nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒12‒05
29 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Industrial robots and fertility in European countries By Anna Matysiak; Daniela Bellani; Honorata Bogusz
  2. Immigrant concentration and ethno-linguistic diversity in the classroom: consequences for children’s well-being, social integration and academic competencies By Fedeli, Emanuele; Triventi, Moris
  3. From low emission zone to academic track: Environmental policy effects on educational achievement in elementary school By Brehm, Johannes; Pestel, Nico; Schaffner, Sandra; Schmitz, Laura
  4. The Effect of Labor Market Competition on Firms, Workers, and Communities By Dodini, Samuel; Løken, Katrine; Willén, Alexander
  5. Sleep Quality and the Evolution of the COVID-19 Pandemic in Five European Countries By Samira Jabakhanji; Anthony Lepinteur; Giorgia Menta; Alan Piper; Claus Vögele
  6. EU Cohesion Policy on the Ground: Analyzing Small-Scale Effects Using Satellite Data By Julia Bachtrögler-Unger; Mathias Dolls; Carla Krolage; Paul Schüle; Hannes Taubenböck; Matthias Weigand
  7. Regional Institutional Quality and Territorial Equity in LTC Provision By Anna Marenzi; Dino Rizzi; Michele Zanette; Francesca Zantomio
  8. Expansions in Paid Parental Leave and Mothers' Economic Progress By Gozde Corekcioglu; Marco Francesconi; Astrid Kunze
  9. Dual Returns to Experience By Jose Garcia-Louzao; Laura Hospido; Alessandro Ruggieri
  10. Air pollution and the housing market: Evidence from Germany's Low Emission Zones By Gruhl, Henri; Volkhausen, Nicolas; Pestel, Nico; aus dem Moore, Nils
  11. Couples, careers, and spatial mobility By Nassal, Lea Maria; Paul, Marie
  12. Productivity Slowdown and Tax Havens: Where Is Measured Value Creation? By Jean-Charles Bricongne; Samuel Delpeuch; Margarita Lopez Forero
  13. Aging and real estate prices in Germany By Breidenbach, Philipp; Jäger, Philipp; Taruttis, Lisa
  14. Decent Wage Floors in Europe: Does the Minimum Wage Directive Get It Right? By Haapanala, Henri; Marx, Ive; Parolin, Zachary
  15. Organized Labour and R&D: Evidence from Italy By Cetrulo, Armanda; Cirillo, Valeria; Landini, Fabio
  16. The Effects of More Intensive Counselling for Disadvantaged Unemployed Youth By Rainer Eppel; Helmut Mahringer
  17. Flood risk perception after indirect flooding experience: Null results in the German housing market By aus dem Moore, Nils; Brehm, Johannes; Breidenbach, Philipp; Ghosh, Arijit; Gruhl, Henri
