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on Microeconomic European Issues |
| By: | Caldarola, Bernardo (Mt Economic Research Inst on Innov/Techn, RS: GSBE other - not theme-related research); Mazzilli, Dario; Patelli, Aurelio; Sbardella, Angelica |
| Abstract: | Structural change consists of industrial diversification towards more productive, knowledge-intensive activities. However, changes in the productive structure bear in-herent links with job creation and income distribution. In this paper, by taking an economic complexity approach, we investigate the consequences of structural change defined in terms of labour shifts towards more complex industries on employment growth, wage inequality and functional distribution of income. The analysis is con-ducted for European countries using data on disaggregated industrial employment shares over the period 2010 – 2018. First, we identify patterns of industrial specialisa-tion by validating a country-industry industrial employment matrix using a bipartite weighted configuration model (BiWCM). Secondly, we introduce a country-level mea-sure of labour-weighted Economic Fitness, which can be decomposed in such a way as to isolate a component that identifies the movement of labour towards more complex industries the structural change component. Thirdly, we link structural change to i) employment growth, ii) wage inequality, and iii) the labour share of the economy. Our findings indicate that the structural change measure we propose is associated negatively with employment growth. However, it is also associated with lower income inequality: as countries move to more complex industries, they drop the least complex ones, so the (low-paid) jobs in the least complex sectors disappear. Finally, structural change predicts a higher labour ratio of the economy; however, this is likely to be due to the increase in wages rather than to job creation. |
| JEL: | E24 D63 J31 O11 O15 O52 |
| Date: | 2024–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024033 |
| By: | F. Angei |
| Abstract: | This paper studies the under-reporting of workplace injuries in Italy, leveraging administrative data on work accidents. Using a difference-in-differences approach, I compare injury reporting behavior across provincial economic sectors exposed to the news of a fatal workplace accident with those not exposed, providing a causal estimate of the effect of the news. The analysis reveals that, in the weeks following such news, the weekly number of non-severe injuries reported per 100, 000 workers increases. This suggests that, under typical conditions, a substantial number of non-severe accidents remain unreported. Two mechanisms drive this pattern - media coverage, which likely puts pressure on both firms and workers to better comply with reporting standards, and a strong presence of workers' unions. In fact, a decomposition of the ATT shows that the effect is stronger in provinces with higher union membership. |
| Keywords: | Workplace Injuries;Reporting Behaviour;Fatal Workplace Accidents;Media Coverage;unions;Difference-in-differences |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202503 |
| By: | Chiara Puccioni; Daniela Vuri |
| Abstract: | This study evaluates the impact of an Italian government initiative launched in 2007, which allocated €1 billion to regional governments to enhance early childhood care services for children aged 0-2, targeting both public and private childcare options. Exploiting variations in the timing of implementation across regions, we assess the program’s effectiveness in increasing the public provision of early childcare services and maternal labor market participation. Results show a significant increase in both public childcare slots and labor market participation among mothers. However, the initiative had limited effects on less-educated women, likely due to the service’s relatively high costs, which may hinder broader accessibility. |
| Keywords: | early childcare services, mothers’ labor supply, staggered difference-in-difference, dynamic estimates |
| JEL: | C21 C22 H52 H75 J13 J22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11656 |
| By: | RUEDA CANTUCHE Jose Manuel (European Commission - JRC); LOPEZ ALVAREZ Jorge (European Commission - JRC); PEDAUGA Luis (European Commission - JRC); CATALAN PIERA Alba (European Commission - JRC); MARQUES SANTOS Anabela (European Commission - JRC) |
