucia Dalla Pellegrina; Giorgio Di Maio; Mario Gilli
  9. The impact of university openings on labor market outcomes By Samia FERHAT
  10. Stress and Retirement By Raquel Fonseca; Hugo Morin; Ana I. Moro-Egido
  11. Integration policies and their effects on labour market outcomes and immigrant inflows By Céline Piton; Ilse Ruyssen
  12. Gender Differences in High-Stakes Performance and College Admission Policies By Arenas, Andreu; Calsamiglia, Caterina
  13. The multiple dimensions of selection into employment By Kenza Elass
  14. Earning responses to inheritance, event-study evidence from Norway By Xiaoguang Ling
  15. Taxation and Migration by the Super-Rich By Advani, Arun; Burgherr, David; Summers, Andy
  16. Towards a Causal Model and Causal Inference of Regional Entrepreneurship Development Index, its antecedents and outcomes in European regions By Behnam Azhdari; Jean Bonnet; Sébastien Bourdin
  17. Exposure to past Immigration Waves and Attitudes toward Newcomers By Gihleb, Rania; Giuntella, Osea; Stella, Luca
  18. Regional Diffusion of Foreign Demand Shocks Through Trade and Ownership Networks By Lionel Fontagné; Gianluca Santoni
  19. Mapping and measuring the phenomenon of precariousness in Cyprus: challenges and implications By Petros Kosmas; Antonis Theocharous; Elias Ioakimoglou; Petros Giannoulis; Leonidas Vatikiotis; Maria Panagopoulou; Lamprianos Lamprianou; Hristo Andreev; Aggeliki Vatikioti
  20. Parenting Values and the Intergenerational Transmission of Time Preferences By Anne Ardila Brenøe; Thomas Epper
  21. The Effect of Second Generation Rent Controls: New Evidence from Catalonia By Joan Monràs; José García-Montalvo
  22. Closing the gender STEM gap - A large-scale randomized-controlled trial in elementary schools By Grosch, Kerstin; Häckl, Simone; Kocher, Martin G.

  1. By: Jabakhanji, Samira; Lepinteur, Anthony; Menta, Giorgia; Piper, Alan T.; Vögele, Claus
    Abstract: The COVID-19 pandemic has led to lifestyle changes across Europe with a likely impact on sleep quality. This investigation considers sleep quality in relation to the evolution of the COVID-19 pandemic in five European countries. Using panel regressions and keeping policy responses to COVID-19 constant, we show that an increase in the four-week average daily COVID-19 deaths/100,000 inhabitants (our proxy for the evolution of the pandemic) significantly reduced sleep quality in France, Germany, Italy, Spain, and Sweden between April 2020 and June 2021. Our results are robust to a battery of sensitivity tests and are larger for women, parents and young adults. Additionally, we show that about half of the reduction in sleep quality caused by the evolution of the pandemic can be attributed to changes in lifestyles, worsened mental health and negative attitudes toward COVID-19 and its management (lower degree of confidence in government, greater fear of being infected). In contrast, changes in one's own infection-status from the SARS-CoV-2 virus or sleep duration are not significant mediators of the relationship between COVID-19-related deaths and sleep quality.
    Keywords: COVID-19,Sleep Quality,Mental Health,Public Policy,Coronaphobia
    JEL: I12 I18 J18
    Date: 2022
  2. By: Andreas Lichter (DICE and HHU Düsseldorf); Max Löffler (Maastricht University); Ingo E. Isphording (IZA – Institute for Labor Economics); Thu-Van Nguyen (Stifterverband Essen); Felix Poege (Technology & Policy Research Initiative, Boston University and Max Planck Institute for Innovation and Competition); Sebastian Siegloch (University of Cologne)
    Abstract: We study how business taxes affect establishments’ R&D activities. Relying on geocoded panel data targeting the universe of R&D-active establishments in Germany, we exploit around 7,300 changes in the local business tax rate over the period 1987 2013 for identification. Using event study techniques, we find a sizable negative and statistically significant effect of an increase in the local business tax on establishments’ total R&D spending and patents filed. Zooming into the process of innovation production, we uncover substantial heterogeneity in the impact of business taxation for various R&D inputs, among establishment characteristics, and for different types of research projects.