  18. Fiscal policy response of local governments to floods in Italy By Lodi, Chiara; Marin, Giovanni; Modica, Marco
  19. A long way to social integration: Ethnic partnering patterns in Sweden By Mood, Carina; Jonsson, Jan O.
  20. Does Data Disclosure Improve Local Government Performance? Evidence from Italian Municipalities By Lockwood, Ben; Porcelli, Francesco; Redoano, Michela; Schiavone, Antonio
  21. The Impact of Immigration and Integration Policies On Immigrant-Native Labor Market Hierarchies By Martin Guzi; Martin Kahanec; Lucia Mýtna Kureková
  22. Do Integration Courses Promote Refugees’ Social and Political Integration? Evidence from Norway By Ferwerda, Jeremy; Finseraas, Henning
  23. The effects of mandatory speed limits on crash frequency: A causal machine learning approach By Metz-Peeters, Maike
  24. Marriage market equilibrium with matching on latent ability: Identification using a compulsory schooling expansion By Dan Anderberg; Jesper Bagger; V. Bhaskar; Tanya Wilson
  25. Socio-economic and psychological consequences of the Pandemic for the Great Elderly in Italy: How much is it worth investing in relationship as a factor preventing lonelines By Federico Comes; Martina Menon; Federico Perali
  26. How Substitutable Are Workers? Evidence from Worker Deaths By Simon Jäger; Jörg Heining
  27. Working from home during Covid-19 pandemic and changes to fertility intentions among parents By Anna Kurowska; Anna Matysiak; Beata Osiewalska
  28. Geographical Mobility and Occupational Achievement. A Longitudinal Analysis of South-to-North Internal Migration in Italy By Panichella, Nazareno; Cantalini, Stefano
  29. Expected returns to crime and crime location By Nils Braakmann; Arnaud Chevalier; Tanya Wilson

  1. By: Anna Matysiak (University of Warsaw, Faculty of Economic Sciences); Daniela Bellani (Scuola Normale Superiore, Florence); Honorata Bogusz (University of Warsaw, Faculty of Economic Sciences)
    Abstract: In this study we examine whether the long-term structural changes in the labour market, driven by automation, affect fertility. Adoption of industrial robots in the EU has tripled since the mid-1990s, tremendously changing the conditions of participating in the labour market. On the one hand, new jobs are created, benefitting largely the highly skilled workers. On the other hand, the growing turnover in the labour market and changing content of jobs induce fears of job displacement and make workers continuously adjust to new requirements (reskill, upskill, increase work efforts). The consequences of these changes are particularly strong for the employment and earning prospects of the low and middle educated workers. Our focus is on six European countries: Czechia, France, Germany, Italy, Poland and the United Kingdom. We link regional data on fertility and employment structures by industry from Eurostat (NUTS-2) with data on robot adoption from the International Federation of Robotics. We estimate fixed effects linear models with instrumental variables in order to account for the external shocks which may affect fertility and robot adoption in parallel. Our findings suggest robots tend to exert a negative impact on fertility in highly industrialised regions, regions with relatively low educated populations and those which are technologically less advanced. At the same time, better educated and prospering regions may even experience fertility improvements as a result of the technological change. The family and labour market institutions of the country may further moderate these effects.
    Keywords: fertility, employment, industrial robots, technological change, Europe
    JEL: J11 J13
    Date: 2022
  2. By: Fedeli, Emanuele; Triventi, Moris
    Abstract: The educational system is a crucial institutional arena for the long-term successful integration of the children of immigrants into destination countries. We study the consequences of the presence of students with a migration background on various student outcomes in Italy, a country that experienced a rapid increase in immigration fluxes. We enrich the literature in several ways: 1) we analyze not only students’ competencies but also their well-being and social integration; 2) we investigate the joint effects of two dimensions of migrants’ presence in the classroom, namely immigrant concentration and ethno-linguistic diversity; 3) we develop an analytical design to make exposure to a level of immigrant share and ethnolinguistic diversity conditionally random. We use data collected by the National Institute for the Evaluation of the Italian School System on the entire population of students enrolled in the fifth grade (primary education) in 2014–15 (INVALSI, 2015) (n=222,365) Our findings suggest that immigrant concentration and ethno-linguistic diversity in the classroom have limited detrimental effects on student outcomes; their minor effects are widely independent of each other and approximately linear. There is weak evidence of heterogeneous impacts across students with different migration backgrounds; the impact is tiny and appears to be concentrated exclusively on first-generation students. Implications for theoretical debate and educational policies are discussed in relation to the findings.
    Date: 2022–07–26
  3. By: Brehm, Johannes; Pestel, Nico; Schaffner, Sandra; Schmitz, Laura
    Abstract: Low Emission Zones (LEZs) reduce local air pollution by restricting emission-intensive vehicles from accessing designated areas and have been shown to improve population health. Little is known about the effects of driving restriction policies on other areas of life. This paper studies the effects of LEZs on the educational achievements of elementary school students in Germany, measured by secondary-school transition rates. Using school-level data from North-Rhine Westphalia (NRW), Germany's largest federal state, we exploit the staggered adoption of LEZs since 2008 in a difference-indifferences framework. Our results imply that LEZs increased rates of transition to the academic track by 0.9-1.6 percentage points in NRW. Our findings on the district level for all of Germany confirm the external validity of these findings. Using geo-referenced data from the German Socio-Economic Panel, we provide suggestive evidence that a reduction in the prevalence of respiratory infections is a vital channel through which LEZs affect schooling outcomes.
