nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2023‒04‒03
23 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. The Health-Consumption Effects of Increasing Retirement Age Late in the Game By Eve Caroli; Catherine Pollak; Muriel Roger
  2. Do incompetent politicians breed populist voters? Evidence from Italian municipalities By Federico Boffa; Vincenzo Mollisi; Giacomo A. M. Ponzetto
  3. Gender wage gap among young adults: a comparison across British cohorts By Francesca Foliano; Alex Bryson; Heather Joshi; Bozena Wielgoszewska; David Wilkinson
  4. Do International Tourist Arrivals Change Residents' Attitudes Towards Immigration? A Longitudinal Study of 28 European Countries By Ivlevs, Artjoms; Smith, Ian
  5. Do role models matter in large classes? New evidence on gender match effects in higher education By Stephan Maurer; Guido Schwerdt; Simon Wiederhold
  6. Health System Trust and Compliance with COVID-19 Restrictions By Costa-Font, Joan; Vilaplana-Prieto, Cristina
  7. The Nature of Long-Term Unemployment: Predictability, Heterogeneity and Selection By Mueller, Andreas I.; Spinnewijn, Johannes
  8. Gender Differences in the Early Career Earnings of Economics Graduates By Bazen, Stephen; Charni, Kadija
  9. The role of product digitization for productivity By Schubert, Torben; Ashouri, Sajad; Deschryvere, Matthias; Jäger, Angela; Visentin, Fabiana; Cunningham, Scott; Hajikhani, Arash; Pukelis, Lukas; Suominen, Arho
  10. Is ‘employment during motherhood’ a ‘value changing experience’? By Borrell Porta, Mireia; Contreras Silva, Valentina; Costa-Font, Joan
  11. Bosses' Impatience and Digital Technologies By Stefania Basiglio; Andrea Ricci; Mariacristina Rossi
  12. Accidents at work in Italy: an empirical analysis at the regional level By Andrea Salustri; Marco Forti; Maria Alessandra Antonelli; Alessia Marrocco
  13. University study programmes and students dynamics By L. Ciucci; C. Detotto; B. Biagi; M. Pulina
  14. Partisan Abortions By Libertad González Luna; Luis Guirola; Blanca Zapater
  15. Institutional reforms and the employment effects of spatially targeted investment grants: The case of Germany's GRW By Bj\"orn Alecke; Timo Mitze
  16. Robot adoption, worker-firm sorting and wage inequality: Evidence from administrative panel data By Ester Faia; Gianmarco I. P. Ottaviano; Saverio Spinella
  17. Fiscal Reform in Spanish Municipalities: Gender Differences in Budgetary Adjustment By Israel García; Bernd Hayo
  18. Does Schooling Affect Political Attitudes? Quasi-Experimental Evidence By Dominik Stelzeneder
  19. Does Offshoring Shape Labor Market Imperfections? A Comparative Analysis of Belgian and Dutch Firms By Dobbelaere, Sabien; Fuss, Catherine; Vancauteren, Mark
  20. How Middle-Skilled Workers Adjust to Immigration: The Role of Occupational Skill Specificity By Pregaldini, Damiano; Backes-Gellner, Uschi
  21. Gendered parenthood-employment gaps in midlife: a demographic perspective across three different welfare systems By Angelo Lorenti; Jessica Nisén; Letizia Mencarini; Mikko Myrskylä
  22. Intergenerational and Sibling Spillovers in High School Majors By Rooth, Dan-Olof; Stenberg, Anders
  23. Nonresponse Bias in Trust Surveys By Bergh, Andreas; Bjørnskov, Christian; Öhrvall, Richard

  1. By: Eve Caroli (Legos - Laboratoire d'Economie et de Gestion des Organisations de Santé - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Catherine Pollak (DREES - Centre de Recherche du DREES - Ministère de l'Emploi et de la Solidarité, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Muriel Roger (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: Using the differentiated increase in retirement age across cohorts introduced by the 2010 French pension reform, we estimate the health-consumption effects of a 4-month increase in retirement age. We focus on individuals who were close to retirement age but not retired yet by the time the reform was passed. Using administrative data on individual sick-leave claims and nonhospital health-care expenses, we show that the probability of having at least one sickness absence increases for all treated groups, while the duration of sick leaves remains unchanged.Delaying retirement does not increase the probability of seeing a GP, except for men in the younger cohorts. In contrast, it raises the probability of having a visit with a specialist physician for all individuals, except men in the older cohorts. Delaying retirement also increases the probability of seeing a physiotherapist among women from the older cohorts. Overall, itincreases health expense claims, in particular in the lower part of the expenditure distribution.
