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on Microeconomic European Issues |
| By: | Marbach, Moritz; Vallizadeh, Ehsan; Harder, Niklas; Hangartner, Dominik; Hainmueller, Jens |
| Abstract: | Given the global displacement crisis, the integration of refugees has emerged as a critical policy issue for many host countries. A key challenge involves supporting refugees in learning the language of their host country. While several European nations have instituted publicly funded language training for asylum seekers and refugees soon after their arrival, evidence on the efficacy of these early language programmes in promoting economic integration remains limited. This study examines the impact of a pioneering, large-scale ad hoc programme introduced by German policymakers, which provided basic language training to over 230, 000 refugees arriving in 2015–2016. Utilizing register data on the population of asylum seekers and exploiting a cut-off date in programme eligibility, we assess the programme’s effectiveness using a regression discontinuity design. Our findings reveal no discernible effect on refugee employment over the subsequent 2 years. To explore whether language programmes are generally ineffective during refugee crises, we contrast these results with the impacts of a more comprehensive, preexisting, yet smaller-scale programme. Using a variety of difference-in-differences estimators, we find that this programme considerably increased refugee employment. These contrasting findings offer important insights for policymakers on designing effective language training programmes for refugees. |
| Keywords: | Immigrant integration; Refugee language training programme; Regression discontinuity design |
| JEL: | C1 |
| Date: | 2025–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126883 |
| By: | Cristina Bellés-Obrero (Universitat de Barcelona & IEB); Sergi Jiménez-Martín (Universitat Pompeu Fabra); Han Ye (University of Mannheim) |
| Abstract: | This paper studies the mortality effect of delaying retirement by investigating the impacts of the 1967 Spanish pension reform, which affected the general population and exogenously changed the early retirement age, depending on the date individuals started contributing to the pension system. Using the Spanish administrative data, we find that delaying retirement by one year increases the hazard of dying between the ages of 60 and 69 by 38 percent. We show that the reform leads to higher mortality in all subgroups, and the effects are statistically stronger for those employed in sectors with the highest workplace accidents and for those with low selfvalue jobs. Moreover, we show that allowing flexible retirement mitigates the adverse effects of delaying retirement. |
| Keywords: | Delaying Retirement, Mortality, Heterogeneity, Work Conditions |
| JEL: | I10 I12 J14 J26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-07 |
| By: | Anna Herget; Regina T. Riphahn |
| Abstract: | Many countries subsidize low-income employments or small jobs. These subsidies and their phasing out can generate labor market frictions and distort incentives. The German Minijob program subsidizes low-income jobs. It generates a 'Minijob trap' with substantial bunching along the earnings distribution. Since 2003, the newly introduced Midijob subsidy aims to reduce the Minijob-induced notch in the net earnings distribution. Midijobs reduce payroll taxes for employments above the Minijob earnings ceiling. We investigate whether introducing Midijobs reduced the Minijob trap. We apply a regression discontinuity design using administrative data and a difference-in-differences estimation using survey data. While in both cases our results show a small positive overall effect of Midijobs on transitions out of Minijobs, they are effective only for a narrow treatment group. |
| Keywords: | Midijobs, Minijobs, payroll tax subsidy, causal effects, difference-in-differences, regression discontinuity, SOEP, SIAB |
| JEL: | J21 J38 H24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11605 |
| By: | Andrea Salustri; Maria Alessandra Antonelli (Università Sapienza di Roma - Dipartimento di Studi Giuridici ed Economici) |
| Abstract: | We illustrate an empirical analysis carried out for 22 European countries over the period 2008-2019 of the relationships between a set of socio-economic indicators and social protection expenditure functions. The empirical evidence suggests that expenditure targeting is relevant in the implementation of social policy objectives. Furthermore, non-linear relationships emerge between expenditure functions and performance indicators. Finally, results might suggest the relevance of the socio-cultural dimension as a determinant of the effectiveness of social policies. |
| Keywords: | social protection systems, compensation policies, social investments, social expenditure functions, socioeconomic indicators |
| JEL: | I31 I38 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:gfe:pfrp00:00066 |
| By: | Carcaba, Ana; Gonzalez, Eduardo; Arrondo, Ruben |
| Abstract: | Determining what makes a person happy is an extremely complicated task. The objective of this article is to identify the effects of the composition and orientation of governance bodies in municipalities on individual subjective well-being. We connect the data from a large Spanish welfare survey to municipal data covering the aforementioned dimensions of political configuration. Unlike previous country-level studies, we find no significant effects of political orientation when applied to municipal data. In contrast, political alternation emerges as a relevant driver of subjective well-being, especially when corrupt local governments are replaced. Furthermore, the fragmentation in the Spanish political landscape after the 2015 elections improved the level of political competition, which, in turn, exerted a positive effect on subjective well-being. |