    Keywords: Low emission zone,education,air quality,Germany
    JEL: I21 J24 Q52 Q53 Q58
    Date: 2022
  4. By: Dodini, Samuel (Dept. of Economics, Norwegian School of Economics and Business Administration); Løken, Katrine (Dept. of Economics, Norwegian School of Economics and Business Administration); Willén, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: This paper isolates the impact of labor market competition on firms, workers, and communities. A shock to labor mobility from Sweden to Norway caused a substantial increase in labor competition for Swedish firms on the border with Norway. Using unique register data linked across the two countries, we show that Swedish firms respond by raising wages and reducing their workforces. The retained workers are of lower quality, resulting in a drop in value added and an increasing probability of market exit. Communities experience population flight, declining business activity, increased inequality, and increased support for worker protection parties. Norwegian firms benefit through cheaper labor costs, and there is evidence of Norwegian workers being displaced. The communities see increased support for anti-integration parties. We conclude that shocks to labor market competition, while benefiting certain workers, may have detrimental effects on local communities due to adverse effects on firm survival and business activity.
    Keywords: Labor Market Competition; Outside Options; Labor Mobility; Inequality; Community Development
    JEL: J24 J31 J42 J61 J62
    Date: 2022–11–11
  5. By: Samira Jabakhanji; Anthony Lepinteur; Giorgia Menta; Alan Piper; Claus Vögele
    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: 2022–10
  6. By: Julia Bachtrögler-Unger; Mathias Dolls; Carla Krolage; Paul Schüle; Hannes Taubenböck; Matthias Weigand
    Abstract: We present a novel approach for analyzing the effects of EU cohesion policy on local economic activity. For all municipalities in the border area of the Czech Republic, Germany and Poland, we collect project-level data on EU funding in the period between 2007 and 2013. Using night light emission data as a proxy for economic development, we show that the receipt of a higher amount of EU funding is associated with increased economic activity at the municipal level. Our paper demonstrates that remote sensing data can provide an effective way to model local economic development also in Europe, where no comprehensive cross-border data is available at such a spatially granular level.
    Keywords: regional development, EU cohesion policy, remote sensing
    JEL: R11 O18 H54
    Date: 2022
  7. By: Anna Marenzi (Department of Economics, University Of Venice CÃ Foscari; CRIEP); Dino Rizzi (Department of Economics, University Of Venice CÃ Foscari; CRIEP); Michele Zanette (Department of Economics, University Of Venice CÃ Foscari; CRIEP); Francesca Zantomio (Department of Economics, University Of Venice CÃ Foscari; CRIEP; HEDG (York))
    Abstract: We show how regional governments affect the appropriate – in terms of territorial equity - assignment of a national LTC benefit. We analyse a three-layers setting, where eligibility criteria are defined by the central government (which bears the fiscal cost of transfers) but the assignment decision is taken by regional medical commissions, while applications are activated by individual potential beneficiaries. Combining administrative and survey data, and accounting for regional variation in eligibility prevalence, we document large territorial disparities in need-adjusted benefit assignment. We investigate the determinants of such disparities both in terms of individuals’ differential propensity to claim, and of regional discretionary behaviour, as shaped by the underlying quality of regional institutions. Regional discretion appears to play a major role, with local institutional quality accounting for about one fifth of explained variation in need-adjusted benefit coverage. Lower regional institutional quality results in more opportunistic benefit adjudication decisions, although the relationship is attenuated in highly deprived areas.
    Keywords: Territorial equity, regional discretion, multi-level government, institutional quality, long-term care, benefit targeting
    JEL: C13 H11 H53 H75 J14
    Date: 2022
  8. By: Gozde Corekcioglu; Marco Francesconi; Astrid Kunze
    Abstract: We examine the impact of government-funded universal paid parental leave extensions on the likelihood that mothers reach top-pay jobs and executive positions, using eight Norwegian reforms. Up to a quarter of a century after childbirth, such reforms neither helped nor hurt mothers’ chances to be at the top of their companies’ pay ranking or in leadership positions. We detect no differential effect across many characteristics, and no impact on other outcomes, such as hours worked and promotions. No reform affected fathers’ pay or the gender pay gaps between mothers and their male colleagues and between mothers and their partners.