    Keywords: Pension reform, Retirement age, Health, Health-care consumption, DT LEDa-LEGOS
    Date: 2022–12–15
  2. By: Federico Boffa; Vincenzo Mollisi; Giacomo A. M. Ponzetto
    Abstract: Poor performance by the established political class can drive voters towards anti-establishment outsiders. Is the inffectiveness of incumbent politicians an important driver of the recent rise of populist parties? We provide an empirical test exploiting a sharp discontinuity in the wage of local politicians as a function of population in Italian municipalities. We find that the more skilled local politicians and more effective local government in municipalities above the threshold cause a signiÂ…cant drop in voter support for the populist Five-Star Movement in regional and national elections. Support for incumbent governing parties increases instead.
    Keywords: Populism, Government e¢ ciency, Politician quality, Political agency
    JEL: D72 D73 H70
    Date: 2023–03
  3. By: Francesca Foliano (University College London); Alex Bryson (University College London); Heather Joshi (University College London); Bozena Wielgoszewska (University College London); David Wilkinson (University College London)
    Abstract: We study the evolution of the gender wage gap among young adults in Britain between 1972 and 2015 using data from four British cohorts born in 1946, 1958, 1970 and 1989/90 on early life factors, human capital, family formation and job characteristics. We account for non-random selection of men and women into the labour market and compare the gender wage gap among graduates and non-graduates. The raw and covariate adjusted gender wage gaps at the mean decline over the period among non- graduates, but they rise among young graduates. The gender wage gap across the wage distribution narrows over time for lower wages. Adjusting for positive selection into employment increases the size of the gender wage gap in earlier cohorts, but selection is not apparent in the two most recent cohorts. Thus the rate of convergence in the wages of young men and women is understated when estimates do not adjust for positive selection in earlier cohorts. Differences in traditional human capital variables explain only a very small component of the gender wage gaps among young people in all four cohorts, but occupational gender segregation plays an important role in the later cohorts.
    Keywords: gender wage gap; birth cohorts; employment selection; graduates; occupational segregation.
    JEL: J16 J2 J3
    Date: 2023–03–01
  4. By: Ivlevs, Artjoms (University of the West of England, Bristol); Smith, Ian (University of the West of England, Bristol)
    Abstract: Can international tourist arrivals change residents' attitudes towards immigrants and immigration? We discuss possible underlying mechanisms and provide the first evidence on this question using data from the European Social Survey (2002-2019; n=333, 505). We find that, as tourist arrivals grow, residents become more positive towards immigration in Eastern Europe. In Western Europe, the relationship tends to turn from positive to negative at relatively high levels of tourism. The instrumental variable analysis suggests that incoming tourism has a positive causal effect on attitudes towards immigration in both Western and Eastern Europe. Overall, our study reveals an overlooked dimension of the tourism-migration nexus and highlights the role that international tourism may play in shaping attitudes towards immigration and, through these attitudes, immigration policy and flows, immigrant integration and more open and inclusive societies in tourism-receiving countries.
    Keywords: tourism, attitudes towards immigration, inclusion, Europe, instrumental variable analysis
    JEL: J61 L83
    Date: 2023–02
  5. By: Stephan Maurer; Guido Schwerdt; Simon Wiederhold
    Abstract: We study whether female students benefit from being taught by female professors, and whether such gender match effects differ by class size. We use administrative records of a German public university, covering all programs and courses between 2006 and 2018. We find that gender match effects on student performance are sizable in smaller classes, but do not exist in larger classes. This difference suggests that direct and frequent interactions between students and professors are important for the emergence of gender match effects. Instead, the mere fact that one's professor is female is not sufficient to increase performance of female students.