| Abstract: | The EU’s commitment to reduce its reliance on fossil fuels affects the employment of certain economic activities, such as the coal based industries and other upstream activities in EU territories. Future policy interventions to counter-balance the negative effects of decarbonisation on employment need to ensure appropriate alternatives in those regions that can be most potentially affected by the coal transition, either directly or indirectly. At national level, in 2017, there were 430, 000 jobs that were directly or indirectly associated to coal production and coal-fired power plants in the EU, of which 46% were located in Poland, followed by Czechia and Romania. At regional level, the Silesian region in Poland hosted close to 90, 000 jobs associated to coal based activities, followed by the Romanian South-West Oltenia and other regions in Czechia (North-West). Our results identify those regions potentially most affected by ceasing coal based activities in the EU, also taking into account upstream employment effects in other regions and industries. Our results could help the design of the upcoming “Industrial Decarbonisation Accelerator Act” aiming to decarbonise European industry, informing policy measures that could ensure fossil fuel use reduction, and the creation of new job opportunities in the territories negatively affected by the transition. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139404 |
| By: | Gabriel Burdin; Jose Garcia-Louzao |
| Abstract: | Using detailed administrative data from Spain, we characterize how a first work experience in an employee-owned firm (EOF) versus a conventional firm can affect workers’ careers. We find that workers’ exposure to EOFs at the time of entry reduces daily wages by 8% over the first 15 years in the labor market. The wage penalty appears to be driven by differences in job mobility and wage returns to experience rather than by non-random selection. We show that workers who had their first job in EOFs have a strong attachment to this organizational model and are less likely to experience both voluntary and involuntary job separations over their careers, with quit and layoff rates 8% and 4% lower, respectively. In addition, we quantify lower wage returns to experience in EOFs, although there are no differences in subsequent career progression in terms of promotions. Taken together, the analysis suggests the existence of other job amenities offered by EOFs that may compensate for flatter wage profiles. |
| Keywords: | employee-owned firms, careers, wages, job mobility |
| JEL: | J31 J50 J62 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11632 |
| By: | Ander Iraizoz |
| Abstract: | In this paper, I investigate how individuals perceive the implicit contribution incentives provided by public pension systems. I use the unique setting of the Spanish public pension system, where self-employed workers are allowed to voluntarily determine the level of their Social Security contributions. Using quasi-experimental variations from three pension reforms, I find that most self-employed workers fail to take advantage of the extraordinary contribution incentives available in Spain, and often make suboptimal contribution choices. These results point to substantial challenges in perceiving implicit contribution incentives, which could lead to inefficiencies in raising Social Security contributions. Furthermore, my findings highlight the critical role of salience in improving the perception of contribution incentives, and thereby promoting greater economic efficiency. |
| Keywords: | contribution-benefit linkage, public pension, social security, salience |
| JEL: | D91 E21 H55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11636 |
| By: | Sacha den Nijs (Vrije Universiteit Amsterdam); Mark Thissen (Vrije Universiteit Amsterdam and Tinbergen Institute) |
| Abstract: | Resilience and competitiveness in relation to fossil energy dependencies is of increasing concern to industries and policy makers. We investigate to what extent the competitive position of industries in European regions are sensitive to changes in fossil fuel prices, and whether reductions in gas use along the value chain may increase regional industry resilience. A new spatial revealed cost competition model based on the input-output price model is used and calibrated to multi-regional world input-output tables on an EU NUTS 2 level. We obtain elasticities of fossil fuel prices on revealed cost competitiveness and analyze how they are affected by increased efficiency and electrification in production. We show that European regions are resilient to global coal price increases, whereas they are vulnerable to gas price shocks. The transition towards using less gas in production, by efficiency improvements or electrification, can reduce these gas price vulnerabilities. However, when competitors become more efficient instead, the vulnerability to such shocks may increase. Decarbonizing upstream sectors like electricity generation in the own region, own country or in Europe, can increase resilience of downstream industrial sectors in most European regions. |