    Keywords: gender inequality, within-firm pay ranking, glass ceiling, leadership, top executives
    JEL: H42 J13 J16 J18 M12 M14
    Date: 2022
  9. By: Jose Garcia-Louzao; Laura Hospido; Alessandro Ruggieri
    Abstract: In this paper we study how labor market duality affects human capital accumulation and wage trajectories of young workers. Using rich administrative data for Spain, we follow workers since their entry into the labor market to measure experience accumulated under different contractual arrangements and we estimate their wage returns. We document lower returns to experience accumulated in fixed-term contracts compared to permanent contracts and show that this difference is neither due to unobserved firm heterogeneity nor match quality. Instead, we provide evidence that the gap in returns is due to lower human capital accumulation while working under fixed-term contracts. In line with skill-learning complementarity, our results suggest that the widespread use of fixed-term work arrangements reduces skill acquisition of high-skilled workers, holding back life-cycle wage growth by up to 16 percentage points after 15 years since labor market entry.
    Keywords: labor market duality, human capital, earnings dynamics
    JEL: J30 J41 J63
    Date: 2022
  10. By: Gruhl, Henri; Volkhausen, Nicolas; Pestel, Nico; aus dem Moore, Nils
    Abstract: This paper studies whether people's perception of improvements in local air quality are reflected in the housing market based on comprehensive data on real estate prices from Germany. Using a quasi-experimental research design, we exploit the staggered introduction of Low Emission Zones (LEZs) across German cities, lowering urban air pollution by limiting the access of high-emitting vehicles. We find that residents value the presence of LEZs, reflected by roughly 2% higher apartment rents. Estimates are similar, albeit smaller in magnitude, for properties for purchase. The results are driven by earlier LEZ implementations and LEZs in areas with relatively higher pre-intervention pollution levels.
    Keywords: Low emission zone,policy evaluation,house prices,externalities
    JEL: I18 R21 Q51
    Date: 2022
  11. By: Nassal, Lea Maria; Paul, Marie
    Abstract: We investigate the effects of long-distance moves of married couples on both spouses' earnings, employment and job characteristics based on a new administrative dataset from Germany. Employing difference-in-difference propensity score matching and accounting for spouses' premove employment biographies, we show that men's earnings increase significantly after the move, whereas women suffer large losses in the first years. Men's earnings increases are mainly driven by increasing wages and switches to slightly larger and better paying firms. Investigating effect heterogeneity with respect to pre-move relative earnings or for whose job opportunity couples move, confirms strong gender asymmetries in gains to moving.
    Keywords: Long-distance moves,labor market careers,gender gap
    JEL: J61 J16 R23
    Date: 2022
  12. By: Jean-Charles Bricongne (Centre de recherche de la Banque de France - Banque de France); Samuel Delpeuch (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Margarita Lopez Forero (Université Paris-Saclay)
    Abstract: Based on French firm-level data over 15 years we evaluate the contribution of the microlevel profit-shifting-through tax haven foreign direct investments to the aggregate productivity slowdown measured in France. We show that firm measured productivity in France declines over the immediate years following the establishment in a tax haven, with an average estimated around 3.5% in labor apparent productivity. To isolate the contribution of multinationals' tax optimization to this decline of apparent productivity, we then exploit the 2006 Cadbury-Schweppes decision of the European Court of Justice limiting the extent to which member States can counter European MNEs' tax planning strategies. We find that multinational groups benefiting from that loosening of the legal constraints do exhibit lower apparent productivity in France following that ruling. Our results moreover suggest that this bias is bigger when firms rely more intensively on intangible capital. Finally, given these firms' weight in the economy, our results imply an annual loss of 9.7% in terms of the aggregate annual labor productivity growth.
    Keywords: Profit-shifting FDI,Productivity slowdown,Productivity mismeasurement,Intangible capital,Tax Havens
    Date: 2022–04–15
  13. By: Breidenbach, Philipp; Jäger, Philipp; Taruttis, Lisa
    Abstract: Exploiting regional heterogeneity in population dynamics across more than 10,000 municipalities in Germany, we provide robust empirical evidence that population aging depresses real estate prices and rents. Using millions of individual real estate offers and detailed demographic data on the municipality level, we estimate that average sales prices in 2020 would have been up to 12% higher, if the population age distribution had been the same as in 2008. We show that population aging does not only reduce prices but also increases the availability of real estate. Moreover, we document substantial heterogeneity in price responses by dwelling type, real estate characteristics and urban-rural status which suggest that a lower demand for living space and live-cycle dissaving are driving our results. We predict that population aging will continue to put downward pressure on real estate prices and exacerbate regional disparities in Germany.