    Keywords: gender gap, role models, tertiary education, professors
    Date: 2023–01–09
  6. By: Costa-Font, Joan (London School of Economics); Vilaplana-Prieto, Cristina (Universidad de Murcia)
    Abstract: We examine the extent to which exposure to higher relative COVID-19 mortality (RM), influences health system trust (HST), and whether changes in HST influence the perceived ease of compliance with pandemic restrictions during the COVID-19 pandemic. Drawing on evidence from two representative surveys covering all regions of 28 European countries before and after the first COVID-19 wave and using a difference in differences strategy together with Coarsened Exact Matching (CEM), we document that living in a region with higher RM during the first wave of the pandemic increased HS. However, the effect is driven by individuals over 45 years of age, and the opposite is true among younger cohorts. We find that a higher HST reduces the costs of complying with COVID-19 restrictions, but only so long as excess mortality does not exceed the average by more than 20%, at which point the ease of complying with COVID-19 restrictions significantly declines, offsetting the positive effect of trust in the healthcare system. Our interpretation of the estimates is that RM is interpreted as a risk signal among those over 45, and as a signal of health-care system failure among younger age individuals.
    Keywords: healthcare system trust, mortality, lockdown, Eurobarometer, difference in differences, COVID-19
    JEL: I13 Z1
    Date: 2023–02
  7. By: Mueller, Andreas I. (University of Texas at Austin); Spinnewijn, Johannes (London School of Economics)
    Abstract: This paper studies the predictability of long-term unemployment (LTU) and analyzes its main determinants using rich administrative data in Sweden. Compared to using standard socio-demographic variables, the predictive power more than doubles when leveraging the rich data environment. The largest gains come from adding job seekers' employment history prior to becoming unemployed. Applying our prediction algorithm over the unemployment spell, we show that dynamic selection into LTU explains at least half of the observed decline in job finding. While the within-individual declines are small on average, we find substantial heterogeneity in the individual-level declines and thus reject the commonly used proportional hazard assumption. Applying our prediction algorithm over the business cycle, we find that the cyclicality in average LTU risk is not driven by composition but rather by within-individual cyclicality and that individual rankings are relatively persistent across years. Finally, we evaluate the implications of our findings for the value of targeting unemployment policies and how these change over the unemployment spell and the business cycle.
    Keywords: long-term unemployment, heterogeneity, selection, duration dependence, business cycle, targeting
    JEL: E24 J64
    Date: 2023–02
  8. By: Bazen, Stephen (Aix-Marseille University); Charni, Kadija (ESSCA School of Management)
    Abstract: In contrast to the UK, the USA and Germany, the majority of students in economics in France are female. Using a national survey of three cohorts of French university graduates in economics, we examine the gender differential in early career earnings. There is a significant raw differential in favour of male economics graduates in both starting pay and earnings three years after graduation, and the latter is wider than the former. Between 1998 and 2013 both gaps have narrowed but have not disappeared. The raw male-female pay differential stood at 10% for economics graduates in 2013. An Oaxaca decomposition reveals that nearly all of the gap is due to a persistent unexplained component. The gender differential among economics graduates is compared to that in two scientific subject areas: the female-dominated life sciences, and physics and chemistry (taken together) where a majority of graduates are male. The gender pay gap is smaller and the general level of earnings is lower in both science subject areas compared to economics. The decomposition attributes the limited gap in life sciences mainly to a composition effect, whereas in economics and physics and chemistry it is almost entirely due to the unexplained component. Gender differences in occupation suggest that female economics graduates are under-represented in more technical roles where two in five male graduates are found and where pay tends to be higher. However, even when occupation and sector are included as controls in an Oaxaca decomposition, two thirds of the gender differential remain unexplained.
    Keywords: gender earnings differentials, graduate labour market
    JEL: J31 J71
    Date: 2023–02
  9. By: Schubert, Torben; Ashouri, Sajad; Deschryvere, Matthias; Jäger, Angela; Visentin, Fabiana (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Cunningham, Scott; Hajikhani, Arash; Pukelis, Lukas; Suominen, Arho
    Abstract: Digitalization is considered an important driver of the unravelling societal and economic transformations. However, holding both promises and challenges, its effects on the performance of individual firms are still underexplored. In this paper, we recognize that digitalization may take many shapes and try isolating the effects specifically of product digitization on firm level labour productivity. Our analyses are based on a large Europe-wide unique dataset combining structured information from ORBIS and PATSTAT with novel web-scraped information on digitalization in firms involved in high-tech manufacturing. We show that digitalization benefits productivity. However, the effect appears to result exclusively from product digitization, while a general digital intensity measure turned out to be insignificant. Moreover, we show that the effects are stronger for firms with higher initial productivity and firms located in countries considered digitally leading. Our results from the European high-tech sector suggest that the digital transformation in Europe is slow paced and scaled-up in only a fraction of the firms.