| Keywords: | Good governance; subjective well-being; political competition; local government; Spain |
| JEL: | H75 I31 I38 M41 |
| Date: | 2023–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123248 |
| By: | Fuinhas, José Alberto; Javed, Asif; Sciulli, Dario; Valentini, Edilio |
| Abstract: | Governments across the globe are implementing stricter environmental policies to combat climate change and promote sustainability. This study contributes to the growing literature exploring the influence of environmental policy on skill-biased employment across various occupations. Specifically, we examine the causal effect of the revised version of Environmental Policy Stringency Index (EPS) and its components on skill-biased employment, focusing on occupations such as managers, professionals, technicians, and manual workers across 21 European economies from 2008 to 2020. Using the Method of Moments Quantile Regression (MMQR), the findings reveal that stringent environmental policies affect employment shares across different occupational categories. Skilled workers tend to benefit more from such policies, with a notable increase in the employment of professionals across all policy measures and a more differentiated impact among technicians and managers. In contrast, manual workers are generally adversely affected by environmental policies. These asymmetric effects on occupations exacerbate labour market inequalities, including disparities in employment levels and potential earnings. This research highlights the importance of designing tailored policies to mitigate adverse labour market outcomes while facilitating a transition to sustainable economic practices. |
| Keywords: | Climate Change, Environmental Economics and Policy, Labor and Human Capital, Sustainability |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:349167 |
| By: | Bracht, Felix; Verhoeven, Dennis |
| Abstract: | If air pollution harms innovation — and therefore future productivity — existing assessments of its economic cost are incomplete. We estimate the effect of fine particulate matter concentration on inventive output in 977 European regions. Exploiting thermal inversions and weather-induced ventilation of pollutants for identification, we find that a decrease in air pollution equivalent to the average yearly drop in Europe leads to 1.2% more patented inventions in a given region. A back-of-the-envelope calculation suggests that accounting for the effect on innovation increases the economic cost of air pollution as assessed in prior work by about three quarters. |
| Keywords: | air pollution; air quality; innovation; productivity |
| JEL: | R14 J01 N0 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126875 |
| By: | Kris De Jaegher; Michal Šoltés; Vitezslav Titl |
| Abstract: | Public procurement contracts require frequent renegotiation. We exploit the Czech implementation of an EU policy as a natural experiment to investigate the effect of eased renegotiation rules. We document that the eased renegotiation rules decreased winning bids but did not change the final price: the extra renegotiated price compensates for the lower winning bids. We next develop a stylized theoretical model to explain these results. Finally, we provide suggestive evidence of changes in contract allocation, but find no evidence of any reduction in the quality of the delivered objects. |
| Keywords: | public procurement, renegotiation, contracts |
| JEL: | H57 D44 D73 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11603 |
| By: | Ghizlen Ouasbaa (TecnoCampus University Center & IEB) |
| Abstract: | This paper examines the lasting impact of tourism specialization on per capita income in Spanish municipalities, aiming to understand the factors driving these effects. We employ two distinct approaches. The first one focuses on tourism development since the initial boom in the 1960s and relies on cross-sectional variation in tourism exposure related to amenities like beaches and weather for identification. The second method looks at a later wave of tourism development in the 1990s, using a shiftshare analysis that combines the share of residents from tourist-source countries in each municipality with the growth rate of tourists from these countries throughout Spain. The findings indicate that municipalities with the highest growth in tourism specialization now exhibit lower per capita income. A municipality experiencing an increase in tourism per capita over time equal to the sample median has a per capita income between 21% and 22% lower as of 2019, depending on the approach used. This decline in income is associated with an increase in temporary job contracts, with a decrease in industrial employment, and with lower levels of educational attainment. |
| Keywords: | Tourism specialization, local economic growth, long-term effects, local labor markets. |
| JEL: | R11 R23 Z32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-14 |
| By: | Rentschler, Johannes |