    Keywords: Real estate prices,population aging,Germany
    JEL: J11 R21 R31
    Date: 2022
  14. By: Haapanala, Henri (University of Antwerp); Marx, Ive (University of Antwerp); Parolin, Zachary (Bocconi University)
    Abstract: The Directive on Adequate Minimum Wages represents a watershed initiative adding substance to the EU's social dimension. It contains two ambitious objectives: establishing the minimum level of statutory minimum wages (SMWs) at 60% of the gross median wage, and increasing collective bargaining coverage (CBC) to at least 80% of workers. In this paper, we assess how minimum wages and collective bargaining affect low pay. Using a time series cross-section of EU-SILC for income years 2004-2019, we identify and assess the absolute and relative size of 'effective wage floors' for full-time employees in 30 countries. We specify multilevel, random effects within-between (REWB) regression models to assess the individual and joint effects of SMW and CBC on wage floors. Our results indicate that SMW and CBC both have distinct roles to play in establishing the effective wage floor. First, countries with a statutory minimum wage have a lower share of workers earning below 60% gross median wage than countries without one. Furthermore, higher rates of CBC are essential for pushing down the share of workers on below-decent pay. Countries without a SMW but with CBC above the 80% target value have roughly the same proportion of below-decent pay as SMW countries with CBC less than 30-40%. However, at higher rates of CBC, SMW countries are predicted to overtake non-SMW countries on this measure. A hypothetical SMW country meeting the target value of 80% CBC is predicted to have less than 6.5% of full-time employees earning below-decent pay.
    Keywords: minimum wage, collective bargaining, European Union, multilevel analysis
    JEL: J38 E24 J50 C23
    Date: 2022–10
  15. By: Cetrulo, Armanda; Cirillo, Valeria; Landini, Fabio
    Abstract: This paper investigates the impact of firm-level collective bargaining on firms' investment in intangible assets and, specifically R&D. While standard hold-up theories predict a negative effect of organized labour on intangible investments, the inclusion of pay-for-performance schemes in complementary negotiation can actually invert the prediction. Moreover, the industrial relation literature suggests that, in presence of asymmetric power relations, firm-level collective bargaining can allow workers to make their voice heard and induce management to invest in assets that drive competition away from wages, including R&D. We exploit a rich and representative survey on Italian non-agricultural companies conducted by the National Institute for the Analysis of Public Policies (INAPP) to test these predictions. Baseline estimates suggest that the presence of second-level collective bargaining is associated with higher investments in R&D and that power relation is the main mechanism driving this result. These findings are confirmed also in a robustness check where we exploit size contingent legislation governing the creation of employee representative bodies involved in firm-level bargaining in a regression discontinuity design (RDD) framework. The implications for the design of innovation policy are discussed.
    Keywords: R&D,Intangibles,Unions,Collective Bargaining,Complementary Negotiation
    JEL: J50 O32 O33
    Date: 2022
  16. By: Rainer Eppel (WIFO); Helmut Mahringer (WIFO)
    Abstract: Many European countries are facing the key challenge of integrating low-skilled jobless young people into the labour market. From 2018 to 2020, the Public Employment Service (PES) in Vienna tested a new model of intensified support ("case management"). The target group consisted of young unemployed persons with low formal qualifications who were drawing on social assistance. Based on the pilot project and a propensity matching approach, we show that the increase in staff significantly increased the intensity of the counselling. It led to an increase in job proposals and active labour market programme participation, as well as sanctions in the form of benefit suspensions for failure to keep PES appointments. In line with the goal, more of the young people were encouraged to take part in training and further education instead of being quickly placed in an unskilled job. However, in the three-year follow-up period, the intensified counselling did not (yet) have a significant effect on the overall extent of integration into employment. Regarding post-unemployment job quality, we find no effects on wages at the start of a job.