| Keywords: | Competitiveness, regional resilience, fossil fuels, energy efficiency, global value chains, input-output analysis |
| JEL: | F18 Q41 R11 R15 |
| Date: | 2024–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20240061 |
| By: | Bernard, Josef; Refisch, Martin; Kostelecky, Tomas; Grzelak, Anna; Konopski, Michal; Klärner, Andreas |
| Abstract: | The concept of left-behind places or regions has skyrocketed in recent years and various empirical studies are using the concept to describe (not only) economically lagging regions. Yet, there is still no settled definition and method of measurement of left-behindness in the social sciences. In the methodological part this working paper presents a plausible conceptualisation and operationalisation of left-behind regions in European Union countries. The operationalization of “left-behindness” is guided by several principles: it is relative to national standards, multidimensional, and both structural and dynamic. Labour market regions are identified as the appropriate spatial unit for analysis. The study uses NUTS3 regions, aggregated for metropolitan areas and adjacent regions, excluding extraterritorial and small countries. A total of 918 regions across 25 countries are analysed using indicators related to economic viability, social structure, and population development from 1993 to 2021. Our empirical analysis highlights how the nature of “left-behindness” varies across Europe, with a particular focus on Central and Eastern Europe. In these regions, left-behindness is closely tied to regional disadvantages, char-acterized by low economic prosperity, reduced social status, and higher poverty rates. These areas often experi-ence stagnation or shrinkage, with non-metropolitan regions being particularly affected, possibly due to poorer infrastructure. In other parts of Europe, the different dimensions of left-behindness are less coherently associ-ated and do not form clear spatial patterns. In particular, poverty is spatially decoupled from low economic pros-perity in many countries. Overall, we identified macro-regional differences of left-behindness manifestation across Europe, shaped by historical, economic, and social factors unique to each region. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:jhimwp:349286 |
| By: | Gabor Katay (European Commission, Directorate†General for Economic and Financial Affairs); Palma Filep-Mosberger (Magyar Nemzeti Bank (Central Bank of Hungary)); Francesco Tucci (Sapienza Università di Roma) |
| Abstract: | The paper evaluates the impact of the European Commission’s Seventh Framework Programme (FP7) grants on profit†oriented firms’ post†treatment performance. Using a quasi†experimental design and a dataset covering applicants from 46 countries, we find that FP7 grants increase firms’ sales and labour productivity by about 18%. However, there is no significant impact on employment levels, pointing to potential growth barriers that prevent firms from scaling production despite improved productivity. The effectiveness of these grants varies significantly based on factors such as financial constraints, project risk profiles, market structure, and the innovation environment. Smaller, less productive firms with tighter financial constraints in technologyintensive sectors operating in concentrated markets and favourable innovation environments, particularly those undertaking longer and riskier projects, tend to benefit more. |
| Keywords: | EU funds for research and innovation; firm productivity; regression†discontinuity design. |
| JEL: | C31 G28 H57 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mnb:wpaper:2025/1 |
| By: | Marco De Simone; Dario Guarascio; Jelena Reljic |
| Abstract: | This paper examines the impact of robotisation on workplace safety in EU manufacturing sectors between 2011 and 2019. To address endogeneity concerns, we employ an instrumental variable approach and find that robot adoption reduces both injuries and fatalities. Specifically, a 10 per cent increase in robot adoption is associated with a 0.066 per cent reduction in fatalities and a 1.96 per cent decrease in injuries. Our findings highlight the context-dependent nature of these effects. The safety benefits of robotisation materialise only in high-tech sectors and in countries where industrial relations provide strong worker protections. In contrast, in traditional industries and countries with weaker institutional frameworks, these benefits remain largely unrealised. The results are robust to several sensitivity tests. |
