nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2023‒02‒27
23 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Peer interactions, local markets, and wages: Evidence from Italy By Brunetti, Irene; Intraligi, Valerio; Ricci, Andrea; Vittori, Claudia
  2. Home alone: Widows' Well-Being and Time By Maja Adena; Daniel Hamermesh; Michal Myck; Monika Oczkowska
  3. Employee-Owned Firms and the Careers of Young Workers By Burdin, Gabriel; Garcia-Louzao, Jose
  4. Is Populism reversible? Evidence from Italian local elections during the pandemic. By Massimo Bordignon; Federico Franzoni; Matteo Gamalerio
  5. The impact of alternative childcare policies on mothers' employment in selected EU countries By Narazani, Edlira; Agúndez García, Ana; Christl, Michael; Figari, Francesco
  6. Schools and the transmission of Sars-Cov-2: evidence from Italy By Salvatore Lattanzio
  7. What Drives Paternity Leave: Financial Incentives or Flexibility? By Ziegler, Lennart; Bamieh, Omar
  8. Measuring peer effects in parental leaves: evidence from a reform. By Davide Dottori; Francesca Modena; Giulia Martina Tanzi
  9. Firms' innovation and university cooperation. New evidence from a survey of Italian firms. By Daniela Bragoli; Flavia Cortelezzi; Massimiliano Rigon
  10. Train Drain? Access to Foreign Workers and Firms' Provision of Training By Oswald-Egg, Maria Esther; Siegenthaler, Michael
  11. Monopsony Makes Firms not only Small but also Unproductive: Why East Germany has not Converged By Rüdiger Bachmann; Christian Bayer; Heiko Stüber; Felix Wellschmied
  12. Legal status and voluntary abortions by immigrants. By Luca Pieroni; Melcior Rosselló Roig; Luca Salmasi; Gilberto Turati
  13. The long-run earnings effects of winning a mayoral election. By Marco Bertoni; Giorgio Brunello; Lorenzo Cappellari; Maria De Paola
  14. The Labor Market Effects of Restricting Refugees' Employment Opportunities By Ahrens, Achim; Beerli, Andreas; Hangartner, Dominik; Kurer, Selina; Siegenthaler, Michael
  15. Overseas GPs and Prescription Behaviour in England By Nicodemo, Catia; Orso, Cristina E.; Tealdi, Cristina
  16. When are wages cut? The roles of incomplete contracts and employee involvement By Marco Fongoni; Daniel Schaefer; Carl Singleton
  17. The Effects of a Free Universal After-School Program on Child Academic Outcomes By Nina Drange; Astrid Marie Jorde Sandsør
  18. Wealth distribution and household economies of scale: Do families matter for inequality? By Severin Rapp
  19. Bosses' Impatience and Digital Technologies By Stefania Basiglio; Andrea Ricci; Mariacristina Rossi
  20. Globalization and Firm Performance By Catão, Luis A. V.; de Faria, Pedro; Martins, António; Portela, Miguel
  21. The Impact of the "Coding Girls" Program on High School Students' Educational Choices By Basiglio, Stefania; Del Boca, Daniela; Pronzato, Chiara D.
  22. Let them Eat Cake? The Net Consumer Welfare Impact of Sin Taxes By Di Cosmo, Valeria; Tiezzi, Silvia
  23. The Redistributive Impact of Consumption Taxation in the EU: Lessons from the post-financial crisis decade By MAIER ESSINGER Sofia; RICCI Mattia

  1. By: Brunetti, Irene; Intraligi, Valerio; Ricci, Andrea; Vittori, Claudia
    Abstract: This paper investigates the relationship between the spatial distribution of occupations with a high content of peer interactions and wages among Italian provinces. At this aim, we use a unique employer-employee dataset obtained by merging administrative data on wages and labor market histories of individuals, with survey data on job tasks and contents. The spatial distribution of jobs intensive in peer-interactions is further measured according to the occupational structure of Italian provinces. The econometric analysis shows that the concentration of peer interactions leads to higher wages at the province level. These results are robust to firms and workers' heterogeneity and endogeneity issues.