    Keywords: Arbeitslosigkeit, gering qualifizierte Jugendliche, aktive Arbeitsmarktpolitik, Arbeitsmarktservice, Beratungsintensität, Case Management
    Date: 2022–11–18
  17. By: aus dem Moore, Nils; Brehm, Johannes; Breidenbach, Philipp; Ghosh, Arijit; Gruhl, Henri
    Abstract: The frequency and severity of fluvial floods are expected to increase due to climate change. This paper investigates whether flood risk perception in the housing market changes across a country after the occurrence of a catastrophic fluvial flood. Using a comprehensive geocoded German house price data set and official flood risk maps, we exploit the July 2021 fluvial flood that was salient across Germany as an exogenous variation to causally measure the flood risk valuation update in a difference-in-differences setup. While we find that house prices decreased in the most inundated regions, no price changes occurred in flood risk regions that were not directly affected. This finding indicates that people did not update their risk perception after indirect exposure. With this paper, we contribute to the understanding of the impact of a salient flood on flood risk capitalization in places without direct exposure.
    Keywords: Flood risk,home prices,risk updating
    JEL: Q54 Q51 D81 R31
    Date: 2022
  18. By: Lodi, Chiara; Marin, Giovanni; Modica, Marco
    Abstract: This paper aims at empirically testing the dynamics of budget outcomes of Italian municipalities in the aftermath of floods, by accounting for heterogeneous levels of resilience and vulnerability to natural disasters. Our findings, based on a dynamic difference-in-difference after propensity score matching, point to substantial impacts in terms of increased capital expenditure and revenues from transfer, which also depend on the degree of resilience and vulnerability. Through our analysis we account for multiple aspects of risk so we can support policy decisions related to both ex-ante and ex-post disaster occurrence management.
    Keywords: Environmental Economics and Policy, Land Economics/Use, Political Economy
    Date: 2022–11–21
  19. By: Mood, Carina; Jonsson, Jan O. (University of Oxford)
    Abstract: Marriages or consensual unions across ethnic groups (exogamy) is a strong indicator of social integration, whereas in-group relations (endogamy) signal social seclusion. With a large and diverse foreign-background population, Sweden provides an interesting case for studying partnering across origin groups, defined by own or parental country of origin. Using population register data covering marriages and consensual unions we find clear endogamy in all origin groups, especially those with background in the Middle East and Somalia. ‘Pan-ethnic’ cohabitation is common for those with origin in the Middle East and the Balkans, and transnational partnering is surprisingly frequent in some groups – these phenomena contribute to endogamy rates up to 70%. Exogamous cohabitation is particularly rare among women with background in the Middle East and Somalia, who are much less likely than their brothers to live with a partner of Swedish origin. Endogamy decreases with time spent in Sweden and increases with more co-ethnics in the local area, but neither of these factors accounts for more than a small part of the differences in endogamy. Culturally attracting and/or repelling mechanisms in partner choice are likely to be a major factor behind endogamy.
    Date: 2022–11–01
  20. By: Lockwood, Ben (University of Warwick); Porcelli, Francesco (University of Bari and CAGE); Redoano, Michela (University of Warwick); Schiavone, Antonio (University of Bologna)
    Abstract: We exploit the introduction of an open data online platform - part of a transparency program initiated by the Italian Government in late 2014 - as a natural experiment to analyse the effect of data disclosure on mayors’ expenditure and public good provision. First, we analyse the effect of the program by comparing municipalities on the border between ordinary and special regions, exploiting the fact that the latter regions did not participate in the program. We find that mayors in ordinary regions immediately change their behaviour after data disclosure by improving the disclosed indicators, and that the reaction depends also on their initial relative performance, a yardstick competition effect. Second, we investigate the effect of mayors’ attention to data disclosure within treated regions by tracking their daily accesses to the platform, which we instrument with the daily publication of newspaper articles mentioning the program. We find that mayors react to data disclosure by decreasing spending via a reduction of service provision, resulting in an aggregate decrease in efficiency. Overall, mayors seem to target variables that are disclosed on the website at the expense of variables that are less salient.
    Keywords: open data ; local government ; media coverage ; OpenCivitas JEL Codes: H72 ; H79
  21. By: Martin Guzi; Martin Kahanec; Lucia Mýtna Kureková
    Abstract: Across European Union (EU) labor markets, immigrant and native populations exhibit disparate labor market outcomes, signifying widespread labor market hierarchies. While significant resources have been invested in migration and integration policies, it remains unclear whether these contribute to or mitigate labor market hierarchies between natives and immigrants. Using a longitudinal model based on individual-level EU LFS and country-level DEMIG POLICY and POLMIG databases, we explore variation in changes of immigration and integration policies across Western EU member states to study how they are associated with labor market hierarchies in terms of unemployment and employment quality gaps between immigrant and native populations. Our findings imply that designing less restrictive policies may help mitigate immigrant-native labor market hierarchies by reducing existing labor market disadvantages of immigrants and making the most of their potential.