| Keywords: | EU, robotisation; technology; workplace safety; injuries; fatalities; industrial relations |
| JEL: | J01 J08 J28 J50 J81 L60 O33 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:sap:wpaper:wp255 |
| By: | BRUN Lidia (European Commission - JRC); PYCROFT Jonathan; SPEITMANN Raffael (European Commission - JRC); STASIO Andrzej Leszek (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | Most Member States have already transposed the EU Minimum Corporate Tax Directive that implements the so-called "Pillar Two" of the global agreement to address the tax challenges arising from the digitalisation of the economy. The Directive ensures a 15% global minimum level of taxation of for multinational enterprise groups and large-scale domestic groups in the Union that have an effective tax rate below 15%. The new top-up tax is expected to reduce profit shifting. While previous estimates have been produced by the IMF, OECD and EU Tax observatory, we bring complementary evidence by considering also the long-term and economy-wide impact of Pillar Two for the EU. Our empirical estimates, based on the 2017-2021 country-by-country reporting (CbCR) data collected by the OECD, suggest that Corporate Income Tax (CIT) revenues in the EU would increase on average by 7.1% or EUR 26 billion annually from the implementation of the Global Minimum Tax Rules by all EU countries in the short run. These calculations take into account the recent policy developments in the US concerning the opt-out from the Pillar Two agreement. Our long-term fiscal projections, once the impact of Pillar Two implementation on business investment is factored in, indicate that CIT revenues would increase annually by 7.0% (EUR 25.7 billion) for the EU as a whole. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141119 |
| By: | Meijers, Huub (RS: GSBE MORSE, RS: GSBE other - not theme-related research, Macro, International & Labour Economics, Mt Economic Research Inst on Innov/Techn); Muysken, Joan (RS: GSBE other - not theme-related research, Macro, International & Labour Economics, RS: GSBE - MACIMIDE) |
| Abstract: | The overarching main purpose of this paper is to detail all data collection and data manipulation and choices to be made to come to a consistent dataset to estimate and calibrate an SFC model, for which we use the model as specified in Meijers and Muysken (2022) as reference. This also enables us to show more in general how data collection from national accounts in a stock-flow consistent way influences the modelling of an economy. We give examples for the composition of the wealth of households by including non-traded assets, the composition of the wealth of firms by identifying direct investments – both outward and inward, and the composition of the wealth of government by pointing out the substantial amount of assets owned by the government, which we ignore. Next to that, we identify the impact of pension funds on both decisions made by households, including forced savings, and on the entire financial sector. We show how the net foreign debt accumulates through a persistent trade balance surplus and is financed to a large extent by pension funds. Finally, we show that corrections in income and savings are required to retain the consistency of the model while staying close to the national accounts. All these observations have important consequences for modelling the savings and investment behaviour of the various sectors. |
| JEL: | E01 B50 E60 F47 G21 G32 E44 E47 |
| Date: | 2024–08–13 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024017 |
| By: | Hennicke, Peter |
| Abstract: | Mitte Oktober 2024 veröffentlichten das Wuppertal Institut und der Club of Rome ihr Buch "Earth for All Deutschland - Aufbruch in eine Zukunft für Alle". Darin präsentieren sie Vorschläge, wie Umweltkrisen überwunden und gleichzeitig Demokratie und Wohlstand gesichert werden können. Denn: Die Herausforderungen sollten nicht isoliert betrachtet werden, sondern die dafür notwendigen Lösungsbausteine können sich positiv ergänzen und gegenseitig verstärken. Im Buch beleuchten die Autor*innen sechs ineinandergreifende Wenden, die für einen gesellschaftlichen Wandel am ausschlaggebendsten sein werden: die Überwindung von Armut, den Abbau von Ungleichheit, einen anderen Umgang mit Ressourcen, die Förderung von Empowerment, eine nachhaltige Ernährung und das Vorantreiben der Energiewende. Mit diesem Wuppertal Paper legt Peter Hennicke, Mitglied des Club of Rome und Senior Advisor am Wuppertal Institut, einen Deep Dive speziell zur Energiewende vor. Darin betont er besonders die notwendige Kombination der drei Säulen Effizienz, Konsistenz und