    Keywords: corporate taxation, firms, R&D, innovation, patents
    JEL: H25 H32 O31 O32
    Date: 2022–09
  3. By: Florent Laroche (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Ayana Lamatkhanova (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The paper explores the effect of the competitive tender for users through prices and frequencies in the regional railway passenger market. The analysis is original by an extended perimeter to seven European countries (France, Germany, Italy, Netherlands, Sweden, Switzerland, UK) and a total of 103 routes mixing market open to competition by tendering with market still under monopoly. Data are cross sectional and have been selected for one day. The method is based on an econometric analysis (Sureg) developed for other modes (air, coach) but never yet applied to the rail market and its specificities in terms of competition. For the regional services where competition is "for the market", the competition is analyzed through a dummy as a threat to lose the tender. Intermodal competition is limited to the coach services (dummy) and carpooling services (dummy). Results show that the threat of intra-modal competition can increase price for users but have no significant effect on frequencies. The analysis country by country highlights a similar performance for Sweden and Switzerland in spite of high differences in terms of competition. It suggests that the ability to negotiate contracts of public authorities and political choices can be more determinant than potential competition. Finally, effect of intermodal competition are weak mainly because of a limited offer. Results show that the probability to find a carpooling service increases when prices of train are increasing.
    Keywords: market structure,competition,tender,regional train,Railway competition,Regional Economy,Tender offer regulation,Working Papers du LAET
    Date: 2022–03
  4. By: Pierre-Jean Messe (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - Nantes Université - École Centrale de Nantes - Nantes Univ - Nantes Université, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique); Jeremy Tanguy (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: This paper investigates the effects of firm-level gender equality bargaining on the motherhood penalty using French administrative data. To tackle the endogeneity issue, we exploit the 2010 reform that introduced financial penalties for firms with 50 employees or more not complying with their obligation of negotiating on gender equality. This change led to a strong acceleration of gender equality bargaining after 2010 but only for firms with 50 employees or more. As a consequence, women who had their first child in concerned firms after 2010 are more likely to be employed in firms covered by a text related to gender equality. Controlling for firms' size effect and time trends as well as a set of other individuals' and firms' characteristics, we identify the causal effect of gender equality bargaining on earnings impact of motherhood. Our estimates show that forcing firms to promote measures related to gender equality has reinforced the motherhood penalty. While the causal effect of this reform is close to zero just after the first child birth, it turns out to be significantly negative 5 years after. Our results suggest that some measures mentioned in GE texts, especially those favouring work-life balance, may act as an indirect discrimination towards mothers.
    Keywords: gender inequalities,motherhood penalty,collective bargaining
    Date: 2022–09–19
  5. By: Øivind Anti Nilsen; Arvid Raknerud
    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
  6. 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
  7. By: Julien Pascal
    Abstract: I explore the links between commuting costs and local employment dynamics using a spatial discontinuity introduced by a French reform in September 2015. The reform decreased the cost of public transportation in selected areas of the Paris region, but did not affect other areas. In the baseline regression framework, which only includes units that are geographically close to each other, I find that areas benefiting from the reform experienced a 0:25 percentage point decline in the unemployment rate, a 0.60 percentage point increase in the share of employed workers commuting using public transport, and a 1.4% increase in the price of residential real estate. I extend the regression framework to take into account the heterogeneity of treatment introduced by the reform, which allows me to analyze the mechanisms driving the results. I also show that a calibrated spatial search-and-matching model can rationalize the estimated treatment effects.