    Keywords: Peer interactions, Wages, Agglomeration externalities
    JEL: J31 R12 R23
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:1235&r=eur
  2. By: Maja Adena (WZB Berlin); Daniel Hamermesh (University of Texas at Austin); Michal Myck (Centre for Economic Analysis); Monika Oczkowska (Centre for Economic Analysis)
    Abstract: Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE, 2004-17) and time diaries from Poland (2013), the U.S. (2006-16), the U.K. (2014-15) and France (2009-10), we examine differences between widowed and partnered older women in well-being and its development in widowhood. Most importantly, our analysis accounts for time use, an aspect which has not been studied previously. We trace the evolution of well-being of women who become widowed by comparing them with their matched non-widowed ‘statistical twins’ and examine the role of an exceptionally broad set of potential moderators of widowhood’s impact on well-being. We confirm a dramatic decrease in mental health and life satisfaction after the loss of partner, followed by a slow partial recovery over a five-year period. An extensive set of controls recorded prior to widowhood, including detailed family ties and social networks, provides little help in explaining the deterioration in well-being. Unique data from time-diaries kept by older women in several European countries and the U.S. tell us why: the key factor behind widows’ reduced well-being is increased time spent alone.
    Keywords: widowhood; well-being; social networks; time use;
    JEL: I31 I19 J14
    Date: 2023–01–20
    URL: http://d.repec.org/n?u=RePEc:rco:dpaper:371&r=eur
  3. By: Burdin, Gabriel (Leeds University Business School); Garcia-Louzao, Jose (Bank of Lithuania)
    Abstract: Using detailed administrative data from Spain, we investigate the impact of having an initial work experience in an employee-owned firm (EOF) versus a conventional business on subsequent earnings. We find that young workers' exposure to EOFs at the time of labour market entry reduces earnings by about 8% during the first 15 years in the labour market. The selection of individuals with low initial ability in EOFs does not appear to be a relevant channel. Our results seem to be rather related to differences in job mobility and wage returns to experience. On the one hand, we document lower wage returns to experience acquired in EOFs, although no differences in subsequent career progression in terms of promotions. On the other hand, we find that workers who had their first job in EOFs show a strong attachment to such a business model and are less likely to voluntarily leave their employers. Taken together, our findings suggest the existence of non-pecuniary job attributes offered by EOFs that might compensate for lower lifetime earnings.
    Keywords: employee-owned firms, careers, wages, job mobility
    JEL: J31 J50 J62
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15880&r=eur
  4. By: Massimo Bordignon (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Federico Franzoni (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Matteo Gamalerio
    Abstract: We study the effect of economic insecurity on electoral outcomes using data on municipal elections in Italy. We implement a difference-in-differences approach that exploits exogenous variation across municipalities in the share of inactive workers due to the economic lockdown introduced by the central government to deal with the Covid-19 pandemic. We show that lockdown-induced economic insecurity positively affected the electoral performance of progressive and left-wing parties, while it negatively affected conservative and far-right parties. Conversely, we find no effect for the populist Five Star Movement, local independent parties (i.e., Civic Lists), and electoral turnout. We provide evidence that extraordinary economic measures introduced by the central government to compensate workers for the economic insecurity can explain this shift in partisanship toward the left and the increasing support for pro-EU parties, away from euro-skeptic and populist forces.
    Keywords: COVID-19, Elections, Voting behaviour, Populism, Economic Insecurity.
    JEL: D70 D72 D91
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:ctc:serie1:def124&r=eur
  5. By: Narazani, Edlira; Agúndez García, Ana; Christl, Michael; Figari, Francesco
    Abstract: This paper contributes to the debate on the revision of the Barcelona targets on childcare, as promoted by the European Commission in 2022, that aims to provide childcare for children below the age of 3. Using EUROLAB, a structural model of labour supply that can also accounts for labour demand constraints, we estimate female labour market participation reactions to alternative scenarios of formal childcare policies in European countries with very low child care provision for children below 3. We quantify the potential increases in the labour supply of mothers (at the extensive and intensive margins) in the case of fulfilling potential new targets of childcare provision (40%, 50%, 60% and 65%). Achieving these targets would lead to significantly increased labour supply of mothers especially in countries like Hungary and Poland where the current share of formal childcare and/or female labour participation is low. In countries like Portugal, that are far beyond the existing childcare target, changes in labour supply incentives are instead expected to be moderate. We further show that when accounting for labour demand, the expected final employment effects will be less pronounced, but still positive.