    Keywords: decomposition, immigrant-native gaps, labor market, DEMIG POLICY database, immigrant integration, hierarchies
    JEL: J15 J18 J61 K37
    Date: 2022–11–18
  22. By: Ferwerda, Jeremy; Finseraas, Henning
    Abstract: Many European countries have implemented mandatory integration courses for refugees and asylum seekers. While evaluations suggest that these programs can improve short-term economic outcomes, little is known about their effectiveness in promoting social and political integration over the long run. In this paper, we focus on the Norwegian Introductory Program, an intensive policy intervention which requires two years of full-time coursework. To identify the causal effect of the program, we leverage quasi-random variation in refugees' arrival dates during the roll-out period. Although we find positive effects on economic integration, we find that the program did not meaningfully influence social or political integration over the long run, as measured via annual administrative data on residential patterns, union membership, intermarriage, citizenship, and validated turnout in local and national elections. This conclusion is further supported by an analysis of the effect of the program on political and social attitudes. Our findings suggest that while introductory programs may improve refugees' economic situation, mandatory coursework is nevertheless ineffective at promoting integration across other domains.
    Date: 2022–10–18
  23. By: Metz-Peeters, Maike
    Abstract: This study analyzes the effects of binding speed limits on crash frequency on German motorways. Various geo-spatial data sources are merged to a new data set providing rich information on roadway characteristics for 500-meter segments of large parts of the German motorway network. The empirical analysis uses a causal forest, which allows to estimate the effects of speed limits on crash frequency under fairly weak assumptions about the underlying data generating process and provides insights into treatment effect heterogeneity. The paper is the first to explicitly discuss possible pitfalls and potential solutions when applying causal forests to geo-spatial data. Substantial negative effects of three levels of speed limits on accident rates are found, being largest for severe, and especially fatal crash rates, while effects on light crash rates are rather moderate. The heterogeneity analysis suggest that the effects are larger for less congested roads, as well as for roads with entrance and exit ramps, while heterogeneity regarding shares of heavy traffic is inconclusive.
    Keywords: Crash frequency,speed limits,German Autobahn,causal machine learning,causal forest,spatial machine learning
    JEL: R41 R42 R48
    Date: 2022
  24. By: Dan Anderberg; Jesper Bagger; V. Bhaskar; Tanya Wilson
    Abstract: We use the 1972 UK Raising of the School-Leaving Age (RoSLA) to identify and estimate an equilibrium marriage market model with sorting on academic qualifications and latent ability. Our identification hinges on a RoSLA-induced discontinuity in the distribution of qualifications. We disentangle the contributions of qualification and ability to marital surplus; we find that they are complements. Ability increases the probability of ever marrying; a basic qualification does not. The observed marriage gap between basic qualified and unqualified individuals is entirely due to selection on ability. The RoSLA worsened marital prospects of low ability individuals, through general equilibrium effects.
    Keywords: Marriage, Assortative mating, Return to education, Latent ability
    JEL: D10 D13 I26 J12
    Date: 2022–08
  25. By: Federico Comes (Department of Economics, University of Verona); Martina Menon (Department of Economics, University of Verona); Federico Perali (Department of Economics, University of Verona)
    Abstract: In times of pandemic, according to the survey on the living conditions of the elderly and the quality of their relationships recently conducted by the research group of the REDESIGN project, the economic aspects have been significantly influenced especially for the elderly who live alone, objectively more exposed to the risks of the health emergency. From this point of view, the Italian welfare, which prefers the protection of the elderly, seems to have effectively mitigated the economic impact regardless of income and region of residence, but has shown limits in preventing and treating the intangible aspects related to the non-cognitive, affective and relational sphere of the great elderly, especially for the most fragile and lonely. In general, the willingness to pay is associated both with the need for relationships and with the ability to give, for example, on the part of those who are more sociable or place more trust in others, regardless of financial possibilities. The decision on how much to donate seems instead dominated by purely economic variables. The study estimated that the average level of willingness to pay of the elderly for social networks is 94 euros. This could generate potential funding of around €365 million that Italian communities can mobilise. As a lesson for the future, it will be important to understand how communities and philanthropic institutions of financial intermediation, such as community foundations, can foster the development of autonomous networks to improve the quality of life of the elderly and, at the same time, create the conditions to improve the prevention of situations at high risk to health.