| Abstract: | Intermodal transportation refers to the movement of goods in one and the same loading unit, which uses successively two or more modes—such as rail, road, and maritime—without handling the goods themselves in changing modes. This approach capitalizes on the strengths of each transportation mode, optimizing efficiency, cost-effectiveness, and environmental sustainability. This dissertation investigates continental intermodal transportation in Europe. It thereby focuses on the configuration of intermodal transportation networks and the transformative impact of digitalization. The European intermodal transportation market, characterized by diverse actors, varying laws, and non-standardized processes, presents distinctive challenges. These differences necessitate tailored approaches to address unique circumstances effectively. Given this complexity, multiple research methodologies on different planning levels are employed to systematically explore the structural configuration of transportation networks and the impact of digitalization. Qualitative methods, such as case studies and expert interviews, complement quantitative models by providing contextual and experiential insights and practical knowledge from industry professionals and stakeholders. Case studies are particularly suitable for analyzing the European intermodal transportation market. They allow for in-depth exploration of specific contexts, capturing nuances that broader methods might miss, providing a nuanced understanding of intermodal transportation systems, and helping to develop actionable solutions. The main body of this dissertation is based on five research papers. The first two papers investigate the structural configuration of intermodal transportation networks and its impact on overall system performance. By integrating strategic hub location and tactical service network design models, the research provides deeper insights into network structure, leading to optimized configurations that enhance efficiency and reduce costs. A case study involving a German intermodal operator demonstrates that this integration leads to more realistic and efficient network designs, considering economies of scale and density. In the third paper, the feasibility and benefits of continental intermodal transportation as a possible solution for connecting Asia and Europe are studied. The qualitative analysis of the Trans-Caspian Corridor through interviews with logistics companies and political authorities revealed the intricate geopolitical and strategic challenges influencing the corridor's development.The fourth paper focuses on ETA forecasts in the pre-and post-haulage of intermodal transportation. Digitalization and real-time data significantly improve operational processes in intermodal transportation by enhancing visibility and enabling dynamic adjustments to routing and scheduling. A simulation study shows that ETA forecasts lead to an average cost reduction of 7%. The fifth paper investigates how digitalization drives the evolution of intermodal transportation towards synchromodal transportation, where different transportation modes are seamlessly integrated, providing flexible and adaptive real-time solutions. The integration of digital technologies such as IoT, blockchain, and AI further supports this transition, offering advanced tools for real-time monitoring, data analytics, and decision-making. The findings of this dissertation contribute to both academic knowledge and practical applications, providing valuable insights for policymakers, industry stakeholders, and researchers in the field of intermodal transportation. |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:152591 |
| By: | Pilar Rey del Castillo |
| Abstract: | This paper explores the evolution of non-working time in Spain over recent years by analysing the results of two surveys conducted by the National Statistics Institute: the Quarterly Survey on Labor Costs and the Labor Force Survey. Using time series models and intervention analysis, potential reasons for the discrepancies between the two surveys are identified and a procedure is proposed to "reconcile" their results. Furthermore, the most notable change found in the behavior of non-working hours has been an increase of around 2% from the second quarter of 2019 as a result of the entry into force of a legal reform that implemented the mandatory recording of working time. |
| Keywords: | labor cost survey, labor force survey, time series, ARIMA models, intervention analysis |
| JEL: | C22 C81 C83 J21 J22 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11604 |
| By: | Mehling, M. A.; Dolphin, G.; Ritz, R. A. |
| Abstract: | Adopted in 2023, the Carbon Border Adjustment Mechanism (CBAM) is a significant component of the European Union's ambitious decarbonization strategy under the European Green Deal. This working paper questions the CBAM's effectiveness in achieving its stated objective, prevention of carbon leakage, but proceeds to document its impactful role in accelerating the global diffusion of carbon pricing. Empirical evidence for carbon leakage remains sparse, and implementation challenges would limit the capacity of the CBAM to counteract leakage even where it occurs. Nonetheless, the CBAM has already demonstrated a powerful spillover effect by incentivizing the acceleration of carbon pricing roadmaps across EU trading partners, suggesting that trade-related climate measures can effectively encourage global climate action. As the EU navigates the complexities of operationalizing the CBAM, it must balance several tradeoffs to maintain this important spillover effect. If successful, the CBAM could catalyze a virtuous cycle of carbon pricing adoption, reinforcing its pivotal role in the EU's toolbox to manage the environment-trade nexus. |
| Keywords: | CBAM, Carbon Pricing, Carbon Leakage, Environment-Trade Nexus, European Union |
| JEL: | F42 H23 Q58 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2459 |
| By: | Peter Levell (Institute for Fiscal Studies); Martin O'Connell (Institute for Fiscal Studies); Kate Smith (Institute for Fiscal Studies) |
| Date: | 2025–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:25/03 |