    JEL: O49 C81 O33 D20 O47
    Date: 2023–02–14
  10. By: Borrell Porta, Mireia; Contreras Silva, Valentina; Costa-Font, Joan
    Abstract: We study whether the experience of ‘employment during motherhood’ (EDM) exerts an effect on attitudes towards the welfare effects of EDM, which proxy gender norms with regards to employment. We examine unique evidence from a large, representative, and longitudinal data set that collects attitudinal data over about a decade in the United Kingdom. We draw on an instrumental variable (IV) strategy that exploits variation in local labour markets using a Bartik instrument for employment to address the potential endogeneity of EDM experience in explaining attitudes. We find that both childless women who work and mothers who do not work are more likely to agree with the statement that ’pre-school children suffer if their mothers work’, which we interpret as more traditional gender values. However, this is not the case for women who work and have children. These findings suggest that motherhood confirms individuals’ priors, and suggest that EDM is a value preserving rather than a value changing experience. These results suggest that the so-called ‘motherhood penalty’ in employment trajectories cannot be fully explained by a change in attitudes after giving birth.
    Keywords: Elsevier deal
    JEL: J22
    Date: 2023–06–01
  11. 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
  12. By: Andrea Salustri; Marco Forti; Maria Alessandra Antonelli; Alessia Marrocco (Università Sapienza di Roma - Dipartimento di Studi Giuridici, Filosofici ed Economici)
    Abstract: This work proposes an analysis of occupational accidents in Italy at the regional level. To this end, INAIL and ISTAT data are used for the period 2010-2019 to apply different econometric estimation techniques (pooled OLS model, fixed effects model and random effects model) and to better consider regional specificities. As will be seen in the course of the work, in most of the estimates, the results show statistically significant correlations between some economic variables and the regional social context (GDP per capita, level of education, unemployment, fragility of the local labour market and level of crime in the region) and the accident phenomenon alternatively defined with different indicators. Therefore, the analysis seemingly confirms the relevance of the regional dimension, which should also be considered for possible policy interventions.
    Keywords: occupational accidents, business cycle, Italian regions, panel data
    JEL: J21 J28
    Date: 2023–03
  13. By: L. Ciucci; C. Detotto; B. Biagi; M. Pulina
    Abstract: This paper investigates the pull factors that influence the dynamics of first-year undergraduates at university. The focus is devoted to the role of internal supply factors (e.g. course quantity and quality, fees) and external factors related to the structural characteristics of the hosting location. Three main research questions are assessed. (RQ1) Are diversification and divergence of teaching programmes good strategies to increase demand? Do these eff�ects change with (RQ2) the internal characteristics of universities (i.e. size and quality of research) and/or (RQ3) the external characteristics of universities (i.e. geographical location, type of city, proximity of another university)? The empirical analysis employs Italian data over 2013-2019. Based on a panel data approach, the findings reveal a tendency to converge towards the typical national specialisation. Yet diversification, especially for small-sized universities, positively drives demand. Besides, interesting diff�erences are found at a geographical level. Based on the empirical findings, policy implications are drawn.
    Keywords: university;Short run dynamics;diversification;Divergence
    Date: 2023
  14. By: Libertad González Luna; Luis Guirola; Blanca Zapater
    Abstract: We study the effect of unexpected changes in the party in government on fertility outcomes, using administrative data on births and abortions for Spain. Following a difference-in-differences strategy, we find that, after an unanticipated loss by the party in power in 2004, municipalities with strong support for this party experienced a sharp increase in abortions (of about 0.10 pregnancy interruptions per 1, 000 women in the month following the election), as well as a decrease in pregnancies leading to live birth (of about 0.28 conceptions per 1, 000 women, for an average monthly birth rate of 3.9). We show that the surprise election results also had an immediate effect on citizens' economic expectations along partisan lines, a plausible channel for the impact on fertility decisions.