    Keywords: Local employment, Commuting Costs, Policy, Search-and-Matching
    JEL: E24 J68 R13 R23
    Date: 2022–10
  8. By: Lucia Dalla Pellegrina; Giorgio Di Maio; Mario Gilli
    Abstract: This study aims to investigate the demographic, social, and economic drivers of rising abstention and populist electoral success in Italy in 2018. The Italian case is unique in the euro area because, in the political elections of 4 March 2018, two parties usually identified as left-wing and right-wing populists (Movimento 5 Stelle and Lega) obtained an absolute majority of valid votes. In reverse, the main established parties, the center-left Partito Democratico and the center-right Forza Italia, which have alternated in government since 1994, reached their minimum electoral consent. We study the Italian case at the level of the 110 Italian provinces (NUTS 3) by using a data set containing a wide set of demographic and socio-economic indicators, in addition to the results of the political elections in 2008, 2013, and 2018.We regress the results of the political elections of 2018, i.e., abstention and votes obtained by the main parties expressed as a share of citizens entitled to vote, on nine factors obtained by applying an exploratory factor analysis on 41 demographic and socioeconomic variables. Results suggest that abstention is associated with the State’s failure in providing socioeconomic development and security and in repressing organized crime. Moreover, socio-economic well-being is the main driver of voting behavior. In particular, the left-wing populist Movimento 5 Stelle has been successful in the more backward Italian provinces and the right-wing populist Lega in the more developed ones. These results indicate that in 2018 mainstream parties have fallen out of favor with both the most backward and the most advanced provinces, suggesting that the notion of populism should be qualified for an understanding of the observed varieties of non-mainstream parties and voting or abstention behavior.
    Keywords: Populism, voting, abstention, electoral turnout, Italy.
    JEL: D72 D78 H11 J68 P16
    Date: 2022–09
  9. By: Samia FERHAT (Université de Cergy-Pontoise, THEMA)
    Abstract: In this paper, I study the impact of university openings on labor market outcomes. I focus on university openings that occurred in France in the 90’s, and exploit five waves from representative samples of young individuals who left the French education system, starting from wave 1992. I use difference-in-differences estimation techniques, and find that the impact of university openings on labor market outcomes is heterogeneous according to the characteristics of the region where the opening occurs. I find that opening a new university increases the probability of being employed by about 8% points and increases wages by 5% in regions characterized by a lower level of education and a more disadvantaged socio-economical background. In contrast, no impact is found in regions where the unemployment rate is low and where the population is highly educated.
    Keywords: Human capital, university openings, labor market outcomes.
    JEL: I26 J21 J23 J24
    Date: 2022
  10. By: Raquel Fonseca (ESG-Université du Québec à Montréal & CIRANO.); Hugo Morin (ESG-Université du Québec à Montréal and HRSDC.); Ana I. Moro-Egido (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: This paper investigates the bi-directional causal relationship between retirement and stress. We use PSID data for the period 2007-2015. Using a simultaneous equations approach, we find that a rise in stress increases the probability to retire by roughly 49.8 percentage points, while retirement decreases stress by 23.1 percentage points. We find the same results when we disaggregate by individuals’ characteristics such as gender, occupation, wealth and ethnicity. We show that official retirement ages are a strong instrument for actual retirement age, and that lagged physical activity levels are a non-linear instrument for perceived stress. We also confirm that objective measures of mental health are a strong instrument for perceived stress. Our result is especially interesting in terms of policy, and further research should be done to analyse the effects of physical activity on economic and well-being variables at older ages.
    Keywords: Stress, retirement, physical activity, simultaneous equation models.
    JEL: C30 I10 I12 J26
    Date: 2022–10–05
  11. By: Céline Piton (: Economics and Research Department, National Bank of Belgium & Université libre de Bruxelles (SBS-EM, CEBRIG, DULBEA)); Ilse Ruyssen (Department of Economics—CESSMIR, Ghent University, UNU-CRIS, B-9000 Ghent, Belgium)
    Abstract: Throughout Europe, the labour market integration of immigrants tends to lag behind that of natives. This paper empirically analyses the role played by integration policies in closing this gap in EU countries, not only directly, through the employment rate but also indirectly by influencing the intensity and the composition of immigration flows. Relying on the Migration Integration Policy Indicator (MIPEX), we find that countries with more developed integration policies do not necessarily have higher immigrant employment rates. This finding is due to the fact that different types of policies have opposite effects: policies favouring family reunion, tackling discrimination and allowing for political participation seem to increase the labour market integration of immigrants, while the latter is negatively associated with a higher labour market mobility, as well as easier access to permanent residence and nationality. Only the positive effect of anti-discrimination policies survives the inclusion of country fixed effects though. Effects are found to vary across immigrants coming from EU versus non-EU countries, suggesting that there is no one-fits-all integration policy. Moreover, our results confirm that immigrants’ labour market integration varies with the skill composition of the migrant population, a higher level of qualification favouring employment. The composition of the immigrant population within a country in terms of skill levels, however, could also be influenced by integration policies in potential destination countries, a premise which we also test. We show that integration policies indeed act as a pull factor for migration in a gravity model that controls also for the restrictiveness and skill selectivity of migration policies. Yet, it seems that more elaborate integration policies affect primarily the number of high-skilled immigrants entering the territory, but not the number of medium or low skilled, and this only for those from EU countries. Different factors hence seem to be at play for the low and medium skilled, but once moved, our results show that low-skilled migrants are the ones benefitting the most from integration policies in terms of employment rate.