Suffizienz, die für eine nachhaltige Klima- und Energiepolitik essentiell sind. Hennicke umreißt dazu zunächst die kontroverse Geschichte der deutschen Energiewende seit den 1980er Jahren. Auf dieser Basis widmet er sich aktuellen und zu erwartenden Interessenkonflikten sowie bestehenden Pfadabhängigkeiten - etwa der Abhängigkeit des Verkehrssektors von fossilen Energien - und skizziert Politikmaßnahmen, mit denen sich diese auflösen lassen. Demgegenüber stellt er ein Szenario des "Weiter so", in dem die dringend benötigte sozial-ökologische Transformation nicht entschlossen genug vorangetrieben wird, und beschreibt die absehbar gravierenden Folgen für Wirtschaft, Umwelt und Gesellschaft. Anschließend geht Hennicke auf die Finanzierbarkeit und die gesellschaftliche Umsetzbarkeit der gleichzeitigen Durchführung aller sechs Kehrtwenden ein und erläutert, was die Wissenschaft tun kann, um die Politik dabei zu unterstützen und ihr die dafür notwendige breite Wissensbasis zur Verfügung zu stellen. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wuppap:310319 |
| By: | Busch, Berthold |
| Abstract: | Der Europäische Binnenmarkt ist inzwischen schon mehr als 30 Jahre alt. Er hat den freien Verkehr von Personen, Waren, Dienstleistungen und Kapital innerhalb der Europäischen Union (EU) zum Ziel. Es gibt jedoch immer noch Hindernisse für diese vier Freiheiten. Die Europäische Kommission will mit einer neuen Strategie dagegen vorgehen. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkkur:309596 |
| By: | International Monetary Fund |
| Abstract: | The Czech Republic is evolving from a heavily manufacturing-based, export-oriented hub to a more mature and diversified economy. Non-auto manufacturing, energy, and construction, once important Czech engines of growth, have run out of steam, hampered by decelerating productivity growth, higher energy costs, and sluggish demand. The auto industry has shown resilience so far, but the required transition to electric vehicles and exposure to foreign competition are set to exert significant pressures in the coming years. Higher value-added sectors, including ICT services, are constrained by lack of skilled labor and limited access to capital, undermining their ability to compete in global markets. |
| Date: | 2025–02–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2025/035 |
| By: | Antoine Bozio (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IPP - Institut des politiques publiques, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Étienne Fize (IPP - Institut des politiques publiques); Arthur Guillouzouic (IPP - Institut des politiques publiques); Clément Malgouyres (CREST - Centre de Recherche en Economie et Statistique [Bruz] - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz], PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IPP - Institut des politiques publiques, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laurent Bach (ESSEC Business School) |
| Abstract: | L'objectif affiché des réformes de la fiscalité du capital mises en place entre 2017 et 2018 était de baisser la fiscalité sur le capital afin de soutenir l'investissement privé, et in fine la croissance de l'économie française. L'enjeu d'évaluation est donc de pouvoir quantifier ces potentiels effets sur l'investissement, et plus généralement sur la circulation du capital dans l'économie. Les précédents travaux de recherche menés jusqu'à présent n'ont pas mis en évidence d'effets sur l'investissement de la mise en place du PFU pour les entreprises déjà existantes (Bach et al., 2021a), et le constat s'est avéré similaire pour la transformation de l'ISF en IFI (Bach et al., 2021b). La marge intensive de l'investissement ne semble donc pas être une marge de réponse comportementale majeure aux modifications de la fiscalité sur la distribution des revenus ou sur le stock de capital. Les travaux de recherche sur données françaises ont, par contre, mis en évidence une forte réaction de la distribution des revenus du capital à ces réformes, avec notamment une très forte hausse de la distribution des dividendes à la mise en place du PFU (Bach et al., 2019, 2021a), mais aussi à la mise en place de l'IFI avec la suppression du mécanisme du plafonnement (Bach et al., 2023). L'objectif de l'étude présentée dans ce rapport est de compléter ces travaux en mesurant l'impact des réformes du PFU et de l'IFI sur des décisions d'investissement à la marge extensive, c'est-à-dire correspondant à des choix discrets d'investissement comme la création d'entreprise, l'expatriation ou au retour d'entrepreneurs, et les décisions de réinvestissement de capital. |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:pseptp:halshs-04439415 |