    Keywords: Labour market equilibrium, labour supply, labour demand, structural models, discrete choice, childcare
    JEL: J20 J22 J23 J13
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:1234&r=eur
  6. By: Salvatore Lattanzio (Bank of Italy)
    Abstract: This paper studies the effect on the spread of Sars-Cov-2 in Italy of schools’ re-openings and closures. Exploiting different re-opening dates across regions after the summer break of 2020, I show that early-opening regions experienced more cases in the 40 days following school re-openings compared with late-opening ones. However, there is great uncertainty around the estimates, and this suggests a wide dispersion in the effects of school re-openings on Sars-Cov-2 transmission. I also study the effect of school closures in Campania, one of the biggest regions in Southern Italy. Using a synthetic control approach, I show that school closures are associated with lower numbers of cases relative to the counterfactual group, particularly in younger age groups. In contrast, I find no significant effects on older age groups, which are more likely to require hospitalization. Finally, by exploiting survey data, I provide descriptive evidence on the increased incidence rate among teachers and students relative to the general population, following school re-openings.
    Keywords: Covid-19, schools, education, Italy
    JEL: I1 I12 I24
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1401_23&r=eur
  7. By: Ziegler, Lennart (University of Vienna); Bamieh, Omar (University of Vienna)
    Abstract: Despite changing gender norms, few fathers decide to take parental leave after the birth of a child, and when they do, their leave spells are substantially shorter compared to mothers. This study examines how paternal leave-taking is affected by two key features of leave policies: flexibility in leave duration and financial incentives. To disentangle their impact, we exploit recent changes to the Austrian parental leave system, which initially offered flat monthly benefits for 36 months after childbirth. The first reform added considerably shorter leave options; the second reform introduced income-dependent benefits, increasing net income replacement rates to 80 percent. Using a regression discontinuity design based on eligibility cutoff dates, we find that both reforms had a strong impact on leave take-up of fathers. The availability of shorter leave options increased leave-taking by 23 percent, while the introduction of income-dependent benefits raised take-up by another 13 percent relative to pre-reform means. Despite these increases, the share of leave taken by fathers relative to mothers remained similar. Comparing the impact of the two reforms across different income groups, we conclude that higher flexibility is more effective than stronger financial compensation in raising the number of leave-taking fathers.
    Keywords: parental leave, gender differences, childcare, financial incentives, labor supply, return to work
    JEL: J12 J13 J18 J22 I38
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15890&r=eur
  8. By: Davide Dottori (Bank of Italy); Francesca Modena (Bank of Italy); Giulia Martina Tanzi (Bank of Italy)
    Abstract: In this paper we estimate peer effects in parental leaves (PLs), analyzing whether mothers' choices may be influenced by prior decisions made by their female colleagues. We identify peer effects through an exogenous variation in the probability that peers take a PL driven by a reform implemented in Italy in 2015 which extended the time period over which parents can receive a paid PL, providing greater flexibility in its use. We focus on post-reform mothers and exploit the heterogeneity in the share of their peers who, due to their children's age, have been affected by the reform. Our findings show the existence of important peer effects: a 10 percentage point increase in the share of peers that took a PL in response to the reform results in mothers being 2.4 percentage points more likely to take a PL. We also find a positive effect on the amount of PLs taken and a negative effect on the probability of working part-time. As suggested by the heterogeneity analysis, signalling about employers' reaction to the use of PLs might be an important channel through which peer effects unfold.