    Keywords: : Integration policies, Immigration, Labour market.
    JEL: J08 J15 J18 J21 J78
    Date: 2022–09
  12. By: Arenas, Andreu (University of Barcelona); Calsamiglia, Caterina (IPEG)
    Abstract: We investigate the effect of increasing the weight of standardized high-stakes exams at the expense of high school grades for college admissions. Studying a policy change in Spain, we find a negative effect of the reform on female college admission scores, driven by students expected to be at the top. The effect on admission scores does not affect enrolment, but the percentage of female students in the most selective degrees declines, along with their career prospects. Using data on college performance of pre-reform cohorts, we find that female students most likely to lose from the reform tend to do better in college than male students expected to benefit from the reform. The results show that rewarding high-stakes performance in selection processes may come along with gender differences unrelated to the determinants of subsequent performance.
    Keywords: college admissions, high-stakes exams, gender gaps
    JEL: J16 I23 I24
    Date: 2022–09
  13. By: Kenza Elass (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.)
    Abstract: A vast literature on gender wage gaps has examined the importance of selection into employment. However, most analyses have focused only on female labour force participation and gaps at the median. The Great Recession questions this approach both because of the major shift in male employment that it implied but also because women's decisions to participate seem to have been different along the distribution, particularly due to an "added worker effect". This paper uses the methodology proposed by Arellano and Bonhomme (2017) to estimate a quantile selection model over the period 2007-2018. Using a tax and benefit microsimulation model, I compute an instrument capturing the male selection induced by the crisis as well as female decisions: the potential out-of-work income. Since my instrument is crucially determined by the welfare state, I consider three countries with notably different benefit systems-the UK, France and Finland. My results imply different selection patterns across countries and a sizeable male selection in France and the UK. Correction for selection bias lowers the gender wage gap and, in most recent years, reveals an increasing shape of gender gap distribution with a substantial glass ceiling for the three countries.
    Keywords: gender wage gap, sample selection, quantile selection model, wage inequality, quantiles, selection, glass ceilings, sticky floors
    JEL: J31 J21 J16 C21
    Date: 2022–09
  14. By: Xiaoguang Ling
    Abstract: It has long been assumed that inheritances, particularly large ones, have a negative effect on the labor supply of inheritors. Using Norwegian register data, this paper examines the inheritance-induced decline in inheritors' wage and occupational income. In contrast to prior research, my estimates allow the dynamic effect of inheritances on labor supply to vary among inheritor cohorts. The estimation approach and the 25-year long panel data make it possible to trace the dynamics of the effect of inheritances for at least a 20 years, which is three times longer than previous literature. Since all of the observations in my sample are inheritors, I avoid the selection problem arises in studies employing non-inheritors as controls. I find that large parental inheritances (more than one million Norwegian kroner) reduce annual wage and occupational income by at most four percent, which is about half the size of that the literature suggests. The magnitude of the effect increases with the size of the inheritances. Large inheritances also raise the probability of being self-employed by more than one percent, but inheritances that are too large may also dampen entrepreneurship. The effect of inheritances lasts for up to 10 years and is heterogeneous across sex and age groups. Male heirs are more likely to reduce labor supply after receiving the transfer. Young heirs are more likely to be self-employed and their annual occupational income is therefore less affected by inheritances in the long run. For the very young who inherit large amount of wealth from their grandparents, the probability of attaining a post-secondary education declines by 2%.