    Keywords: Fertility, economic expectations, abortion, partisanship
    JEL: J13 D72
    Date: 2023–03
  15. By: Bj\"orn Alecke; Timo Mitze
    Abstract: Spatially targeted investment grant schemes are a common tool to support firms in lagging regions. We exploit exogenous variations in Germany's main regional policy instrument (GRW) arriving from institutional reforms to analyse local employment effects of investment grants. Findings for reduced-form and IV regressions point to a significant policy channel running from higher funding rates to increased firm-level investments and newly created jobs. When we contrast effects for regions with high but declining funding rates to those with low but rising rates, we find that GRW reforms led to diminishing employment increases. Especially small firms responded to changing funding conditions.
    Date: 2023–02
  16. By: Ester Faia; Gianmarco I. P. Ottaviano; Saverio Spinella
    Abstract: Leveraging the geographic dimension of a large administrative panel on employer-employee contracts, we study the impact of robot adoption on wage inequality through changes in worker-firm assortativity. Using recently developed methods to correctly and robustly estimate worker and firm unobserved characteristics, we find that robot adoption increases wage inequality by fostering both horizontal and vertical task specialization across firms. In local economies where robot penetration has been more pronounced, workers performing similar tasks have disproportionately clustered in the same firms ('segregation'). Moreover, such clustering has been characterized by the concentration of higher earners performing more complex tasks in firms paying higher wages ('sorting'). These firms are more productive and poach more aggressively. We rationalize these findings through a simple extension of a well-established class of models with two-sided heterogeneity, on-the-job search, rent sharing and employee Bertrand poaching, where we allow robot adoption to strengthen the complementarities between firm and worker characteristics.
    Keywords: robot adoption, worker-firm sorting, wage inequality, technological change, finite mixture models
    Date: 2023–02–10
  17. By: Israel García (University of Marburg); Bernd Hayo (University of Marburg)
    Abstract: Do gender differences matter for politicians’ budgetary behaviour when confronted with an exogenous change in the institutional framework? After the 2013 Spanish municipal reform, municipalities with more than 20, 000 inhabitants were no longer responsible for managing the provision of social services. Using a difference-in-differences estimator in a sample of municipalities from the Madrid region for 2010−2019, we compare gender differences in social services spending before and after the reform between municipalities below 20, 000 inhabitants (control group) and above 20, 000 inhabitants (treatment group). Although social spending was, on average, significantly reduced in the treatment group post-reform, we observe significant differences between municipalities conditional on the gender composition of local governments, i.e. council and mayor. Whereas male-dominated governments cut social expenditure by about 20% of the total budget, gender-balanced and female-dominated governments did not. Moreover, gender-balanced governments combined with female mayors increased social services spending by 40% more than gender-balanced governments combined with male mayors. This finding supports the claim that social spending is, on average, of particular importance to female politicians, as they are willing to bend the law to uphold their interests.
    Keywords: Gender, Difference–in–differences, Exogenous reform, Political budget cycles, Spanish municipalities, Madrid region
    JEL: C23 E61 D72 H75 I38 J16
    Date: 2023
  18. By: Dominik Stelzeneder
    Abstract: In this paper I study the direct causal effects of schooling on political attitudes of vocational students in Austria. I exploit that classes of apprentices of the same grade level and vocation are as good as randomly assigned to different school terms. This allows to compare apprentices who were at school for ten weeks with apprentices who were at work in their training firms during that time. I find that schooling has a positive direct causal effect on political interest of vocational students. This increase in political interest is, however, not accompanied by a significant increase in voting intention. Furthermore, my results suggest that apprentices who went to school while being exposed to a political affair support different parties than those apprentices who were exposed to the affair at work.
    Date: 2023–03
  19. By: Dobbelaere, Sabien (Vrije Universiteit Amsterdam); Fuss, Catherine (National Bank of Belgium); Vancauteren, Mark (Universiteit Hasselt and Statistics Netherlands)
    Abstract: We study the relationship between offshoring and the prevalence and intensity of labor market imperfections at the firm level in Belgium and the Netherlands. Wage-markup pricing stemming from workers' monopoly power is more prevalent than wage-markdown pricing originating from firms' monopsony power in both countries. Offshoring benefits firms in that imports of final as well as intermediate goods are associated with a higher prevalence and intensity of wage markdowns. The widening effect of offshoring on wage markdowns arises from an increase in productivity that is only imperfectly passed through into an increase in wages. Offshoring is negatively related to the prevalence of wage markups. This also holds for the intensity of wage markups measured by workers' bargaining power in Belgium.