    Keywords: Peer effects, parental leave, Italy
    JEL: C31 J13 J22 D04 K31
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1399_23&r=eur
  9. By: Daniela Bragoli (Università Cattolica del Sacro Cuore - Milano); Flavia Cortelezzi (Insubria University - Como); Massimiliano Rigon (Bank of Italy)
    Abstract: In this paper, we investigate whether the cooperation with universities may stimulate the innovative performance of Italian firms. We use a dataset merging information from two different surveys carried out by the Bank of Italy between 2007 and 2010. We derive our results using a two-stage procedure with the aim of ruling out spurious correlations due to the existence of omitted variables. Results show that the cooperation with universities does not affect the likelihood of firms introducing technological innovations. However, when we distinguish between pure technological innovation outcomes (only new products and/or productive processes) and joint innovation outcomes, which involve both organizational and technological changes, we find that only the latter is positively stimulated by the cooperation with universities. These findings are promising since, according to the innovation management literature, joint innovation activities are more successful in transferring new ideas and new business opportunities into market success.
    Keywords: university cooperation, technological innovation, organizational innovation, control function
    JEL: C35 C36 O30
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1400_23&r=eur
  10. By: Oswald-Egg, Maria Esther (ETH Zurich); Siegenthaler, Michael (ETH Zurich)
    Abstract: Does better access to foreign workers reduce firms' willingness to provide general skills training to unskilled workers? We analyze how the opening of the Swiss labor market to workers from the European Union affected the number of apprenticeship positions that firms provide. We exploit that the availability of foreign workers increased more in firms close to the border because they gained unrestricted access to cross-border workers from Switzerland's neighboring countries. Our Difference-in-Differences estimates suggest that firm-provided training to unskilled workers and access to foreign workers are not necessarily substitutes: opening the borders did not have a statistically significant effect on apprenticeship provision. Using unique data on firms' costs and motives to train apprentices, we show that the greater availability of foreign workers reduced firms' incentive to train because hiring skilled workers externally became cheaper, among others because new hires became more productive from the start. Positive impacts on firm growth worked in the opposite direction.
    Keywords: apprenticeships, cross-border workers, firm-provided training, free movement of workers, hiring costs, immigration, immigration policy, labor mobility, vocational education and training
    JEL: J24 J63 M53
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15902&r=eur
  11. By: Rüdiger Bachmann; Christian Bayer; Heiko Stüber; Felix Wellschmied
    Abstract: When employers face a trade-o between being large and paying low wages|and in this sense have monopsony power|some productive employers decide to acquire few customers, forgo sales, and remain small. These decisions have adverse consequences for aggregate labor productivity. Using high-quality administrative data from Germany, we document that East German plants (compared to West German ones) face steeper size-wage curves, invest less into marketing, remain smaller, and are less productive. A model with labor market monopsony, product market power, and customer acquisition matching these features of the data predicts ten percent lower aggregate labor productivity in East Germany.
    Keywords: aggregate productivity, plant heterogeneity, unions, monopsony power, size-wage curve, customer capital, size distortions
    JEL: E20 E23 E24 J20 J42 J50
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_391&r=eur
  12. By: Luca Pieroni; Melcior Rosselló Roig; Luca Salmasi (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Gilberto Turati (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)
    Abstract: We estimate the effect of granting legal status to immigrant women on voluntary abortions. We exploit the 2007 EU enlargement as an exogenous shock to legal status for Romanian and Bulgarian women, considering Italy as a destination country. Using a standard Difference-in-Differences model, we estimate a decline between 60% and 70% in voluntary pregnancy termination (VPT) rates for the new EU citizens from the two Eastern countries. We also introduce a novel framework to separate the total effect of the enlargement into a “citizenship” effect due to (legal or illegal) migrants already present in Italy and a “selection” effect due to new flows of immigrants. We show that the findings are robust to several alternative explanations. The drop in abortions points to legal status as a way to empower immigrant women.
    Keywords: Immigration, Abortions, Legal status, EU Enlargement.