    Date: 2022–09
  15. By: Advani, Arun (University of Warwick, CAGE, the Institute for Fiscal Studies (IFS), and the LSE International Inequalities Institute (III)); Burgherr, David (LSE III.); Summers, Andy (London School of Economics, III, and CAGE)
    Abstract: Using administrative data on the globally connected super-rich in the UK, we study the effect of a large tax reform on migration behaviour. Prior to 2017, o shore investment returns for `non-doms' - individuals tax resident in the UK but with connections to other countries - were untaxed. Average off shore investment returns for these individuals exceeded £420,000; even without considering other types of income, this puts them in the top 0.2% of the population. A reform in 2017 brought long-stayers and UK-born non-doms into the standard tax system, reducing their effective net of average tax rate by between 8.8% and 13.0%. We nd that migration responses were limited : our central estimate of the migration elasticity is 0.02, and across a range of specifications we can rule out elasticities larger than 0.5. Using reforms for the UK-born super-rich who were living abroad, we find that migration elasticities are limited even for recent arrivals, for whom our central estimate is 0.18. Assuming similar elasticities for all non-doms, abolition of the preferential regime would increase tax revenue collected from non-doms by £3.2bn (84%).
    Keywords: taxation; migration; capital income; inequality; mobility JEL Codes: F22 ; H31 ; J61
  16. By: Behnam Azhdari (Department of Management, Khark Branch, Islamic Azad University, Shohada St. Khark Island, Boushehr, Iran); Jean Bonnet (Normandie Univ, Unicaen, CNRS, CREM, 14000 CAEN, FRANCE); Sébastien Bourdin (EM Normandie Business School, Métis Lab, 9 rue Claude Bloch, 14000 CAEN, FRANCE)
    Abstract: While the literature on entrepreneurial ecosystems (EEs) is growing, there is still a scarce literature on the causal effect between the components of the EEs and between the EEs and regional development. Our paper fills this gap and empirically identify the causal relationships between the EEs' components and the causal effect of the EE on regional development. We show that the growth of GDP/Inhabitant in European regions is only directly determined by the creation of new firms with a strong ambition to grow and create many jobs. The perception of regional opportunities and the risk acceptance are primitive points at the origin of most of the crucial nodes of successful entrepreneurial ecosystems in European regions.
    Keywords: Entrepreneurial Ecosystem, REDI Components, Causal Models, Bayesian Networks, Bayesian Inference
    JEL: C11 L26 M13 R11
    Date: 2022–09
  17. By: Gihleb, Rania (University of Pittsburgh); Giuntella, Osea (University of Pittsburgh); Stella, Luca (Free University of Berlin)
    Abstract: How does previous exposure to massive immigrant inflows affect concerns about current immigration and the integration of refugees? To answer this question, we investigate attitudes toward newcomers among natives and previous immigrants. In areas that in the 1990s received higher inflows of immigrants of German origin—so-called ethnic Germans—native Germans are more likely to believe that refugees are a resource for the economy and the culture, viewing them as an opportunity rather than a risk. Refugees living in these areas report better health and feel less exposed to xenophobia.
    Keywords: immigration, refugees, birthplace diversity, public opinion
    JEL: A13 D64 J6 I31
    Date: 2022–09
  18. By: Lionel Fontagné; Gianluca Santoni
    Abstract: International demand shocks are transmitted within the trade and ownership firms' networks and impact directly or indirectly domestic firm productivity and labor misallocation. Considering manufacturing firms for Italy, Spain and France over the period 2009-2017, we quantify these transmission channels from the global economy to the domestic firms, and within the domestic economy across locations, sectors and firms. We compute in a shift share fashion international demand shock at the district-sector-year level as plausibly exogenous to individual firms. Our results confirm that global shocks are transmitted through trade networks and that this transmission is largely mediated by firms' ownership networks both across and within the borders of the three countries.