    Keywords: Willingness to pay, elderly people, loneliness, social network
    JEL: I31 I14 D1
    Date: 2022–10
  26. By: Simon Jäger; Jörg Heining
    Abstract: We estimate how exogenous worker exits affect firms’ demand for incumbent workers and new hires. Drawing on administrative data from Germany, we analyze 34,000 unexpected worker deaths, which, on average, raise the remaining workers’ wages and retention probabilities. The average effect masks substantial heterogeneity: Coworkers in the same occupation as the deceased see positive wage effects; coworkers in other occupations experience wage decreases when a high-skilled or specialized worker dies. Our findings imply substantial replacement costs, which are larger in thin markets and when skills are specialized.
    JEL: J0
    Date: 2022–11
  27. By: Anna Kurowska (University of Warsaw, Faculty of Political Sciences and International Relations; LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Anna Matysiak (University of Warsaw, Faculty of Economic Sciences; LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Beata Osiewalska (University of Warsaw, Faculty of Economic Sciences; LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics; Cracow University of Economics)
    Abstract: The Covid-19 pandemic and related massive spread of home based work led to substantial changes in the conditions for combining work and childbearing. On the one hand, working from home helped parents to accommodate increased childcare needs. On the other, it led to blurred boundaries between work and family life during lockdowns. We investigate how working from home was related to change in fertility intentions of mothers and fathers during the pandemic and discuss the complex mechanisms behind these relationships. With the use of unique Familydemic Survey data for Poland, we estimate multinomial logit regressions and consider a set of potential moderators. We find evidence for an overall negative relationship between home based work and fertility intentions for mothers and fathers, but we also uncover some positive moderating effects. In particular, we shed light on the unexpected moderating role of gendered division of unpaid labor from before the pandemic.
    Keywords: fertility intentions, childbearing decisions, Covid-19 pandemic, coronavirus pandemic, working from home, telecommuting, telework, home based work, work-family reconciliation, work-family conflict, parents, gender relations, division of unpaid work
    JEL: J13
    Date: 2022
  28. By: Panichella, Nazareno; Cantalini, Stefano
    Abstract: Geographical mobility is a major driving force underlying demographic and social change, but surprisingly fewer studies have focused on how it influences occupational success and the intergenerational reproduction of social inequalities. This work studied the effect of internal mobility on occupational status in Italy, investigating if male and female occupational status benefited from South-to-North migration, and if the migration benefit or disadvantage changed according to the family status and the social class of origin. Empirical analyses are based on the Italian Household Longitudinal Survey by means of a set of fixed effects linear regression panel models combined with the coarsened exact matching (CEM). Results show that only men experience a migration benefit, whereas women experience a migration disadvantage, which increases when they move after the union formation and the transition to parenthood. Finally, the effect of geographical mobility differs according to the social class of origin only for men, since those coming from the upper classes experience a much higher migration benefit than those from the medium and the lower ones. We thus show that geographical mobility is an additional source of advantage for individuals from the upper classes, and its positive effect on male occupational success cumulates with the family-related one, increasing the social distances between individuals located in different social strata.
    Date: 2022–06–27
  29. By: Nils Braakmann; Arnaud Chevalier; Tanya Wilson
    Abstract: We provide first evidence that temporal variations in the expected returns to crime affect the location of property crime. Our identification strategy relies on the widely-held perception in the UK that households of South Asian descent store gold jewellery at home. Price movements on the international market for gold exogenously affect the expected gains from burgling these households, which become relatively more lucrative targets as the gold price increases. Using a neighbourhood-level panel on reported crime and difference-in-differences, we find that burglaries in South Asian neighbourhoods are more sensitive to variations in the gold price than other neighbourhoods in the same municipality, confirming that burglars react rationally to variations in the expected returns to their activities. We conduct a battery of tests on neighbourhood and individual data to eliminate alternative explanations.
    Keywords: Crime; Gold prices; Returns to crime; Becker model; Optimal Foraging Theory; Criminal Behaviour; Crime Location
    JEL: K42 J19
    Date: 2022–08

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