    JEL: F22 K37 I12 J13
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:ctc:serie1:def126&r=eur
  13. By: Marco Bertoni; Giorgio Brunello; Lorenzo Cappellari (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Maria De Paola
    Abstract: We estimate the effect of winning a mayoral election on long-run licit earnings, which plays a key role in the selection of local political leaders. We use Italian administrative social security data from 1995 to 2017 and a sharp regression discontinuity design based on close elections. Over a 15-year horizon, the average present discounted value of winning an election is equal to 35, 000€, or 85 percent of the annual labor and social security earnings for the average candidate in our sample, a modest effect driven by the compensations for political service and concentrated during the first five years after the election. Net of compensations for service, this effect is negative during the first ten years after the election, and almost fades away afterwards. Differences in the political careers of winners and runners-up and a two-term limit rule on mayors’ office contribute to explain our results.
    Keywords: returns to office; political selection; revolving door; rent-seeking; close elections.
    JEL: D72 J44 J45
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:ctc:serie1:def123&r=eur
  14. By: Ahrens, Achim (Economic and Social Research Institute, Dublin); Beerli, Andreas (ETH Zurich); Hangartner, Dominik (Stanford University); Kurer, Selina (ETH Zurich); Siegenthaler, Michael (ETH Zurich)
    Abstract: Refugees, and immigrants more generally, often do not have access to all jobs in the labor market. We argue that restrictions on employment opportunities help explain why immigrants have lower employment and wages than native citizens. To test this hypothesis, we leverage refugees' exogenous geographic assignment in Switzerland, within-canton variation in labor market restrictions, and linked register data 1999–2016. We document large negative employment and earnings effects of banning refugees from working in the first months after arrival, from working in certain sectors and regions, and from prioritizing residents over refugees. Consistent with an effect of outside options on wages, removing 10% of jobs reduces refugees' hourly wages by 2.8% and increases the wage gap to similar host-country citizens in similar jobs by 2.2%. Furthermore, we show that restrictions reduce refugees' earnings even after they cease applying. Restrictions do not spur refugee emigration nor improve earnings of non-refugee immigrants.
    Keywords: labor market integration, migration, labor market policies, labor market institutions, monopsony, refugees, employment, wages, outside options, employment opportunities
    JEL: J08 J31 J42 J61 J68
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15901&r=eur
  15. By: Nicodemo, Catia (University of Oxford); Orso, Cristina E. (University of Insubria); Tealdi, Cristina (Heriot-Watt University, Edinburgh)
    Abstract: The UK imports many doctors from abroad, where medical training and experience might be different. This study attempts to understand how drug prescription behaviour differs in English GP practices which have larger or smaller numbers of foreign-trained GPs. Results show that in general practices with a high share of GPs trained outside the UK, prescriptions for antibiotics, mental health medication, analgesics and antacids are higher, controlling for the characteristics of the patients and the practices. However, we find no evidence of any significant impact of such different prescribing behaviour neither on patients' satisfaction nor on unplanned hospitalisations, pointing to this behaviour being due to over-prescribing. Identifying differences in prescribing habits among GPs is paramount to identifying the policies best able to guarantee consistent services across GP practices and the consequent reduction of health inequalities.
    Keywords: GPs, immigration, prescriptions, NHS England
    JEL: I1 C01 C55 C8
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15884&r=eur
  16. By: Marco Fongoni (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Daniel Schaefer (JKU - Johannes Kepler University Linz [Linz]); Carl Singleton (UOR - University of Reading)
    Abstract: We develop a model of incomplete employment contracts such that employees have some discretion over effort, which depends on their work morale. Nominal wage cuts have a strong negative effect on morale, while employee involvement in workplace decision-making tends to increase morale. We derive predictions on how these two mechanisms affect the decisions of firms to cut nominal wages. Using matched employer-employee and manager survey data from Great Britain, we find support for our model: nominal wage cuts are only half as likely when managers think that employees have some discretion over how they perform their work, but this reduced likelihood recovers partially when employees are involved in the decision-making process at their workplace.