    Keywords: Globalization;Productivity;Networks;FDI
    JEL: F14 F23 F61
    Date: 2022–09
  19. By: Petros Kosmas; Antonis Theocharous; Elias Ioakimoglou; Petros Giannoulis; Leonidas Vatikiotis; Maria Panagopoulou; Lamprianos Lamprianou; Hristo Andreev; Aggeliki Vatikioti
    Abstract: This research study utilises a mixed design model to empirically measure and address the phenomenon of precarious work and precariousness in Cyprus. For the purposes of this study precariousness is perceived as a condition in which people face specific dangers, risk of disease or accident, material deprivation and poverty. Furthermore, as a result of precarious employment, insufficient income and lack of property, these individuals are not able to cope or be exposed to prolonged periods of unemployment and its subsequent social risks and dangers. By analysing data from the EU-SILC (2020) for Cyprus, the characteristics of precarious employees were identified, along with the factors contributing to precariousness. The majority of precarious workers in Cyprus were women, immigrants and young people. Following this, precarity was examined as a condition in which precariousness and economic vulnerability intersect and interact. Precarious workers accounted for 9,5% of all employees in 2019, whereas those in precarity (i.e., precarious and economically vulnerable) amounted for 4,4% of all employees. The present research and its empirics contribute to the discussion of the phenomenon of precarious work and precariousness by introducing new variables and introducing new empirical approaches to the examination of precarious employment and precariousness. The results of this study are intended to provide stakeholders with an enhanced understanding of the phenomenon which will ultimately lead to new theoretical and policy avenues towards its reduction and elimination.
    Keywords: Cyprus; Precariousness; Economics; Work
    Date: 2022–09
  20. By: Anne Ardila Brenøe (CEBI - Center for Economic Behavior and Inequality - UCPH - University of Copenhagen = Københavns Universitet, UZH - Universität Zürich [Zürich] = University of Zurich, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Thomas Epper (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, IÉSEG School Of Management [Puteaux], CEBI - Center for Economic Behavior and Inequality - UCPH - University of Copenhagen = Københavns Universitet)
    Abstract: We study how parents transmit patience to their children with a focus on two theoretically important channels of socialization: parenting values and parental involvement. Using high-quality administrative and survey data, and a setting without reverse causality concerns, we document a substantial intergenerational transmission of patience. We show that parenting values represent a key channel of the transmission. Authoritative parents (high in control and warmth) do not transmit patience to their children, in contrast to authoritarian and permissive parents. Thus, the authoritative parenting style seems to counteract the transmission of impatience. While parental involvement does not appear to be a relevant channel at the aggregate level, we document important heterogeneity by parent gender.
    Keywords: Intergenerational transmission,time preferences,patience,parenting style,parenting values,parental involvement
    Date: 2022
  21. By: Joan Monràs; José García-Montalvo
    Abstract: Catalonia enacted a second-generation rental cap policy in late September 2020. The policy affected some municipalities but not others and, within the former, the policy only affected the units with prices above a certain reference price. Using microdata on rental units, we analyze the effect of the policy on both rental prices and the composition of rental supply. We find that the policy led to a reduction in rental prices of approximately 5 percent. The policy also led to a decline in the overall supply of rental units and to a significant shift in the composition of units available in the market. Using variation from the policy change, we compute a rental housing supply elasticity of approximately 3.
    Keywords: rent control, reference price, housing supply, event study
    JEL: D4 R21 R28 R31
    Date: 2022–04
  22. By: Grosch, Kerstin; Häckl, Simone; Kocher, Martin G.
    Abstract: We examine individual-level determinants of interest in STEM and analyze whether a digital web application for elementary-school children can increase children’s interest in STEM with a specific focus on narrowing the gender gap. Coupling a randomized-controlled trial with experimental lab and survey data, we analyze the effect of the digital intervention and shed light on the mechanisms. We confirm the hypothesis that girls demonstrate a lower overall interest in STEM than boys. Moreover, girls are less competitive and exhibit less pronounced math confidence than boys at the baseline. Our treatment increases girls’ interest in STEM and decreases the gender gap via an increase in STEM confidence. Our findings suggest that an easy-to-implement digital intervention has the potential to foster gender equality for young children and can potentially contribute to a reduction of gender inequalities in the labor market such as occupational sorting and the gender wage gap later in life.
    Keywords: STEM; digital intervention; gender equality; field experiment
    Date: 2022–08

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