    Keywords: wage markdowns, wage markups, firm-level offshoring
    JEL: F14 F16 J42 J50
    Date: 2023–02
  20. By: Pregaldini, Damiano (University of Zurich); Backes-Gellner, Uschi (University of Zurich)
    Abstract: Our study explores the effects of immigration on the employment of native middle-skilled workers, focusing on how this effect varies with the specificity of their occupational skill bundles. Exploiting the 2002 opening of the Swiss labor market to EU workers and using register data on the location and occupation of these workers, our findings provide novel results on the labor market effects of immigration. We show that the inflow of EU workers led to an increase in the employment of native middle-skilled workers with highly specific occupational skills and to a reduction in their occupational mobility. These findings can be attributed to immigrant workers reducing existing skill gaps, enhancing the quality of job-workers matches, and alleviating firms' capacity restrictions. This allowed firms to create new jobs, thereby providing increased employment options for middle-skilled workers with highly specialized skills and reducing the need to change their occupations. This research provides novel insights on the impact of immigration on the labor market.
    Keywords: migration, cross-border workers, occupational skill specificity
    JEL: J15 J24 J62
    Date: 2023–02
  21. By: Angelo Lorenti (Max Planck Institute for Demographic Research, Rostock, Germany); Jessica Nisén (Max Planck Institute for Demographic Research, Rostock, Germany); Letizia Mencarini; Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Women’s labor force participation has increased remarkably in western countries, but important gender gaps still remain, especially among parents. This paper uses a novel comparative perspective assessing women’s and men’s mid-life employment trajectories by parity and education. We provide new insight into the gendered parenthood penalty by analyzing the long-term implications, beyond the core childbearing ages by decomposing years lived between ages 40 to 74 into years in employment, inactivity, and retirement. We compare three countries with very different institutional settings and cultural norms: Finland, Italy, and the U.S. Our empirical approach uses the multistate incidence-based life table method. Our results document large cross-national variation, and the key role that education plays. In Finland years employed increase with parity for women and men and the gender gap is small; in the U.S. the relation between parity and years is relatively flat, whereas among those with two or more children a gender gap emerges; and in Italy, years employed decreases sharply with parity for women, and increases for men. Education elevates years employed similarly for all groups in Finland; but in the U.S and Italy, highly educated mothers experience only half of the gender gap compared to low-educated mothers. The employment trajectories of childless women and men differ greatly across countries.
    JEL: J1 Z0
    Date: 2023
  22. By: Rooth, Dan-Olof (Swedish Institute for Social Research, Stockholm University); Stenberg, Anders (Swedish Institute for Social Research, Stockholm University)
    Abstract: This paper estimates family spillovers in high school major choice in Sweden, where admission to oversubscribed majors is determined based on GPA. Using a regression discontinuity design, we find large sibling and intergenerational spillovers that depend on the gender mix of a dyad. Same-gender siblings copy one another, while younger brothers recoil from older sister’s choices. Fathers and mothers influence sons, but not their daughters, except when a mother majors in the male-dominated program of Engineering. Back of the envelope calculations reveal these within family spillovers have sizable implications for the gender composition of majors.
    Keywords: intergenerational spillovers; sibling spillovers; high school majors; gender composition of majors
    JEL: I21 J24
    Date: 2023–03–16
  23. By: Bergh, Andreas (Department of Economics, Lund University); Bjørnskov, Christian (Aarhus University, Denmark); Öhrvall, Richard (Center for Local Government Studies, Linköping university)
    Abstract: Social trust is typically measured using surveys that ask people if they agree that most people can be trusted. A potential problem is that falling response rates plague these surveys. If non-responses are systematic, comparisons of social trust over time will be biased. We examine social and legal trust among non-respondents by conducting a classroom survey where the first part included questions on social and institutional trust and is answered during class, whereas a second part of the survey is handed in by respondents later. Surveys from 300 Danish and Swedish university students suggest that, if anything, social trust among survey responders are somewhat lower than among non-responders. Using two waves of the Swedish National Election Study, we also show that conditional on education; social trust is uncorrelated to dropping out of the panel survey.
    Keywords: Social trust; Legal trust; Survey data; Nonresponse bias
    JEL: C83 P48
    Date: 2023–02–23

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