    Keywords: Employer-employee data, Wage rigidity, Reciprocity, Workplace relations
    Date: 2023–01–19
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03953201&r=eur
  17. By: Nina Drange; Astrid Marie Jorde Sandsør
    Abstract: Studies have shown that a lack of adult supervision of school-aged children is associated with antisocial behavior and poor school performance. To mitigate this, one policy response is to provide structured, adult-supervised programs offered after school throughout the academic year. After-school programs in Norway are an integrated part of school, used to extend the school day to a full working day by providing care before and after school. Participation is voluntary and is subject to fees paid by parents. In the past decade, the quality and content of these programs and the role they can play in integrating children have been under scrutiny. In 2016/17, the city of Oslo gradually introduced and expanded an offer of free part time participation in its after-school program, starting with city districts with a high share of children with an immigrant background. We utilize the staggered roll out of this free after-school program to investigate enrollment, learning outcomes and student wellbeing. The take-up was substantial, raising enrollment rates rates from about 70 to 95% in the first wave of affected schools. However, our difference-in-differences estimates show little overall effect of the program on academic performance, neither on average nor across subgroups. There is also little evidence that the program enhanced student well-being or decreased bullying and we find no evidence of increased maternal labor supply.
    Keywords: after-school program, after-school care, difference-in-differences
    JEL: I21 I24 J13
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10215&r=eur
  18. By: Severin Rapp (Vienna University of Economics and Business, Department of Economics)
    Abstract: Wealth inequality assumes a central role in the debate on economic inequality. Yet, in contrast to the literature on income distribution, the role of the household in moderating inequality remains poorly understood. This paper argues that economies of scale to household wealth matter crucially, offering both a methodology and empirical results to account for household scale effects. As wealth enters individual utility directly (not at least due to bequest motives), it is possible to test for economies of scale in components of household wealth held for such non-consumption purposes, which may differ from traditional consumption scale effects. Using the model of a capitalist-spirit bequest motive to formalise the decision of allocating wealth between consumption and non-consumption purposes, this paper is the first to offer a concept of economies of scale for wealth rather than an ad-hoc approach. Adapting the model to accommodate household size effects, the second contribution of this paper is to estimate wealth economies of scale using satisfaction data from the German Socio-Economic Panel (SOEP), drawing on a non-linear estimator to recover structural model parameters. Next, the article appraises the implications of scale effects adjustments for the distribution of household wealth in Germany. Overall, the findings suggest that non-consumption economies of scale are almost perfect. Since non-consumption wealth matters primarily among the affluent households, adjusting household wealth for size does not affect them strongly, feeding into higher estimates of inequality. For example, the Palma ratio for Germany in 2012 increases by 17.1% once scale effects are taken into account, and the Gini index by 3%. The results do not only inform the academic literature on scale effects, and thus the measurement of inequality and living conditions, but also provides a new perspective on the influence of bequest (motives) on wealth inequality.
    Keywords: inequality, wealth, economies of scale, measurement, capitalist spirit
    JEL: C83 D14 D31 D63 G51
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp336&r=eur
  19. By: Stefania Basiglio; Andrea Ricci; Mariacristina Rossi
    Abstract: This paper analyses the impact of entrepreneurs’ preferences (time impatience and risk attitudes) on firms’ propensity to make general investments and also specific investments in digital technologies. To fulfil this aim, we use the responses to the questions intended to measure risk attitude and patience included in the Rilevazione su Imprese e Lavoro (RIL) survey conducted by INAPP on a representative sample of Italian firms. The regression estimates show that time impatience has at most a weak effect on firms’ ‘general’ investments, while it reduces the propensity to undertake investments in digital technologies. Risk attitude is positively correlated with digital investment, even though the estimates are weaker in magnitude and statistical significance than those found for impatience. These results are robust to simultaneity and endogeneity issues.
    Keywords: Time preferences, Impatience, Investments, Digital technologies
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:cca:wpaper:691&r=eur
  20. By: Catão, Luis A. V. (Inter-American Development Bank); de Faria, Pedro (University of Groningen); Martins, António (ISEG); Portela, Miguel (University of Minho)
    Abstract: Using a new panel dataset of about 140 thousand Portuguese firms during 2006-2019, we measure the effects of globalization on firm-level performance along four dimensions: ownership of capital, employment of foreign-seasoned managers, and participation in export and import markets. Once at least one of these channels is active, firms are larger, less leveraged, employ better qualified workers, and pay higher hourly wages. We also uncover a pecking order of effects, with export-market participation having generally larger positive effects on productivity and negative effects on unit labor costs. All four channels interact, sometimes complementing, sometimes substituting one another. For instance, foreign ownership boosts exports at the extensive margin while being an importer and/or having a foreign-experienced manager help at the intensive margin; conversely, the marginal productivity gains of foreign-ownership are greatly reduced when the firm is already an exporter. Breaking down the effects of each channel by firm size, we show that smaller firms stand the most to gain from export market participation and foreign-ownership.
    Keywords: foreign direct investment, entrepreneurship, trade, productivity, wages, labor costs, leverage, firm size distribution
    JEL: D22 D24 F23 G34 J3 L20 M10
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15903&r=eur
  21. By: Basiglio, Stefania (University of Bari); Del Boca, Daniela (University of Turin); Pronzato, Chiara D. (University of Turin)
    Abstract: This paper evaluates the impact of "Coding Girls", an educational enrichment program designed to address the underrepresentation of women and girls in the fields of science, technology, engineering, and math (STEM) in Italy by stimulating young female students' interest in programming and science and encouraging them to consider careers in STEM-related fields. Implemented in ten secondary schools in Turin (Italy) over the period 2019-2022, the Coding Girls program provided lab-based computer programming instruction as well as introductory talks on specific topics in STEM. The program was evaluated by randomized controlled trial. Our results show that Coding Girls had a significant and positive impact on male and female students' programming skills and on their awareness of gender differences in the workforce. However, it did not seem to affect girls' aspirations to pursue higher education in STEM-related disciplines. The gender stereotypes children are exposed to from a very young age tend to steer girls and young women to the humanities. This bias is deeply entrenched and difficult to modify.
    Keywords: gender, STEM, higher educational choice
    JEL: J16 I23
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15882&r=eur
  22. By: Di Cosmo, Valeria; Tiezzi, Silvia
    Abstract: When judging the distributional impact of a sin tax, what matters is not just how much low income people would pay but how much the tax would benefit or harm them overall. In this paper we assess the consumer welfare impact of a fat tax net of its expected benefits computed as savings from averted internalities. Using data on Italian consumers we estimate a censored Exact Affine Stone Index (EASI) incomplete demand system for food groups and simulate changes in purchases, calorie intake, consumers’ welfare and the monetary value of health benefits after the tax. Our results suggest costs from taxation larger than benefits at all income levels. As a fraction of income, the net impact would be regressively distributed.
    Keywords: sin taxes; internality benefits; welfare costs; exact affine stone index demand system; demand elasticities; micronutrients intake
    JEL: C3 H22 H23 I3 I39
    Date: 2023–01–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:116214&r=eur
  23. By: MAIER ESSINGER Sofia (European Commission - JRC); RICCI Mattia (European Commission - JRC)
    Abstract: During the 2010-2019 decade, consumption taxes have risen in the vast majority of the EU Member States as a result of austerity measures, tax shifts as well as taxing transport and housing-related energy consumption. The redistributive impact of these policy changes remains mostly unexplored. In this paper, we provide new empirical evidence on the redistributive effect of changes in VAT and excises over this period, along with other developments in the broader tax-benefit system including tax shift reforms. Our results indicate that the consumption tax systems in the EU have become more unequalizing in most countries as a result of an increase in the tax burden and of its regressivity. While the taxation of transport is the component that has increased the most, the highest inequality impact was driven by the taxation of housing-related energy consumption. Only in a few countries these policy changes were accompanied by an increase in social transfers sufficient to compensate the poorest households.
    Keywords: Consumption taxation, Tax shift, Austerity, Inequality, Microsimulation
    Date: 2022–12
    URL: http://d.repec.org/n?u=RePEc:ipt:taxref:202210&r=eur

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